Playtech concludes transaction of HappyBet, solidifying focus on business-to-business processes
Playtech Exits German Sports Betting Segment, Shifts Focus to B2B Operations
Global gaming and betting technology giant Playtech announced on Wednesday the transfer of its HappyBet brand operations in Germany to NetX Betting Ltd., a subsidiary of pferdewetten.de AG. This decision marks Playtech's exit from the retail sports betting segment in Germany, reinforcing its strategic commitment to the B2B (business-to-business) model in Europe.
The agreement empowers NetX Betting to negotiate with franchises within the HappyBet network in Germany, while some hardware associated with physical stores will also be transferred. The transition period will involve negotiations with franchisees and securing regulatory approvals from German authorities. Any assets not transferred will be closed and discontinued.
The move follows the closure of HappyBet's operations in Austria, scheduled for the second half of 2024. This decision is part of Playtech's strategic repositioning, aiming to position itself as a technology and services provider for gaming operators, rather than directly targeting the final consumer market.
The exit from HappyBet came just days after Playtech completed the sale of its Italian subsidiary Snaitech to Flutter Entertainment for €2.3 billion ($2.6 billion), another significant step in the company's restructuring. The transaction will return up to €1.8 billion to shareholders through a special dividend in June 2025.
In the first four months of 2025, Playtech reported steady performance, with results in line with expectations. Growth was primarily driven by Live Casino and Software-as-a-Service (SaaS) segments in markets such as the United States and Mexico. However, the company faced challenges in Latin America due to regulatory changes and the introduction of a value-added tax (VAT) in Colombia, leading to a 30% drop in online gaming revenue since February.
Playtech's strategic focus on B2B operations is underscored by key elements:
- The company is transitioning to a pure-play B2B model, moving away from direct-to-consumer and B2C (business-to-consumer) operations.
- The United States has become a primary growth driver, with strong partnerships across multiple states.
- Following the revised agreement with Caliplay, Playtech now holds a 30.8% equity stake, which shifts its revenue model to derive benefits from dividends.
- The company is returning €1.8 billion to shareholders via a special dividend in June 2025.
- Playtech remains optimistic about the long-term potential in Latin America despite some regulatory headwinds.
While navigating the complex regulatory landscape in Latin America, Playtech continues to maximize its strengths as a B2B technology leader, leveraging US and Latin American opportunities, and rewarding shareholders following recent business sales.
Technology continues to play a significant role in Playtech's operations, as demonstrated by the transition toward a pure-play B2B model. Furthermore, the company's focus on sports extends beyond direct-to-consumer sports betting, as it aims to provide gaming technology and services to operators in various markets, such as the United States and Mexico.
