annual report and accounts
for the year ended 31 december 2012 source of success playtech is the 
world’s largest 
listed online 
gaming software 
and services 
supplier
competitive advantage
playtech has significant scale and offers a  
full range of gaming products and ancillary
services underpinned by a sophisticated 
technology platform which unites all 
product verticals third party content an 
extensive content library and complementary 
services these are delivered seamlessly 
through multiple channels including web 
mobile live and broadcast enabling players 
to move between product verticals using  
one wallet maximising player value and 
ultimately licensee revenue
principal customers and markets
playtech derives revenue from three main 
constituencies b2b b2g and joint ventures
playtech has over 1 10 licensees comprising  
a number of the leading names in the  
gaming industry including bet365 gala 
coral ladbrokes titan tropez and william 
hill playtech has approximately 40 licensees 
contributing €1 million or more in revenues 
with only three licensees representing more 
than 10 of total revenues the group provides 
its services worldwide in both regulated and 
unregulated markets and currently has more 
than half of its software royalty revenues 
derived from regulated markets
playtech is supplier to the government 
lotteries in finland and serbia
through 2012 playtech had joint ventures  
with the following william hill online  
29 gauselmann germany 4999  
and peermont south africa 50
24 january 2012 
formation of two joint 
ventures
24 january 2012 
acquisition of geneity
1 march 2012 
signs agreement with 
caliente mexico’s largest 
landbased casino operator
9 may 2012 
gala casino launch
12 jun 2012 
playtech enters the social 
gaming arena through 
skywind holdings
2 july 2012 
listing on lse main market
11 july 2012 
gala bingo launch
24 august 2012 
launch of mobile bingo 
26 august 2012 
poker liquidity  
program launched
11 october 2012
coral launch 
6 november 2012 
betclic everest launch  
with playtech
a year of progress
continued 
overleaf casino games poker bingo sport
live  tv 
gaming
internet mobile
tv  
broadcast
gaming 
machines
lottery
ims integrated operator platform
pt turnkey services
about playtech
our business model is centred on the 
continual development of marketleading 
gaming products and content these 
together with a broad range of ancillary 
services are provided to a diverse  
range of operators across both locally 
regulated markets and globally through  
all distribution channels
overview
our products and platform
playtech has industryleading content  
and player networks combined with  
unique crossplatform capabilities  
this is supported by the sophisticated  
and integrating tools of the ims enabling 
operators to easily integrate new products 
on a single platform and maximise the 
potential for enhanced player returns 
turnkey services
ptts delivers material value and expertise  
to its licensees across the key elements of  
player acquisition and retention together  
with the opportunity to realise substantial  
cost efficiencies through the outsourcing  
of operational services which benefit from 
economies of scale
 
casino
with bestofbreed graphics and audio  
together with regular releases of new games 
content including branded games playtech 
casino has been designed to attract and 
retain a broad range of players
games
playtech’s games tab is centred on an 
innovative open platform solution which 
enables the seamless integration of a wide 
range of games from both internal and 
thirdparty developers
poker
home to europe’s leading operators 
playtech’s ipoker network is the largest 
independent poker network in the world 
with over 35000 concurrent players at  
peak time
bingo
playtech’s bingo network includes over  
80 sites and is home to 65000 daily players 
over 16000 concurrent players at peak time 
driving over €165 million in total stakes 
permonth
sports betting
playtech’s sports betting platform offers  
a sophisticated nextgeneration trading  
and inplay capability across a very broad  
sports offering 
 
live  tv gaming
with both european and asian formats 
playtech’s live offering drives important  
crosschannel traffic blurring the  
boundary between landbased and  
online environments
mobile
as an integral part of the crossplatform 
offering playtech mobile enables  
content integration and a seamless  
player experience
key products our presence and markets
regulated markets
playtech’s experience in locallyregulated 
markets such as the uk italy and finland  
is a crucial part of the company’s success
and provides substantial longterm growth 
opportunities membership of the world  
lottery association and close relationships  
with regulators worldwide reflect playtech’s 
strong reputation this is aided by playtech’s 
profile as a publicly listed company
as the world’s leading listed supplier 
to the online gaming industry playtech 
offers the widest product choice in  
the industry backed by over a decade 
of outsourcing expertise including 
marketing and player retention
global operators
leading operators include sportsbook and specialist 
gaming operators such as bet365 betfair betfred 
gala coral ladbrokes mansion paddy power  
and titan 
locallyregulated markets
wellrecognised local operators in regulated markets 
including casino gran madrid codere joa olympic 
sisal snai and sportech 
b2g
stateowned or statesponsored entities including  
the ray in finland and serbian lottery
joint ventures 
partnerships with leading landbased  
operators including gauselmann  
peermont and william hill online
videobet
playtech’s gaming machine subsidiary  
videobet provides a complete endtoend  
solution for landbased gaming operations 
leveraging the architecture and stability  
of playtech’s online offering  
social
in 2012 playtech entered into a licence 
agreement with skywind holdings to provide  
the group with a wide range of social and  
real money gaming software giving access  
to platforms and products and complementary 
real money products
  william hill confirmed on 1 march 2013 that it
 was exercising its call option over playtech’s 29
 per cent stake in william hill online the transaction
 is expected to complete by the end of april 2013 overview sustainability governance accounts business review
playtech limited annual report and accounts 2012 1
2012 3175
2011 2075
2010 1423
2009 1148
2008 111 5
  gross income is defined as total revenue plus the group’s income from associate
   adjusted ebitda adjusted eps and adjusted net profit are calculated after adding  
back certain noncash charges cash expenses relating to certain oneoff professional  
and legal costs expenditure relating to the move to the main market and prior year  
taxes see reconciliation in financial review on page 24
  net cash is defined as cash and cash equivalents less loans and borrowings
highlights
€517m 
2011 €1373m
total revenue
adjusted net profit
adjusted basic eps 
recommended  
final dividend for 2012 
net cash balances 
adjusted ebitda
€1867m 
49 
2011 €1249m
€1685m 
49
2011 €1128m
total revenue
€31 7 5m 
53
2011 €2075m
gross income
€3681m 
51 
2011 €2436m
581 € cents 
26
2011 462 € cents
154 € cents 
per share
full year dividend 
41 
1  highlights
2  chairman’s statement
overview
4  chief executive officer’s report
10 industry overview 
14  business model  strategy 
16  products 
21  partnerships 
22  financial review
business review
50  corporate social responsibilty
sustainability
28  board of directors
30  directors’ report
33  corporate governance
37  remuneration report
45  nominations committee report
46  audit committee report
47  risk  compliance committee report
48  key risks
governance
57  independent auditor’s report 
58  financial statements
63 notes to the financial statements
94 parent company financial statements
98  fiveyear financial summary
bc company information
accounts 2 playtech limited annual report and accounts 2012
operating across all regulated areas playtech  
is in a prime position to benefit from increasing 
regulation as it develops on an international 
scale it is the board’s belief that the company’s 
ability to provide marketleading products  
and services to both established operators and 
new entrants operating under new regulations 
will over time increase the scale and quality  
of its earnings
strategic developments during the year 
included further integration of ptts our wholly 
owned services business the acquisition of 
which introduced the ability to provide full 
turnkey solutions enhancing joint venture 
opportunities and further increasing playtech’s 
ability to attract new partners the acquisitions 
of mobenga ash gaming and geneity have 
been fully integrated and have proven to 
positively enhance playtech’s offering and 
strengthen its position as the best of breed 
technology provider to the global online 
gaming industry
the company was pleased to announce  
in february 2013 that its joint venture with 
gauselmann in germany was awarded licenses 
by the state of schleswigholstein for the 
provision of casino and sports betting and 
management is now working with gauselmann 
to develop an appropriate business plan 
pertinent to the emerging regulatory regime  
in germany
signs from the us are encouraging with  
the news that the states of new jersey and 
nevada are to legalise online gaming and poker 
respectively as a result other us states may 
contemplate similar actions however such 
developments are in their infancy and there 
remains much work to do to resolve regulatory 
political and practical considerations we 
continue to watch developments closely
introduction
the year ending 31 december 2012 was  
an exceptional period in the continued 
development of playtech the company 
delivered another impressive financial 
performance and passed a number of 
significant corporate and operational 
milestones notably the company achieved  
a premium listing on london’s main market 
reflecting both the shortterm effort needed  
to make the progression and the longer  
term determination to comply with the 
responsibilities associated with a premium 
listing pleasingly playtech was included in  
the ftse 250 index in september and has since 
inclusion moved up approximately 30 places 
the move provided greater visibility for the 
company improved market liquidity and 
affords wider recognition of playtech’s strengths 
and consistent strong financial performance 
strategic developments
playtech is the clear market leader in the 
provision of software and services to the global 
online gaming industry its offering includes a 
full product suite leadingedge management 
system full integration across all player 
interfaces and a broad range of marketing 
services and techniques that enable licensees  
to maximise the potential of their online  
gaming business
the period saw growth of software revenues 
derived from regulated markets including  
italy spain and denmark further enhanced  
by organic growth while the regulatory 
environment remains in a state of flux in  
a small number of geographies the global 
process of regulating the online gaming 
industry continues to advance this trend  
led by national and local governments is a key 
driver of playtech’s current and future success 
chairman’s statement
 “playtech has had another excellent  
year incorporating some of its most 
significant achievements to date”
overview overview sustainability governance accounts business review
playtech limited annual report and accounts 2012 3
governance and risk management
playtech is committed to upholding the highest 
levels of corporate governance the company 
was delighted to welcome andrew thomas to 
the board as an independent nonexecutive 
director and chairman of the audit committee 
effective 19 june 2012 andrew brings with him 
a wealth of experience in the leisure sector and 
valuable insight into the nuances of taxation 
and finance
as announced at the interim results last year 
david mathewson retired as chief financial 
officer and from the board on 31 december 
2012 i would like to thank david for his efforts 
and counsel while he was a director
ron hoffman formerly vice president of finance 
over the previous eight years and who has 
played a fundamental role in all of playtech’s 
recent acquisitions was appointed to the board 
as chief financial officer with effect from the 
new financial year 
the board has worked to ensure a robust 
governance structure to comply with corporate 
best practice during 2012 an advanced internal 
audit function was implemented by pwc and 
the company and a revised code of conduct 
and ethics policy was adopted
william hill online
in october the board of william hill plc 
commenced the valuation process relating  
to their call option over playtech’s 29 stake  
in william hill online the process culminated  
in the confirmation that william hill will exercise 
the option for a consideration of approximately 
£424 million the transaction is expected  
to complete by the end of april 2013 
this has generated substantial returns for  
the company during the lifetime of the joint 
venture while this brings to a close a highly 
successful and profitable joint venture for 
playtech the company will continue to enjoy  
a close working relationship with william hill 
which remains a topfive licensee
dividend
the board has recommended a final dividend  
of 154 € cents per share giving a total 2012 
dividend of 232 € cents per share 201 1 165 € 
cents per share an increase of 41 this reflects 
the company’s strong underlying growth in 
earnings cash generation and the company’s 
dividend policy of paying out 40 of adjusted 
net profit
subject to shareholder approval of the final 
dividend at the annual general meeting to be 
held on 8 may 2013 the dividend will be payable 
on 24 may 2013 to those shareholders on the 
company’s register as at the record date of 26 
april 2013 the exdividend date is 24 april 2013 
for any shareholders who elect to receive  
their dividends in sterling the conversion 
exchange rate from euros into sterling will  
be set on 26 april 2013 and election forms 
should be returned to the company’s registrars 
by 3 may 2013
the board with its advisers is undertaking  
a broad review of the most effective use of  
the expected proceeds from the disposal of 
william hill online once completed taking into 
consideration feedback from shareholders and 
the company’s future requirements the board 
will amongst other strategic options assess the 
potential for further valueenhancing 
acquisitions joint ventures and partnerships 
focusing on regulated markets together  
with the possibility of a return of capital to 
shareholders playtech has a proven ability  
of generating value through successful 
acquisitions and management is confident  
that this will continue
in summary playtech has had another excellent 
year incorporating some of its most significant 
achievements to date the company continues 
to capitalise on its clear strategy and strong 
balance sheet the board is highly confident of 
the company’s prospects in 2013 and beyond
roger withers
chairman
14 march 2013
listing on the main market
“ this is a very exciting 
occasion for playtech  
and we are delighted  
to be part of the official 
list we have experienced 
exceptional growth since 
the company was founded 
in 1999 and this marks a 
significant milestone in our 
continued development” 4 playtech limited annual report and accounts 2012
regulated markets
regulated markets continue to present 
significant potential for revenue growth and 
playtech is in a prime position to take advantage 
of global market developments such as those  
in italy denmark spain the netherlands 
greece and germany pleasingly we announced 
that playtech’s joint venture with gauselmann 
created in january 2012 was awarded two 
licenses by the state of schleswigholstein for 
online casino and sports betting a year later
while playtech continued to focus on  
increasing income from regulated markets 
revenue from dotcom operators also increased 
in 2012 these operators provide liquidity in 
most regulated markets and are important  
to the company’s strategy as they establish 
themselves in regulated markets and provide 
the cornerstone for our activities in regulated 
and soon to be regulated markets
in france betclic everest launched with 
playtech’s ipoker network on ipokerfr and 
ipokercom in november this was followed by 
the launch of unibetfr at the beginning of this 
year betfair has also commenced its migration 
onto the ipoker network which is due to be 
completed in july 2013 these developments 
have cemented playtech’s leadership in the 
poker market as the natural network of choice
during the year playtech undertook a 
significant level of activity in anticipation of 
spanish regulation and further liberalisation  
in italy the company has enjoyed pleasing 
revenue growth following the launch in june  
of regulated casino poker and sports betting in 
spain and the launch in december of regulated 
online slots in italy
in the uk the third and final phase of the gala 
coral programme was completed in the last 
quarter of the year and betfair commenced  
its poker migration to the ipoker network  
after the highly successful launch of coralcouk 
gala migrated most of its product verticals onto 
playtech’s ims platform the offering includes 
some of playtech’s more recent innovations 
including the playtech portal a new mobile  
hub and an improved ims the current results 
from gala coral are exceeding expectations 
illustrating the cumulative positive impact 
derived through the crossselling opportunities 
afforded by an integrated offering 
in november the dutch government 
announced plans to sell the stateowned  
casino monopoly and legalise online gaming  
to increase competition the government  
is expected to introduce a draft framework  
for consultation in the spring of 2013 with a 
finalised law expected to be approved by the 
end of the year we anticipate that playtech  
and its licensees will seek to benefit from  
these changes in the dutch market
overview
playtech again delivered an outstanding 
financial and operational performance  
in a year of significant change for the online 
gaming market the company increased 
revenue by 53 to €317 5 million gross income 
by 51 to €3681 million and adjusted ebitda 
grew by 49 
during the period playtech expanded its 
product offering both organically and through 
acquisitions secured 19 new licensees including 
major operators such as gala coral and betclic 
everest further extended its relationships with 
existing licensees and entered into significant 
new joint venture opportunities
the company has the operational capacity  
to stimulate future growth specifically in  
mobile gaming which enjoyed a triple digit 
percentage performance increase in order  
to maintain its high level of customer service 
playtech invested in new product development 
related to the mobile hub ims and player portal 
enabling operators to create a bespoke player 
experience and grew its employee base by  
63 to support the business and its customers
importantly the company surpassed a major 
milestone in achieving a premium listing on 
london’s main market in july and was included 
in the ftse 250 index in september 
chief executive officer’s report
 “in 2012 playtech strengthened its position 
as the clear market leader in the provision 
of software and services to the global 
gaming industry”
business review overview sustainability governance accounts business review
playtech limited annual report and accounts 2012 5
signs from the us are encouraging with  
the news that the states of new jersey and 
nevada are to legalise online gaming and poker 
respectively as a result other us states may 
contemplate similar actions however such 
developments are in their infancy and there 
remains much work to do to resolve regulatory 
political and practical considerations a number 
of strategic partnerships are being pursued to 
prepare for the potential opportunities offered 
by this large diverse market
elsewhere the company signed an agreement 
with mexican market leader caliente and 
management believes that playtech given  
its commitment and proven track record is 
positioned as the natural choice for operators  
in different regulated markets 
strategic positioning
playtech’s strategy of organic development 
targeted acquisitions partnerships and  
joint ventures has enabled it to maximise 
opportunities created by the significant 
changes in the online gaming industry  
the industry is moving towards locally 
regulated markets as governments see the 
implementation of gaming tax and the sale  
of regulatory licenses as significant revenue 
streams landbased and digital channels  
are converging as regulatory authorities issue 
gaming licenses to landbased casinos for both 
static and online offerings through being able 
to offer a full turnkey solution playtech is able  
to partner with local brands and casinos to take 
advantage of these opportunities
mobile gaming continues to be one of the  
most significant growth drivers of the global 
online gaming industry playtech’s launch of  
the mobile hub in late 2012 has combined the 
established mobenga mobile sports betting 
solution with other gaming products this 
combination uniquely positions the company 
to capitalise on further developments in this 
sector mobile gaming is essential to playtech’s 
future success and we have invested heavily  
to develop the next generation of products 
maximising new functionality on tablets and 
smartphones while continuing to roll out 
products across all mobile platforms including 
android apple ios and html5
playtech’s proven strategy further strengthened 
its market position and the company is seen  
as the leading software and services supplier  
to the online gaming industry as evidenced  
by playtech winning the gaming awards for 
igaming software supplier of the year
acquisitions 
playtech’s recent acquisitions including 
mobenga ash gaming and geneity along  
with ptts have been fully integrated and 
continue to deliver significant benefits in  
terms of revenue product capability crosssell 
opportunity and licensee relationships 
playtech’s capacity for further bolton 
acquisitions and joint ventures will be enhanced 
considerably following receipt of approximately 
£424 million for the sale of playtech’s 29  
stake in william hill online which is expected  
to complete by the end of april 
“ playtech’s recent 
acquisitions continue  
to deliver significant 
benefits in terms of 
revenue product capability 
crosssell opportunity  
and licensee relationships”
industry awards in the past year 6 playtech limited annual report and accounts 2012
on 1 1 march 2013 playtech announced 
landmark software and services agreements 
with ladbrokes the existing playtech offering 
to ladbrokes which includes the provision  
of bingo and software for landbased video 
licensing terminals will extend to all product 
verticals other than sports betting using a 
phased approach the second is a significant 
agreement for ptts to provide ladbrokes with 
advisory services and to license sophisticated 
crm methodologies and business intelligence 
to assist in the development and growth  
of ladbrokes’s digital business this is an 
outstanding transaction for ptts which 
continues to develop delivering significant 
returns for the company which are anticipated 
to increase following the agreement with 
ladbrokes 
products and services
in 2012 playtech made further investment into 
its product offering extending its capabilities 
both horizontally and vertically through 
inhouse development as well as through the 
introduction of acquired products playtech’s 
licensees benefitted from the introduction of 
the mobile hub and portal as well as the ims 
enabling operators to offer a bespoke player 
experience available in all formats and channels 
the combined system facilitates a twoway 
information flow from the ims providing 
licensees with greater realtime insight and 
control and players with an improved user 
experience thereby maximising the potential  
of licensee online gaming operations
casino 
playtech’s flagship product delivered another 
outstanding performance in 2012 revenues 
increased 33 from a combination of organic 
growth the addition of new licensees 
expansion of the games portfolio now 
including all ash gaming products growth from 
mobile and the revamped live dealer offering 
which is now available through all interactive 
channels including mobile branded games  
are a valuable marketing tool for playtech  
and the company has the largest portfolio  
of games available across multiple delivery 
channels including online mobile tv and 
gaming terminals during 2012 playtech 
launched 35 games and 21 branded games
ptts
playtech offers affiliate marketing services and 
sophisticated crm solutions combined with 
advanced player management tools which  
are of particular interest to new market entrants 
requiring a full turnkey solution as well as 
existing operators that would like to boost  
their online gaming operations
during the year ptts grew to become 
playtech’s second largest vertical in july 
playtech announced that ptts had achieved  
an annualised adjusted ebitda in excess of  
€40 million in the first two quarters of 2012 
fulfilling the condition for acceleration of  
the additional consideration of €140 million  
the additional consideration outstanding  
at year end is scheduled to be paid in three 
instalments ending in january 2014
licensees
playtech aims to provide its licensees with 
marketleading content features tools and  
a broad range of services that support and 
enhance their businesses
betclic everest launched its poker products  
on the ipoker network for dotfr and dotcom  
in addition several other licensees increased  
the number of product verticals licensed from 
playtech these developments reflect playtech’s 
success in strengthening its relationships  
with existing licensees through an integrated 
solution which helps deliver maximum  
player yields
gala coral completed its threestage 
programme to move its entire online gaming 
operation to playtech’s ims which we believe 
serves as a significant endorsement of the 
company’s marketleading crossproduct 
technology playtech now provides gala coral 
with an improved ims a newly developed 
portal innovative mobile hub and a full  
range of gaming products gala coral will use 
playtech’s systems to manage all of its online 
activities including gala casino and gala bingo 
as well as coral
pleasingly betfair decided to migrate its  
poker offering to playtech’s ipoker network 
commencing the migration plan in the year  
with completion anticipated for july 2013
in connection with the regulation of the 
spanish french and danish markets playtech 
gained a number of new licensees certain 
existing licensees also underwent regulation 
and now offer their services on a dotlocal  
basis as compared to a previous dotcom basis
chief executive officer’s report continued
business review
playtech’s flagship  
casino product delivered 
revenue growth of 33  
in 2012 overview sustainability governance accounts business review
playtech limited annual report and accounts 2012 7
the acquisition of ptts has been highly 
successful delivering outstanding results  
we have also demonstrated that the ability to 
offer a full turnkey solution or advisory services 
is essential to attracting further business 
opportunities through ptts we can provide 
operators both existing and new licensees 
including dotcom operators or new entrants  
in regulated markets access to best of breed 
marketing and crm services as well as other 
ancillary services ptts has a proven track 
record of more than a decade and is a 
fundamental element to the future success  
of the company 
bingo
playtech provides the industry’s leading bingo 
offering and operates the industry’s largest 
bingo network bingo continues to perform 
strongly increasing revenue in the period  
by 19 to €180 million 2011 €151 million 
strong organic growth was complemented  
by the launch in the third quarter of gala bingo 
and in the fourth quarter of vernonscom and 
our mobile bingo offering which is available  
on android and apple ios supported by 
promotional activity during the final two  
weeks of the year
playtech’s bingo brand virtuefusion has  
once again won a number of industry awards 
including egaming review’s bingo network  
of the year and the bingo summit’s best bingo 
software for the third year running
poker 
the international poker market remained 
challenging throughout the year however 
playtech recorded an uplift in revenue in  
the latter part of the fourth quarter and  
the beginning of 2013 following a number  
of new licensees joining the ipoker network
during the year as part the phased migration 
plan gala coral launched on the ipoker network 
followed by betclic and everest who launched 
on the ipokerfr and ipokercom networks and 
betfaircom which launched on ipokercom and 
ipokeres these licensee wins in conjunction 
with playtech’s poker liquidity programme 
initiated in august significantly increase the 
poker network’s liquidity which is seen as  
key to attracting poker players and licensees 
when choosing a supplier and supported the 
ongoing improvement in poker performance 
in addition playtech also introduced a variation 
of speed holdem which increased revenue from 
cash games
ipoker remains the largest and leading 
worldwide independent poker network  
a number of significant licensees are in 
discussion with playtech regarding joining  
the network during the year a number  
of new crm tools and an improved user 
interface supported by a revamped version  
of the poker client were launched 
“ the acquisition of  
ptts has been highly 
successful delivering 
outstanding results”
once again playtech had a very substantial presence at the ice gaming show in london in january 2012 8 playtech limited annual report and accounts 2012
return on invested marketing playtech’s 
experience so far is that mobile presents an 
incremental opportunity as revenues margins 
and activity levels are higher compared with 
other interactive channels mobile remains a  
key focus for the company and development 
continues of the next generation of the mobile 
offering that will be even more exciting and 
appealing to a larger audience
live
playtech was the first company to introduce  
live gaming products specifically tailored for 
local markets as technology has evolved the 
popularity of live gaming formats has grown 
significantly in 2012 the live gaming product 
underwent a comprehensive redevelopment  
to include new features and functions appealing 
specifically to live gaming players and designed 
to capitalise on our first mover advantage  
in order to retain that lead in parallel we 
introduced a mobile version for the live gaming 
product complementing the product offering 
available on other interactive channels in 2012 
gala coral migrated its live casino across its 
brands and we expect additional licensees to 
migrate to our live gaming offering in the near 
future in spain playtech partnered in january 
2013 with casino gran madrid to offer live dealer 
services to the spanish market
sports 
sports is one of the largest gaming markets  
and frequently acts as the gateway for  
players to access other gaming experiences 
furthermore recent events have shown that 
sports is typically one of the first products to  
be approved in newly regulated markets in line 
with our strategy to provide a comprehensive 
solution and our focus on regulated markets 
the company acquired geneity a world class  
fully integrated and complete sports platform 
there are significant opportunities for this 
business which has been integrated with both 
the mobenga mobile sports product and ims 
and which has already won its first two sports 
licensees we expect to see significant growth 
from sports over the next quarters as more 
licensees are added
videobet
in 2012 videobet technology was deployed  
in more than 400 additional terminals ending 
the year with approximately 23000 machines 
the expansion of videobet into emerging and 
other markets such as mexico and puerto rico 
together with location growth by some existing 
licensees and new markets currently in test 
provide a solid pipeline for 2013
mobile
the growth of mobile continues to outperform 
all other product channels the success by 
different operators has led to significant 
investments by the company to ensure that  
it captures the market leading position in the 
space following the acquisition of mobenga 
the market leader in mobile sports betting  
the company has initiated an innovative internal 
programme called the mobile hub converging 
mobile sports betting and mobile gaming 
products into one offering enabled by mobile 
touch screen functionality the new mobile hub 
creates an exciting new experience for players 
with the same products that are available 
through other interactive channels and share 
the same poker and bingo pools and jackpots  
it also creates for the first time in our industry 
the ability to acquire players through the sports 
betting vertical and then offer other verticals 
within the same application maximising the 
chief executive officer’s report continued
business review
mobile and mobile hub
the mobile hub combined  
with the marketleading mobile 
sportsbook provider and 
playtech subsidiary mobenga  
is an open framework  
designed to integrate content 
and deliver players a seamless 
user experience on mobile 
devices through a branded 
and unified interface an 
operator’s full product offering 
is available to players on  
their smartphone or tablet  
and can be customised and 
managed through a centralised 
management system
as an open platform the mobile hub allows 
operators to integrate any software and content 
using standard and friendly api’s the new 
technology has made it quick and easy to  
plugandplay both playtech and third party  
mobile content minimising the work load for 
operators built on html5 technology the mobile 
hub is compatible with web browsers native 
applications and across all html5 ready devices overview sustainability governance accounts business review
playtech limited annual report and accounts 2012 9
people
playtech’s people remain key to the company’s 
continued success a great example of the 
quality of the company’s employees are their 
great achievement to ensure that playtech 
established itself as market leader in the mobile 
gaming space following the introduction  
of mobile technologies when the company 
assesses potential acquisition targets or 
potential joint ventures it places a high  
value on the existence of a complementary 
culture of employee service and innovation
in terms of delivery human capital is as critical 
as financial capital playtech has continued  
to invest significantly in human resources  
to maintain its position as a leading quoted 
supplier of software and services to the online 
gaming industry by delivering innovative high 
quality products and services to its clients 
william hill online
with the agreed valuation of approximately 
£424 million for its 29 stake in william hill 
online together with dividends received  
over the four years since inception playtech  
has generated a cash return on investment  
of more than 35 times the success of the  
joint venture demonstrates the potential of 
creating significant value by combining a well 
established brand with playtech’s best of breed 
technologies products and services through 
participation in this joint venture playtech 
widened the breadth of its expertise and proved 
how successful and valuable a partnership of 
this nature can be for its stakeholders while  
the sale of its stake will bring to a close a highly 
successful and profitable joint venture for 
playtech the company will continue to enjoy  
a close working relationship with william hill 
which will remain a topfive licensee
the sale process is expected to complete by  
the end of april 2013 and the board with its 
advisers is undertaking a broad review of the 
most effective use of the proceeds from the 
disposal taking into consideration feedback 
from shareholders and the company’s 
requirements going forward the board  
will amongst other strategic options assess  
the potential for further valueenhancing 
acquisitions joint ventures and partnerships 
focusing on regulated markets together  
with the possibility of a return of capital to 
shareholders playtech has a proven ability to 
provide shareholder value through successful 
acquisitions and management is confident  
that this will continue
outlook
playtech has made a strong start to 2013  
with average daily revenues for the first 1 1 
weeks of 2013 up over 15 on q1 2012 and  
up 5 on q4 2012
the anticipated revenue from the number of 
new licensees who launched during the last 
quarter of 2012 the introduction of slots in italy 
and the extension of existing relationships such 
as the migrations of betfair poker and unibetfr 
followed by the progress made in the year  
to date such as the landmark agreement with 
ladbrokes secures the company’s position  
in 2013 and beyond playtech is in a prime 
strategic position and is well capitalised to take 
advantage of opportunities from the evolving 
global regulatory landscape and we look 
forward to the future with confidence 
mor weizer
chief executive oﬃcer
14 march 2013 10 playtech limited annual report and accounts 2012
betting €115bn  452 
poker €31bn 12 1  
casino €56bn 217 
bingo €16bn 64 
skillbased commercial  €15bn  58  
lotteries and other gaming
state lotteries €22bn 88
total €255bn 100
the market continues to benefit from improved
broadband penetration and capacity mobile 
penetration a growing number of market 
participants and greater acceptance of online 
gaming as a mainstream leisure pastime since 
the passing of the unlawful internet gambling 
enforcement act in 2006 which outlawed 
online gaming in the us the main focus of 
operators has been on europe and in particular 
on markets where legislation allows various 
forms of online gaming on a locally regulated 
basis as the us now begins to regulate on  
a statebystate basis the overall interactive 
gaming market may grow more quickly than 
rates seen in the last three years which is inline  
with forecasts by h2 gambling capital
 
