Playtech Eyes Early 2027 Brazil Launch as EBITDA Jumps 77%

London-listed gambling software supplier Playtech PLC (LSE: PTEC) reported a 77% year-over-year surge in adjusted EBITDA to €162.5 million for the first half of 2026. Following the results published on September 10, Chief Executive Mor Weizer confirmed during the H1 analyst webcast that the group now expects to launch its major Brazilian platform partnership at the start of 2027.

The interim figures significantly outpaced consensus analyst expectations prior to Playtech’s July trading update. Group revenue expanded 10% year-over-year to €425.1 million (H1 2025: €387.0 million). Adjusted profit after tax soared to €95.0 million, up from €16.6 million in 2025, while free cash flow generation hit €101.0 million, leaving net cash at €39.2 million following a €25 million share buyback execution.

A launch in Connecticut also took its regulated US iGaming presence to six states.

Florida Did the Heavy Lifting

The standout line was North America. Revenue from the US and Canada jumped 161% to €56.9 million, up from €21.8 million.

Playtech credited this gain primarily to its expanded partnership with Hard Rock Digital (HRD) in Florida, driven by games integrated with Past Motor Racing mechanics. Management noted during the earnings call that this revenue contribution is expected to normalize to sustainable run-rates throughout the second half of 2026.

The North American footprint is widening too, with Alberta becoming a regulated market for Playtech on July 13.

The Rest of the Business

The B2B division, which is now almost the whole company since the Snaitech sale, grew revenue 14% to €394.8 million and adjusted EBITDA 75% to €128.1 million. Latin America brought in €99.9 million, and Playtech’s 30.8% stake in Mexico’s Caliente Interactive produced €30.1 million in income.

The UK went the other way. B2B revenue there fell 8% to €59.0 million, which Playtech put down to customer changes and higher remote gaming duty. Live casino revenue grew 8%, with around 480 tables running globally.

Brazil Waits on the Ballot Box

Brazil remains Playtech’s key strategic growth opportunity in Latin America. In 2025, Playtech secured a agreement to act as primary technology supplier for state-owned bank Caixa Econômica Federal as it enters the sports betting and iGaming space. Caixa has already paid the R$30 million license fee, but political pressure has pushed its launch back more than once, and in April it was delayed until 2027 at the earliest under pressure from President Luiz Inácio Lula da Silva.

Weizer didn’t name the client on the call, but he was blunt about why the timing slipped. “There were certain concerns that because it is an election year, and obviously, gaming is a political issue or there were references by politicians throughout the elections about gambling,” he said. “Given the sensitivity around that, we were kindly asked to collaborate with the government [and] with the prospective customer that we are in discussions with to wait until the elections.”

Still Expecting to Sign

He isn’t walking away. “I will say that the expectations remain the same to enter into an agreement and launch sometime at the beginning of next year,” Weizer said. The results statement puts the signing of that major strategic partnership in late 2026, and Playtech has already finished a São Paulo studio with native-speaking live dealers.

That puts Playtech inside a market that has been tightening since full regulation of fixed-odds betting began in January 2025. Only operators authorized by the Secretariat for Prizes and Betting can run a bet.br site, and the government has kept adjusting the tax side, including a tax increase on the young industry. Playtech’s own filing calls the tax picture there “evolving”.

Brazil Isn’t in the Guidance Yet

Chief financial officer Chris McGinnis said Brazil was never explicitly built into the medium-term targets Playtech set. “At that point, we sort of knew of the opportunity, but it wasn’t specifically factored into the guidance necessarily,” he said. Playtech plans to revisit those targets at its full-year results.

For now the company says it’s on track for full-year adjusted EBITDA of more than €270 million, and to hit the top end of its €250-300 million medium-term EBITDA range far earlier than planned. The second half will be lighter, it warned, because of normalizing Hard Rock Digital revenue, investment in the Brazil partnership and a full half of UK remote gaming duty.

Evolution Stays Off the Table

Weizer also declined to discuss the company’s ongoing legal dispute with Evolution. “I have a lot to say, but I can’t,” he said.

Brazil’s election is in October. Playtech’s big Brazil deal waits until the votes are counted.