Is Playtech’s Legal Battle with Evolution Losing Steam?

(AsiaGameHub) –   Playtech still classifies its US legal dispute with Evolution as merely a ‘contingent liability’, noting that its rival has not yet submitted a formal claim in the high-profile Black Cube case.

Playtech defends its choice to hire independent business intelligence firm Black Cube to examine Evolution’s business practices and rejects any claims of illegal activity.

Consequently, Playtech’s recently released FY2025 financial report does not include any actual cash reserves on its balance sheet to cover possible lawsuit damages.

In the notes section of its report, Playtech stated: “On 21 October 2025, Evolution AB publicly named Playtech Software Limited—a Group subsidiary—as the party that commissioned a 2021 Black Cube report, which has been cited in ongoing US legal actions but does not involve any Group entity.

“Additionally, on the same day, Evolution AB stated publicly that it would modify its complaint to include Playtech Software Ltd in the lawsuit. But as of the date these financial statements were approved, Evolution had not sought the Court’s permission to add any Group entity to the New Jersey proceedings, and no claim has been served on Playtech Plc, Playtech Software Limited, or any other Group entity.

“The Group denies any allegations of illegal behavior. Due to the case’s early stage and the lack of any served claim against the Group—including no indication of the potential claim amount—this is deemed a contingent liability alone.”

Last October, Evolution alleged that Playtech subsidiary Playtech Software Limited was responsible for commissioning Black Cube to investigate the provider’s operations in banned and sanctioned markets, as well as its supply to unlicensed operators in regulated markets.

At the time, Playtech replied that the claim its subsidiary participated in a smear campaign is “entirely false and intended to divert attention from serious concerns about Evolution’s business practices”. It added that it stands by its decision to commission the report and welcomes a court review.

In February, Evolution also provided little information about litigation updates in its Q4 investor report, but Chief Executive Officer Martin Carlesund stated that the company is “looking forward to progressing with the lawsuit”.

Revenue dip but Playtech happy with FY26 start

Playtech reported that its FY25 group revenue from continuing operations decreased 10% year-over-year to €763.6 million (FY24: €848 million), with B2B and B2C revenues falling from the prior year. Group adjusted EBITDA was €197 million, a 9% drop (FY24: €217.5 million).

B2B revenue declined 9% YoY to €688.3 million (FY24: €754.3 million), mainly because of a revised agreement with Caliente Interactive affecting Latin America operations. Regulated markets revenue fell 7% to €559.4 million (FY24: €598.4 million) due to the Caliente adjustment and UK declines, which were partially balanced by growth in the US and Canada. On an underlying basis, regulated revenue increased by 6%.

B2C revenue dropped 20% to €78.5 million (FY24: €97.8 million). HAPPYBET in Germany is close to finishing its wind-down, with completion expected in 2026.

In May 2025, Playtech agreed with NetX Betting—a subsidiary of Frankfurt-listed operator pferdewetten.de AG—to purchase specific HAPPYBET hardware assets. The process is complete, with contractual terms in place with the relevant franchise partners.

Meanwhile, Sun Bingo and other B2C operations were affected by regulatory measures and marketing limits. Sun Bingo’s operations are being reviewed due to UK online gambling tax changes.

As of 31 December 2025, net cash was €28.5 million, up from a net debt of €142.8 million at the end of 2024. Free cash flow was €29.5 million, down from €73.1 million in FY24.

Mor Weizer, CEO of Playtech, called 2025 a year of “major transition for Playtech” after completing the sale of Snaitech.

He added: “The US had a particularly strong performance, with revenue nearly doubling as momentum picked up across our partnerships. We hit several key strategic milestones, expanding into more iGaming states and continuing to grow our Live offering.”

“Our Latin America position also improved, backed by the revised Caliente agreement—which is performing well and further bolsters our presence in Mexico.

“The strong momentum from 2025 has continued into early 2026, especially in the Americas. We’re still confident in hitting our ambitious medium-term goals and see exciting opportunities for the Group across all our markets.”