Playtech CEO believes Brazil will be less competitive than US
Mor Weizer lifts the lid on the supplier’s heavy investment in the South American nation while CFO touches on M&A pipeline
Playtech CEO Mor Weizer has stated that he believes the Brazilian market is “the fastest growing and one of the most attractive countries worldwide” ahead of the upcoming sports betting regulation.
Speaking during the supplier’s H1 2023 results, Weizer revealed why the firm had invested heavily in this market and where he expects the market to go in the near future.
He said: “It has all the ingredients to be excited about. We have invested heavily in solutions specifically for the Brazilian market. It is definitely an exciting market. Market estimates have put the size of the market at around $5bn to $5.5bn. We believe that it’s actually around $8bn to $10bn already.
“It’s not as competitive and not as complicated as the US, as in every state there are different regulations, different regulators and processes you have to go through to obtain a licence, and then you have to implement certain technical infrastructure in every state as well.
“When compared to Brazil, there’s a 250 million-plus population, one country, one language and one regulator, which makes it easier to establish our presence,” Weizer added.
The CEO also spoke about the firm’s plans in the US, after the supplier reached double-digits in terms of licensed states.
Weizer remarked: “We have already secured a relationship with most operators. We have agreements with FanDuel and Rush Street Interactive, and the list goes on.
“The intention of Playtech is to be ready in each and every market and be able to operate and offer every one of its product verticals and infrastructure in every state.
“Whenever and wherever an operator wants to extend into a new state or would like to extend its reach together with Playtech, Playtech will be ready. Playtech will be licensed, and we will be able to go ahead and deploy our solutions,” he added.
Elsewhere, CFO Chris McGinnis divulged information on where the firm may look for future M&A for its B2C arm.
McGinnis explained: “I think the focus will be on regions we are already operating in. This means Austria, Germany and Italy. Italy will be first, then Austria and Germany are also a possibility.
“I think the best way to describe any potential M&A in Italy and in other regions there is a bit more flexibility. I think in Austria or Germany, it has to do more with scale. I think we are not talking about significant acquisitions, they will be more bolt-ons.”