Playtech Confident in Brazil Growth Despite Strict Onboarding Rules

Playtech says it is on track to become a leading B2B supplier in Brazil, estimating it already holds the top position for onboarding services in the market. Speaking on the company’s H1 earnings call, CEO Mor Weizer noted Playtech’s share of wallet among local operator partners—including Betano and Bet365—sits between 5% and 10%.

Good to know

• Playtech reports onboarding rejection rates in Brazil as high as 70% for some operators
• The company plans to open a live studio in São Paulo to support growth
• Playtech holds an option on 40% of Galera.bet through a structured agreement

Playtech’s LatAm B2B revenue fell 32% in H1, mainly due to a revised deal with Mexican partner Caliente Interactive and new VAT rules in Colombia. Brazil’s regulatory launch partially offset these declines, though strict onboarding rules created headwinds.

“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,” Weizer said. Some operators experienced impacts of 20%, while others saw up to 70%.

Weizer stressed the issue is temporary, adding that Playtech’s August GGR levels in Brazil matched pre-regulation performance.

Taxation and Growth Outlook

Another challenge came in June, when Brazil raised its gambling tax to 18% of GGR. “I’ll be very open and say there is still impact of the tax because it’s now deducted. From a royalties perspective we are not yet where we need to be but it’s growing,” Weizer said.

Despite tax pressures, Playtech expects to benefit from Brazil’s projected 15% annual market growth, with GGR expected to reach $17 billion by 2030.

Weizer revealed Playtech is in advanced talks with one of Brazil’s largest operators, though he declined to name the company. “They have access to the market and are very well established, not yet in online sports betting and gaming but definitely a very significant opportunity,” he said.

Alongside this deal, Playtech plans to launch a live studio in São Paulo to strengthen its local presence. It also maintains a structured agreement with Galera.bet, giving it a nominal-cost option on 40% of the operator’s equity.

Looking ahead, Weizer said Playtech is positioned to grow faster than the market average: “If the market grows at 15%, Playtech will be able to grow vertically with existing customers and horizontally with additional customers.”

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