Playtech Reviews Sun Bingo Future as UK Tax Rise Threatens Profits

_{Playtech launches operational review of Sun Bingo business. (Image: M4)S Photos/Alamy)}

Playtech has launched an operational review of its Sun Bingo white label business in the UK after its chief financial officer said the product will not be profitable once a forthcoming increase in remote gaming duty takes effect in April.

CFO Chris McGinnis told analysts during the supplier's FY2025 earnings call on 26 March that Sun Bingo's economics do not stack up under the incoming 40% remote gaming duty rate, which represents a significant increase on the current 21% levy applied to online casino and gambling revenues. McGinnis said the business would not be profitable once the new rate comes into force, prompting the review
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The development underlines the pressure the UK's planned duty increase is placing on consumer-facing gambling businesses, particularly those operating on thin margins in a heavily regulated market.

Sun Bingo, which Playtech has supplied since 2015 when it replaced Gamesys, sits in an unusual position for the group: it is customer-facing, but McGinnis said it carries more characteristics of a B2B operation than a B2C one.

Sun Bingo Review: What Playtech Said

McGinnis told analysts he believes there remains a long-term place for Sun Bingo within Playtech's portfolio, despite the profitability concerns. The review is framed as an examination of how the business can be restructured or repositioned rather than an indication that it will be shut down, though no outcome has been confirmed.

Sun Bingo is not the only part of Playtech's UK consumer business to have come under strain. The supplier flagged in its Q2 2025 earnings that enhanced regulatory requirements in the UK had affected Sun Bingo and other B2C operations, contributing at the time to a 17% decline in revenue and a reduction in adjusted EBITDA.

Playtech's overall B2C revenue declined 20% year-on-year in 2025 to €78.5 million, although the group said this was largely attributable to the disposal of its German Happybet business rather than organic decline across the division.

Brazil and the Americas Offer a Brighter Outlook

While the UK B2C picture is under pressure, Playtech's leadership struck a markedly different tone when discussing its position in Latin America, and in Brazil in particular.

CEO Mor Weizer told analysts the potential partnership with Brazilian state-owned bank Caixa Economica Federal could prove transformational for the group. Playtech secured a tender in 2025 to supply its platform to Caixa for a planned betting product launch, but the project was delayed in November following political opposition in Brazil.

Senator Damaras Alves had criticised Caixa's ambitions in October, describing its plans as a 'contradictory, dangerous and profoundly irresponsible move'. The launch remains paused, with no confirmed restart date, though Brazil's general election in October 2026 could shift the political climate around the project.

Weizer said he did not want to overstate the position but described the contract as potentially 'one of the most significant opportunities for Playtech for the coming years', adding: 

'This is one of the largest banks in a country with 150 million adults; it has 140 million registered customers. [And] the access to the market and popularity of the brand is unparalleled.'

Playtech's Americas region performed well in 2025, driven by strong growth in the US, where revenue roughly doubled year-on-year, and a revised commercial agreement with Mexican operator Caliente. The group also expects the 2026 FIFA World Cup, part of which is being hosted in Mexico, to provide a further uplift in the region.

Group Financials: Revenue Falls 10% in 2025

At a group level, Playtech reported full-year 2025 revenue of €763.6 million, down 10% on the prior year, with adjusted EBITDA falling 9% to €197 million.

B2B revenue declined 9% to €688.3 million, while adjusted EBITDA in the division dropped 36% to €141.4 million. Playtech said the EBITDA decline was expected and primarily reflected the financial impact of its revised agreement with Caliente Interactive.

Despite the headline revenue decline, Playtech said it expects to deliver full-year 2026 results ahead of current market consensus, even as it faces tax headwinds across several of its key markets.

The outcome of the Sun Bingo review and any progress on the Caixa partnership are likely to be closely watched by investors as the group seeks to offset ongoing UK regulatory pressure with growth in higher-potential international markets.