UK gaming technology firm Playtech saw its shares surge nearly 19% after raising its 2026 profit forecast well above analyst expectations, driven by strong performance in the United States and Latin America during the first half of the year.
Shares in the Douglas-based company jumped to 375.60 pence by mid-morning trading on Thursday, following the announcement that adjusted core profit for 2026 would reach at least €270 million, significantly exceeding the analyst consensus of €219 million.
The upward revision comes after Playtech reported that adjusted core profit for the six months ending June 30 rose 70% year-over-year to €155 million, underlining the momentum the company has built in key growth markets.
Hard Rock partnership delivers results
Chief Executive Mor Weizer pointed to the company’s collaboration with Hard Rock Digital as a major driver of recent success. “Performance in the US, driven by our partnership with Hard Rock Digital, has been exceptionally strong,” Weizer said in a statement.
Hard Rock Digital, the online betting and gaming division of Hard Rock International, ranks among Playtech’s largest customers. The partnership has allowed Playtech to tap into the rapidly expanding US sports betting and online casino market, where multiple states continue to legalize and regulate online gambling.
Playtech provides the technology backbone for online casino and sports betting operations, supplying software, platform services and gaming content to operators worldwide. The company’s business-to-business model means its fortunes are closely tied to the performance of its operator clients across different jurisdictions.
Latin America expansion gains traction
Beyond the United States, Playtech has benefited from growing traction in Latin America, a region where several countries are moving toward regulated online gambling frameworks. The company disclosed it is investing in what it called a significant partnership in Brazil, though it provided no further details about the arrangement.
That Brazilian initiative is expected to support growth beginning in 2027, as the country finalizes its regulatory structure for online betting and gaming. Brazil represents one of the largest untapped markets in the Americas, with a population exceeding 200 million and growing smartphone penetration.
Second-half headwinds expected
Despite the strong first-half performance, Playtech cautioned that second-half core profit would trail the first six months. The company attributed the expected slowdown to investments in the Brazil partnership and the impact of higher gambling taxes in the UK.
The UK government increased the remote gaming duty from 21% to 28% in recent years, and operators have faced mounting regulatory costs tied to safer gambling measures and affordability checks. Those pressures flow through to technology suppliers like Playtech, which must balance support for compliance initiatives with maintaining profitability.
The warning about a softer second half suggests Playtech is prioritizing strategic positioning in emerging markets over short-term margin protection, a calculation that appears to have resonated with investors given the sharp share price increase.
Market context and competitive landscape
Playtech operates in a competitive sector where other suppliers such as Evolution, Scientific Games and IGT also vie for contracts with leading operators. The company has spent recent years streamlining its business, divesting non-core assets and focusing on its core B2B offering.
The revised profit guidance for 2026 signals confidence that growth in newly regulated markets can offset the mature, heavily taxed environments in Europe. With states in the US continuing to open online gambling and Latin American countries developing frameworks, suppliers with established platforms and compliance capabilities stand to benefit.
Playtech’s forecast of at least €270 million in adjusted core profit for 2026 represents a meaningful increase from prior expectations and suggests the company expects momentum from the US and Latin America to continue well into next year.
Based on reporting by The Star.