Playtech Sees Brazil as Key Growth Market Despite Early Challenges

Playtech is positioning itself as a frontrunner in Brazil’s newly regulated gambling landscape, targeting growth well above market projections despite facing stiff regulatory and operational hurdles in its early months. The company, already a prominent supplier in Latin America, sees the Brazilian market as a cornerstone of its long-term expansion strategy.

During Playtech’s H1 earnings call, CEO Mor Weizer highlighted Brazil’s potential, stressing that the company aims to surpass the forecasted 15% annual market growth rate. Analysts anticipate Brazil’s gross gaming revenue (GGR) could reach $17 billion by 2030, and Playtech expects to grow even faster.

Weizer said Playtech’s presence among top operators like Betano and Bet365 has already delivered a share of wallet in Latin America of between 5% and 10%. He also noted that the supplier believes it is currently the market leader for onboarding services in Brazil, an area critical to customer acquisition under strict regulatory demands.

Although Playtech’s overall B2B revenue from Latin America fell 32% in the first half of 2024, that decline was mainly tied to a revised agreement with Mexican operator Caliente Interactive. Additional pressure came from Colombia’s recently imposed VAT. These setbacks were partly balanced by Brazil’s launch of licensed online sports betting and iGaming earlier this year.

The opening months of Brazil’s regulated market have proven challenging for operators and suppliers alike. According to Weizer, the nation’s gambling regulator has introduced some of the toughest onboarding and “know your customer” (KYC) standards worldwide.

“Brazil introduced some of the strictest onboarding requirements globally, leading to unusually high KYC rejection rates and, as a result, lower-than-expected volumes across the industry in the first half of the year,” he explained.

He revealed that some operator partners saw rejection rates impact up to 70% of their business, while others faced a 20% decline. “Given our strong partnerships with leading Brazilian operators, this has had an impact on us as a B2B supplier. But let me be clear, we see this as a temporary headwind,” Weizer added.

In addition to KYC difficulties, operators are grappling with a higher gambling tax. A provisional measure introduced in June raised the rate to 18% of GGR, reducing royalty returns for suppliers like Playtech. “I’ll be very open and say there is still impact of the tax because it’s now [been] deducted. From a royalties perspective we are not yet where we need to be but it’s growing,” Weizer said.

Even with these obstacles, Playtech reported that its Brazilian GGR in August returned to levels seen before the new regulations took effect, suggesting stabilization in the market.

Despite early turbulence, Playtech is doubling down on Brazil. Weizer revealed that the company is close to sealing a significant supply deal with one of the nation’s largest operators. “I can’t name it as of yet, but we are in advanced stages of discussions with what we believe will be one of the largest operators in Brazil,” he told analysts. “They have access to the market and they are very well established in the market, not yet in online sports, betting and gaming but definitely a very significant opportunity for Playtech.”

To support this expansion, Playtech is preparing to launch a live studio in São Paulo, further embedding itself in the country’s growing digital gambling sector.

Alongside these efforts, Playtech continues to strengthen its relationship with Galera.bet, one of the first locally licensed operators in Brazil. As part of their structured agreement, Playtech holds an option to acquire 40% of Galera.bet’s equity at a nominal cost, securing long-term strategic alignment with a fast-growing partner.

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Looking ahead, Weizer expressed confidence that Playtech’s strategy will allow it to grow faster than Brazil’s anticipated market trajectory. “I truly believe that we laid the foundations for accelerated growth that potentially can be more than the 15% or the market growth. If the market grows at 15%, that Playtech will be able to grow vertically with existing customers, horizontally with additional customers,” he said.

With strong local partnerships, a planned live studio, and an upcoming major deal, Playtech sees itself well-placed to weather Brazil’s regulatory headwinds and emerge as a dominant supplier in the country’s gambling sector.

Source:

““, igamingbusiness.com, September 12, 2025.