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A hidden gambling star

A short-term threat is masking Playtech's potential
February 29, 2024

A complex legal dispute is rarely good for a company’s share price – especially when the dispute involves the company's biggest customer by revenue. 

Tip style
Growth
Risk rating
Medium
Timescale
Long Term
Bull points
  • Diversified revenue streams
  • Leading position in Italy
  • Strong balance sheet
  • M&A potential
  • Very cheap
Bear points
  • Legal case dragging on
  • Yet to restore dividend

FTSE 250 gambling operator and software business Playtech (PTEC) is faced with exactly this scenario. Investor sentiment has been damaged by an ongoing row with its Mexican joint venture partner, Caliente, which has pulled the shares down by around a fifth over the past year. 

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