as further countries regulate h2 gambling 
capital forecast interactive regulated revenue  
to grow at a cagr of 20 over the next three 
years whereas total interactive revenue is 
forecast to grow at 9 over the next three years
 
regulating markets
the regulation of online gaming in a national 
market historically has been a catalyst to 
substantial market change once regulated 
typically new entrants are attracted to the 
market including major local gaming companies 
such as betting shop operators lotteries and 
local casino groups who have historically  
not been willing to operate online in an 
unregulated format
the ability to advertise more freely across  
a broad range of media formats such as tv  
and online raises awareness of online gaming  
as a leisure activity and drives an increase  
in player interest which is also underpinned  
by a perceived safer player environment it is  
the combination of these factors that have led 
to major growth in players and revenues in 
markets such as the uk and italy for playtech 
the opportunities across a range of newly 
regulated and soon to be regulated markets  
are substantial as a broad range of providers 
look to participate
while global statistics are hard to verify  
it is believed that onshore interactive gross 
gaming win ggw reported by the global 
gambling industry including sports betting 
casino poker and bingo from regulated 
jurisdictions increased to €7 8 billion in 2012 
from €66 billion in 201 1 source h2 gambling 
capital the uk a fully regulated market is 
predominantly offshore and adds a further €25 
billion to the €7 8 billion stated above over  
the last five years the ggw referred to above
has grown at a compound annual rate of 122
the figure for 2012 comprises €65 billion 
828 from sports betting operations which 
playtech views as a significant opportunity since 
acquiring geneity and integrating its products 
onto playtech’s ims platform the remainder 
comprises €343 million 44 from casino €804 
million 103 from poker and €197 million 
25 from bingo
h2 gambling capital estimates that the 
interactive gaming sector including sports 
betting casino poker and bingo achieved  
€218 billion in ggw in 2012 2011 €205  
billion comprising 531 from sports betting  
254 from casino 141 from poker and  
74 from bingo
adding skillbased commercial lotteries  
state lotteries and other gaming to the above 
total interactive ggw in 2012 was €255 billion 
interactive ggw as a percentage of total  
ggw landbased and interactive was 81 
interactive is growing at a higher rate than  
the landbased retail sector evidenced in the 
adjacent graph and this trend is forecast by h2 
gambling capital to continue into the future
 
online development
the online gaming market developed in
the mid1990s first with online casinos and
then with poker from 1998 in 2004 the market
was estimated by h2 gambling capital as
having revenues of approximately €93 billion 
and it grew substantially throughout the second
half of that decade to a total of €255 billion in 
2012 as stated above
industry overview
the pace of change within the gambling industry  
is increasing as regulation increases playtech  
is determined to retain its leadership in providing 
the widest range of software and services to  
the broadest range of participants worldwide
business review
 
interactive gross gaming win by product
source h2 gambling capital overview sustainability governance accounts business review
playtech limited annual report and accounts 2012 11
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012p 2013e 2014e 2015e
0
20
40
60
80
100
the tax regime within a jurisdiction has a 
material impact in determining whether online 
gaming is likely to be commercially attractive  
in the longer term in addition the products  
that are permitted when a market regulates  
will also determine its attractiveness for 
potential participants
 
the implementation of regulation is expected 
to remain a key focus for market participants 
and an important driver of online gaming 
revenue growth over the next few years  
as markets move from a ‘dotcom’ to a ‘dot 
national’ regime there are expected to be 
notable opportunities together with some 
potential headwinds and uncertainties through 
the transition period
over the past two years there has been 
considerable momentum in countries 
regulating or looking to become regulated  
in online gaming and in 2012 regulation was 
introduced in spain belgium and denmark 
while italy introduced more products to  
an already regulated regime in germany 
schleswigholstein issued a number of licenses 
including two to a joint venture vehicle of 
playtech and gauselmann but the overall 
regulatory environment in germany remains 
unclear the netherlands and greece are 
proceeding in becoming regulated markets 
countries around the world continue to 
regulate using as a model the experience of 
other countries that have already undergone 
regulation at 31 december 2012 there  
were 12 counties that were regulated for some  
form of online gaming 31 december 201 1  
9 countries
“ for playtech the 
opportunities across a 
range of newly regulated 
and soon to be regulated 
markets are substantial”
market participants
the online gaming industry accommodates   
a wide range of participants who choose  
on entry whether to develop the necessary 
software content systems and marketing 
themselves or to outsource various elements 
to providers such as playtech
industry participants have traditionally been 
defined within two categories
b2c 
the b2c sector includes all playerfacing 
activities such as marketing and delivery of  
the gaming experience operators typically 
have a strong marketingled business model  
and seek to attract players to their website  
and encourage ongoing loyalty from their 
active players
in addition to commercial operators  there is a 
growing b2g segment comprising stateowned 
or statecontrolled entities such as lotteries and 
other organisations
b2b 
supporting the aforementioned operators  
are a number of technology providers offering 
software platforms specialist products and 
services and games content
such providers compete in offering  
the highestquality gaming products or  
systems capable of achieving the operators’ 
business objectives
playtech is the largest listed b2b  provider 
offering a full product suite that includes  
the world’s largest bingo and poker networks 
these networks provide playtech’s licensees 
with the benefits of increased liquidity joint  
marketing plus networked jackpots unlike  
a b2c partnership licensees can still manage  
their own business activities and maintain  
their independence from the platform provider
interactive gross win by regulated vs unregulated
source h2 gambling capital 12 playtech limited annual report and accounts 2012
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012p 2013e 2014e 2015e
0
5
10
15
20
25
30
35
40
source h2 gambling capital
industry overview continued
“ advances in technology 
have also improved 
the operator’s player 
management systems 
delivering features such 
as realtime analytics and 
vip management tools 
a significant milestone  
has been the ability  
to offer a single wallet  
across all platforms”
business review
turnkey services
online gaming is a relatively new dynamic 
industry that requires differentiated specialist 
skills and assets from traditional landbased 
operations as local or landbased operators 
seek to add a complementary online offering  
to their existing business or as media 
companies seek to enter the industry they  
have increasingly looked for help from an 
experienced partner with the ability to offer a 
range of services up to a full turnkey solution 
such a solution would include the know 
how and manpower necessary to ensure  
the new business can comply with any  
relevant legislation and compete against  
the sophisticated marketing capabilities  
of wellestablished online operators  
from day one 
competition and market position
playtech has traditionally faced competition 
for b2b mandates from other software 
providers typically of smaller scale more 
recently there have been b2c operators  
that are looking to minimise their own risk  
when entering a newlyregulated market  
by partnering with substantial and well 
recognised local businesses 
this gives them access to a local profile and 
enhanced player liquidity which they might  
not otherwise enjoy themselves in return they 
typically look to offer a whitelabel turnkey 
solution for their local partner
playtech’s positioning in the industry remains 
constant as a b2b provider focusing on 
providing scale and breadth of product offering 
and ensuring that licensees have the most 
advanced technology and operator platform  
in the industry with bestofbreed tools   
and content
player management
advances in technology have also improved  
the operator’s player management systems 
delivering features such as realtime analytics 
and vip management tools a significant 
milestone has been the ability to offer a  
single wallet across all platforms and product 
segments this enables players to move  
across games or products without changing 
user account
this technology is also used to provide greater 
player protection to prevent underage and 
problem gaming and includes age verification 
tools tracking player activity and selfexclusion 
tools it also monitors the network for evidence 
of money laundering
interactive gross win margin all products overview sustainability governance accounts business review
playtech limited annual report and accounts 2012 13
sustainability rnance accounts
playtech limited annual report and accounts 2012 13
improved player management systems  
are key elements in increasing player loyalty  
and enhancing an operator’s crossselling 
potential as players are encouraged to play 
more frequently and for longer periods this  
can now be combined with crossplatform 
capabilities through serverbased gaming 
terminals mobile phones and tablets using 
browserbased technology and download
convergence of online and landbased
a significant industry trend is the growing 
convergence of landbased and online market 
segments this is principally as a result of many 
new entrants in regulated online markets being 
existing landbased gaming betting and lottery 
operators who already have a substantial local 
presence wellrecognised brands existing 
player databases and are familiar with the  
local regulatory environment
historically separate in their philosophy  and 
systems there has been a fundamental shift in 
both segments towards common techniques 
for player attraction and retention such as  
vip levels and loyalty schemes operators  
are becoming more aware of the importance  
of player retention and of incentivising the 
player on an individual basis regardless of 
channel the retention of players and the ability 
to cross sell them onto other products provides 
opportunity for operators but also presents 
substantial technical challenges for them
playtech has focused much of its recent 
development efforts on ensuring that it is able 
to deliver functionality player management  
and content across the full range of distribution 
channels and to capitalise on this trend of 
convergence it has proactively developed 
the most sophisticated of serverbased  
gaming systems unique capabilities in tv  
and broadcast and cuttingedge mobile  
and online products all are managed by  
a single operator platform with a single  
player wallet across all formats 
the gaming industry is undergoing 
fundamental and structural change and 
playtech is determined to remain a market 
leader in providing technology and services  
to the broadest range of participants with  
a focus on regulated business
consolidation of the gaming market 
as evidenced by the recent offers for 
sportingbet plc and betdaqcom the industry  
is beginning to show signs of consolidation 
driving these trends is the increase in licensing 
costs the limited number of licenses issued by 
regulated countries decreasing margins in  
part because of increased taxes as a result  
of regulation and b2c market saturation  
in certain verticals keeping up to date  
with technology the need for player liquidity 
and marketing spend are also believed to  
be contributors to market consolidation  14 playtech limited annual report and accounts 2012 eport and accounts 2012
turnkey solutions ptts
joint ventures
products
live  tv 
gaming
internet
mobile
tv 
broadcast
social
gaming 
machines
lottery
casino
games
poker
bingo
sport
ims 
information 
management 
solution
business model  strategy
playtech’s strategy supported by its strong balance 
sheet centres on developing three highly complementary
business channels products and services turnkey 
solutions and joint ventures with organised growth  
and targeted acquisitions
shareholder value
maximising opportunities
business review overview sustainability governance accounts business review
playtech limited annual report and accounts 2012 15
playtech offers a full suite  
of gaming products including 
casino bingo poker and  
sports along with ancillary 
services including marketing 
operational support advisory 
and network management 
services all of which are 
supported by the highly 
sophisticated information 
management solution the  
ims is the core component  
and key differentiator of 
playtech’s offering and can  
be customised through a 
variety of network management 
tools and features
through pt turnkey services 
ptts playtech has a 
comprehensive single source 
solution to the online gaming 
industry of particular interest  
to the growing number of new 
entrants targeting regulated 
online markets
playtech’s strategy is to 
identify new partners with  
which to establish longterm 
ventures in markets such  
as the uk germany and  
south africa playtech  
has been chosen as a joint 
venture partner by leading  
landbased operators 
playtech is the supplier of choice to over 1 10 
licensees in the gaming industry because of the 
best of breed products scale and breadth of 
player networks in bingo and poker the industry’s 
largest content library and most importantly the 
cuttingedge information management solution 
the ims which is playtech’s key competitive 
advantage acts as a backbone for the entire 
playtech business model allowing operators to 
acquire convert and retain players using specific 
tool and services thereby maximising player 
value and lifetime as well as enhancing the player 
experience the ims provides a single account 
registration or signon for multiple products 
casino bingo poker etc a single wallet with 
multiple balances enabling players to make a 
seamless transition between products which  
can be accessed through multiple distribution 
channels including download web mobile tv 
and landbased this functionality is enhanced  
by playtech’s services solution which provides 
marketing crm operational support and 
payment advice up to a full turnkey solution
 
through ongoing rd and bolton acquisitions 
playtech will continue to develop its product  
and content offering into new or complementary 
areas including expanding its crossplatform 
capabilities in 2012 playtech added two product 
verticals social gaming and binary options 
which are still in their infancy it also acquired 
geneity which increased the sportsbook offering 
creating a onestop shop for gaming operators 
playtech’s focus remains on regulated markets 
with a dynamic product and services offering fully 
compliant with the evolving regulatory landscape
as a result of more than a decade of experience 
ptts offers a number of value adding services 
including affiliate marketing penetration the 
most advanced player management systems 
operational support including fraud network 
management hosting reconciliation and 
payment advisory services all designed to 
leverage the marketleading tools delivered  
by playtech’s ims
 
