Playtech has continued its strategic pivot away from B2C operations with the sale of its German gambling brand HappyBet to NetX Betting, a subsidiary of Pferdewetten AG. This agreement, announced on Wednesday, May 28, 2025, marks the divestment of Playtech’s final B2C asset. The process of selling the HappyBet business began approximately two months prior, in March 2025.

In the financial year 2024, Playtech reported an adjusted EBITDA loss of €11.8 million for the HappyBet business, despite revenue being up 4% to €18.9 million, a result attributed primarily to increased operating costs. During 2024, the FTSE 250-listed group had already closed HappyBet’s operations in Austria and had previously stated its intention to close its German operation if a suitable buyer could not be found.

Details of the HappyBet Acquisition

The acquisition by Pferdewetten AG’s subsidiary, NetX Betting, includes approximately 600 hardware units associated with HappyBet, such as betting terminals and point-of-sale (POS) systems, according to statements from Frankfurt-listed Pferdewetten. Financial details of the acquisition were not publicly released.

The agreement includes a transition period during which Pferdewetten can negotiate with existing HappyBet franchise partners. The aim is for these shops to subsequently operate under Pferdewetten’s Sportwetten.de brand. Pferdewetten’s CEO, Pierre Hofer, stated, as reported by iGaming Times, that they “expect a mid-double-digit number of shops to be integrated into our network in the next three months.” He also conveyed expectations, as reported by iGaming Times, for these integrations to contribute an “expected additional annual turnover […] of around €7 million and a positive EBITDA contribution of over €1 million.” Any remaining HappyBet assets not transferred to Pferdewetten will cease operations and ultimately be wound up.

Playtech’s Strategic Shift to Pure-Play B2B

The divestment of HappyBet is the latest step in Playtech’s “renewed focus” on becoming a pure-play B2B (business-to-business) operator. Last year (2024), Playtech completed a significant deal to sell its Snaitech business in Italy to Flutter Entertainment for a total enterprise value of €2.30 billion (approximately £1.94 billion / $2.56 billion). Playtech has stated that this “simplified” business model and focused B2B strategy will enable the company to improve its technology offerings, grow its customer base, and expand its share of wallet with existing B2B clients.

The Snaitech sale was described by Playtech as a “large value creation event” for shareholders, which allowed the company to pay a special dividend of between £1.7 billion and £1.8 billion to shareholders, equating to £4.56-£4.83 per share. Playtech CEO Mor Weizer explained, as reported by iGaming Times, that while Snaitech was an “important part of the group’s growth in recent years,” the transaction represented a “compelling opportunity” to maximise value for shareholders. HappyBet itself was integrated into Snaitech in 2021 and had previously secured one of the first federal sports betting licenses in Germany in October 2020.

Market Reaction

Following the announcement, shares in Playtech were trading down 0.93% at 319.50 pence per share in London on Wednesday morning, May 28, 2025. Shares in Pferdewetten AG, meanwhile, saw a positive reaction in Frankfurt, trading up 6.83% at €2.97 per share.

In conclusion, Playtech’s sale of HappyBet solidifies its transition to a pure-play B2B model, following other significant divestments. This acquisition allows Pferdewetten to expand its presence in the German sports betting market and is expected to contribute positively to its financials, reflecting a strategic move for both companies in the evolving German gambling landscape.