Playtech reviewing Sun Bingo business as RGD hike will make it unprofitable
Summary
Playtech has launched an operational review of its white‑label Sun Bingo business in the UK after confirming the incoming 40% remote gaming duty (RGD) due in April will make the operation unprofitable. CFO Chris McGinnis said Sun Bingo could still have a place within Playtech over the long term because of its B2B characteristics, despite being customer‑facing. The group reported a 10% decline in revenue for 2025 to €763.6m and falls in EBITDA, while B2C revenue was down 20% to €78.5m. Playtech remains upbeat on LATAM opportunities, particularly a potential partnership with Brazil’s Caixa Econômica Federal, though that launch is currently paused amid political scrutiny.
Key Points
- The incoming 40% remote gaming duty (RGD) in the UK will render Sun Bingo unprofitable, prompting an operational review.
- Playtech views Sun Bingo as having stronger B2B characteristics despite its customer‑facing front end, leaving open the possibility of retention in the long term.
- Group revenue fell 10% in 2025 to €763.6m; adjusted EBITDA also declined, with B2C revenue down 20% year‑on‑year.
- Playtech is bullish on LATAM, particularly a potential Caixa Economica Federal betting partnership in Brazil, though the launch is paused amid political pushback.
- The Americas performed well in 2025 (notably the US and Mexico deals); Playtech expects a regional uplift in 2026, aided by the World Cup and other factors.
Content Summary
During its FY2025 earnings call, Playtech said it has initiated a review of the Sun Bingo white‑label business after concluding the forthcoming 40% RGD will make continued operation unprofitable under current assumptions. CFO Chris McGinnis acknowledged the site’s mixed B2B/B2C nature and did not rule out a future role for Sun Bingo within the company.
The company’s B2C segment has been under pressure from enhanced UK regulatory requirements and disposals such as the German Happybet sale, contributing to revenue declines. Overall group revenue and EBITDA fell in 2025, though management expects to deliver FY26 ahead of consensus despite tax and regulatory headwinds.
Separately, CEO Mor Weizer emphasised a major opportunity in Brazil: a possible partnership with state‑owned Caixa, which won a tender for a betting platform but has delayed launch amid political criticism. Playtech rates the potential as very significant because of Caixa’s scale and customer reach, though the product remains on hold.
Context and Relevance
This story matters to operators, suppliers and investors tracking UK regulatory impacts and strategic pivots in the igaming sector. The RGD rise is an immediate commercial shock for customer‑facing brands operating thin margins in bingo and similar products. At the same time, Playtech’s focus on LatAm — and the Caixa opportunity in Brazil — highlights where suppliers are seeking growth to offset European regulatory headwinds.
Why should I read this?
Because this is where the industry is shifting — UK tax hikes are reshaping profitability now, and Playtech’s playbook is clearly moving towards big LatAm bets. We’ve read the numbers and boiled it down: if you work in operator strategy, supply or investment analysis, this short read saves you time and flags where to watch next.