for many operators particularly in emerging  
and newlyregulating markets there is a clear 
need for a partner that along with a premier 
product offering can deliver the very best 
marketing and operational support services  
to compete in highly competitive new  
markets recently playtech signed a structured  
agreement with ladbrokes to provide  
marketing and advisory services including 
sophisticated business intelligence and crm 
systems along with access to playtech’s full 
product suite technology and the ims back  
office system this offering is expected to 
accelerate ladbrokes’ online and mobile  
revenues and grow the lifetime values of 
ladbrokes’ digital customers
these partners are looking to develop a 
marketleading online offering supported  
by highly experienced marketing and player 
management capabilities joint venture partners 
recognise the benefits of playtech’s expertise 
when they are competing against established 
international businesses transitioning from  
being offshore dotcom operators to local  
market participants 
in each case playtech will provide its localised 
service expertise while its local partners  
commit their gaming brand any online 
operations customer lists and management  
to the new joint venture it is anticipated that  
both parties’ interests are aligned through  
the injection of working capital andor certain 
assets into the venture 
ims and products
turnkey solutions
joint ventures 16 playtech limited annual report and accounts 2012
products
the ims is a crossplatform infrastructure  
enabling online broadcast mobile and  
landbased platforms to be managed  
through a single administrative system  
sophisticated crm tools enable operators  
to better understand players’ gaming  
behaviour using a single interface that  
generates reports to analyse every player  
on the network or a predefined segment  
recent innovations include a quick deposit  
feature located in all lobby and game  
windows making depositing an easy  
and immediate process a mobile hub linking 
playtech’s award winning mobenga platform  
to the rest of playtech’s product verticals and 
the playtech portal which enables operators to 
provide players with a bespoke userinterface  
in addition a ringfencing feature enables  
players who are registered at a multiproduct  
brand to facilitate play and bonusing without  
the need for funds transfer together these  
tools enhance an operator’s ability to attract  
convert and retain their player base while  
encouraging players to try new or unfamiliar  
products enhancing player yields  
with its open gaming platform the  
playtech casino offers the best games library  
in the industry including unrivalled branded 
content and hundreds of games integrated 
from various thirdparty developers  
a bestofbreed back office system  
provides unique bonusing capabilities
open gaming platform
powered by playtech’s edge technology 
playtech’s open platform offers operators  
the opportunity to enjoy playtech’s own 
extensive content library as well as new  
games from various thirdparty providers  
all developed using the same edge technology 
combined with the strength and capabilities  
of playtech’s ims this open platform is 
unrivalled in the industry
dashboard for kpi monitoring 
enhanced analysis tools allow licensees  
to generate reports and statistics on all  
aspects of their players’ activity enabling  
segmentation of the player base in order  
todefine marketing strategy and future  
spend the dynamic operational dashboard  
provides an ataglance view of kpis using  
clear graphs and charts to display key business 
trends including player numbers and activity 
earnings per active player player churn bonus 
costs deposits withdrawals and declines  
these realtime reporting and advanced 
marketing tools play a key role in player 
retention and conversion 
player engagement
by providing the tools to understand their 
players playtech assists licensees to devise 
appropriate marketing strategies accordingly 
furthermore they can communicate these 
promotions in the most relevant way to a 
particular player segment through offline  
and online communication tools and chat 
applet all  in multiple languages
games portfolio
playtech’s expanding games library continues  
to incorporate a careful selection of branded  
games designed to help licensees draw in new  
players and to excite their existing players 
through massmarket appeal
the most notable 2012 releases include monty 
python’s spamalot the sopranos cowboys  
 aliens baywatch little britain john wayne 
thor captain america and marilyn monroe
business review
highlights
  migration of gala coral onto the ims platform
  development of improved ims through the 
launch of the mobile hub and portal
highlights
  now includes all ash gaming products
  revamped live dealer offering
  winner of egr slot provider of the year
the ims is the backbone of 
playtech’s offering controlling 
all products and generating 
higher levels of player 
conversion and retention 
potential it drives profitability 
through maximising cross
selling opportunities
playtech’s casino is
the company’s flagship
product and continues
to be the leading online
casino in the industry
ims information management solution
casino overview sustainability governance accounts business review
playtech limited annual report and accounts 2012 17
client or webbased product the fast and 
seamless integration allows games to be 
implemented across the entire product 
portfolio enabling valuable operator  
crossselling opportunities 
the incorporation of the edge system  
into playtech’s ims provides licensees with 
additional tools to manage their online 
operations including comprehensive reporting 
account management customer support and 
promotional tools edge also forms part of 
playtech’s crossplatform solution games on 
the platform can be played using download 
web mobile and tablet tv and landbased  
vlts using a single account with one wallet
games tab
playtech’s open platform was developed by 
gaming technology solutions gts which  
was acquired in december 2009 gts partners 
with industryleading game developers around 
the world and through its enhanced gaming 
engine edge operators have access to content 
from these thirdparty suppliers enabling  
a regular offering of new games in addition  
to localised content for particular markets
the games library is continually expanding 
as developers come up with new and  
exciting games and variations games on  
the edge platform support multiple domains 
are available in 30 different languages  
in most currencies
via the edge platform operators can choose 
from over 500 games from more than  
20 different content providers along with 
integration to any games bingo or casino 
offering operators have the option of 
embedding ‘mini’ or popup formats into  
their live sportsbook application
the platform was designed as a crosschannel 
content delivery solution with the ability to 
seamlessly integrate games to new and existing 
online operations either as a downloadable 
the live dealer and tv formats attract a broad  
range of participants who enjoy interaction  
with the dealers the sense of trust when playing 
with real cards on real tables and the enhanced 
communityfeel of the playing experience 
across a range of casino table games
live dealer games 
playtech’s live dealer centres are designed  
as real landbased casinos which enable 
operators to attract traditional landbased 
players into the online arena live games also 
play a key part in an operator’s conversion 
strategy the option to use a private table area 
allows operators to fully promote their brand 
and other product offerings through specific 
targeted promotions
operators can offer fullyintegrated casino  
mini games alongside the live dealer games 
generating valuable crossselling opportunities 
the product is updated regularly to enhance 
and maximise player engagement including 
much faster streaming capabilities the live 
product has a clear and efficient user interface 
and the use of top of the line cameras 
positioned at multiple viewpoints delivers  
hd broadcast quality enabling players to 
immediately experience the live landbased 
‘look  feel’ of the studio
highlights
  easy integration of games onto playtech’s 
ims either as a downloadable client or 
webbased product
  largest library of games with over 500 
games available
  content from 20 different content providers
highlights
  underwent a comprehensive redevelopment
  includes new features and functions 
designed to capitalise on playtech’s first 
mover advantage
  partnered with casino gran madrid to offer 
live games to the spanish market
ash gaming provides an entire 
new portfolio of proven content 
which is embedded in the 
casino platform and offered 
to all casino licensees
bringing live games to
multiple platforms including
web tv mobile and tablets
playtech’s live product  
takes the authenticity of the  
landbased experience into 
the home and on the go
games
live games 18 playtech limited annual report and accounts 2012
products continued
virtue fusion’s product offers the industry’s  
largest range of bingo variants branded content  
and side games which delivers peak traffic of up 
to 16500 concurrent daily players
product development
virtue fusion has continued to focus on adding 
value across its licensee network through 
ongoing product development a notable 
development being the launch of mobile bingo 
on apple ios and android for use on tablets  
and smartphones virtue fusion’s loyalty system 
also allows each licensee to set up a completely 
bespoke loyalty programme for their players by 
assigning specific programme names different 
numbers of loyalty levels a range of accrual 
rates per level and various redemption rates  
per level and per bonus category
the popularity of side games which account  
for approximately 38 of total bingo revenues 
give the players access to the more than 500 
leading games and over 60 embedded mini 
games specifically designed for the bingo 
playing audience gts edge with virtue  
fusion give licensees access to playtech’s  
ever increasing suite of marketleading  
branded and proprietary games in mini  
and fullscreen formats
enhancements
the ipoker network has the leading liquidity  
and offers a vast range of tournaments  
the player experience was enhanced during 
2012 by improving the user interface and the 
ecology of the network through the poker 
liquidity programme
superior performance memory utilisation  
and highresolution options ensure a smoother 
game flow for players delivering continuous 
uninterrupted gameplay the lobby integrates  
cuttingedge design elements with slide  
animation reflecting ipoker’s forwardthinking  
approach when it comes to player retention
additional developments have added greater 
personalisation to the network to drive deeper 
player engagement and achieve higher player 
retention and lifetime value
with the unrivalled liquidity of the network 
supporting a huge international prize pool 
licensees can deploy quickly in all markets 
offering the most attractive promotion and  
life changing prizes 
regulated markets
playtech provides operators with exciting 
opportunities as newlyregulated bingo 
markets start to open up playtech’s italian 
bingo network already has the region’s leading 
operators on board including snai sisal 
eurobet and codere with more major licensees 
set to join the network 
improved user experience
the fully customisable client supports multiple 
languages and currencies and offers exclusive 
side games a tournament calendar and  
the fastest poker variation speed hold’em 
regular online satellites landbased events  
plus daily weekly and monthly tournaments 
have a guaranteed prize fund of over €10 million 
a month 
business review
the bingo network of choice for 
bluechip gaming companies 
worldwide playtech’s virtue 
fusion networks provide an 
awardwinning bingo offering 
connected to the industry’s 
largest bingo liquidity pool  
with over 65000 daily players
home to europe’s leading 
operators playtech’s  
ipoker network is the  
largest independent poker 
network in the world with 
over 35000 concurrent 
players at peak time
poker
highlights
  enhanced liquidity programme initiated  
in august
  launched a variation of speed hold’em 
  betclic everest group launches its everest  
and betclic poker brands with playtech
  betfair launched with ipoker in early 2013
  easy integration of new licensees
bingo
highlights
  further strengthened its position as the 
largest bingo network in the com market
  launch of gala bingo in may 2012
  launched mobile bingo on 24 august overview sustainability governance accounts business review
playtech limited annual report and accounts 2012 19 pl t ch limited annual report and accounts 2012 19 h li it d a l r t d a t 2012 19
the videobet product encompasses both  
terminal software and control systems  
these can be configured to meet a wide range  
of operational requirements from vlt or  
remote multisite operations to casino and  
slot hall management videobet provides  
access to the entire playtech games portfolio  
including all branded and licensed content 
for an operator the core of the offering is  
the serverbased technology that allows for  
remote management or ondemand changes  
these range from realtime management  
of games or bonuses remote updating  
of software or full terminallevel financial  
reporting and control
videobet works closely with its licensees  
to ensure that the product is localised to  
meet their specific requirements the unified  
back office system allows for realtime 
monitoring control and updating of all  
gaming machines from a single application  
and has the ability to connect to and monitor  
machines from thirdparty vendors
2012 performance
by the end of 2012 in conjunction with  
the global draw the uk’s leading provider  
of serverbased gaming terminals videobet  
had deployed over 23000 terminals in the uk 
mexico and puerto rico 
videobet provides a complete 
endtoend solution for land
based gaming operations 
ranging from standalone 
gaming machines to server 
supported fixed odds betting 
terminals fobt and full 
serverbased video lottery 
terminals vlt
videobet
highlights
  added approximately 400  
additional terminals 
  over 23000 machines deployed
  offers true serversupported and  
serverbased gaming solutions 
  game optimisation and remote software 
updates lead to reduced downtime  
and increased revenue 
cross platform capability
playtech mobile enables valuable operator 
crossselling opportunities across casino games 
poker and live sports betting and offers players 
a seamless transition between web and mobile 
using the same account and wallet 
in what is a very fastgrowing gaming channel 
playtech has significantly enhanced its mobile 
offering through the introduction of the mobile 
hub which links mobenga’s sportsbook 
offering to the remainder of playtech’s product 
verticals this gives players access to playtech’s 
full offering through highend smartphones 
and tablets including iphone ipad and  
andriod devices 
mobile marketing 
a range of specialised marketing tools 
including web2mobile user conversion tools 
targeted promotions via sms and an ‘invite a 
friend’ feature allow operators the ability to 
leverage the mobile platform and maximise 
crosssell opportunities 
mobile bingo
mobile bingo was launched on 24 august 2012 
enabling access to playtech’s bingo network 
accessing the same jackpots and prizes found 
online with the ability to prepurchase tickets 
via the mobile device
complete solution
through playtech’s exceptional mobile betting 
channels and crossproduct opportunities  
a wide range of choices is become available  
to players eliminating the need for different 
mobile applications another implication  
of this development is that those who 
download the mobile application will 
automatically have access to playtech’s 
complete suite of products regardless  
of which channel was originally chosen 
inline with playtech’s strategy 
the addition of the mobile hub 
and mobenga’s world class 
mobile sports betting platform 
playtech’s mobile products  
play an integral part of the
crossplatform offering
mobile
highlights
  significant enhancement of mobile 
gaming capabilities
  launch of playtech’s mobile hub  
linking mobenga and playtech’s other 
product verticals 
  launch of mobile bingo 20 playtech limited annual report and accounts 2012
in june 2012 playtech entered into a software 
licence agreement with skywind holdings 
providing the company with a wide range  
of both social gaming and real money  
software primarily focused on the rapidly 
expanding social gaming market and 
strengthening the company’s mobile  
gaming product range respectively
access to a large developed market
social gaming has experienced significant 
growth over the last two years and is now  
a multibillion dollar market with revenues 
generated in a number of ways including the 
real money purchase by end users of social 
currency such as facebook credits playtech  
has been monitoring developments in the social 
gaming arena closely analysing a number of 
ways to offer current licensees and third party 
brand access to the social gaming market 
the software licence agreement provides 
playtech with access to a broad range of social 
gaming platforms and products in addition  
to complementary real money products and 
further development potential giving them  
a unique position in the market 
positioning playtech for the future
the combination of playtech’s wide distribution 
channels expertise in content development 
back end and online marketing capabilities  
and the broad range of products licensed under 
the software agreement positions the group 
the amongst the leading b2b providers to the 
social gaming market playtech will have the 
ability to offer cross platform capabilities for  
a full suite of products including social casino 
poker bingo and rummy
business review
with the industry turning its 
attention to social gaming 
playtech is at the cutting edge 
of this movement penetrating 
the market to offer our 
licensees a range of leading 
social products
social
highlights
  licensing deal with skywind holdings  
to offer social gaming and real money 
software to the market
  potential for building a significant new 
stream of additional earnings for playtech
products continued
sports
playtech has substantially increased its sports  
betting capabilities in the past year and now  
has a highly sophisticated solution across both  
online and mobile channels 
geneity
in january 2012 playtech acquired geneity  
the developer of a next generation and 
fullyfeatured sportsbook genbet geneity’s 
platform is a highly competitive flexible 
offering designed to take advantage of the 
latest trends concepts and technologies its 
sportsbook platform genbet has sought to 
provide significant structural improvements  
on existing management systems to take 
playtech’s sportsbook offering to the next level
the genbet architecture is modular in design 
robust proven and highly scalable allowing the 
same basic system to be tailored to both large 
and small operators the platform has been 
designed to address bottlenecks experienced  
in traditional sportsbook platforms whether  
in terms of speed of pricing or bet placement  
or in development timetomarket for 
clientfacing tools and features
mobenga
playtech’s leading mobile sportsbook  
platform allows operators to have a fully  
integrated mobile sports betting offering 
delivered seamlessly onto handheld devices 
including smartphones and tablets across  
a number of operating systems see further 
information on the following page with 
further mobile growth being forecast 
mobenga coupled with geneity’s leading edge 
technology is well placed to deliver to of those 
licensees wanting to gain further market share
playtech’s sports betting 
capability has been transformed 
with the acquisition of two 
marketleading developers 
focusing on mobile and  
online segments
sports betting
highlights
  launched the mobile hub linking 
mobenga’s leading sportsbook offering  
to playtech’s other product verticals
  full integration of the most exciting sports 
betting platform developer geneity
  launched 2 licensees with geneity with 
further licensees to join in the near future overview sustainability governance accounts business review
playtech limited annual report and accounts 2012 21
relaxing stays exciting times
partnerships
two joint venture partnerships and a  
structured agreement with ladbrokes  
signed in past 14 months 
highlights
  accelerates ability to drive online and  
mobile revenues using playtech’s highly 
sophisticated products and services
  interests closely aligned through structure  
of success fee
it is anticipated that over the mediumterm 
playtech’s industryleading ims will become  
the foundation of ladbrokes’ digital backend 
enabling ladbrokes and its customers to enjoy 
the benefits of a fully integrated experience 
across all products and channels
from may 2013 ptts will advise and assist 
ladbrokes in driving its digital revenues by 
introducing sophisticated methodologies and 
business intelligence systems developed by 
ptts in order to maximise customer lifetime 
values accelerating the growth of ladbrokes’ 
digital business
in addition to the royalties to be generated 
under the terms of the software agreement  
the group will be entitled to a success fee for  
the advisory services provided by ptts based 
upon the improvement in ladbrokes’ digital 
ebitda between fy2012 and fy2017  with 
interim instalments falling due if ebitda uplifts 
of £35 million £70 million and £100 million are 
achieved in an earlier year 75 of the success 
fee is payable in cash with the balance payable 
in ladbrokes shares with playtech able to elect 
to receive a greater proportion of the success 
fee in ladbrokes shares
the success fee is calculated in accordance  
with the following formula 27 5 x increase  
in adjusted ebitda over base ebitda x the then 
prevailing group ebitda multiple of ladbrokes 
75 of any interim instalment is payable 
immediately with the remaining 25 deferred 
until the earlier of the achievement of the next 
interim instalment or the end of the period over 
which the success fee is measured
if by 31 december 2017 the adjusted ebitda 
uplift reaches more than £100 million playtech 
would be entitled to an additional bonus fee 
calculated as 75 of the amount exceeding 
£100 million subject to a cap of £50 million  
the aggregate success fees payable to ptts 
under the advisory services agreement are 
capped at a level that does not require 
ladbrokes’ shareholder approval
gauselmann
the joint venture with gauselmann was  
signed in january 2012 and was awarded  
casino and sports betting licenses from the  
state of schleswigholstein in early 2013
founded in 1957  gauselmann has developed its 
laughing merkur sun into the most recognizable 
german domestic gaming brand with group 
revenues in excess of €17 billion in 2011 and 
over 6300 employees gauselmann is one  
of europe’s leading gaming groups with 
operations across germany focused on the 
development and production of amusement 
and gaming machines and related gaming 
content along with over 200 gaming arcades 
operated by its merkur spielothek division
while the regulatory position remains unclear  
a number of license holders are planning to 
launch services across germany in 2013 utilising 
their schleswigholstein licenses
peermont
peermont is the second largest landbased 
casino operator in south africa entered into  
a joint venture with playtech in january 2012 
regulation of online gaming is not expected  
in the shortterm
 
ladbrokes
in march 2013 playtech announced a landmark 
agreement that expands its existing software 
and technology agreements with ladbrokes 
and separately that playtech’s ptts will provide 
ladbrokes with advisory services to assist in the 
development and growth of its digital business
the new software agreement which provides 
ladbrokes with access to playtech’s full 
technology and product suite will commence 
with the launch of a new ‘vegas’ tab on 
ladbrokes’ digital platforms offering a suite  
of casino and games products across online 
mobile and tablet with the other products  
to follow in due course
“ the breadth and depth of  
the software and services  
to be provided under these 
agreements are unique to 
playtech and reflect the 
group’s successful 
acquisition strategy” 22 playtech limited annual report and accounts 2012
adjusted ebitda for the year was up by 49 
to €1867 million 201 1 €1249 million and 
adjusted net profit increased by 49 to €1685 
million 2011 €1128 million excluding the 
impact of acquisitions in 2011 and 2012  
playtech achieved 22 growth in both adjusted 
ebitda and adjusted net profit after further 
excluding the share of profit of william hill 
online adjusted ebitda and adjusted net profit 
increased by 13 and 1 1 respectively which  
is after the effect of the increased costs in  
2012 following an expansion in operations  
to enable continued development of existing 
products investment into new products such  
as mobile and supporting the gala coral project 
among others
adjusted eps rose by 26 to 581 € cents 201 1 
462 € cents and diluted adjusted eps increased 
by 25 to 571 € cents 2011 457 € cents  
the growth rates of the adjusted and diluted 
adjusted eps were lower than the growth  
rate of the adjusted net profit due to the full 
year effect on the weighted average number  
of shares following the £100 million share 
placement of 465 million shares undertaken  
in december 2011
playtech remains highly cash generative  
with a cash conversion rate of 88 from 
adjusted ebitda 2011 88 cash balances  
on 31 december 2012 were €1209 million  
2011 €1648 million after payments of  
€1431 million 2011 €972 million related to 
acquisitions made during the year net cash 
defined as cash and cash equivalents less  
bank borrowings on 31 december 2012  
was €517 million 2011 €1373 million 
playtech has again delivered an exceptional 
financial performance with gross income for 
fy2012 increasing by 51 to €3681 million 
201 1 €2436 million and total revenues for  
the year increasing by 53 to €317 5 million 
201 1 €207 5 million driven by both strong 
organic growth introduction of new business 
and the full year effect of acquisitions 
undertaken during 201 1
excluding the impact of acquisitions in 201 1 
and 2012 which include ptts mobenga ash 
gaming geneity and igs playtech achieved 
23 growth in gross income and 19 growth 
in revenues
the directors believe that in order to best 
represent the underlying trading performance 
and results of the group the following cash 
and noncash charges should be excluded 
professional and finance costs on acquisitions 
oneoff legal costs related to litigation with 
william hill in 201 1 costs relating to the move 
to a premium listing on london’s main market 
decline in fair value of available for sale 
investments and employee stock options 
expenses adjustments to ebitda amortisation 
of intangibles on acquisitions amortisation  
of intangibles in william hill online oneoff  
tax credit and exchange differences on  
deferred consideration adjustment to net 
profit a reconciliation of these adjustments  
are set out in the table below and in note 5  
to the financial statements
financial review
 “in my first fullyear report as chief 
financial officer i am very pleased 
to be able to report that playtech  
has again delivered an exceptional 
financial performance”
business review
adjusted basic eps 
adjusted ebitda
€1867m 
49 
2011 €1249m
total revenue
€31 7 5m 
53
2011 €2075m
581 € cents 
26
2011 462 € cents overview sustainability governance accounts business review
playtech limited annual report and accounts 2012 23
revenues
total revenues increased by 53 to €3175 
million 2011 €2075 million as indicated  
above revenues excluding acquisitions 
increased by 19 to €1948 million 201 1 €1631 
million of the increase 1 1 was derived from 
organic growth from existing licensees and 8 
from new business defined as new licensees  
or new products that were launched in the  
past 18 months
casino revenues were €1517 million 201 1 
€1 144 million an increase of 33 over 201 1 
after excluding the impact of the ash gaming 
acquisition casino revenues increased by 27 
of which 6 derived from live casino 3 from 
mobile casino and 4 from branded games 
where an additional premium is charged
services revenues grew by 147 to €1063 
million 201 1 €430 million reflecting a full year 
contribution from ptts acquired on 1 july 201 1 
organic growth and new business consisting 
mainly of the asian marketing agreement 
entered into at the beginning of 2012 
bingo revenues were up by 19 to €180 million 
201 1 €151 million mainly as a result of organic 
growth with a further contribution from  
the launch of gala bingo in q4 2012 and the 
introduction of mobile bingo in the second 
half of the year
poker revenues decreased by 18 to €178 
million 2011 €218 million reflecting market 
trends however following the poker liquidity 
programme changes made during the third 
quarter and betclic everest and betfair joining 
the ipoker network during the fourth quarter 
the trend of revenues changed to growth 
towards the end of 2012
videobet revenues increased by 39 to  
€108 million 2011 €78 million reflecting  
a full year impact of the uk contract with  
sg games previously called the global draw 
in june 2012 william hill terminated its contract 
with sg games which decreased the number  
of machines deployed by sg games by 
approximately 2000 this was offset by further 
deployment of machines by ladbrokes coral 
and other operators in mexico and puerto  
rico eventually resulting in a net increase  
in machines deployed of over 400 in 2012 
as anticipated the inclusion of revenues from 
acquisitions undertaken during 201 1 increased 
the revenue contribution from top licensees in 
2012 this was mostly caused by the acquisition 
of ptts where two significant existing software 
licensees were also significant ptts licensees 
the number of licensees generating over €10 
million of revenues grew from 32 to 41 and 
those over €4 million increased from 10 to 12
the adjusted ebitda margin remained flat 
compared to 201 1 after excluding playtech’s 
share of profit from william hill online the 
adjusted ebitda margin was 43 201 1 43
excluding acquisitions completed in 201 1  
and 2012 the adjusted ebitda margin was 56 
201 1 57 and when excluding acquisitions 
and playtech’s share of profit from william hill 
online the margin was 45 201 1 47 this 
small decrease is a result of the incremental 
costs related to the licensing agreement with 
skywind holdings and an increase in employee 
and outsourcing costs in 2012 related to an 
expansion of operations for the development 
and deployment of existing products and 
investment into new products such as mobile 
and sports
following the growth of ptts in 2012 which 
triggered acceleration of the consideration due 
on its acquisition in the middle of 2012 adjusted 
ebitda for the year was €421 million 201 1 €1 1 
million representing a margin of 405 201 1 
263 as indicated the increase in margin of 
ptts was significantly influenced by the asian 
marketing agreement signed in the beginning 
of 2012
cost of operations
adjusted operating expenses before 
depreciation and amortisation increased by 
54 to €1813 million 201 1 €1 168 million 
mainly due to additional operating expenses 
associated with the acquisitions made in 201 1 
and 2012 
revenuedriven costs are mostly comprised of 
direct marketing costs related to ptts affiliate 
fees and license fees paid to third parties 
including games developers and branded 
content which are typically calculated as a share 
of the revenues generated these costs have 
increased due to acquisitions and as a result of 
an increase in popularity of branded games and 
live games revenue driven costs in 2012 reflect 
1 14 from revenues 201 1 121 and after 
excluding the impact of acquisition these costs 
reflect 91 from total revenues 201 1 97
employee and outsourcing costs totalled  
€999 million 201 1 €643 million net of €106 
million capitalised development costs which 
represents 1 12 of total employeerelated 
costs 201 1 122 these costs have increased 
mainly due to acquisitions undertaken in 201 1 
and 2012 but have remained consistent at 
approximately 70 of adjusted nonrevenue 
related costs despite the group’s average 
headcount increasing by 183 over the past 
two years after excluding the impact of 
acquisitions employee related costs have 
increased by 59 as a result of the group 
bolstering its operations for the continued 
development of its existing offering launching 
significant projects including gala coral new 
products and platforms such as mobile and 
sports which are the foundations for future 
growth such investment allows the group to 
penetrate new markets facilitate future organic 
growth through the improvement of its overall 
product offering increasing the portfolio of its 
licensees thereby gaining additional market 
share and increased revenues as stated above 
this has resulted in a margin decline when 
excluding who and acquisitions
playtech has maintained a careful focus on 
managing cost inflation across the business  
and other cost line items have remained stable 24 playtech limited annual report and accounts 2012
financial review continued
business review
adjusted net proﬁt and adjusted earnings per share
 
