Playtech has officially ended its presence in the B2C gambling market. The final step in exiting that part of the industry was the sale of its German-oriented brand HappyBet to NetX Betting. NetX Betting is the subsidiary of Pferdewetten AG.
The deal is the newest move of Playtech towards becoming solely a B2B tech provider. In fact, Playtech announced the plan to offload HappyBet two months ago, when it was first announced that the rising costs were putting a financial pressure on the brand. And despite a 4% revenue increase to €18.9 million in 2024, the company reported an adjusted EBITDA loss of €11.8 million.
Transition to Sportwetten.de and Franchise Integration 2g2m2l
As part of the agreement, Pferdewetten gets the opportunity to negotiate contracts with all current HappyBet franchise partners.
Moreover, these outlets are expected to rebrand under Pferdewetten’s existing Sportwetten.de banner. With the acquisition, the company also acquired around 600 hardware units, mostly betting terminals and point-of-sale systems.
Pferdewetten CEO Pierre Hofer stated that he anticipates that they will integrate “a mid-double-digit number of shops” into the network during the next three months. If everything goes according to plan, the deal could produce an estimated €7 million in additional annual turnover, as well as over €1 million in positive EBITDA contribution. All that suggests that this is more than a good deal – it’s great for all parties involved.
Right now, the companies are going through a transition period which gives the new owner time to finalize franchise agreements. They will also use this time to secure regulatory approvals from German state authorities. Sadly, all assets that were not included in the first part of the deal will close down at some point.
Playtech’s B2B Strategy in Full Swing 4i204m
The HappyBet sale follows Playtech’s high-profile sale of Italian operator Snaitech to Flutter Entertainment last year. That sale was valued at whopping €2.3 billion.
However, the bigger picture shows that both transactions are part Playtech’s broader shift away from B2C activities to focus exclusively on its B2B technology and platform services.
“The simplified business model and focused B2B strategy will allow Playtech to enhance its technology, expand its customer base and increase share of wallet with existing clients,” the company said in a statement.
Playtech is busy expanding into other markets with various deals with notable companies, not just in Europe but also in America. Just recently, they announced the launch of the first-ever Live Trivia Game in New Jersey with Hard Rock Digital.
Market Reactions 6so40
Following the announcement, Playtech shares dipped 0.93% to 319.50 pence on the London Stock Exchange. In contrast, Pferdewetten AG saw a 6.83% surge in its Frankfurt-listed shares, which climbed to €2.97. What does that mean for Playtech? Well, we cannot tell right now, but one thing is certain: Playtech knows what they are doing.
As the company doubles down on its B2B identity, the sale of HappyBet marks a definitive end to its direct-to-consumer ambitions. It’s also a new chapter for the company that shaped much of Europe’s live gambling landscape.
