Playtech boss is taking action against listed competitors over “black market” gambling
Mor Weizer told the Standard it was “frustrating” to be compared to publicly traded companies that have seen booms in their sales and share prices but do business in countries where online gambling is illegal.
“Other suppliers are very important in gray markets or black markets,” he said. “It’s less helpful if they operate on black markets and enter regulated markets with that money. We know of some operating in sanctioned markets, in countries that are on the US sanctions list.”
“It’s frustrating to see people comparing us to public companies that are growing very quickly. But they grow in unregulated markets and shrink in regulated markets. We grow in regulated markets.”
Weizer did not name any specific competitors, but some other providers have recorded astronomical growth in recent years, while the proportion of sales originating from regulated markets has declined.
Playtech operates in some Asian and Latin American countries where online gambling is not regulated, although often not explicitly prohibited. However, revenue from these markets fell in the first half as the company focuses more on countries where betting is fully regulated.
Weizer said: “Our focus is on regulated markets. And the regulated part of our business is growing at double-digit rates.”
Playtech shares trade at a lower valuation factor than some of its peers listed elsewhere. But while many see lower readings for tech stocks in London as an indictment for the city, Weizer said London investors understand the company’s strategy.
“UK shareholders are very sophisticated and very aware of regulated activities, regulated markets and highly regulated environments,” he said.
Today, Playtech announced that first-half sales grew 8% to €860 million and profit rose 10% to €220 million. This came despite a 2% drop in sales in the UK as companies begin to implement new safer gambling rules announced by the government in April.
https://www.standard.co.uk/business/playtech-boss-black-market-rivals-gambling-betting-casino-regulated-mor-weizer-listed-b1105574.html Playtech boss is taking action against listed competitors over “black market” gambling