 
2012
€’000
2011
€’000
net proﬁt 86755 77696 
amortisation on acquisitions 26656  15838 
amortisation of intangibles in william hill online 5729 5729 
finance costs – movement in deferred and contingent consideration  44184  6075 
employee stock option expenses 2403 4678 
admission to premium listing on the main market 2098 –
professional costs on acquisitions 496  1488 
oneoﬀ legal costs relating to the litigation with william hill – 1389
decline in fair value of available for sale investments –  551 
exchange diﬀerences on deferred consideration – 26
oneoﬀ tax credit – 571
adjusted net proﬁt 168321 112847
adjusted net proﬁt margin 46 46
adjusted basic eps in euro cents 581 462 
adjusted diluted eps in euro cents 571 457
analysis of adjusted operating expenses 
2012
€’000
2011
€’000
adjusted operating expenses 181291 118086
revenuedriven costs 36215 25091
adjusted operating expenses excluding revenue driven costs 145076 92995
employeerelated costs 99868 688 64309 692
administration and oﬃce costs 15484 107 11872 127
travel exhibition and marketing costs 6775 47 4730 51
cost of service 11720 81 4266 46
other operational costs 11229 77 7818 64
adjusted ebitda
2012
€000
2011
€000
ebitda 181723 116818
employee stock option expenses 2403 4678
decline in fair value of available for sale investments – 551
admission to premium listing on the main market 2098 –
oneoff legal costs relating to litigation with william hill – 1389
professional expenses on acquisitions 496 1488
adjusted ebitda 186720 124924
adjusted ebitda margin 51 51 overview sustainability governance accounts business review
playtech limited annual report and accounts 2012 25
in 2012 cost of service increased to €1 17 million 
201 1 €43 million due primarily to the ptts 
acquisition undertaken in 201 1 and the social 
and real money gaming software license 
entered into in june 2012 
after excluding the impact of acquisitions in 
201 1 and 2012 adjusted operating expenses 
were 25 higher mainly due to increased 
employeerelated costs as the group invested  
in its operations as the market is seeing a very 
strong trend towards mobile playtech has 
invested further resources into this channel 
across all product verticals playtech has also 
secured its position in the social gaming market 
by signing a software license agreement with 
skywind holdings providing the company with 
a wide range of both social gaming software 
and real money software primarily focused  
on the rapidly expanding social gaming market 
and strengthening the company’s mobile 
gaming product range respectively 
financial income and tax
financial income was €41 million 201 1 €40 
million €36 million of which was received as  
a dividend from the investment in asian logic 
limited 201 1 €31 million financial expenses 
comprise €442 million 2011 €61 million 
relating to the movement in deferred and 
contingent consideration mainly affected by 
the recognition of approximately €398 million 
as a result of the deferred consideration of ptts 
and the continued strong performance and 
related triggering of the acceleration payment
the group is tax registered managed and 
controlled from the isle of man where the 
corporate tax rate is set at zero the group’s 
subsidiaries are located in other jurisdictions 
and operate on a cost plus basis and are taxed 
on their residual profit
the tax charge in 2012 was €21 million  
2011 €10 million net of a credit correction  
to previous years of €06 million the effective 
rate excluding the exceptional finance costs  
on the movement in consideration to ptts  
was 17 2011 19 
net profit and earnings per share
reported net profit for the year attributable  
to owners of the parent increased by 12 to 
€868 million 201 1 €77 7 million and includes 
certain cash and noncash costs relating to 
current and historic acquisitions and fair value 
adjustments to investments a significant 
adjustment made during the year was the 
recognition of €398 million of finance costs  
in respect of the movement in fair value  
of contingent consideration relating to  
the acquisition of ptts which fulfilled the 
conditions relating to the acceleration of the 
additional consideration earlier than originally 
expected in accordance with ifrs 3 revised  
the increase in fair value due to the acceleration 
of the payment is charged to the income 
statement rather than capitalised as an increase 
in the cost of acquisition in addition there  
was a €40 million change in fair value relating  
to the acquisition of mobenga 
reported eps for the year was 300 € cents 
based on a weighted average number of shares 
of 2895 million 201 1 318 € cents 2441 million 
shares diluted eps for the year was 294 € cents 
based on a weighted average number of shares 
of 2947 million 201 1 314 € cents 247 2 million 
shares the growth rates of eps and diluted  
eps were lower than the growth rate of the net 
profit due to the full year effect on the weighted 
average number of shares of the £100 million 
share placement of 465 million shares 
undertaken in december 201 1
total amortisation in 2012 was €356 million 
2011 €238 million amortisation on 
acquisitions of €267 million 201 1 €158 million 
is comprised of amounts relating to tribeca 
€32 million virtue fusion €33 million gts 
€14 million ptts €165 million ash gaming 
€13 million and other acquisitions €10 
million of the remaining €89 million 2011  
€79 million €68 million 2011 €58 million  
was from internally generated development 
costs and €21 million 2011 €21 million  
related to other intangibles 
acquisition of geneity limited
on 23 january 2012 the group acquired 100 
of the shares of geneity limited a provider of 
egaming software products focused primarily 
on the sportsbook and lottery sectors the 
group paid an initial cash consideration of €151 
million £1 14 million including working capital 
adjustments €47 million £40 million which  
is held in escrow for 30 months a further €47 
million £40 million was also held in escrow  
and to be released subject to certain agreed 
deliverables being met these deliverables  
were met in september 2012 and the funds 
were released
acquisition of businesses and assets of ptts 
completed in july 201 1
on 1 july 201 1 the group acquired 100 of the 
issued share capital of ptts from worldwide 
online enterprises limited a company which 
owns various assets of associated businesses 
including certain companies related by virtue  
of a significant common shareholder the initial 
cash consideration for the acquisition was €140 
million subject to working capital adjustment 
deferred over a period of two years and an 
additional performance related consideration 
capped at €140 million payable to the extent 
that the adjusted ebitda of ptts exceeded 
certain targets 
 
during the first half of 2012 playtech entered 
into an agreement to aggregate the outstanding 
balance of the initial consideration into one 
payment of €76 million which reflects both  
a nominal discount of €42 million and also  
an effective discount to the net present value  
of the outstanding balance using the group’s 
actual borrowing rate the group has utilised 
part of its available banking facilities in order  
to finance the payment of the discounted  
initial consideration 26 playtech limited annual report and accounts 2012
1731 2010
2011
2012
2436
3681
financial review continued
business review
ptts’s continued strong performance in  
2012 has under the terms of the acquisition 
triggered the accelerated payment of the  
entire contingent consideration of €140 million 
the acceleration has occurred following the 
achievement of an annualised adjusted ebitda 
in excess of €40 million in the first two quarters 
of 2012 which represents an approximate  
100 increase in its adjusted ebitda run rate 
since completion of the acquisition this has 
resulted in the immediate recognition of 
approximately €34 million as finance cost 
charged to the consolidated statement  
of comprehensive income
the increase in ptts adjusted ebitda in 2012 
was significantly contributed from the asian 
marketing agreement entered into in the 
beginning of 2012 and combined with the 
organic growth since acquired has resulted  
in approximate 100 increase in its adjusted 
ebitda run rate since completion of the 
acquisition in july 2011
license agreement with  
skywind holdings limited
on 1 1 june 2012 playtech entered into a  
license agreement with skywind holdings 
limited “skywind” to provide the group with 
a wide range of social and real money gaming 
software which will enable the group to gain 
access to and offer its licensees a broad range 
of social gaming platforms and products and 
complementary real money products apart 
from the ability to sellon the products the 
license agreement also provides playtech access 
to more than 150 developers whose primary 
focus is on social and real money gaming  
the consideration payable for the license is a 
combination of a fixed consideration of €05 
million per month and a royalty fee of 20 
payable on revenue generated from the social 
gaming assets only in the fourth quarter  
of 2012 the group commenced generating 
revenues from licensing real money ios mobile 
originally licensed through skywind
cash flow
as repeated in the past playtech continues  
to be a highly cash generative business  
cash as at 31 december 2012 was €1209 million 
31 december 201 1 €1648 million representing 
15 201 1 21 of the group’s total assets  
the decrease in the year end cash balance is  
due mainly to acquisition payments including 
€1180 million in respect of the ptts early 
payment of initial consideration and payment 
due to accelerated contingent consideration 
noted above dividends of €704 million were 
paid during the year 2011 €234 million 
in the year ended 31 december 2012 the  
group generated €1 128 million from operating 
activities 2011 €744 million in addition it 
received €473 million 2011 €351 million of 
dividends from william hill online together 
representing a cash conversion rate from 
adjusted ebitda of 88 2011 88
the group’s cash outflow from investing 
activities excluding the dividends received 
from william hill online was €1763 million 
2011 €1351 million consisting of mostly 
acquisition payments of €1431 million 2011 
€97 2 million of which €760 million related to 
the early payment of the initial consideration for 
ptts €420 million paid as the first instalment  
of the ptts accelerated contingent consideration 
and €251 million for new acquisitions in 2012 
cash outflow from financing activities was €27 8 
million 201 1 €1220 million comprising €704 
million 201 1 €234 million paid in dividends 
during the year €47 9 million as the final 
dividend for 2011 and €225 million as interim 
dividend for 2012 and the repayment of the 
borrowings for the acquisition of ash gaming  
in december 2011 of €275 million and the 
partial repayment of the borrowing for the early 
payment of ptts initial consideration of €63 
million offset by funds withdrawn from credit 
facility of €750 million
balance sheet
the group held cash balances of €1209 million 
2011 €1648 million that included monies  
held on behalf of operators in respect of 
operator’s jackpot games and poker operations 
in the amount of €320 million 2011 €363 
million trade receivables were €478 million 
2011 €309 million mostly in respect of 
december licensee fees principally paid one 
month after invoicing and increased as a result 
of acquisitions mainly ptts
intangible assets as at 31 december 2012 were 
€3724 million 201 1 €3652 million the majority 
of which comprised assets acquired from ptts 
€2011 million together with assets acquired 
and related goodwill from the acquisitions of 
tribeca gts vf igs mobenga ash gaming 
geneity and juegoonline patent and 
intellectual property rights and development 
costs of new games and products
available for sale investments were €353 million 
2011 €124 million comprising of holdings  
in sportech plc asianlogic and philweb
investments in equityaccounted associates 
were €1560 million 2011 €1630 million  
of which €1507 million 2011 €1566 million 
related to the investment in william hill online
gross income by product  
€ millions
casino bingo other videobet who services poker overview sustainability governance accounts business review
playtech limited annual report and accounts 2012 27
revenuedriven costs 362  20 
employee related costs 999  55
administration and office costs 155 9
t ravel exhibitions  marketing  68  4
cost of services 11 7 6
other 11 2  6
 1813 100
long and shortterm deferred consideration 
balances of €965 million 201 1 €753 million 
relates principally to the present value of the 
accelerated contingent consideration of ptts 
the prior year balance included the fair value  
of the ptts initial consideration which was  
fully settled in the beginning of the year 
long and shortterm contingent consideration 
of €168 million 201 1 €1 1 19 million represents 
the fair value of the contingent consideration 
that may become due for investments in 
mobenga and igs the prior year balance related 
mainly to ptts this was converted to deferred 
consideration in june as explained above
post balance sheet events
on 1 march 2013 playtech was informed by the 
board of william hill that it intended to exercise 
its call option to acquire playtech’s 29 stake in 
william hill online for a total consideration of 
approximately £424 million in december 2008 
when william hill online was formed playtech 
injected assets then worth €177 7 million into 
the joint venture since then until 31 december 
2012 playtech’s share of profit has been €1400 
million as a result ignoring the software 
royalties generated william hill online has 
delivered a cash return to playtech greater than 
35 times its original investment in the four years 
since inception of the joint venture
until completion playtech will continue to  
be entitled to a proportionate share of the 
fy2013 profits of william hill online and will 
continue to receive software royalties for the 
foreseeable future
dividend 
in october the group paid an interim dividend 
for 2012 of €225 million representing 7 8 € 
cents per share the board has recommended  
a final dividend of 154 € cents per share giving 
a total 2012 dividend of 232 € cents per share 
201 1 165 € cents per share an increase of  
41 reflecting the board’s confidence in the 
strong underlying growth in earnings and the 
company’s dividend policy of paying out 40 
of adjusted net earnings this would represent  
a payment of €448 million
ron hoffman
chief financial oﬃcer
14 march 2013
analysis of costs and expenses  
€ millions 
adjusted operating expenses fy2012 excluding depreciation and amortisation   28 playtech limited annual report and accounts 2012
governance
board of directors
the current board of directors consists of
roger withers aged 70
nonexecutive chairman
roger started his career with booz allen  
hamilton as an international management 
consultant and subsequently has over 30 years 
experience in the leisure and gaming industries 
in 1973 roger joined ladbrokes where he held  
a number of senior positions in the bookmaking 
casino lottery and gaming machine divisions  
in 1986 he joined bass where his roles included 
managing director of bmls and coral racing 
and executive chairman of bass leisure south 
africa he retired from bass in 1998 since then 
he has held a number of other nonexecutive 
directorships including chairman of arena 
leisure plc as well as with a number of 
substantial privately held companies in  
the property technology publishing and 
exhibitions sectors he is also currently a 
nonexecutive chairman of sportech plc  
the pools and tote betting company 
mor weizer aged 37
chief executive oﬃcer 
mor was appointed as the group’s chief 
executive officer in may 2007 prior to this he 
was the chief executive officer of one of the 
group’s subsidiaries techplay marketing ltd 
which required him to oversee the group’s 
licensee relationship management product 
management for new licensees and the group’s 
marketing activities prior to joining the playtech 
group mor worked for oracle for over four 
years initially as a development consultant  
and then as a product manager which involved 
creating sales and consulting channels on 
behalf of oracle israel and oracle europe the 
middle east and africa before this he worked  
in a variety of roles including as an auditor and 
financial consultant for pricewaterhousecoopers 
and a system analyst for tadiran electronic 
systems limited an israeli company that 
designs electronic warfare systems mor is  
also a nonexecutive director of sportech plc
ron hoffman aged 36
chief financial oﬃcer
ron was appointed as the group’s chief 
financial officer following the retirement of 
david mathewson on 31 december 2012 having 
joined the group in 2004 he spent the last eight 
years at playtech as vp of finance managing  
the finance department including its listing on 
aim in 2006 the transition to the main market in 
2012 and supporting the growth of the business 
through its operations financial planning and 
reporting prior to joining the playtech group 
ron previously held the position of senior 
manager at ernst  young
alan jackson aged 69
senior nonexecutive director
alan has over 30 years experience in the leisure 
industry from 1973 to 1991 he occupied a 
number of positions at whitbread principally  
as managing director of beefeater steakhouse 
and also the whitbread restaurant division 
where he was responsible for the creation  
and development of the beefeater travel inn 
and tgi friday brands in 1991 he founded  
inn business group plc which was acquired  
by punch taverns plc in 1999 he has been 
chairman of the restaurant group plc since 
2001 he is also chairman of charles wells 
limited and deputy chairman and senior 
nonexecutive director at redrow plc
andrew thomas aged 69
nonexecutive director
andrew has enjoyed a career as an accountant 
and businessman much of which within in the 
leisure industry andrew is currently chairman of 
randalls limited a familyowned pub company 
in jersey where he has his home andrew 
previously served as chairman of the the 
greenalls group plc and as a nonexecutive 
director of jjb sports plc and of the restaurant 
group plc as well as serving on the boards  
of a number of private and public companies 
he is the founding partner in the cheshire
based accountant firm moors andrew thomas 
 co llp  andrew is a member of the institute  
of chartered accountants in england  wales 
and a member of the institute of taxation overview governance accounts business review
playtech limited annual report and accounts 2012 29
sustainability
roger withers 
nonexecutive chairman
mor weizer 
chief executive officer 
ron hoffman 
chief financial officer
andrew thomas 
nonexecutive director
alan jackson 
senior nonexecutive 
director 30 playtech limited annual report and accounts 2012
the directors are pleased to present to shareholders their report and the audited financial statements for the year ended 31 december 2012
principal activities and business review
the group’s principal activities are the development and licensing of software and the provision of ancillary services for the online and 
landbased gaming industries playtech limited is a public listed company listed on the london stock exchange it is incorporated and 
domiciled in the isle of man
the information that fulfils the requirement for a management report as required by rule 415 of the disclosure and transparency rules 
applicable to the company can be found in the chairman’s statement and the business review on pages 2 to 27  which also includes an analysis 
using financial key performance indicators of the development performance and position of the company’s business a statement of the key 
risks and uncertainties facing the business of the company at the end of the year is found on pages 48 and 49 of this report and accounts and 
details of the company’s risk management objectives and policies are set out in note 30 to of the financial statements
details of all important postbalance sheet events affecting the company and its subsidiaries are set out in note 31 to the financial statements
results
the results of the company and the group for the year ended 31 december 2012 are set out on pages 58 to 97 show total gross income total 
revenue plus the group’s share of profits in william hill online before non cash amortisation of intangibles of €3681 million 201 1 €2436 
million and a net profit after tax of €868 million 201 1 € 77 7 million
dividends
the board has recommended the payment of a final dividend for the year ended 31 december 2012 of 154 € cents per share which will be 
paid to shareholders on the register as at 26 april 2013 the payment of this dividend requires shareholder approval which will be sought at 
the company’s annual general meeting to be held at the sefton hotel loch promenade douglas isle of man on 8 may 2013 if approved the 
final dividend will be paid on 24 may 2013 and together with the interim dividend of 7 8€ cents per share paid on 19 october 2012 makes a total 
dividend of 232€ cents per share for the year 
shareholders who wish to receive their dividends in a currency other than euros will be required to return currency election forms to the 
company’s registrars by 3 may 2013
directors and directors’ interests
the directors of the company who held office during the 2012 year and to date are
appointed resigned
roger withers 2832006
alan jackson 2832006
david mathewson 1062010 31122012
mor weizer 252007
andrew thomas 196 2012
ron hoﬀman 112013
the interests of the directors who held office during 2012 and to date in the share capital of the company and details of their service 
agreements are shown in the remuneration committee report on pages 40 and 43 there are no agreements between the company and any of 
its directors providing for compensation for loss of office that occurs because of a takeover bid
significant shareholdings
as of 14 march 2013 the company had been advised of the following significant shareholders each holding more than 3 of the company’s 
issued share capital
shareholders 
no of ordinary 
shares
brickington trading limited 493 143645782
blackrock investment management institutional group 54 15699402
capital institutional group 49 14311675
greenlight capital 38 11029476
fidelity institutional group 36 10625334
interexpo trading limited 30 8774200
 
 based on 291137 964 ordinary shares in issue on 28 february 2013
directors’ report
governance overview governance accounts business review
playtech limited annual report and accounts 2012 31
sustainability
the persons set out in the table above have notified the company pursuant to rule 5 of the disclosure and transparency rules of their interests  
in the ordinary share capital of the company 
capital structure
as at 31 december 2012 the company had 290236870 issued shares of no par value the company has one class of ordinary shares and each share 
carries the right to one vote at general meetings of the company and to participate in any dividends declared in accordance with the articles of 
association no person has any special rights of control over the company’s share capital 
the authorities under the company’s articles of association granted at the last annual general meeting for the company to purchase its own shares 
and for the directors to issue new shares for cash remains valid until the forthcoming annual general meeting when it is intended that a resolution  
will be put forward to shareholders to renew the authority to issue shares for cash the company did not acquire any of its shares during the year
the company’s articles of association do not contain any specific restrictions on the size or a shareholder’s holding or on the transfer of shares  
there are no restrictions on amending the articles of association other than the requirement to pass a special resolution of the shareholders
significant agreements
there are no agreements or arrangements to which the company is a party that are affected by a change in control of the company following  
a takeover bid and which are considered individually significant in terms of their impact on the business of the group as a whole other than the 
company’s €50 million facility from bank hapoalim bm which provides that the outstanding facilities may become immediately due and payable  
on the occurrence of a change in control
related party transactions
details of all related party transactions are set out in note 28 to the financial statements
corporate governance
the directors’ statement on corporate governance is set out on pages 33 to 36 and forms part of this report
political and charitable donations
the company made a charitable donation of £30000 to the responsible gaming trust formerly the great foundation a charity which funds the 
research into and treatment of problem gambling during the year ended 31 december 2012 and made further donations to a variety of charities 
operating in countries in which the company’s subsidiaries are based 
the company made no political donations during this period
employees
the corporate social responsibility report provides information with respect to the group’s impact on the environment and can be found on  
pages 50 to 55 applications for employment by disabled persons are always fully and fairly considered bearing in mind the aptitude and ability  
of the applicant concerned the group places considerable value on the involvement of its employees and has continued to keep them informed  
of matters affecting them as employees and on the performance of the group
policy on creditors
the group and company do not follow any code or standard on payment practices and there is no fixed policy for payment for goods and services 
though generally terms of payment are agreed when commencing trading and subject to any genuine dispute the policy is to adhere to such 
payment terms payment is made promptly once authorisation of the invoice is obtained 
land and buildings
the directors are of the opinion that there is no significant difference between the book and market value of the land and buildings owned  
by the group
future prospects
the board is confident of its performance for 2013 its aim in 2013 is to further enhance playtech’s market leading position with a focus on regulated 
markets and using its strong cash position if appropriate to look at the acquisition of complementary businesses 
directors’ statement pursuant to the disclosure and transparency rules
each of the directors whose names and functions are listed in the board of directors section on pages 28 and 29 confirm that to the best  
of their knowledge
 the group and company financial statements which have been prepared in accordance with ifrs as adopted by the eu give a true and fair view  
of the assets liabilities financial position and profit of the group and
 the directors’ report includes a fair review of the development and performance of the business and the position of the group and company 
together with a description of the principal risks and uncertainties that it faces
annual general meeting agm
the 2012 agm was held in may in douglas isle of man all directors were present and made themselves available to answer questions from 
shareholders the agm provides an opportunity for the directors to communicate personally performance and future strategy to noninstitutional 
shareholders and for those shareholders to meet with and question the board all directors again plan to be present all results of proxy votes are read 
out made available for review at the meeting recorded in the minutes of the meeting and communicated to the market and via the group website
the 2013 agm will be held at the sefton hotel loch promenade douglas isle of man im1 2rw on wednesday 8 may 2013 at 1 130am the notice 
convening the 2013 agm and an explanation of the items of nonroutine business are set out in the circular that accompanies this annual report 32 playtech limited annual report and accounts 2012
auditors
so far as each director is aware at the date of the approval of the financial statements there is no relevant audit information of which the company’s 
auditors are unaware each director has taken all the steps that they ought to have taken as a director in order to make themselves aware of any 
relevant audit information and to establish that the company’s auditors are aware of that information
a resolution to reappoint bdo llp as the company’s auditors will be submitted to the shareholders at the annual general meeting
approved by the board and signed on behalf of the board
paul wright
company secretary and legal counsel
14 march 2013
directors’ report continued
governance overview governance accounts business review
playtech limited annual report and accounts 2012 33
sustainability
dear shareholder
i am pleased on behalf of the board to present the company’s corporate governance report to shareholders
introduction
the purpose of corporate governance is to ensure that companies protect the sustainability of their businesses and the communities in which they 
operate while maximising shareholder value and treating all shareholders fairly the board recognises that high standards of corporate governance 
have become a necessary condition for sustainable success in business the board is committed to high standards of corporate governance which  
it considers to be central to the effective stewardship of the business and to maintaining the confidence of stakeholders
while the company’s shares were traded on aim the board was not required to follow the uk corporate governance code the “code” although  
it did take account of a number of its principles to the extent it was deemed appropriate for a young entrepreneurial company operating in a rapidly 
changing environment however with a view to the company’s development and following its graduation from aim to the premium segment of the 
official list of the ukla in july 2012 “admission” playtech is required to follow the provisions of the code and the board has sought to move towards 
full compliance with it
the directors have considered the contents and requirements of the code as it applies to the company reporting on its financial year ended  
31 december 2012 and believe that since admission the company has been fully compliant with the code for the remainder of the financial year 
however the company recognises that there were some areas of noncompliance which occurred during the financial year prior to admission  
ie while the company was on aim as follows
 as disclosed on page 42 until 2 may 2012 the chairman roger withers held options over a total of 300000 ordinary shares of the company some  
of which were granted to him shortly after the company’s admission to aim in 2006 and so he could not be considered to be fully independent  
on appointment provision a31 of the code these option arrangements were terminated prior to admission and mr withers is now considered  
to be fully independent
 until the appointment of andrew thomas as a nonexecutive director on 19 june 2012 the board the audit committee and the remuneration 
committee did not consist of at least two independent nonexecutive directors excluding the chairman provisions b12 c31 and d21 of the 
code and the nomination committee was not made up of a majority of independent nonexecutive directors excluding the chairman provision 
b21 of the code however since mr thomas’ appointment playtech has complied with those provisions of the code for the remainder of the 
financial year 
 as disclosed on page 39 certain historic option awards made to executive directors all of which were made while the company was on aim  
do not contain any performancerelated vesting conditions the current policy of the remuneration committee as stated in its report on page 39  
is that vesting of all awards to directors and senior management should be dependent on the achievement of challenging performance criteria 
reflecting playtech’s objectives including nonfinancial performance metrics where appropriate to align with the interests of shareholders generally
 for the financial year the company has been regarded as a ‘smaller company’ for the purposes of the code prior to the end of the financial year  
the company graduated to the ftse 250 and therefore will not be treated as a smaller company for its financial year ending 31 december 2013
the board is accountable to the company’s shareholders for good governance and the statement set out below describes how the group applies the 
principles identified in the code
the board constitution and procedures
composition
the composition of the current board of directors and biographical information concerning them is given on pages 28 to 29
as at 31 december 2012 the board comprised the chairman the chief executive officer the chief financial officer together with two independent 
nonexecutive directors the list of directors holding office during the year to 31 december 2012 and the committees on which they served are set  
out in the table below
position independent
remuneration 
committee audit committee
risk  compliance 
committee
nominations 
committee
executive directors
mor weizer ceo
david mathewson cfo
nonexecutive directors
roger withers chairman  chairman
alan jackson senior nonexecutive director chairman chairman andrew thomas nonexecutive chairman
  
