Playtech’s small stake in Hard Rock Digital is now one of its most valuable US assets, the company said Thursday, citing its return to the Florida sports betting market.
The global gaming technology provider now values its minority stake in Hard Rock Digital at €141 million ($153 million), nearly double the €75 million it invested in 2022, per its annual earnings report Thursday. Hard Rock resumed Florida sports betting late last year, where it holds a monopoly under a compact with the Seminole Tribe. Florida is the most populous legal sports betting state and one of the few with a single-provider setup.
Playtech shares were down 1.5% Friday to 716 pence on the London Stock Exchange, with trading volume approximately triple the average daily volume.
Hard Rock drives US business
Hard Rock Bet‘s unique Florida monopoly helped drive Playtech’s overall Americas B2B revenue up 126% last year, albeit from a small base, executives told investors.
The company expects further commercial benefits from its Hard Rock partnership as the brand expands to more states. Playtech currently provides content for Hard Rock’s iGaming operations in New Jersey and is in line to support future rollouts, executives said.
“We’ve already received €3 million in dividends from our investment in 2024, and we expect that to grow,” CEO Mor Weizer said. “It’s a strategic relationship, and we believe there’s a lot more opportunity for Playtech to contribute, particularly as Hard Rock expands into other iGaming states.”
US Investment will continue
Playtech reported €480 million in adjusted EBITDA for 2024, an 11% increase year over year and slightly ahead of previously raised guidance. Group revenue rose 5% to nearly €1.8 billion.
US revenue grew more than 150% in 2024, though the segment still posted a loss of more than $10 million in EBITDA due to startup costs. Playtech said it plans to continue investing in the US, citing a long-term return outlook.
It now supplies content to all major US iGaming operators and recently expanded partnerships with Parx Casino and Delaware North. Losses from Playtech’s live studios in New Jersey, Michigan and Pennsylvania should narrow over the next few years as demand grows, Weizer said.
It expects 2025 adjusted EBITDA between €250 million and €300 million for continuing operations, largely due to its $2 billion sale of Italian operator Snaitech to Flutter and agreement with Caliplay in Mexico.
Playtech addresses Caliplay US move
Playtech confirmed that its revised Caliplay deal received antitrust approval in Mexico and is expected to close by March 31. Under the new structure, Playtech will hold a 30.8% equity stake in Caliente Interactive, a top operator in the Mexican market.
Executives also briefly addressed the failed SPAC deal that had aimed to take Caliente public in the US, noting that the company remains focused on growth in Latin America and sees potential future expansion into other markets, including the US.
“I don’t see any reason why they should not penetrate the US and establish themselves in the US,” Weizer said. “But obviously, they need to establish that this is commercially the right thing for them and time that with other investments, both in Mexico and other territories.”
Playtech previously held an option for 49% of Caliente and had worked to position the brand for a potential entry into the US via a SPAC merger that was ultimately scrapped.
