Playtech Initiates Strategic Review of Sun Bingo as UK Tax Hikes Threaten Profitability; Group Eyes Massive Brazil Expansion

Playtech reviews Sun Bingo profitability as UK RGD taxes hit 40%. CEO Mor Weizer eyes Brazil's Caixa Bank as a major 2026 growth driver.

By: AXL Media

Published: Mar 26, 2026, 10:47 AM EDT

Source: The information in this article was sourced from iGB

Sun Bingo and the Impact of UK Fiscal Policy

Playtech CFO Chris McGinnis has confirmed that the company is conducting a formal operational review of Sun Bingo, its prominent UK-facing white-label brand. The decision comes ahead of the UK’s implementation of a 40% Remote Gaming Duty (RGD), scheduled for April 2026. According to McGinnis, the current business model for Sun Bingo is unlikely to remain profitable under this intensified tax regime. While the asset has faced a 17% decline in revenue due to stricter UK regulatory requirements, Playtech maintains that the brand possesses long-term B2B value despite its direct-to-consumer nature. The review will determine whether the business remains a viable part of Playtech's portfolio or requires a significant structural pivot.

Financial Performance and B2B Realignment

The supplier’s FY2025 financial results show a 10% decrease in group revenue, falling to €763.6 million, with EBITDA sliding 9% to €197 million. B2B revenue specifically saw a 9% decline to €688.3 million, a shift Playtech attributed to its revised agreement with Caliente Interactive in Mexico. Additionally, B2C revenue dropped by 20%, though a large portion of this was due to the strategic divestment of the German Happybet business. Despite these dips, management expressed confidence in the company’s trajectory, predicting that FY2026 performance will exceed current market consensus as the company absorbs these one-off structural adjustments.

The Strategic Opportunity in Brazil

A major focal point of Playtech’s growth strategy is its relationship with Brazil’s state-owned bank, Caixa Economica Federal. CEO Mor Weizer described the potential partnership to launch Caixa’s betting brand as "one of the most significant opportunities" for the company in the coming years. Although the launch was paused in late 2025 due to political opposition led by Senator Damares Alves, Playtech remains bullish. With Caixa’s base of 140 million registered customers and unparalleled brand recognition, the platform could rapidly become a market leader in South America once the political climate stabilizes following Brazil’s upcoming October general election.