 with effect from 3 may 2012
all of the directors served throughout the financial year with the exception of david mathewson who resigned on 31 december 2012 and was  
formerly the chief finance officer and andrew thomas who was appointed on 19 june 2012 ron hoffman was appointed to the board with effect 
from 1 january 2013 on the retirement of david mathewson
corporate governance
governance 34 playtech limited annual report and accounts 2012
the nonexecutive directors are all considered by the board to be independent of management and free of any relationship which could materially 
interfere with the exercise of their independent judgment 
the company secretary  legal counsel acts as secretary to the board and its committees and his appointment and removal is a matter for the board 
as a whole the company secretary is a member of group’s senior management team and all the directors have access to his advice and services
board operation
the roles of the chairman roger withers and the chief executive officer mor weizer are separated clearly defined and their respective 
responsibilities are summarised below
chairman
 overall effectiveness of the running of the board
 ensuring the board as a whole plays a full part in the development and determination of the group’s strategic objectives
 keeping the other directors informed of shareholders attitudes towards the company
 safeguarding the good reputation of the company and representing it both externally and internally
 acting as the guardian of the board’s decisionmaking processes and
 promoting the highest standards of integrity probity and corporate governance throughout the company and particularly at board level
chief executive officer
 executive leadership of the company’s business on a daytoday basis
 developing the overall commercial objectives of the group and proposing and developing the strategy of the group in conjunction with the  
board as a whole
 responsibility together with his senior management team for the execution of the group’s strategy and implementation of board decisions
 recommendations on senior appointments and development of the management team and
 ensuring that the affairs of the group are conducted with the highest standards of integrity probity and corporate governance
how the board functions
in accordance with the code the board is collectively responsible for the longterm success of the company the board provides entrepreneurial 
leadership for the company within a framework of prudent and effective controls which enables risk to be assessed and managed the board  
sets the company’s strategic aims and ensures that the necessary resources are in place for the company to meet its objectives and reviews 
management performance
the board meets regularly and frequently with 10 meetings scheduled and held in 2012 it was also necessary for the board to hold an unscheduled 
board meeting in the year in connection with the redomicile of the company to the isle of man and the issue of a prospectus in connection  
with admission 
during the year the chairman met the other nonexecutives in the absence of the executive directors to reconfirm and take account of their views  
all the nonexecutive directors have sufficient time to fulfil their commitments to the company
board meetings are held at the registered office of the company on the isle of man though occasional meetings are held at the group’s operations or 
at other locations directors are provided with comprehensive background information for each meeting and all directors were available to participate 
fully and on an informed basis in the board decisions in addition certain members of the senior management team including the coo the group 
general counsel and the head of investor relations are invited to attend the whole or parts of the meetings to deliver their reports on the business 
any specific actions arising during meetings are agreed by the board and a comprehensive followup procedure ensures their completion
details of the attendance of the directors at meetings of the board and its committees are set out in the table below
board audit remuneration nomination risk
number of meetings 112622
roger withers 112521
alan jackson 10 2 6 2 2
mor weizer 11
andrew thomas 6 1 4 2
david mathewson 9
    
responsibility and delegation
the chairman is primarily responsible for the efficient functioning of the board he ensures that all directors receive sufficient relevant information on 
financial business and corporate issues prior to meetings the chief executive officer’s responsibilities focus on coordinating the group’s business and 
implementing group strategy regular interaction between the chairman and chief executive officer between meetings ensures the board remains 
fully informed of developments in the business at all times
corporate governance continued
governance overview governance accounts business review
playtech limited annual report and accounts 2012 35
sustainability
there remains in place a formal schedule of matters specifically reserved for board consideration and approval which includes the matters set  
out below
 approval of the group’s longterm objectives and commercial strategy
 approval of the annual operating and capital expenditure budgets and any changes to them
 major investments or capital projects
 the extension of the group’s activities into any new business or geographic areas or to cease any material operations
 changes in the company’s capital structure or management and control structure
 approval of the annual report and accounts preliminary and halfyearly financial statements interim management statements and announcements 
regarding dividends
 approval of treasury policies including foreign currency exposures and use of financial derivatives
 ensuring the maintenance of a sound system of internal control and risk management
 the entering into of agreements that are not in the ordinary course of business or material strategically or by reason of their size
 changes to the size composition or structure of the board and its committees and
 corporate governance matters
in addition the board has adopted a formal delegation of authorities’ memorandum which sets out levels of authority for employees in the business
the board has delegated certain of its responsibilities to committees of the board these committees currently are the audit committee the 
remuneration committee the risk  compliance committee and the nomination committee the composition of these committees is set out  
in the table on page 33 and each committee reports separately on its work in the following pages the minutes of each committee are circulated  
to and reviewed by the board the company secretary is secretary to each of the committees the terms of reference for each of the committees  
are available to view on the company’s website wwwplaytechcom
board tenure
in accordance with the articles of association every new director appointed in the year is required to stand for reelection by shareholders at the agm 
next following their appointment accordingly andrew thomas and ron hoffman will stand for reelection at this year’s agm for those not subject  
to this obligation the board has decided to comply with the code requirements that directors of companies in the ftse350 index submit themselves 
for reelection annually accordingly all the directors are seeking their reappointment at the 2013 agm
the board has collectively agreed that the directors proposed for reelection in 2013 have made significant contributions to the business since their 
appointment their last reelection and each has a key role to play in the formulation of the group’s future strategy
insurance and indemnity
in accordance with article 162 of the company’s articles of association and subject to the provisions of the isle of man companies act 2006 the 
directors and officers of the company are entitled to an indemnity from the company against liabilities incurred by them in the actual or purported 
exercise of their duties or exercise of their powers including liability incurred in defending any proceedings whether civil or criminal which relate  
to anything done or omitted to be done and in which judgment is given in his favour or in which he is acquitted or which are otherwise disposed of 
in addition the company has purchased and maintained directors’ and officers’ liability insurance cover against certain legal liabilities and costs  
for claims incurred in respect of any act or omission in the execution of their duties and which has been in place throughout the year
in certain circumstances directors are entitled to seek independent professional advice under an agreed board procedure which would then  
be organised by the company secretary  legal counsel and in this regard the company would meet their reasonable legal expenses
board effectiveness
board balance
the board comprises individuals with wide business experience gained in various industry sectors related to the company’s business and it is the 
intention of the board to ensure that the balance of the directors reflects the changing needs of the group’s business the board considers that it  
is of a size and has the balance of skills knowledge experience and independence that is appropriate for the company’s business while not having  
a specific policy regarding the constitution and balance of the board potential new directors are considered on their own merits with regards to  
their skills knowledge experience and credentials female candidates or candidates from any particular ethnic or national background would each  
be considered equally 
the nonexecutive directors continue to contribute their considerable collective experience and wideranging skills to the board and provide a 
valuable independent perspective where necessary constructively challenging proposals policy and practices of executive management in addition 
they helped formulate the group’s strategy 
evaluation
the board is committed to an ongoing evaluation process of itself and its committees to assess their performance and identify areas in which their 
effectiveness policies and processes might be enhanced the chairman and the chief executive officer in discussion with the senior nonexecutive 
director intend to undertake a review of the performance of individual directors the senior nonexecutive director will consider the performance  
of the chairman taking into account the views of the executive directors
newlyappointed directors can expect a detailed and systematic induction on joining the board they meet various members of senior management 
and familiarise themselves with all core aspects of the group’s operations on request meetings can be arranged with the major shareholders  
in 2012 following his appointment visits were arranged for andrew thomas to the group’s offices in estonia israel and cyprus to better understand 
the operations and financial controls of the group 36 playtech limited annual report and accounts 2012
relationship with shareholders
primary responsibility for effective communication with shareholders lies with the chairman but all the company’s directors are available to meet  
with shareholders throughout the year in particular the chief executive officer and chief financial officer prepare a general presentation for analysts 
and institutional shareholders following the interim and preliminary announcements further presentations are also prepared following significant 
acquisitions and whenever the board considers it beneficial to shareholders to do so regular meetings with shareholders and potential shareholders 
are also held by the head of investor relations 
the company endeavours to answer all queries raised by shareholders promptly
the company’s largest shareholder is brickington trading limited “brickington” brickington is a wholly owned subsidiary of a trust one of the 
ultimate beneficiaries of which is teddy sagi one of the group’s founders in connection with the company’s admission the company and brickington 
have entered into a relationship agreement pursuant to which brickington has agreed that i it will vote its shares in such a manner so as to procure 
that each member of the group is capable of carrying on its business independently of brickington and its associates and ii it will not exercise any  
of the voting rights attaching to its shares in such a manner so as to procure any amendment to the articles of association which would be inconsistent 
with undermine or breach any of the provisions of the relationship agreement brickington has also agreed that all transactions and relationships 
between it or any of its associates and the company will be on arm’s length terms and on a normal commercial basis the board believes that the 
provisions of the relationship agreement provides reassurance that brickington will not seek to exercise its shareholding capriciously and the 
independence of the company
in connection with the relationship agreement mentioned above mr sagi has entered into an agreement with the company pursuant to which  
mr sagi will as and when requested to do so by the company provide advisory services to the company for a nominal fee of €100 per annum until 
either mr sagi ceases to be interested whether legally or beneficially in any ordinary shares or either party terminates the agreement following  
its fifth anniversary whichever is the earlier the company has not sought any advisory services under these arrangements during the year
shareholders are encouraged to participate in the annual general meeting at which the chairman will present the key highlights of the group’s 
performance the board will be available at the annual general meeting to answer questions from shareholders
investor relations ir and communications
the company has wellestablished ir processes which support a structured programme of communications with existing and potential investors and 
analysts executive directors and members of the ir team participated in a number of investor events attending industry conferences and regularly 
meet or are in contact with existing and potential institutional investors from around the world ensuring that group performance and strategy  
is effectively communicated within regulatory constraints other representatives of the board and senior management meet with investors from  
time to time the ir team provides regular reports to the board on related matters issues of concern to investors and analyst’s views and opinions 
whenever required the executive directors and the chairman communicate with the company’s brokers to confirm shareholder sentiment and  
to consult on governance issues 
during 2012 36 regulatory announcements were released informing the market of acquisitions corporate actions important customer contracts 
financial results the results of annual general meetings and board changes copies of these announcements together with other ir information  
and documents are available on the group website wwwplaytechcom 
summary
in presenting this report and having monitored reviewed or approved all shareholder communications in 2012 and since the end of the financial year 
the board is confident that it has presented a balanced and understandable assessment of the company’s position and prospects
by order of the board
roger withers
chairman
14 march 2013
corporate governance continued
governance overview governance accounts business review
playtech limited annual report and accounts 2012 37
sustainability
dear shareholder
i am pleased to present the directors’ remuneration report for the year to 31 december 2012 to shareholders on behalf of the board 
this report as required by the uk corporate governance code introduced by the financial reporting council in june 2010 the “code” describes  
how the board has applied the principle of the code to director’s remuneration while playtech as a company incorporated in the isle of man  
is not required to comply with the requirements set out in part 15 of the uk companies act 2006 and the large and mediumsized companies  
and groups accounts and reports regulations 2008 “2008 regulations” the board has sought to do so in all material respects in this report  
in addition consistent with the draft proposals on directors’ pay published by the department for business innovation  skills the report has been 
split into two sections a remuneration policy report which sets out the policy on the remuneration of the executive and nonexecutive directors  
and an implementation report which discloses how the current remuneration policy has been implemented in the year ended 31 december 2012
this has been an important year in the development of playtech with the move from the aim to a premium listing on the london stock exchange  
and significant growth in the revenues and adjusted ebitda of the group which have been achieved through the efforts of a talented leadership team 
for the remuneration committee this has meant a major focus on ensuring appropriate remuneration practises are in place both to retain and 
develop our key talent and also as our business expands to attract new talent when required our policies are designed to reward and retain those  
key individuals who we hope are with us for a number of years as the company develops further in new channels and markets 
our remuneration policy which is set out in more detail in the report is designed to reward the contributions of senior management but also to 
incentivise them to maintain playtech’s position as the software and services provider of choice to the gaming sector accordingly remuneration is 
delivered via modest fixed remuneration delivered via salary and benefits and incentivebased remuneration enabling the executives to be rewarded 
for delivering superior financial performance and returns to shareholder the committee believes these measures reinforce the company’s strategy  
to create a business with significant scale and a full product and service capability underpinned by a preeminent technology platform
during the year and prior to the transfer to a premium listing the committee undertook a review of the suitability of the company’s existing share 
option plan following this review it was decided that the company should adopt a new longterm incentive plan with the necessary flexibility to 
deliver longerterm incentive arrangements for executive directors and senior managers that would reward them appropriately for growth in key 
performance metrics such as adjusted ebitda or earnings per share and provide a strong retention tool that a traditional option plan dependent  
to some extent on fluctuations in the stock market generally cannot provide accordingly in march 2012 the board on the recommendation of the 
remuneration committee adopted the playtech 2012 longterm incentive plan “2012 plan” intended to largely replace the playtech 2005 global  
share option plan “option plan” 
one of the key features of the 2012 plan is that it allows options to be either granted at nominal or nil cost andor to be settled in cash which greatly 
reduces the dilutive impact on existing shareholders generally of the issue of shares on the exercise of options with this in mind it was also agreed  
to amend the rules of the option plan to allow for the cash value of an award to be paid to a participant with their agreement when they exercise  
an option instead of the participant being issued with new shares and for him or her to realise the value by selling the shares in the market
further details of the company’s remuneration policy and structure are provided in this report
we believe that the remuneration policy and incentive framework currently in place is working well to support the company’s strategy in the current 
economic environment is helping to retain and motivate our management team and is helping to drive strong returns for our shareholders a single 
advisory resolution will be put to shareholders at the annual general meeting on 8 may 2013 inviting them to approve the remuneration policy report 
and the implementation report 
remuneration policy report
this part of the remuneration report has not been audited
the company’s remuneration policy is designed to ensure that the group has the ability to attract retain and motivate individuals to ensure the 
continued success of the company remuneration packages are designed to reward the executive directors and members of the senior management 
team fairly for their contributions whilst remaining within the range of benefits offered by similar companies in the sector 
the committee believes that the individual contributions made by the executive directors and senior management are fundamental to the successful 
performance of the company the committee after discussion with the executive directors and its advisers new bridge street has therefore adopted  
a remuneration policy with the following objectives
 pay executives fairly but recognising that they have highly marketable skills to companies already in and those considering entry to  
the online gaming industry but acknowledge local market levels and where appropriate practices
 incentivise and reward behaviours that will contribute to superior company performance
 avoid the need to make ad hoc payments outside the formal structure
 enable the company to attract and retain international executives at the required calibre particularly in potential new markets such as the usa
 be simple and understandable
 provide good lockin of key employees through deferred elements and
 avoid reward for failure
the committee believes that its remuneration policy creates a coherent and appropriate framework for remunerating executive directors and senior 
managers of the company and draws a clearer link between performance and reward 
remuneration report
governance 38 playtech limited annual report and accounts 2012
remuneration policy for executive directors
at a glance
element  maximum
purpose and 
link to strategy operation maximum performance targets changes for 2013
salary to attract retain and 
motivate high calibre 
individuals for the role 
and duties required
to provide market
competitive salary 
relative to the  
external market
to reﬂect appropriate 
skills development and 
experience over time
reviewed annually
takes account of 
the external market 
and other relevant 
factors including 
internal relativities and 
individual performance
other than when an 
executive changes roles 
or where benchmarking 
indicates individual 
salaries require 
realignment annual 
increases will not 
exceed the general  
level of increases for  
the group’s employees
na ceo’s current salary 
£450000
cfo’s current salary 
£200000
bonus clear and direct 
incentive linked to 
annual performance 
targets
incentivise annual 
delivery of ﬁnancial 
measures and personal 
performance
corporate measures 
selected were  
consistent with  
and complemented  
the budget and 
strategic plan
paid in cash 150 of salary for  
the ceo 100 of  
salary for other 
executive directors
70 based on ﬁnancial 
performance measures
30 based on personal 
performance
no change
longterm  
incentive plan
aligned to key strategic 
objective of delivering 
strong returns to 
shareholders and 
earnings performance
grant of performance 
shares
shares generally settled 
unless use of shares 
would exceed the free 
ﬂoat limit for inclusion 
in the ftse 250 index  
in which case the gain  
is cash settled
between 150  
to 300 of salary 
performance shares
performance measured 
over three years
performance targets 
aligned with the group’s 
strategy of delivering 
strong returns to 
shareholders and 
earnings performance
no change
pension none na na na na
other beneﬁts to help attract and 
retain high calibre 
individuals
provision of private 
medical permanent 
health insurance and  
life insurance 
na na no change
     
remuneration report continued
governance overview governance accounts business review
playtech limited annual report and accounts 2012 39
sustainability
new appointments  base salary levels will be set to reflect the experience of the individual appropriate market data and internal relativities  
if it is considered appropriate to appoint a new director on a below market salary they may be subject to a series of increases  
to a desired salary positioning over an appropriate time frame eg up to two to three years subject to performance in post 
 
normal policy will be for the new director to participate in the remuneration structure detailed above 
 
the committee may consider it necessary to make an exceptional grant of shares in order to compensate the individual for 
awards that would be forfeited from the current employer or in order to secure the individual’s appointment where possible 
such awards would be structured to mirror the form and structure of the forfeited awards or to provide alignment with  
existing shareholders
exits   executive directors’ service contracts are terminable by six months notice from either the company or the executive  
the company may also make a payment in lieu of notice equal to six months salary and benefits and any applicable  
statutory payments due to them 
 
executive directors may also receive a prorated annual bonus for the period worked in the financial year subject  
to performance 
 
