On September 30, Playtech announced a remarkable surge in its North American operations, with revenues tripling compared to the previous year, attributed to expansions in key partnerships and new market entries.
Strategic expansions drive substantial revenue increase:
In the first half of 2024, Playtech detailed a 200% increase in total revenues from the U.S. and Canada compared to the first half of 2023. The business-to-business (B2B) sector in these regions saw an even more impressive rise, with revenues climbing over 230% year-on-year. CEO Mor Weizer expressed optimism about these figures, highlighting them as indicative of significant growth potential. “Although it represents a small portion of our B2B revenue, we are well-positioned to capitalize on a huge opportunity for more growth,” Weizer commented.
During this period, Playtech expanded its footprint significantly across North America. It launched operations in Michigan, New Jersey, and Pennsylvania through collaborations with major industry players like DraftKings, Golden Nugget Online Gaming, and BetRivers from Rush Street Interactive. Further, Playtech extended its reach in Michigan and Pennsylvania with PENN Entertainment and introduced new partnerships with BetMGM and bet365 in Pennsylvania.
Additionally, the company successfully migrated Ocean Casino Resorts onto its platform in New Jersey, enhancing its service offerings in the state.
The revenue from regulated live markets in the U.S. and Canada increased by 17%, propelled by a new strategic partnership with MGM Resorts. This collaboration involves producing exclusive content directly from the gaming floors of two MGM properties in Las Vegas, enhancing Playtech’s live offerings.
This growth in the U.S. and Canada significantly outpaced the overall 42% revenue increase across the Americas and a modest 5.5% rise across all global markets.
Investment in key partnerships:
Weizer emphasized the importance of strategic relationships, particularly with Hard Rock, noting a 54% increase in the fair value of Playtech’s stake in Hard Rock Digital to $132.1 million following the relaunch of operations in Florida. “We secured the best partner for iGaming in Florida by definition, and therefore this is a massive opportunity for us,” Weizer explained during the earnings call.
Despite no immediate expectations for iGaming expansion in Florida, Weizer is optimistic about the potential growth opportunities with Hard Rock, both in Florida and other states such as New Jersey.
Looking ahead, Playtech is focusing on its strategic initiatives in Latin America, particularly through the settled Caliplay deal which is expected to fuel growth not just in Mexico but potentially across the U.S. as well. CFO Chris McGinnis hinted at the broader implications of this partnership, suggesting it could facilitate Playtech’s entry into additional markets, including a potential U.S. listing in the future.
However, despite the rapid expansion and strategic advancements in North America, Playtech’s U.S. operations are anticipated to remain non-profitable for the time being due to substantial investments in the region, particularly in staffing and infrastructure to support its growing live dealer studios.
