Playtech has initiated a strategic review of its UK-facing Sun Bingo business following expectations that upcoming tax changes will significantly affect its financial performance. The move comes as part of a broader assessment tied to the group’s full-year 2025 results, where bingo operations featured prominently in the discussion of declining B2C revenues.
The company indicated that the increase in the UK’s remote gaming duty to 40%, scheduled to take effect in April 2026, is likely to push the Sun Bingo operation into unprofitable territory. Management has already begun evaluating its long-term position within the group’s portfolio, even though leadership suggested the brand could still retain value due to its hybrid characteristics that resemble B2B activity despite being consumer-facing.
Bingo Revenue Decline Reflects Regulatory Pressure
Financial results show a notable downturn in Playtech’s bingo-related performance within its B2C division. Revenue from Sun Bingo and associated operations fell by 16% year-on-year to €66.3 million, accompanied by a sharp drop in adjusted EBITDA to €0.1 million from €4.5 million in the previous year.
This contraction aligns with tighter regulatory requirements introduced in the UK during the second half of 2024. Enhanced affordability checks, stricter financial vulnerability assessments, and limits on promotional activity all contributed to reduced player activity and lower returns from bingo products.
The company also confirmed that the anticipated tax increase prompted a reassessment of financial expectations tied to Sun Bingo. As part of this process, Playtech impaired a minimum guarantee prepayment associated with the business, reflecting concerns about its future earnings potential under the new fiscal conditions.
More broadly, the B2C segment saw total revenue decline by 20% to €78.5 million, driven in part by the wind-down of the German HAPPYBET operation. While losses narrowed slightly across the division, Playtech has signaled that consumer-facing operations are no longer a central strategic focus following the sale of Snaitech.
Wider Group Performance and Strategic Shift
Across the group, Playtech reported total revenue of €763.6 million for 2025, representing a 10% decline compared to the previous year. EBITDA also fell by 9% to €197 million, reflecting the impact of structural changes, including revised commercial agreements and the disposal of key assets.
B2B operations remain the core of Playtech’s strategy, although this segment also experienced a decrease in revenue to €688.3 million. The decline was largely attributed to changes in its agreement with Caliente Interactive in Mexico, which altered how revenue and income are recognized.
Despite these reductions, the company pointed to strong performance in the Americas, particularly in the United States, where revenue nearly doubled. Growth in Latin America also continued on an underlying basis, even as regional regulatory changes created short-term challenges.
Brazil Opportunity Remains on Hold
While UK-facing operations face increasing pressure, Playtech leadership highlighted potential growth opportunities in Brazil. The company previously secured a tender to provide technology for a betting platform linked to Caixa Econômica Federal, one of the country’s largest financial institutions.
The planned launch, however, has been delayed due to political opposition. Criticism from lawmakers has stalled progress, leaving the project paused without a confirmed timeline. Still, Playtech remains optimistic about the long-term prospects tied to the partnership.
Chief executive Mor Weizer described the opportunity as significant, noting the scale of Caixa’s reach and its position within the Brazilian market. He indicated that the potential impact of the project could extend over several years if regulatory and political conditions stabilize.
At the same time, executives acknowledged that further investment will be required to support expansion in Brazil and other Latin American markets, particularly as regulatory frameworks continue to evolve.
Outlook Shaped by Tax and Market Conditions
Looking ahead, Playtech expects regulatory developments and taxation changes to continue influencing performance across several regions. The company maintained that, despite these pressures, it is positioned to deliver results in 2026 above current market expectations.
The shift toward a more focused B2B model remains central to its strategy, with ongoing investments directed toward technology, partnerships, and expansion in regulated markets. Meanwhile, the future of Sun Bingo will depend on the outcome of the ongoing review and the extent to which the business can adapt to the UK’s changing regulatory and tax environment.
Source:
Playtech reviewing Sun Bingo business as RGD hike will make it unprofitable, igamingbusiness.com, March 26, 2026
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