Playtech Eyes Happybet Sale, Reports Claim

Gaming specialist Playtech is reportedly mulling over a sale of its Happybet betting brand. The brand has struggled to gain traction, prompting the parent company to plan a discontinuation of its operation in Austria.

Playtech Onboarded Oakvale Capital to Explore a Sale, Rumors Say

Sources told gaming news outlet NEXT.io that a Happybet sale is on the table. Furthermore, people familiar with the matter said that Playtech had engaged Oakvale Capital, a leading M&A and strategic advisory boutique focused on gaming, gambling and sports, to assist with the deal.  

Playtech previously kept Happybet when selling Snaitech to Flutter Entertainment. Happybet, for context, was transferred to then-Playtech-owned Snaitech in 2021 in order to boost the band. Once the transaction with Flutter was completed, however, Happybet was transferred back to Playtech.

Happybet Has Failed to Gain Traction

Happybet, for reference, operates more than 100 retail betting shops across Austria and Germany. The sports betting operator also has a digital platform, allowing it to take bets from online players.

Yet, despite its potential, Happybet has struggled to gain traction in the region amid intense competition from other companies. While Playtech has been trying hard to bolster the brand’s offering with the best technology available, Happybet’s operation has been marred by difficulties.

While Playtech’s Snaitech integrated Happybet into its operation to further enhance its offering, the brand continued to operate at a loss. Both online and digital gross gaming revenue continued to experience a decline in 2023, highlighting the company’s struggles. EBITDA loss increased in FY 2023, reaching EUR 9.8 million. In the first half of 2024, the company didn’t fare any better

The number of monthly active users plummeted by approximately 1,000 between 2022 and 2023, spelling additional trouble.

As a result, Playtech finally decided that it might be time to close Happybet’s Austrian operations and made plans to close it in the second half of 2024.

NEXT.io reached out to Playtech but received no comment on the matter, as per the company’s policy to avoid addressing rumors and speculations concerning M&A deals.