standard ‘good leaver’ definitions are included in the 2012 plan rules in relation to longterm incentives
remuneration policy for executive directors
salary and beneﬁts in kind
salaries are reviewed annually for each executive director with effect from june each year the committee takes into account individual  
performance and experience the size and nature of the role the relative performance of the company pay policy within the company  
and salaries in comparable companies 
the current basic salary levels of the executive directors are
 m weizer £450000
 r hoffman £200000
benefits include private medical insurance permanent health insurance and life insurance 
annual bonus
executive directors are eligible to participate in an annual bonus plan based on a combination of corporate financial goals and individual 
achievements the maximum level of bonus that could have been awarded for the financial year 2012 was 150 of base salary for the ceo  
and 100 of base salary for the cfo any bonus payments are made in cash
for 2013 bonuses for the executive directors will be based 70 on a financial performance measure comprising adjusted ebitda with the remaining 
30 being based on personal objectives 
the level of bonus payable by reference to the financial performance of the company will be determined on a sliding scale based around the  
‘target’ number set by reference to the company’s budget for the forthcoming financial year the achievement of the target is not “all or nothing”  
but instead would be on a sliding scale with no bonus being paid until at least 90 per cent of target is achieved and rising on a straight line basis  
with the maximum paid out only if 120 per cent of target budget is achieved
pensions
none of the executive directors are members of any company pension plans
longterm incentives
share option plan
the company operates an unapproved share option scheme in accordance with the rules of the playtech limited 2005 global share option plan the 
“option plan” pursuant to which the senior management and where relevant the remuneration committee makes recommendation to the board 
concerning the allocation of share options to employees of the company options under the option plan are granted at market value and in the case  
of executive directors exclusively and in most instances for senior managers the options vest and become exercisable on the third anniversary of the 
relevant grant date in limited instances options granted to senior managers vest in equal proportions on the first three anniversaries of the relevant 
grant date unexercised options expire ten years after the date of grant unless the relevant employee leaves the group’s employment in which case 
the unvested options lapse and any vested options lapse three months after the date that the employment ends
it is not intended that the option plan will be used for future share option grants for executive directors or for members of senior management
longterm incentive plan
given the dilutive effect of share options and the increasing disconnect between the financial performance of companies generally and the 
performance of their share prices in the current turbulent economic times the board decided in march 2012 after discussions with certain of  
its key shareholders and its advisers new bridge street to adopt a new longterm incentive plan the playtech long term incentive plan 2012 
under the 2012 plan a range of sharebased awards can be made to executive directors and senior managers of the group including conditional 
awards nilcost options market value share options or forfeitable share awards it is intended that initial awards to executive directors will be in the 
form of nil cost options and the face value of such awards will be 150 and 100 of salary for the ceo and cfo respectively
awards made to executive directors vest on the third anniversary of grant subject to i participants remaining in employment other than in certain 
‘good leaver’ circumstances and ii achievement of challenging performance targets awards that are structured as options can be exercised up to  
ten years after the date of grant or such shorter period in respect of vested options held by a leaver  40 playtech limited annual report and accounts 2012
exercise of any awards granted to executive directors under the 2012 plan will be subject to performance conditions it is intended that the first  
awards under the plan will be subject to the achievement of a mixture of performance conditions based in part on total shareholder return relative to  
a comparator group and part in the growth in earnings per share over the period the committee will determine the appropriate targets immediately 
prior to grant 
awards made to the executive directors will also be subject to clawback provisions for a period of three years following vesting the committee  
may decide to clawback awards in the event of misconduct or material misstatement of the group’s financial results resulting in an award vesting  
to a greater degree than would otherwise have been granted 
awards may be satisfied by the issue of new shares market purchase shares or may be settled in cash subject to the tax treatment in the hands  
of the recipient 
share ownership guideline
the board has recently adopted a policy that will require any executive director on exercise of an award under the 2012 plan to retain a portion  
of the net of tax vested shares until he has buildup and retain a shareholding roughly equivalent in value to one times his base salary
other incentive schemes
in december 2009 the board approved the establishment of a phantom share plan for the senior executives of video b holdings limited “videobet” 
in order to retain and incentivise the management team the overall size of the plan is limited to an amount equal to 25 per cent of the share capital  
of videobet awards will vest once the company has received in cash an amount equal to its total investment in videobet plus an amount equal to base 
rate plus 10 per cent pa compound on such invested amount participants will be able to exercise their awards on a share sale listing of videobet or 
such earlier date as is agreed between the participant and the company acting through the remuneration committee no current executive director 
participates in this plan
the company also established an hmrc approved company share option plan csop in 2010 to retain and incentivise key employees based in the  
uk in the group’s uk businesses the rules of the csop were approved by hmrc in august 2010 under the csop options can be granted to ukbased 
employees up to a maximum of £30000 and subject to compliance with the rules of the csop  subject only to capital gains tax on any growth in value 
under the rules of the csop options may not be exercised until the third anniversary of grant and will lapse if the employee leaves their employment  
in the group except in certain limited circumstances such as death or disability no current executive director participates in this plan 
directors service contracts
the service agreements of the executive directors are for an indefinite term and provide for formal notice periods of six months to be served to 
terminate the agreement either by the company or the director set out below are the other key terms of the executive directors’ terms and conditions 
of employment
name date termination payment noncompete change of control payment
mor weizer 252007 payment in lieu of notice  
of up to six months basic 
salary and beneﬁts
during employment and  
for six months thereafter
none
david mathewson 2552011 payment in lieu of notice  
of up to six months basic 
salary and beneﬁts
during employment and  
for twelve months thereafter 
save that the restriction is six 
months in the case of customers 
none
ron hoﬀman 112013 payment in lieu of notice  
of up to six months basic 
salary and beneﬁts
during employment and  
for six months thereafter
none
executive directors may also receive a prorated annual bonus for the period worked in the financial year up to departure subject to performance 
in the case of david mathewson whose employment ceased on 31 december 2012 he was paid his basic salary but no other benefits for his 
contractual notice period the remuneration committee will consider his performance against targets in assessing the appropriate level of bonus 
payment in respect of the financial year when the bonus payments to other executive directors and senior managers are decided in respect of his 
outstanding share options under the 2005 plan in accordance with the terms of the 2005 plan the committee has decided that these options may 
become exercisable for a period of six months following announcement of the 2012 results
the nonexecutive directors each have specific letters of appointment rather than service contracts their remuneration is determined by the board 
within limits set by the articles of association and is set taking into account market data as obtained from independent nonexecutive director fee 
surveys and their responsibilities nonexecutive directors are appointed generally for an initial term of three years and under normal circumstances 
would be expected to serve for additional three year terms up to a maximum of nine years subject to satisfactory performance and annual reelection 
at the annual general meeting as required
remuneration report continued
governance overview governance accounts business review
playtech limited annual report and accounts 2012 41
sustainability
the following is a summary of the key terms of the letters of appointment for the nonexecutive directors
name date term termination
roger withers 140306 no stated term but stands for  
reelection every three years
90 days notice on either side or  
if not reelected disqualiﬁcation  
or commits gross misconduct 
alan jackson 140306 no stated term 90 days notice on either side or  
if not reelected disqualiﬁcation  
or commits gross misconduct
andrew thomas 190612 until third agm after appointment 120 days notice on either side or  
if not reelected disqualiﬁcation  
or commits gross misconduct
 andrew thomas was appointed to his position as a nonexecutive director on 19 june 2012
notwithstanding the terms of the letters of appointment for roger withers and andrew thomas all directors will stand for reelection by shareholders 
on an annual basis in accordance with the code
implementation report
role and membership
the remuneration committee is comprised of three independent nonexecutive directors the committee is chaired by alan jackson the senior 
independent nonexecutive director and the other members are andrew thomas who joined on his appointment to the board in june 2012  
and roger withers details of attendance at the committee are set out on page 34 
the committee operates within agreed terms of reference detailing its authority and responsibilities the committee’s terms of reference were 
reviewed at the time of the move to a premium listing and are available for inspection on the company’s website wwwplaytechcom and include
 determining and agreeing the policy for the remuneration of the ceo the chairman and other senior managers
 review the broad policy framework for remuneration to ensure it remains appropriate and relevant
 review the design of and determine targets for any performancerelated pay and the annual level of payments under such plans
 review the design of and approve any changes to long term incentive or option plans and
 ensure that contractual terms on termination and payments made are fair to the individual and the company and that failure is not rewarded
the committee also considers the terms and conditions of employment and overall remuneration of the executive directors the company secretary  
 legal counsel and other key members of executive management and has regard to the company’s overall approach to the remuneration of  
all employees within this context the remuneration committee determines the overall level of share options salaries incentive payments and 
performance related pay due to the executive directors and senior management the committee also determines the performance targets and the 
extent of their achievement for both annual and longterm incentive awards operated by the company and affecting the executives no director  
is involved any decisions as to hisher own remuneration
the committee takes advice from both inside and outside the group on a range of matters including the scale and composition of the total 
remuneration package payable to people with similar responsibilities skills and experience in comparable companies that have extensive operations 
outside the uk 
during the year the committee received material assistance and advice from the ceo and from the company secretary  legal counsel who is also 
secretary to the committee 
the committee has a planned schedule of at least four meetings throughout the year with additional meetings held when necessary during the year 
the committee met six times and these meetings addressed wide variety of issues including
month principal activity
march approving the terms of the new plan for the directors and senior managers
 approving the payment of bonus payments to executives
 instructing canaccord to undertake a valuation of the chairman’s options using the black scholes methodology
april to approve continuation of options granted to ‘good leavers’
 to approve proposed changes to the rules of the share plan so as to allow awards to be settled in cash
june to approve the award of options to key employees of ash gaming limited following its acquisition
october to consider proposals for the structure of incentives to be granted to senior managers under the new plan and appropriate 
performance targets
november to agree the variation of commission arrangements for certain members of the senior management team
december to consider and agree terms for the termination of the service agreement of david mathewson
 approve the proposed package for the appointment of ron hoﬀman as the new cfo
 
in addition the remuneration committee met informally and resolved by written resolution to agree to the exercise by the ceo of certain options and 
the payment to him by the company of the cash equivalent of the gain on exercising the options being the closing market value of the company’s 
ordinary shares on the day immediately prior to the date of exercise of the option £427  less the cost of exercising the options 42 playtech limited annual report and accounts 2012
200  
400  
600  
800  
1000  
1200  
1400  
1600  
dec07 jun08 dec08 jun09 dec09 jun10 dec10 jun11 dec11 jun12 dec12 
playtech ftse 350 travel  leisure rebased 
external advisers
new bridge street a trading name of aon hewitt limited is the committee’s independent adviser new bridge street does not provide any other 
services to the company 
performance graph
the following graph shows the company’s total shareholder return tsr performance over the past five years the company’s tsr is compared with  
a broad equity market index the index chosen here is the ftse350 travel  leisure index which is considered the most appropriate published index
audited information
the following information in this part of the remuneration report has been audited by bdo llp  the company’s auditors 
the directors’ emoluments benefits and shareholdings during the year ended 31 december 2012 were as follows
1 directors’ emoluments in euros 
director salary bonuses beneﬁts
total excluding 
option charges
option  
charges
2012 total 
emoluments
executive
mor weizer 571649 208518 20009 800176 100402 900578
david mathewson 368384 183515 76590 628489 130850 759340
2 nonexecutive directors’ emoluments in euros
nonexecutive fees
roger withers
1
537668 – –537668 –537668
alan jackson 185072 – – 185072 – 185072
andrew thomas
2
61520 – – 61520 – 61520
     
notes
1 on 2 may 2012 the company reached agreement with the chairman roger withers to purchase his 300000 shares under option for a cash payment of £500000 the cash 
payment was determined based on the approximate expected value of the share option using the blackscholes formula and taking into account the contribution and time  
mr withers has devoted to the company 
2 andrew thomas was appointed to the board on 19 june 2012
remuneration report continued
governance overview governance accounts business review
playtech limited annual report and accounts 2012 43
sustainability
3 annual bonus
in 2012 the chief executive officer and david mathewson had the opportunity to earn bonuses of 150 per cent and 100 per cent of their respective 
salary the structure of the annual bonus plan was the same as that described in the policy report on page 39
the committee determined that the bonuses payable for 2012 was 150 per cent of salary for the ceo 100 per cent of the maximum and 75 per cent  
of salary for david mathewson these bonus payments were determined against corporate financial performance which was significantly ahead  
of budget with an adjusted ebitda of €1867 million representing a 49 per cent increase on the prior year and 122 per cent of target and full 
achievement of personal objectives
in 2012 the chief executive officer waived his entitlement to €600000 of bonus
4 termination payment
as disclosed above david mathewson was paid a sum of £100000 in lieu of notice on the termination of his employment on 31 december 2012
5 directors interests
51 interests of directors in ordinary shares
ordinary shares
as at 311212 as at 311211
no shares percentage no shares percentage
mor weizer nil nil
david mathewson nil nil
ron hoﬀman nil nil
roger withers 19333 0008 19333 0008
alan jackson 5000 0002 5000 0002
andrew thomas 7500 0003 na na
   
  based on the total issued share capital of 289316948 as at 31121 1
  based on the total issued share capital of 290236870 as at 311212
there has been no change in the directors’ beneficial interests between 31 december 2012 and the date of this report
52 table of interests of directors in options
1
 
number of 
options at 
1 january 
2012 or date of 
appointment date of grant exercise price 
exercised during  
the year
number of options  
at 31 december  
2012 or cessation  
of employment
earliest 
exercise date
expiry of  
exercise period
mor weizer
200000 6 february 2006 £255 200000
2
–––
200000 11 october 2006 £172 200000
2
–––
600000 16 may 2007 £379 nil 600000 16 may 2008 16 may 2017
200000 6 november 2009 £370 nil 200000 6 november 201 2 6 november 2019
david mathewson
3
100000 26 august 2011 £303 nil 100000 15 march 2013 30 june 2013
notes
1 share options are granted for nil consideration
2 the share options were exercised on 27 december 2012 and the share price on that date was 423p
3  the remuneration committee on behalf of the board have agreed as part of the arrangements for the termination of his contract that david mathewson may retain these options 
and exercise them following the end of the company’s close period for a period of six months following his departure  44 playtech limited annual report and accounts 2012
the closing share price on 31 december 2012 was 4266p and the share price ranged from 277 3p and 4327p during the year
the options granted under the 2005 plan have not been subject to performance conditions as noted in the corporate governance report  
it is intended that any awards made to executive directors and members of the senior management team of the company under either the new  
plan or the 2005 plan will be subject to the achievement of a mixture of performance conditions based in part on total shareholder return and  
part in the growth in earnings per share over the period as the remuneration committee determines to be appropriate
at 31 december 2012 no awards had been made under the 2012 plan
none of the nonexecutive directors have any options over shares in the company
by order of the board
alan jackson
chairman of the remuneration committee
14 march 2013
remuneration report continued
governance overview governance accounts business review
playtech limited annual report and accounts 2012 45
sustainability
the board is required by the code to establish a nomination committee which should lead the process for board appointments and  
make recommendations for appointments to the board a majority of members of the nomination committee should be independent  
nonexecutive directors
the nomination committee is comprised of the nonexecutive directors and is chaired by roger withers the committee met twice in 2012  
first to consider candidates for the appointment of an additional nonexecutive director which led after a process involving the review led by  
the chairman of a number of potential candidates to the appointment of andrew thomas and secondly to consider the appointment of the  
chief financial officer following the decision of david mathewson to step down at the end of the year in the light of ron hoffman’s extensive 
experience within playtech’s business his close in involvement with all of the group’s successful acquisitions over the last few years and close  
working relationship with david mathewson over the previous couple of years the committee felt that ron had the correct balance of skills  
industry knowledge and experience to fulfil this important role 
in the future the committee will continue to meet whenever necessary during the year and not less than twice a year
the primary responsibilities delegated to and discharged by the committee include 
 leading the selection process of candidates and propose to the board any new board appointments whether of executive or nonexecutive directors 
 considering the balance of skills knowledge and experience on the board and in the light of this evaluation prepare a description of the role and 
capabilities required for a particular appointment 
 making recommendations to the board for succession plans for executive management executive and nonexecutive directors and in particular 
the ceo and
 making recommendations to the board concerning the reappointment by shareholders of any directors standing for reelection at the company’s 
annual general meeting
nominations committee report
governance 46 playtech limited annual report and accounts 2012
the board is required by the code to establish formal and transparent arrangements for considering how it should apply required financial reporting 
standards and internal control principles and also for maintaining appropriate relationships with the company’s external auditors bdo llp 
the audit committee is chaired by andrew thomas who as a qualified chartered accountant and member of the institute of taxation has recent 
relevant financial experience and he was appointed to chair the committee on his appointment to the board in june 2012 the other members of the 
audit committee are alan jackson and roger withers both nonexecutive directors the code recommends that a minimum of three independent 
nonexecutive directors should serve on the audit committee from 1 january 2012 to 19 june 2012 the company was not compliant with this 
recommendation because there were only two nonexecutive directors serving on the board however since the appointment of andrew thomas  
the company believes it is compliant with this recommendation
the audit committee met twice during the year the first meeting which was prior to the appointment of andrew thomas was chaired by alan 
jackson the cfo and group financial controller were both invited to attend the meetings of the committee as was the external auditor bdo llp   
on both occasions the members of the committee were able to meet the auditors without any executive directors being present
the primary responsibilities delegated to and discharged by the committee included 
 monitoring and challenging the effectiveness of internal control and associated functions 
 approving and amending group accounting policies 
 reviewing and ensuring the integrity of interim and annual financial statements in particular the actions and judgments of management  
in relation thereto before submission to the board
 monitor the implementation of the company’s code of business ethics “code” and compliance with their provisions
 review the company’s arrangements for its employees to raise concerns anonymously or in confidence and without fear of retaliation  
about possible wrongdoing in financial reporting or other matters arising under the code
 review promptly all reports on the company from the internal auditors and reviewing and assess the annual internal audit plan
 monitoring and approving the scope and costs of audit and 
 ensuring audit independence and preapproving any significant nonaudit services to be provided by the auditor in accordance with the 
appropriate committee policy to limit the value of any nonaudit services provided by the auditors to 100 of the audit fees in the absence  
of any exceptional circumstances 
a summary of nonaudit fees incurred during 2012 including due diligence tax advisory and tax compliance work is included in note 6 to the financial 
statements on page 72 
internal control
the company has established a cosourced internal audit function responsible for reviewing reporting and monitoring improvements in internal 
control performance across its operations involving pricewatershousecoopers llp pwc and the group’s chief security officer jochanan 
sommerfeld during the year pwc reviewed and updated the existing group risk register to produce an updated risk register and fully mapped risk 
wheel further work being undertaken focuses on key risk processes and is intended to provide an ongoing independent assurance that these key 
processes are effective 
the board confirms that an internal audit programme has been agreed by the audit committee and any necessary action will be taken to remedy any 
significant failings or weaknesses identified from the review this system of internal controls and audit is designed to ensure local legal and regulatory 
compliance and manage rather than eliminate the risk of failure to achieve business objectives it can therefore only provide reasonable and not 
absolute assurance against material misstatement or loss 
the group has a widely publicised code of conduct approved by the risk  compliance committee a specific delegated authorities framework  
and a dedicated compliance function managed by an experienced head of regulatory affairs and compliance to ensure that the company meets 
with all applicable regulatory requirements wherever it operates performance across the group is also closely scrutinised against budget and 
forecasts these initiatives help establish and promote an improved control environment and working practices 
the board undertakes a formal assessment of the auditor’s independence each year which includes
 a review of nonaudit related services provided by the company and related fees
 discussion with the auditor of a written report detailing all relationships with the company and any other parties which could affect independence 
or the perception of independence
 a review of the auditor’s own procedures for ensuring independence of the audit firm and partners and staff involved in the audit including the 
rotation of the audit partner
 obtaining written confirmation from the auditors that they are independent and
 a review of fees paid to the auditors in respect of audit and nonaudit services
the audit engagement partner having acted in this role for five years would cease to act in this capacity in accordance with auditing practices  
board apb ethical standards due to the recent changes made to the group principally the move to a premium listing the significant acquisitions  
and restructuring activity that has taken place during the current and previous financial year the group’s audit committee has determined with  
the agreement of bdo llp  that it is necessary for the current audit engagement partner to continue in this role until the agm in 2013 in order to 
safeguard audit quality as permitted by the apb ethical standard 3 revised this will allow him to sign the report and accounts for the year ended  
31 december 2012
audit committee report
governance overview governance accounts business review
playtech limited annual report and accounts 2012 47
sustainability
under the uk corporate governance code the board is responsible for determining the nature and extent of the significant risks it is willing to take  
in achieving its strategic objectives the board should maintain a sound system of risk management and internal control systems main principle c2
as part of its processes in connection with the move of playtech from aim to a premium listing on the main market of the london stock exchange and 
ensuring compliance with the principles of the code the board conducted a review of it’s processes for identifying and managing the significant risks 
impacting on the business of the group in carrying out this review the board concluded that the remit of the previous risk committee of the board 
should be expanded to encompass a review of the risks which could impact on the group’s businesses arising from changes in the regulation of the 
market for online gambling in which it’s licensees operate 
in carrying out its review the board were assisted by dla piper llp who prepared a detailed review of the legal and regulatory environment as it 
applies to the supply of remote gambling services and the associated supply of software and services to remote gambling operators with a particular 
focus on those jurisdictions from which the group via its licensees derives or is expected to derive over 3 of its revenues
the revised risk  compliance committee is chaired by alan jackson the other members of the risk  compliance committee are andrew thomas 
and roger withers both nonexecutive directors david mcleish general counsel and the head of regulatory affairs and compliance the company 
secretary paul wright is also the secretary to the committee in addition the internal auditor and other executives including the cfo ceo or coo may 
be invited to attend meetings to present matters or for the committee to have the benefit of their experience
the revised risk  compliance committee met twice during the year the first meeting which was in june following the receipt of the report from dla 
piper llp and the issue of the company’s prospectus and the second in august at the time of the interim announcement to review and approve the 
statement of risks set out in the interim report and to review progress on agreed actions arising from the prior meeting the committee has been kept 
informed of any changes to the regulatory position in any significant jurisdiction where the group through its licensees may be exposed and updated 
on progress in relation to agreed action items on a regular basis and the item is a standing agenda item for consideration at each board meeting 
the primary responsibilities delegated to and discharged by the committee include 
 review management’s identification and mitigation of key risks to the achievement of the company’s objectives
 review of the most significant risks to the achievement of strategic objectives 
 review of the processes for management and mitigation of most significant risks 
 monitoring incidents and remedial activity
 agreeing and monitoring the risk assessment programme including in particular the assessment of licensees’ suitability
 to agree on behalf of the board and continually review a risk management strategy and relevant policies for the company and
 to satisfy itself and report to the board that the structures processes and responsibilities for identifying and managing risks are adequate
a copy of the terms of reference of the risk  compliance committee is available on the investors page of the company’s website at wwwplaytechcom 
principal risks
a table setting out the principal significant risks identified by the risk  compliance committee and the mitigating actions that have been undertaken 
by the board in relation to these are set out on pages 48 and 49 of this document
risk  compliance committee report
governance 48 playtech limited annual report and accounts 2012
playtech board audit committee
risk management
committee
integrated  
business risk 
management 
system 
regulatory risk
financial risk
other risks
the risks outlined here are those  
principal risks and uncertainties that 
are material to the group they do  
not include all the risks associated with  
group activities and are not set out in  
any order of priority how these risks are  
identified is described in the corporate 
governance section on pages 33 to 36
business risk management at playtech
the regulatory environment impacts on reputation and revenues
risk
the group holds a number of licences for its activities from  
regulators principally for its activities as a software provider issued  
by the uk gambling commission and the alderney gambling  
control commission loss of all or any of these licences may  
adversely impact on the revenues andor reputation of the group
mitigation
the group has an established compliance function that maintains 
relationships with regulators monitors the regulatory environment 
closely and ensures continuation of all necessary licences and permits  
that allow the group to continue its current business
risk
the group licences its products to operators in the online gambling 
industry whose ability to operate in any jurisdiction may be impacted by 
changes in regulations or failure to obtain any necessary licences laws 
and regulations relating to the supply of gambling services are complex 
inconsistent and evolving and the group may be subject to such laws 
indirectly insofar as it has assisted the supply to licensees who are 
themselves subject to such laws and so subject to enforcement risks
mitigation
as an established regulated supplier to the online gambling industry  
the company is vigilant over legal and regulatory issues that could apply  
to its activities not only in those jurisdictions where the company is 
located but also in the jurisdictions where its licensees are operating 
using playtech’s software and services under the terms of its licences  
the group prohibits the acceptance of players from jurisdictions such  
as the us where the acceptance of bets is clearly prohibited and the 
enforcement risk is considered to be highest
risk
new licensing regimes may impose licensing conditions such  
as the requirement to locate significant technical infrastructure  
within the relevant territory or establish and maintain realtime data  
interfaces with the regulator that present operational challenges  
or may prohibit the ability of licensees to offer the full range of the  
group’s products
mitigation
the group closely monitors developments in jurisdictions seeking  
to introduce new licensing regimes and seeks to establish joint venture 
relationships or other close contractual relationships with key local 
operators with influence on the development of local regulation  
in addition through the participation of the group in industry bodies  
such as the remote gambling association it seeks to influence the  
shape of new licensing regulations
governance
key risks
achieving playtech’s strategic goals  
while minimising some of the key  
risks the business faces will deliver  
sustainability and longterm growth
changes in taxation of group revenue impacts on net earnings
risk
the group benefits from favourable arrangements in some of the 
jurisdictions in which it is established changes in taxation legislation  
and rates may impact the group’s net earnings and cash flows
mitigation
the group works closely with its tax advisers to review its tax  
position undertake periodic tax audits and monitor any changes  
in tax rates overview governance accounts business review
playtech limited annual report and accounts 2012 49
sustainability
risk
following william hill’s exercise of it’s call option over the group’s stake in 
who that the board cannot replace the revenue derived from that stake 
and the group’s performance declines
mitigation
the board intends to use the cash proceeds in the best interests of 
shareholders at that time which may include all or any of the following 
funding of further acquisitions the establishment of new joint  
ventures the development of new technologies or a capital return  
to shareholders
business continuity and technology risk impacts on revenues
reliance on key personnel impacts on revenues
the competitive landscape may lead to loss of customers and revenues
the economic climate may lead to loss of customers and revenues
risk
the gambling industry is extremely competitive and so is the related 
software and services industry that supports it failure to compete 
effectively may result in the loss of licensees and also the inability  
to attract new licensees
mitigation
the group continues to invest significant resources in research  
and development in order to enhance its technology products  
and services and in making strategic acquisitions to broaden the  
range of technologies and products that it can offer to licensees
risk
the economic climate remains challenging and uncertain while the 
performance of the business has been resilient so far that may not always 
be the case and consumer discretionary spending could be diverted away 
from gaming and the group’s revenues would fall
mitigation
playtech’s licensees are geographically diverse which should mitigate 
relianace on any particular region management closely monitors 
business performance and if a downturn were to occur remedial action 
comensurate with the nature and scale of the slow down could be taken
risk
the group derived material levels of profit from associates and  
failure to manage effectively the group’s partnerships may reduce  
these levels of profit andor damage to the group’s ability to  
enter into future such relationships
mitigation
the group is committed to the success of all of its customers and partners 
and meets regularly with them to agree strategies to increase the 
profitability of the ventures and to maintain good working relationships
risk
the group’s future success depends in large part on the continued  
service of executive directors senior managers and key personnel  
the retention of whom cannot be guaranteed
mitigation
the group has introduced a comprehensive performance evaluation 
system to identify key talent and to ensure that key personnel are 
appropriately rewarded and incentivised through a mixture of annual 
bonuses and longterm incentives linked to the attainment of  
business objectives and revenue growth
risk
the group’s ability to compete effectively depends amongst 
other things on its ability to protect register and enforce  
as appropriate its intellectual property rights
mitigation
the group registers patents and trademarks where this is possible  
to protect key aspects of its intellectual property in addition  
proprietary andor confidential information and ip is protected 
through legal and physical security process and playtech vigorously 
defends itself against thirdparty claims 
risk
the group and its licensees are constantly vulnerable to hacking 
distributed denial of service “ddos” attacks malicious acts  
and cybercrime
mitigation
the group adopts industrystandard protections to detect any  
intrusion or other security breeches together with preventative  
measures safeguarding against sabotage hacking viruses and 
cybercrime the group works continuously to improve the robustness 
and security of the group’s information technology systems in  
addition the group has put in place disaster recovery processes 50 playtech limited annual report and accounts 2012
corporate social responsibility
overview
playtech’s continued commitment to  
integrating corporate social responsibility  
into its businesses supports its ability  
to generate sustainable longterm value  
enhancing delivery on its strategic objectives
sustainability
the issues of interest to the company’s  
stakeholders can be grouped into five areas
1 
workplace
the well being 
of our employees  
and how we attract 
develop and retain  
the best talent
3 
marketplace
working with regulators  
partners and licensees to  
further responsible gaming
2 
governance
maintaining high standards  
of corporate governance  
to monitor and mitigate  
risks associated with  
the business
5
environment
mitigating the company’s  
environmental impact  
where relevant and 
appropriate to reflect  
the nature and scale  
of its business
4
community
our broader community 
related obligations in  
those locations where  
our employees business  
partners and licensees  
live and work
the programme to put in place consistent 
documentation and groupwide policies  
and procedures that started in 201 1  
as well as a number of employeerelated 
improvements continues 
alan jackson chairman of the risk  
committee has boardlevel responsibility  
for the programme
workplace
playtech understands that the success of  
its business is due to the vital contribution  
made by its employees it is therefore essential 
to the company’s continued growth and 
development that it is able to attract and  
retain talented employees who will contribute 
to the longterm success of the business 
the group is fully committed to equality  
of opportunity and dignity at work for all  
its primary aim in this area is to recruit the best  
and most appropriate employees irrespective 
of race religion ethnic or national origins 
gender sexuality disability class or age 
working to the highest standards across  
the group 
playtech operates in a highlycompetitive 
industry and so retaining key staff is a priority 
the company provides financial rewards and  
a positive working environment developing 
employees’ skills for improved performance  
and increased job satisfaction levels 
governance
playtech’s board is responsible for the group’s 
financial and operational performance ensuring 
the success and sustainability of the business  
by directing and supervising the company’s 
policies and strategies 
in an industry which continues to undergo 
significant structural changes the board’s  
role has never been more important not least 
following the company’s move in july 2012 to a 
premium listing on the london stock exchange 
the identification of significant risks facing  
the business and processes to monitor and 
mitigate them is covered in more detail on 
pages 48 and 49
the company believes that its true value is 
not solely demonstrated by its balance sheet 
and financial results but should include 
other more intangible attributes such  
as its people brand and reputation
by embracing policies and behaviours  
that govern responsible conduct the  
company creates more valuable relationships  
with its stakeholders enhancing trust by
demonstrating its focus on and management 
of the material nonfinancial risks in the 
business playtech believes that a responsible 
approach to these challenges together with  
risk assessment and mitigation will positively 
impact its ability to succeed operationally  
and strategically 
focus on sustainability
playtech continues to improve its 
understanding and monitoring of  
material nonfinancial risks despite  
operating in a highlydynamic and  
rapidlychanging environment overview sustainability governance accounts business review
playtech limited annual report and accounts 2012 51
male 66 
female 34 
below 30 49 
3045 49
above 45 2
the group has an experienced chief 
compliance officer who focuses the company’s 
efforts on regulatory matters and this is of 
particular significance as playtech continues  
to expand its regulated markets offering 
community
playtech recognises its responsibility to  
support the local and international communities 
in which it operates and employs a social 
involvement si programme accordingly  
the company values the positive influence  
on its employees’ personal and professional 
development that can be found through 
volunteer work and sees it as important  
for the business over the longterm the 
company’s employees are actively engaged  
in supporting charities and playtech has 
expanded its si programme to focus on 
initiatives that deliver educational support  
and assistance to disadvantaged children  
in those countries where the group  
has operations
in 2012 playtech gave approximately  
€50000 to charitable organisations working  
in the fields of education and research  
into and treatment of problem gambling  
201 1 €100000 playtech also provided 
nonfinancial support to these causes  
including computer hardware and training 
environment
in comparison to other global companies 
playtech has a relatively low environmental 
impact by virtue of the fact that it is an online 
business with a limited number of office 
locations the daytoday running of the 
business will inevitably have consequences 
particularly in terms of energy consumption  
and travel and the company has put in place 
processes to monitor its carbon dioxide 
emissions from air travel and reduce any 
unnecessary travel 
where it is necessary to take new office space 
consideration is made for the implementation 
of greater energyefficient measures in estonia 
the building was designed with a highly 
efficient cooling system for the computer room 
and in all new locations there has been a move 
to reduce energy consumption with a ratio  
of employees to printers of over 30 the offices 
can be seen to be increasingly paperless 
environments in addition bottled water has 
been largely replaced by water fountains and 
where local schemes exist waste is separated 
and recycled
marketplace 
playtech’s csr marketplace metrics  
focus on stakeholder perceptions of the 
company’s relationships with licensees and  
its responsiveness to their requirements and  
on playtech’s relationships with regulators  
and other industry bodies 
the company will look to report on these and 
include cause conduct surveys to ensure that  
it properly understands external perceptions  
of the business and manages its reputation
playtech delivers a high quality service to  
its licensees so that they can offer the best 
customer experience the company works  
to monitor customer satisfaction levels across 
the licensee base as the retention of licensees  
is central to the sustainability of its business 
model playtech places great value on its 
relationships with gaming regulators around 
the world and works with them to ensure  
all aspects of the business meet or exceed  
their standards 
in a rapidly changing industry environment 
where newlyregulating markets play a central 
role it is critical that the company’s reputation 
as the best quality partner in the industry  
is maintained and promoted playtech’s 
customers are its licensees and the company 
plays a central role in helping them to  
manage their gaming operations responsibly 
the company’s approach to responsible  
gaming is discussed in detail on pages  
54 and 55
 
