Playtech reported in its H1 earnings update that new deals with operators in Ontario, as well as the continuation of its partnership with NorthStar Gaming, were contributing factors in its surging revenue growth in the first half of 2024.

Noting in its H1 2024 release that total revenues in the U.S. and Canada rose 200% from H1 2023, the gaming tech provider highlighted its moves north of the border. That uptick in the U.S. and Canada far exceeds the 42% rise across the whole Americas region and the 5.5% increase across all markets.

Playtech further expanded its Canadian presence in recent months by launching online casino and live casino with PENN Entertainment and iCasino with Rush Street Interactive in Ontario in July 2024.

The company has also made notable gains in certain verticals such as the online live casino segment in Canada. Eilers and Krejcik reported in July that Playtech had nearly doubled its share of gross gaming revenue in Canadian live casino over the preceding four months to capture 19.7% of GGR.

Meanwhile, south of the border, Playtech launched in all of Michigan, New Jersey and Pennsylvania with DraftKings, Golden Nugget Online Gaming and BetRivers in the first six months of 2024. It also went live with PENN in both Michigan and Pennsylvania and added BetMGM and bet365 to its slate of partners in the latter state.

B2B segment particularly healthy

Playtech’s moves helped not only triple revenue across the U.S. and Canada but also spike B2B revenue across the region by 230% year-on-year in H1.

CEO Mor Weizer noted that while this only makes up a small portion of B2B revenue, the company is well-positioned to take advantage of a “huge opportunity” for more growth in North America. “Our plan to accelerate our presence in the U.S. and Canada is already delivering, with revenues trebling in the period,” Weizer told investors on the company’s H1 earnings call on Sept. 30. “We see a huge opportunity in this market and are pleased to have supported multiple customers with their own growth plans.”

Playtech also said it is reaping the reward of its renewed partnership with Canadian operator NorthStar.

In April, the two companies extended their strategic collaboration via a renewal of their existing marketing agreement. Playtech will continue to provide similar marketing services in Ontario, valued at up to $4 million, until October 31, 2024 and receives a share of the revenue generated in connection with those marketing initiatives as recompense.

“We are pleased with the progress of our partnership with NorthStar, which delivered strong revenue growth, albeit from a low base,” said the company in its H1 2024 release. “With the help of Playtech’s technology and the strategic investment in 2023, as well as further short-term funding and strategic marketing contributions in 2024, NorthStar is well positioned for growth in Ontario and other Canadian markets in the future.”

Playtech expects to hit targets early

Buoyed by its H1 performance, and with deals already in place in H2 including a launch on RSI’s BetRivers platform in Ontario and several U.S. states in September, Weizer and Playtech expect the company to exceed expectations for the full year.

Driven by the strong growth in the U.S. and Canada, Playtech’s H1 result tracked above guidance. The company expects to reach its B2B Adjusted EBITDA medium-term target range of $223 million to $279 million before the end of the year, earlier than anticipated.

“This set of results is further proof of the excellent progress we’ve made this year,” concluded Weizer. “We’ve executed our strategy to grow and improve the B2B business, delivering broad-based growth with strong contributions across our key markets, high operating leverage, and tight cost control. With a clear strategy, a strong balance sheet, and a great team behind us, we remain very confident in Playtech’s future prospects.”