Playtech banks on Florida against UK and Brazil gut punches

Playtech Plc has cited the US, Colombia and Mexico markets as bulwarks against the impact of higher taxes in the UK and the online gambling ban in Brazil impacting Q3 trading. The LSE-listed gambling technology group informed markets that it now expects to close 2026 with adjusted EBITDA of €300m (£270m), an outcome above its previously held analyst consensus. This is despite global gambling being rocked last quarter by Brazilian President Lula da Silva’s decision to impose a federal ban on online gambling. Brazil licensed operators were given until 5 October to close their platforms, and the ban is currently the subject of extensive deliberation in the Supreme Federal Court (STF). Playtech rolls with the punches Playtech states that it has been able to absorb the three-month impact on 2026 EBITDA airing from the Brazil shutdown. It does, however, expect a “more significant impact” should the ban remain in place in some form. As it stands, the two possible outcomes are either a rejection of Lula’s ban by the STF, or a rejection or amendment in Congress. Depending on if and when this occurs, Playtech’s Q1 2027 results will tell a different story, absorbing the impact of its clients’ full withdrawals from the market. Likewise, UK adjustments are ongoing, as the company stated it has been able to “absorb the full impact” of the increase in Remote Gaming Duty (RGD), the tax on online gambling, from 21% to 40% on 1 April 2026. Two more tax hikes are coming into effect on 1 April 2026, however. Florida sunshine For now, Playtech remains confident due to performance in other markets. Its partnership with Hard Rock Digital in the US has been cited as a strong bulwark, driven by results for its Past Motor Racing (PMR) historical racing-based slots product, offered exclusively by the Hard Rock Bet platform in Florida. Playtech has reported US revenue growth across H2 2026, although no figures have been published. “Looking to 2027, we expect performance to reflect growing competition from third-party PMR suppliers in the US, political and regulatory developments in Brazil and the first full-year impact of increased Remote Gaming Duty in the UK,” said Mor Weizer, Playtech’s Chief Executive Officer. “That said, we remain confident in the underlying strength of the business and the significant opportunities ahead as we continue to expand our presence in regulated and regulating markets and work towards the top-end of our medium-term targets.” The quarter marks a continuation of a trend of American anchoring for Playtech, with Americas markets proving its main growth driver. Its 30.8% equity stake in Mexican gaming operator Caliente is a particularly useful revenue stream. “We have continued to deliver an excellent performance in 2026 to date, reflecting sustained momentum in regulated markets, notably the Americas,” Weizer continued. “Performance in the US, driven by our partnership with Hard Rock Digital, has remained strong, contributing significantly to profitability and cash flow, while Mexico and Colombia have benefitted from tailwinds after the Men’s FIFA World Cup.”