gender 
 
age
 
employees profile 52 playtech limited annual report and accounts 2012
2012
2011 1737
2010 11 12
2828
corporate social responsibility continued
playtech’s people 
attracting the best talent together with 
motivating and retaining employees  
is fundamental to playtech’s business  
sustainability and industry leadership 
sustainability
product development
playtech’s software business is structured  
along product lines with separate business 
units for each product area such as the ims 
casino poker bingo and sports and across  
the online live dealer mobile and landbased 
delivery channels this structure aims to  
ensure that playtech can manage the demands 
of increasing operational scale as existing 
licensees develop and new customers migrate 
to the company’s gaming platform
in practice this approach colocates product 
teams so that for example those employees 
working on playtech’s casino product are  
all located in tartu estonia with content  
and software developers quality assurance  
and product delivery teams working closely 
together on the same office floor this  
approach enhances collaboration and  
enables the team to quickly identify and  
resolve any technical issues that may arise
since 201 1 playtech has deployed a software 
delivery management process which has 
reduced the timetomarket for new games  
and launch time for new licensees the 
company’s intelligent approach to managing 
project workflows is a significant competitive 
advantage when compared to its peers 
playtech has also looked to utilise outsourcing 
resources or to deliver a greater ability to 
licensees to selfmanage their content this 
greater degree of control has benefits for the 
licensee in terms of faster deployment time  
for new content and helps to maximise the 
productivity of playtech’s development teams
playtech’s rd operations are among  
the biggest in the online gaming industry  
and employ over 850 people principally 
devoted to software development the scale  
of playtech’s rd function helps it to maintain  
a competitive advantage in technology 
innovation content development and  
product pipeline
the company’s extensive experience and 
capabilities enable it to be neutral as to  
the technology platform or system when 
developing new solutions for licensees  
so that it is able to offer its marketleading 
products and services to the widest possible 
customer base this flexibility offers a 
substantial advantage as licensees increasingly 
look for a combination of both download and 
browserbased formats for the same games  
and across platforms ranging from online to 
mobile and gaming terminals
locations and people
playtech is headquartered in the isle of  
man and has seven main offices including 
principal software development centres  
in estonia tartu and tallinn bulgaria the  
uk london manchester and ipswich and  
israel ptts has substantial offices in bulgaria 
and the philippines as well as a corporate  
centre in cyprus
 
in 2012 playtech employed an average  
of 2828 people at the end of the year  
total headcount was over 2600 people
in addition to the permanent headcount 
playtech has a programme to outsource  
certain ancillary development and service 
activities which are predominately  
productionrelated rather than software 
development this speeds up timeto 
market for routine upgrades and frees  
up key development resources playtech’s 
outsourcing partner ciklum is an experienced 
service provider with a facility based in the 
ukrainian city of kiev ptts also outsources 
some basic emarketing processes and  
reconciliation activities 
average number of employees
2828  
63
2011 1737 overview sustainability governance accounts business review
playtech limited annual report and accounts 2012 53
playtech’s culture focuses on the continued 
improvement of its workforce driven by  
a strong ethos of innovation technological 
development and the delivery of market
leading performance many of playtech’s  
new employees are referred by existing  
staff reflecting the company’s focus on 
developing a closeknit collegiate corporate 
culture ongoing training and career 
development are important elements  
of playtech’s sustainability efforts  
employee performance
while the development of marketleading 
software and products is at the heart of 
playtech’s growth licensees naturally expect 
247 operational performance and efficient 
delivery the company’s business units are 
integral to ensuring playtech meets the 
requirements of its licensees and employees  
are rewarded accordingly
playtech’s appraisal system is based around 
individual business unit and groupwide 
objectives which are directly aligned  
to group strategy and specific areas of 
implementation and execution employees 
have clearly defined objectives and targets  
that are set in each review period and their 
performance is routinely measured against 
these objectives 
employee remuneration includes  
competitive salaries and cash bonuses  
which are set by reference to the achievement 
of the aformentioned objectives and by  
the demonstration of other competencies  
and contributions to the group a revised 
longterm sharebased incentive scheme  
to attract and retain the best operational  
and business managers was implemented  
in 2012
customer service 
the serviceorientated philosophy 
underpinning playtech’s content development 
activities can also be found in its product  
and infrastructure operations with a team  
of over 150 people providing a 247  
support service to licensees 
from the beginning of every project  
playtech supports its licensees drawing on  
over a decade of experience and more than  
1 10 licensees dedicated teams staffed by 
professionals from all disciplines provide 
complete project and launch management 
assisting with strategy business planning 
compliance and regulatory requirements 
through to recruitment and team building 
playtech provides its customers’ operational 
teams with an intensive twoweek training 
programme ahead of launch thereafter each 
licensee is assigned an experienced account 
manager who provides daytoday support  
and a point of contact customers can draw  
on a pool of product and technology specialists 
to advise on any issues and a consulting team 
provides valueadded input to optimise the 
tools available on the playtech platform
 
valuing our people
playtech’s marketleading position is a 
significant asset in its efforts to attract the  
best talent in the industry candidates are  
drawn to playtech by the combination of  
its highly motivated entrepreneurial team 
culture and its breadth of knowledge and ability 
to harness cuttingedge technology this has 
also been an important factor in playtech’s 
corporate acquisitions where the potential  
to benefit from such a large and experienced 
support network has been a key discussion 
point and decision factor for a management 
team assessing the benefits of joining playtech 
once again playtech’s 
people were well 
represented in leading 
gaming magazine g1q’s 
‘hot 50’ talented people 54 playtech limited annual report and accounts 2012 54 playtech limited annual report and accounts 2012
corporate social responsibility continued
responsible gaming
as a leader in the online gaming industry 
playtech takes its responsibilities to operators 
and regulators seriously and is focused  
on cooperating with both parties on issues  
of responsible gaming 
sustainability
responsible gaming
the company’s fullyintegrated management 
system provides operators with the latest 
responsible gaming protocols embedded 
systems and controls ensure fair play and 
facilitate responsible gaming for players and 
ensure a safe playing environment for all 
playtech’s software and services provide 
operators with the means to deploy advanced 
responsible gaming protocols and sophisticated 
player tracking across all products and 
platforms to control and prevent issues such  
as compulsive usage and underage access of 
the company’s gaming products the group  
has contributed financially to the work of the 
responsible gambling trust formerly the great 
foundation a uk charity dedicated to 
supporting research into problem gambling 
education and training
playtech is also an associate member of the  
world lottery association wla the global 
professional association for state lottery  
and gaming organisations the wla and  
its members are committed to maintaining  
the highest ethical standards of gaming
certification and regulation
as a responsible supplier to the regulated 
gaming industry playtech’s systems comply 
with all the guidelines published by the variety 
of wellregulated jurisdictions in which its 
licensees operate the company partners with 
regulatory and governmental bodies and all  
its products undergo comprehensive testing  
by independent third parties 
playtech is an active member of the remote 
gambling association rga which has 
developed an industry code of practice  
on social responsibility and age verification  
which the company fully supports as part  
of the certification process playtech’s games 
and their software engines – including the 
random number generators – are regularly 
tested and certified by leading industry  
bodies to ensure consistency and fair play
philosophy
responsible gaming is an integral part  
of playtech’s institutional mindset and a 
significant factor in all of its activities as a 
software provider the company is not directly 
in contact with players but responsible gaming 
nonetheless remains a fundamental issue for 
the company in safeguarding its business and 
reputation and for the continued responsible 
development of the industry
 
