Playtech Group has entered into an agreement with NetX Betting Ltd., a subsidiary of the Frankfurt-listed German operator pferdewetten.de AG, to transfer its German sports betting brand Happybet. This deal represents a significant milestone in Playtech’s ongoing strategic transition toward becoming a predominantly pure-play B2B provider.

Challenges and financial performance of Happybet:

Having closed its Austrian Happybet operations in the latter half of 2024, Playtech began the formal process to divest the remaining German business earlier this year. The new agreement grants pferdewetten.de the opportunity to negotiate directly with franchise partners operating Happybet’s retail shops across Germany, subject to regulatory approval and the outcome of these franchise discussions. In addition to the franchise rights, the German operator will acquire ownership of approximately 600 hardware units, including betting terminals and POS systems associated with the brand.

A transition period is now underway to allow pferdewetten.de to finalize contracts with franchisees and obtain the necessary licenses from German regulatory bodies. Any Happybet assets not transferred or assumed by pferdewetten.de are expected to cease operations and be wound up accordingly.

Playtech’s German and Austrian-facing brand Happybet has faced considerable difficulties in recent years. The company reported an adjusted EBITDA loss of €11.8 million for Happybet in the first quarter of 2025, driven by increased operating costs despite a 4% revenue rise to €18.9 million. Following these challenges, Playtech opted to shut down Happybet’s Austrian business in 2024 and sought a buyer for the German operations, signaling a strategic pullback from consumer-facing markets.

This decision aligns with Playtech’s broader refocus on its B2B technology offerings, following the sale of its Italian subsidiary Snaitech to Flutter Entertainment earlier this year for €2.3 billion. That transaction represented a major value creation event for shareholders and allowed Playtech to simplify its business model, concentrating resources on expanding its technology platform and strengthening relationships with existing clients.

What the deal means for Pferdewetten and the German market:

Pferdewetten.de AG, headquartered in Düsseldorf and formerly known as Sportwetten.de AG, is a notable player in the German horse racing betting market with both retail and online operations. Its flagship platform pferdewetten.de ranks among Germany’s leading online horse racing betting sites. The company has recently expanded into sports betting with its sportwetten.de platform and has grown its retail footprint by acquiring physical betting shops since 2022.

The integration of Happybet’s retail shops into pferdewetten.de’s network is expected to significantly boost the company’s presence in the highly competitive German sports betting market. As published in the official PR, CEO Pierre Hofer stated, “We expect a mid-double-digit number of shops to be integrated into our network in the next three months,” which he estimated would translate to an additional €7 million in annual revenue and contribute positively to EBITDA by over €1 million.

Hofer emphasized that the acquisition process has been carefully coordinated with Playtech to ensure a smooth transition without disruption to existing business operations or incurring additional regulatory costs. He also outlined pferdewetten.de’s ambitions to operate more than 300 brick-and-mortar betting shops under the sportwetten.de brand by the end of 2025, further consolidating its market position.

The sale of Happybet’s German business is the latest step in Playtech’s transformation into a pure-play B2B technology provider. By divesting its consumer-facing assets, Playtech aims to focus on enhancing its technology infrastructure, expanding its client base, and increasing wallet share with existing customers.

The Happybet brand was originally integrated into Playtech’s Italian subsidiary Snaitech in 2021, where efforts were made to upgrade its technology and product offerings. However, persistent financial struggles and regulatory complexities in the German market, especially following the introduction of a federal regulatory framework in 2021 that included new taxes and restrictions, led Playtech to withdraw from this segment.

Expanding interactive gaming experiences in the U.S.:

Alongside its strategic business shifts in Europe, Playtech continues to innovate in key regulated markets like the U.S. In partnership with Hard Rock Digital, Playtech recently launched New Jersey’s first-ever dedicated live trivia experience on the Hard Rock Bet online casino platform. This launch marks Hard Rock Bet as the pioneer operator to offer a dedicated Live Trivia Game Show in the state, expanding beyond traditional casino offerings.

The Live Trivia Game Show, hosted by professional game show presenters, engages players in scheduled real-time quizzes where they can compete for prizes such as Golden Chips and Free Spins. Delivered through Playtech’s advanced platform, the show allows operators to customize design, themes, and languages, offering a uniquely interactive experience that enhances player engagement.

Jonathan Doubilet, VP of US Business Operations at Playtech, highlighted the partnership’s vision in the company’s press release: “We are proud to celebrate this milestone with the launch of our Live Trivia Game Show on the Hard Rock Bet platform, bringing a new level of entertainment to their players.” Hard Rock Digital’s Senior VP of Casino, Grant Williams, added, “This exclusive experience will truly stand out in the market and uniquely engage players with our top-rated platform by testing their knowledge, competing for rewards, and enjoying interactive, real-time entertainment like never before.”