Is Evolution’s lawsuit against Playtech falling apart?

(AsiaGameHub) –   Playtech still considers its legal dispute with Evolution in the US to be merely a “contingent liability,” highlighting that its competitor has not yet filed a formal claim in the well-known Black Cube case. 

Playtech maintains its stance on its decision to engage independent business intelligence firm Black Cube to examine Evolution’s business practices and disputes any assertions of unlawful actions.

As a result, Playtech’s recently published FY2025 financial report shows no actual cash reserves have been set aside on its balance sheet to cover potential losses from the lawsuit.

In the notes section of its report, Playtech stated: “On 21 October 2025, Evolution AB publicly identified Playtech Software Limited, a subsidiary of the Group, as the party that commissioned a 2021 report prepared by Black Cube. This report has been referenced in ongoing US proceedings but does not involve any Group entity. 

“Additionally, on the same date, Evolution AB publicly announced it would amend its complaint to include Playtech Software Ltd in the lawsuit. However, as of the date these financial statements were approved, Evolution has not sought court 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 disputes any claims of unlawful conduct. Given the early stage of the matter and the absence of any claim served on the Group—including no indication of the amount that might be claimed—this is deemed a contingent liability only.”

In October last year, Evolution alleged that Playtech subsidiary Playtech Software Limited was responsible for hiring Black Cube to investigate the provider’s activities in prohibited and sanctioned markets, as well as its supply to unlicensed operators in regulated markets.

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

Back in February, Evolution also provided no updates on the litigation in its Q4 investor report, but Chief Executive Officer Martin Carlesund said the company is “eager to proceed with the lawsuit.”

Revenue dip but Playtech happy with FY26 start

Playtech noted that its FY25 group revenue from continuing operations fell 10% year-over-year to €763.6m (FY24: €848m), as both B2B and B2C revenues declined compared to the previous year. Group adjusted EBITDA was €197m, a 9% decrease (FY24: €217.5m).

B2B revenue dropped 9% YoY to €688.3m (FY24: €754.3m), primarily due to a revised agreement with Caliente Interactive affecting Latin America operations. Regulated markets revenue decreased 7% to €559.4m (FY24: €598.4m) because of the Caliente change and declines in the UK, partially offset by growth in the US and Canada. On an underlying basis, regulated revenue rose 6%.

B2C revenue fell 20% to €78.5m (FY24: €97.8m). HAPPYBET in Germany is close to completing its wind-down, with full completion expected in 2026. 

In May 2025, Playtech reached an agreement with NetX Betting, a subsidiary of the Frankfurt-listed operator pferdewetten.de AG, to acquire certain HAPPYBET hardware assets. The process has been finalized, with contractual arrangements in place with relevant franchise partners.

Meanwhile, Sun Bingo and other B2C operations were affected by regulatory measures and marketing restrictions. Sun Bingo operations are under review due to online gambling tax changes in the UK.

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

Mor Weizer, CEO of Playtech, described 2025 as a year of “significant transition for Playtech” following the completion of the sale of Snaitech. 

He added: “The US performed particularly strongly, with revenue nearly doubling as momentum grew across our partnerships. We achieved several key strategic milestones, expanding into additional iGaming states and continuing to grow our Live offering.” 

“Our position in Latin America also strengthened, supported by the revised agreement with Caliente, which is performing well and further boosts our presence in Mexico.

“The strong momentum seen in 2025 has carried into the start of 2026, especially in the Americas. We remain confident in achieving our ambitious medium-term targets and see exciting opportunities for the Group across our markets.”