within ptts playtech has a greater degree  
of contact with players on behalf of its licensees 
and is consequently dedicating with its 
operators a substantial focus on the proper 
management of the relevant responsible 
gaming protocols  overview sustainability governance accounts business review
playtech limited annual report and accounts 2012 55
this activity focuses on the early identification 
of the small percentage of players that have  
the potential under certain circumstances  
to develop gamblingrelated problems  
and the much smaller group who demonstrate 
an inability to control their gaming habits  
or actions 
in addition to the selfhelp tools above the 
customer services team is trained in their 
interactions with players to identify certain 
actions or comments that indicate a current  
or emerging problem for those displaying 
problem gambling characteristics the team is 
trained to manage their exclusion and provide 
information on how to seek necessary help
fraud money laundering and fair play
an integral part of playtech’s technology 
platform is its ability to monitor and identify 
fraud and money laundering playtech  
employs a dedicated security team focused  
on ensuring that it is at the forefront of  
industry bestpractice with comprehensive 
monitoring of transactions and gaming 
behaviour licensees are able to ensure that 
players cannot gain an advantage through 
unfair means this is a particular focus  
in playertoplayer games such as poker  
to minimise any risk of player collusion
the group holds a certificate of evaluation  
from the accredited testing facility tst  
which is part of gaming laboratories 
international gli the world’s largest 
independent gaming testing and certification 
laboratory playtech also holds an official 
certificate of prior approval from the alderney 
gambling control commission agcc  
in regulated markets such as italy france  
spain estonia and finland playtech’s software 
has been reviewed and passed for use by  
the local regulators
operator and player toolkit
every licensee is provided with playtech’s 
transparency toolkit which is embedded  
in the company’s software and includes 
viewable player protection content and 
the following tools
 compulsive gambling prevention
 age verification
 deposit limits
 bet limits
 session time limits
 selfexclusion tools
the company also provides comprehensive 
training and ongoing support to licensees  
to ensure that they are providing the maximum 
protection to their customers
where playtech provides external andor  
internal marketing services to a licensee it  
puts in place clear protocols and procedures  
for player engagement playtech’s technology 
platform provides the tools to identify and 
manage any player thought to be showing 
indications of problem gaming and regular 
dialogue reporting and joint training  
exercises with licensees address any  
concerns that arise
“ playtech’s software 
and services provide 
operators with the means 
to deploy advanced 
responsible gaming tools 
to control and prevent 
issues such as compulsive 
usage and underage 
access the group has 
contributed financially  
to the work of the 
responsible gambling 
trust a uk charity 
dedicated to supporting 
research into problem 
gambling education  
and training”
certification charities supported 56 playtech limited annual report and accounts 2012
the directors have elected to prepare the financial statements for the group in accordance with international financial reporting standards ifrs  
as adopted by the european union 
the directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position  
of the group for safeguarding the assets and for taking reasonable steps for the prevention and detection of fraud and other irregularities
international accounting standard 1 revised requires that financial statements present fairly for each financial year the group’s financial position 
financial performance and cash flows this requires the faithful representation of the effects of transactions other events and conditions in accordance 
with the definitions and recognition criteria for assets liabilities income and expenses set out in the international accounting standards board’s 
’framework for the preparation and presentation of financial statements’ in virtually all circumstances a fair presentation will be achieved by 
compliance with all applicable international financial reporting standards a fair presentation also requires the directors to
 select and apply appropriate accounting policies
 present information including accounting policies in a manner that provides relevant reliable comparable and understandable information and
 provide additional disclosures when compliance with the specific requirements in ifrs is insufficient to enable users to understand the impact  
of particular transactions other events and conditions on the entity’s financial position and financial performance
all of the current directors have taken all the steps that they ought to have taken to make themselves aware of any information needed by the group’s 
auditors for the purposes of their audit and to establish that the auditors are aware of that information the directors are not aware of any relevant 
audit information of which the auditors are unaware
the financial statements are published on the group’s website the maintenance and integrity of the group’s website is the responsibility of the 
directors the directors’ responsibility also extends to the continued integrity of the financial statements contained therein
statement of directors’ responsibilities overview sustainability governance accounts business review
playtech limited annual report and accounts 2012 57
we have audited the financial statements of playtech limited for the year ended 31 december 2012 which comprise the consolidated statement  
of comprehensive income the consolidated and parent company balance sheets the consolidated statement of cash flow and the consolidated 
statement of changes in equity and the related notes the financial reporting framework that has been applied in their preparation is applicable  
law and international financial reporting standards ifrs as issued by the international accounting standards board
this report is made solely to the company’s members as a body in accordance with section 80c of the isle of man companies act 2006 our audit  
work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report  
and for no other purpose to the fullest extent permitted by law we do not accept or assume responsibility to anyone other than the company  
and the company’s members as a body for our audit work for this report or for the opinion we have formed 
respective responsibilities of directors and auditors
as explained more fully in the statement of directors’ responsibilities the directors are responsible for the preparation of the financial statements and 
for being satisfied that they give a true and fair view our responsibility is to audit and express an opinion on the financial statements in accordance 
with applicable isle of man company law and international standards on auditing uk and ireland those standards require us to comply with the 
auditing practices board’s apb’s ethical standards for auditors 
scope of the audit of the financial statements
a description of the scope of an audit of financial statements is provided on the apb’s website at wwwfrcorgukapbscopeprivatecfm
opinion on the financial statements
in our opinion 
 the financial statements give a true and fair view of the state of the group’s and the parent company’s affairs as at 31 december 2012 and of the 
group’s profit for the year then ended
 the group financial statements have been properly prepared in accordance with ifrs as issued by the international accounting standards board and
 the parent company financial statements have been properly prepared in accordance with ifrs as issued by the international accounting standards 
board and as applied in accordance with the provisions of the isle of man companies act 2006
matters on which we are required to report by exception
under the listing rules we are required to review the part of the corporate governance statement relating to the company’s compliance with the nine 
provisions of the uk corporate governance code specified for our review
bdo llp
chartered accountants
london
united kingdom
14 march 2013
bdo llp is a limited liability partnership registered in england and wales with registered number oc305127
independent auditor’s report to the shareholders of playtech limited 58 playtech limited annual report and accounts 2012
2012 2011
note
actual
€’000
adjusted
€’000
actual
€’000
adjusted
€’000
revenues 4 317504 317504 207485 207485
distribution costs before depreciation and amortisation 156658 154841 100830 98019
administrative expenses before depreciation and amortisation 29630 26450 25364 20069
operating proﬁt before depreciation and amo rtisation 6 131216 136213 81291 89397
share of proﬁt of associate 13a 44824 50553 30344 36073
amortisation of intangibles in associate 13a 5729 – 5729 –
income from associate 13a 50553 50553 36073 36073
share of loss from joint ventures net 46 46 546 546
ebitda 181723 186720 116818 124924
depreciation and amortisation including amortisation of intangibles in associate 49493 17108 34866 13299
financing income 7 4096 4096 3972 3946
finance cost – movement in deferred and contingent consideration 44184 – 6075 –
finance cost – other 3112 3112 1186 1186
total ﬁnancing cost 7 47296 31 12 7261 1186
proﬁt before taxation 89030 170596 78663 114385
tax expense 82101 2101 957 1528
proﬁt for the year 86929 168495 77706 112857
other comprehensive income for the year
adjustments for change in fair value of available for sale equity instruments 15 15227 15227 1995 1995
total comprehensive income for the year 102156 183722 79701 114852
proﬁt for the year attributable to
owners of the parent 86755 168321 77696 112847
noncontrolling interest 174 174 10 10
86929 168495 77706 112857
earnings per share for proﬁt attributable to the owners of the parent during 
the year
basic cents 9300 581 318 462
diluted cents 9 294 571 314 457
total comprehensive income attributable to
owners of the parent 101982 183548 79691 114842
noncontrolling interest 174 174 10 10
102156 183722 79701 114852
 adjusted numbers relate to certain noncash and oneoff items including amortisation of intangibles on acquisitions amortisation of intangibles in associate professional costs on acquisitions 
finance costs on acquisitions legal costs related to the litigation with associate and costs of admission to a premium listing on the main market and additional various noncash charges the directors 
believe that the adjusted profit represents more closely the underlying trading performance of the business a full reconciliation between the actual and adjusted results is provided in note 5
consolidated statement of comprehensive income
for the year ended 31 december 2012
financial statements overview sustainability governance accounts business review
playtech limited annual report and accounts 2012 59
additional 
paid in capital 
€’000
available for 
sale reserve 
€’000
retained 
earnings 
€’000
total equity 
attributable 
to holders of 
parent €’000
non
controlling 
interest 
€’000
total equity
€’000
balance at 1 january 201 1 189690 – 110260 299950 – 299950
changes in equity for the year    
total comprehensive income for the year – 1995 77696 79691 10 79701
dividend paid – – 23377 23377 – 23377
issue of share capital net of issue costs 117549 – – 117549 – 117549
exercise of options 614–– 614– 614
acquisition of noncontrolling interest –––– 59 59
purchase of treasury shares – – 366 366 – 366
employee stock option scheme – – 4678 4678 – 4678
balance at 31 december 2011 307853 1995 168891 478739 49 478690
balance at 1 january 2012 307853 1995 168891 478739 49 478690
changes in equity for the year    
total comprehensive income for the year – 15227 86755 101982 174 102156
dividend paid – – 70440 70440 – 70440
prior period share issue cost 41 – – 41 – 41
exercise of options 3023–– 3023– 3023
purchase of share options – – 1616 1616 – 1616
cancellation of treasury shares 366 – 366 – – –
employee stock option scheme – – 2403 2403 – 2403
balance at 31 december 2012 310469 17222 186359 514050 125 514175
consolidated statement of changes in equity
for the year ended 31 december 2012 60 playtech limited annual report and accounts 2012
consolidated balance sheet
as at 31 december 2012
financial statements
note
2012 
€’000 
2011
€’000 
noncurrent assets 
property plant and equipment 11 20304 21548 
intangible assets 12 372387 365201
investments in equity accounted associates  joint ventures 13 156036 162997 
available for sale investments 15 35333 12376 
other noncurrent assets 16 5175 2820
 589235 564942 
current assets 
trade receivables 17 47784 30939
other receivables 18 26560 20228 
cash and cash equivalents 19 120880 164832 
 195224 215999
total assets 784459 780941
equity 
additional paid in capital 310469 307853 
available for sale reserve 15 17 222 1995
retained earnings 186359 168891
equity attributable to equity holders of the parent 20 514050 478739
noncontrolling interest 125 49
total equity 514175 478690
noncurrent liabilities 
loans and borrowings 22 31250 13746
other noncurrent liabilities 21 215 1423
deferred revenues 9092 8919 
deferred tax liability 24 5232 5287 
deferred consideration 14 26735 41752
contingent consideration 14 15826 1 10985
 88350 182112
current liabilities 
loans and borrowings 22 37970 13787
trade payables 32 14522 13056
progressiveoperators’ jackpots and security deposits 31607 36053
tax liabilities 1946 1837 
deferred revenues 3679 4986
deferred consideration 14 69749 33591
contingent consideration 14 – 929
other payables 25 22461 15900 
 181934 120139
 total equity and liabilities 784459 780941
the financial statements were approved by the board and authorised for issue on 14 march 2013
mor weizer   ron hoffman
chief executive oﬃcer  chief financial oﬃcer
 see note 2 for details of the reclassifications overview sustainability governance accounts business  financial review
playtech limited annual report and accounts 2012 61
consolidated statement of cash flows
for the year ended 31 december 2012
2012 
€’000 
2011 
€’000 
cash flows from operating activities
profit after tax 86929 77706
adjustments to reconcile net income to net cash provided by operating activities see overleaf 29041 1525
income taxes paid 3174 1821
net cash provided by operating activities 112796 74360
cash flows from investing activities
long term deposits and loan advances 2393 2593
dividend received from equityaccounted associate 47334 35087
acquisition of property plant and equipment 8007 12562
investment in joint ventures note 13b  c –6108
acquisition of intangible assets 2210 79
return on investment in joint ventures 1027 1663
acquisition of subsidiaries net of cash acquired 143148 97189
capitalised development costs 14851 9542
investment in available for sale investments 7730 –
investment in equityaccounted associates note 13a – 15001
proceeds from sale of property plant and equipment 1046 1138
net cash used in investing activities 128932 100000
cash flows from financing activities
dividends paid to the holders of the parent 70440 23377
issue of share capital net of issue costs – 117549
purchase of treasury shares – 366
purchase of share options 1616 –
proceeds from bank borrowings 75000 27533
repayment of bank borrowings 33783 –
exercise of options 3023 614
net cash used infrom ﬁnancing activities 27816 121953
decreaseincrease in cash and cash equivalents 43952 96313
cash and cash equivalents at beginning of year 164832 68519
cash and cash equivalents at end of year 120880 164832 62 playtech limited annual report and accounts 2012
consolidated statement of cash flows continued
for the year ended 31 december 2012
2012 
€’000 
2011 
€’000 
adjustment to reconcile net income to net cash provided by operating activities
income and expenses not affecting operating cash flows
depreciation 8118 5364
amortisation 35646 23773
income from associate 50553 36073
amortisation of intangibles in associate 5729 5729
share of net loss in joint ventures 46 547
decline in fair value of available for sale investment –551
movement in deferred and contingent consideration 44184 6075
employee stock option plan expenses 2403 4678
income tax expense 2101 957
other 74 105 
changes in operating assets and liabilities 
increase in trade receivables 17603 5662
increase in other receivables 3024 5461
increasedecrease in trade payables 1122 17 359
decreaseincrease in progressive operators’ jackpot and security deposits 3034 9056
increase in other payables 4966 8126
decrease in deferred revenues 1134 1931
 29041 1525
acquisition of subsidiary net of cash acquired
note
2012 
€’000
2011 
€’000
a acquisition of geneity limited 26a 18200 –
b acquisition of juego online ead 26b 5996 –
c acquisition of intelligent gaming systems limited 27a 952 2836
d acquisition of pt turnkey services limited 27b 118000 44314
e acquisition of mobenga ab limited 27c – 7830
f  acquisition of ash gaming limited 27d – 27027
g acquisition of stech limited 27e – 339
h acquisition of gts limited –7399
i acquisition of virtue fusion –8122
143148 97189 overview sustainability governance accounts business  financial review
playtech limited annual report and accounts 2012 63
notes to the financial statements
for the year ended 31 december 2012
financial statements
note 1 – general
on 21 june 2012 playtech limited the “company” redomiciled as a company in the isle of man prior to this date it was a company domiciled in the 
british virgin islands and was incorporated on 12 september 2002 as an offshore company with limited liability 
playtech and its subsidiaries the “group” develop unified software platforms for the online and landbased gambling industry targeting online and 
landbased operators playtech’s gaming applications – online casino poker and other p2p games bingo mobile live gaming landbased kiosk networks 
landbased terminal and fixedodds games – are fully intercompatible and can be freely incorporated as standalone applications accessed and funded 
by the operators’ players through the same user account and managed by the operator by means of a single powerful management interface 
basis of preparation
the directors consider that the group has adequate resources to continue in operational existence for the foreseeable future and that it is therefore 
appropriate to adopt the going concern basis in preparing its financial statements 
note 2 – significant accounting policies
the significant accounting policies followed in the preparation of the financial statements on a consistent basis are
accounting principles
this financial statements has been prepared in accordance with international financial reporting standards international accounting standards and 
interpretations collectively ifrs issued by the international accounting standards board iasb as adopted by the european union “adopted ifrs”  
in the current year the group has adopted all of the new and revised standards and interpretations issued by the iasb and the international financial 
reporting interpretations committee ifric of the iasb as they have been adopted by the european union that are relevant to its operations and 
effective for accounting periods beginning on 1 january 2012 
changes in accounting policies
a new standards interpretations and amendments eﬀective from 1 january 2012
the following new standard interpretation and amendment applied for the first time from 1 january 201 2 have had an effect on the financial statements
 ifrs 7 amended – transfers of financial assets effective for annual periods beginning on or after 1 july 201 1
none of the other new standards interpretations and amendments effective for the first time from 1 january 2012 have had a material effect on the 
financial statements
b new standards interpretations and amendments not yet eﬀective
the following new standards interpretations and amendments which have not been applied to these financial statements will or may have an effect 
on the group’s future financial statements
 presentation of items of other comprehensive income amendments to ias 1 effective for annual periods beginning on or after 1 july 2012
 ifrs 10 consolidated financial statements effective for annual periods beginning on or after 1 january 2014
 ifrs 1 1 joint arrangements effective for annual periods beginning on or after 1 january 2014
 ifrs 12 disclosure of interests in other entities effective for annual periods beginning on or after 1 january 2014
 ifrs 13 fair value measurement effective for annual periods beginning on or after 1 january 2013
 ias 27 separate financial statements effective for annual periods beginning on or after 1 january 2014
 ias 28 investments in associates and joint ventures effective for annual periods beginning on or after 1 january 2014
 disclosures – offsetting financial assets and liabilities amendments to ifrs 7 effective for annual periods beginning on or after 1 january 2013 and
 offsetting financial assets and financial liabilities amendments to ias 32 effective for annual periods beginning on or after 1 january 2014
the following new standards interpretations and amendments which have not yet been endorsed by the eu are effective for annual periods 
beginning on or after 1 january 2013
 annual improvements to ifrs 2009 – 201 1 cycles effective for annual periods beginning on or after 1 january 2013 
 consolidated financial statements joint arrangements and disclosure of interests in other entities transition guidance amendments to ifrs 10 
ifrs 1 1 and ifrs 12 and
 ifrs 9 financial instruments effective for annual periods beginning on or after 1 january 2015
the group is currently assessing the impact if any that these standards will have on the presentation of its consolidated results
none of the other new standards interpretations and amendments which are effective for periods beginning after 1 january 2012 and which have not 
been adopted early are expected to have a material effect on the group’s future financial statements 64 playtech limited annual report and accounts 2012
note 2 – significant accounting policies continued
foreign currency
the financial statements of the company and its subsidiaries are prepared in euros the functional currency which is the currency that best reflects the 
economic substance of the underlying events and circumstances relevant to the group transactions and balances in foreign currencies are converted 
into euros in accordance with the principles set forth by international accounting standard ias 21 “the effects of changes in foreign exchange 
rates” accordingly transactions and balances have been converted as follows 
 monetary assets and liabilities – at the rate of exchange applicable at the balance sheet date and
 income and expense items – at exchange rates applicable as of the date of recognition of those items nonmonetary items are converted at the rate 
of exchange used to convert the related balance sheet items ie at the time of the transaction exchange gains and losses from the aforementioned 
conversion are recognised in the consolidated statement of comprehensive income
basis of consolidation
where the company has the power either directly or indirectly to govern the financial and operating policies of another entity or business so as to obtain 
benefits from its activities it is classified as a subsidiary the consolidated financial statements present the results of the group as if they formed a single 
entity intercompany transactions and balances between group companies are therefore eliminated in full
revenue recognition 
income receivable from contracting parties comprises a percentage of the revenue generated by the contracting party from use of the group’s 
intellectual property in online gaming activities and landbased gaming operations and from fees charged for services rendered income is recognised 
in the accounting periods in which the gaming transactions occur or the services are rendered royalty and other income receivable under fixedterm 
arrangements are recognised over the term of the agreement on a straight line basis
distribution costs
distribution costs represent the direct costs of the function of providing services to customers costs of the development function and advertising costs
sharebased payments
certain employees participate in the group’s share option plans which commenced with effect from 1 december 2005 the fair value of the options 
granted is charged to the consolidated statement of comprehensive income on a straight line basis over the vesting period and the credit is taken to 
equity based on the group’s estimate of shares that will eventually vest fair value is determined by the blackscholes and binomial valuation model 
the share options plan does not have any performance conditions other than continued service 
income taxes and deferred taxation
provision for income taxes is calculated in accordance with the tax legislations and applicable tax rates in force at the balance sheet date in the 
countries in which the group companies have been incorporated 
deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the consolidated balance sheet differs from  
its tax base except for differences arising on
 the initial recognition of goodwill
 the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction affects  
neither accounting or taxable profit and
 investments in subsidiaries and jointly controlled entities where the group is able to control the timing of the reversal of the difference and  
it is probable that the difference will not reverse in the foreseeable future
the amount of the asset or liability is determined using tax rates that have been enacted or substantively enacted by the reporting date and are 
expected to apply when the deferred tax liabilitiesassets are settledrecovered
deferred tax assets and liabilities are offset when the group has a legally enforceable right to offset current tax assets and liabilities and the deferred 
tax assets and liabilities relate to taxes levied by the same tax authority on either
 the same taxable group company or
 different group entities which intend either to settle current tax assets and liabilities on a net basis or to realise the assets and settle the liabilities 
simultaneously in each future period in which significant amounts of deferred tax assets or liabilities are expected to be settled or recovered
dividend distribution
final dividends are recorded in the group’s financial statements in the period in which they are approved by the group’s shareholders interim 
dividends are recognised when paid
notes to the financial statements continued
for the year ended 31 december 2012 overview sustainability governance accounts business  financial review
playtech limited annual report and accounts 2012 65
note 2 – significant accounting policies continued
property plant and equipment
property plant and equipment comprise computers leasehold improvements office furniture and equipment and motor vehicles and are stated  
at cost less accumulated depreciation carrying amounts are reviewed on each balance sheet date for impairment where the carrying amount  
of an asset is greater than its estimated recoverable amount it is written down immediately to its recoverable amount
depreciation is calculated to write off the cost of fixed assets on a straight line basis over the expected useful lives of the assets concerned  
the principal annual rates used for this purpose which are consistent with those of the previous years are 

computers and gaming machines 33
office furniture and equipment 720
building and leasehold improvements 1020 or over the length of the lease
motor vehicles 15
subsequent expenditures are included in the asset carrying amount or recognised as a separate asset as appropriate only when it is probable that 
future economic benefits will flow to the group and the cost of the item can be measured reliably all other repairs and maintenance are charged  
to the income statement during the financial period in which they are incurred
gains and losses on disposals are determined by comparing proceeds with carrying amount and are included in the consolidated statement  
of comprehensive income
business combinations
the consolidated financial statements incorporate the results of business combinations using the purchase method in the consolidated  
balance sheet the acquiree’s identifiable assets liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date  
the results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained 
investments in subsidiary undertakings
investments in subsidiary undertakings are recognised at cost less if any provision for impairment
intangible assets
intangible assets comprise externally acquired patents domains and customer lists intangible assets also include internally generated capitalised 
software development costs all such intangible assets are stated at cost less accumulated amortisation where intangible assets are acquired as part  
of a business combination they are recorded initially at their fair value carrying amounts are reviewed on each balance sheet date for impairment 
where the carrying amount of an asset is greater than its estimated recoverable amount it is written down to its recoverable amount
 
amortisation is calculated using the straight line method at annual rates estimated to write off the costs of the assets over their expected useful  
lives and is charged to operating expenses from the point the asset is brought into use the principal annual rates used for this purpose which are 
consistent with those of the previous years are
 
domain names nil
internally generated capitalised development costs 33
technology ip 2033
customer list 7125
affiliate contracts 5125
patents and license over the expected useful lives 1033
intangible assets identified under the investment in equity accounted associates

software 10
customer relationships 71
affiliate contracts 52
wh brands 7
purchased assets brands 10
covenant not to compete 20
management believes that the useful life of the domain names is indefinite domain names are reviewed for impairment annually 66 playtech limited annual report and accounts 2012
note 2 – significant accounting policies continued
intangible assets continued
expenditure incurred on development activities including the group’s software development is capitalised only where the expenditure will  
lead to new or substantially improved products the products are technically and commercially feasible and the group has sufficient resources  
to complete development 
subsequent expenditure on capitalised intangible assets is capitalised only where it clearly increases the economic benefits to be derived from  
the asset to which it relates all other expenditure including that incurred in order to maintain an intangible assets current level of performance  
is expensed as incurred
goodwill
goodwill represents the excess of the cost of a business combination over in the case of business combinations completed prior to 1 january 2010 the 
group’s interest in the fair value of identifiable assets liabilities and contingent liabilities acquired and in the case of business combinations completed 
on or after 1 january 2010 the total acquisition date fair value of the identifiable assets liabilities and contingent liabilities acquired
for business combinations completed prior to 1 january 2010 cost comprised the fair value of assets given and liabilities assumed plus any direct 
costs of acquisition changes in the estimated value of contingent consideration arising on business combinations completed by this date were treated 
as an adjustment to cost and in consequent resulted in a change in the carrying value of goodwill
for business combinations completed on or after 1 january 2010 cost comprises the fair value of assets given and liabilities assumed plus the amount 
of any noncontrolling interests in the acquired business contingent consideration is included in cost at its acquisition date fair value and in the case 
of contingent consideration classified as a financial liability remeasured subsequently through profit or loss for combinations completed on or after  
1 january 2010 direct costs of acquisition are recognised immediately as an expense in the consolidated statement of comprehensive income within 
administrative costs
goodwill is capitalised as an intangible asset with any impairment in carrying value being charged to the consolidated income statement goodwill  
is not amortised and is reviewed for impairment annually or more specifically if events or changes in circumstances indicate that the carrying value 
may be impaired
impairment
impairment tests on goodwill and other intangible assets with indefinite useful economic lives are undertaken annually at the financial year end  
other nonfinancial assets are subject to annual impairment tests whenever events or changes in circumstances indicate that their carrying amount 
may not be recoverable where the carrying value of an asset exceeds its recoverable amount ie – the higher of value in use and fair value less costs  
to sell the asset is written down accordingly
where it is not possible to establish the recoverable amount of an individual asset the impairment test is carried out on the asset’s cashgenerating 
unit ie – the lowest group of assets in which the asset belongs for which there are separately identifiable cash flows goodwill is allocated on initial 
recognition to each of the group’s cashgenerating units that are expected to benefit from the synergies of the combination giving rise to the 
goodwill
impairment charges are included in the administrative expenses line item in the consolidated statement of comprehensive income except to the 
extent they reverse gains previously recognised in the consolidated statement of comprehensive income an impairment loss recognised for goodwill 
is not reversed
associates
where the group has the power to participate in but not control the financial and operating policy decisions of another entity it is classified as  
an associate associates are initially recognised in the consolidated balance sheet at cost the group’s share of postacquisition profits and losses  
is recognised in the consolidated statement of comprehensive income except that losses in excess of the group’s investment in the associate are  
not recognised unless there is an obligation to make good those losses
profits and losses arising on transactions between the group and its associates are recognised only to the extent of unrelated investors’ interests in the 
associate the investor’s share in the associate’s profits and losses resulting from these transactions is eliminated against the carrying value of the associate
any premium paid for an associate above the fair value of the group’s share of the identifiable assets liabilities and contingent liabilities acquired is 
capitalised as goodwill and included in the carrying amount of the associate the carrying amount of investment in associate is subject to impairment 
in the same way as goodwill arising on a business combination described above
joint ventures
the group’s investment in a jointly controlled entity is included in the financial statements under the equity method of accounting the group includes 
the assets it controls its share of any income and the liabilities and expenses of jointly controlled operations and jointly controlled assets in accordance 
with the terms of the underlying contractual arrangement
financial assets
the group classifies its financial assets into one of the categories discussed below depending on the purpose for which the asset was acquired the 
group has not classified any of its financial assets as held to maturity the group does not hold any financial assets at fair value through profit and loss
notes to the financial statements continued
for the year ended 31 december 2012 overview sustainability governance accounts business  financial review
playtech limited annual report and accounts 2012 67
note 2 – significant accounting policies continued
loans and receivables 
these assets are nonderivative financial assets with fixed or determinable payments that are not quoted in an active market they arise principally 
through the provision of services to customers eg trade receivables but also incorporate other types of contractual monetary asset they are initially 
recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue and are subsequently carried at amortised cost 
using the effective interest rate method less provision for impairment
the group’s receivables comprise trade and other receivables cash and cash equivalents and loans to customers in the balance sheet
trade receivables which principally represent amounts due from licensees are carried at original invoice value less an estimate made for bad and 
doubtful debts based on a review of all outstanding amounts at the yearend an estimate for doubtful debts is made when there is objective evidence 
that the group will not be able to collect amounts due according to the original terms of receivables bad debts are written off when identified
cash and cash equivalents includes cash in hand deposits held at call with banks and other shortterm highly liquid investments with original 
maturities of three months or less where cash is on deposit with maturity dates greater than three months it is disclosed within other receivables 
loans to customers are in respect of formal loan agreements entered into between the group and its customer which are carried at original advanced 
value less a provision for impairment they are classified between current and noncurrent assets in accordance with the contractual repayment terms 
of each loan agreement
availableforsale financial assets
nonderivative financial assets classified as availableforsale comprise the group’s strategic investments in entities not qualifying as subsidiaries 
associates or jointly controlled entities they are carried at fair value with changes in fair value generally recognised in other comprehensive income 
and accumulated in the available for sale reserve in accordance with ias 39 a significant or prolonged decline in the fair value of an availableforsale 
financial asset is recognised in the consolidated statement of comprehensive income 
purchases and sales of availableforsale financial assets are recognised on settlement date with any change in fair value between trade date and 
settlement date being recognised in the available for sale reserve on sale the amount held in the availableforsale reserve associated with that  
asset is removed from equity and recognised in the consolidated statement of comprehensive income
changes in fair value are recognised in other comprehensive income and accumulated in the availableforsale reserve except to the extent that  
any decrease in value in excess of the credit balance on the availableforsale reserve or reversal of such a transaction is recognised in profit or loss
share capital
ordinary shares are classified as equity and are stated at the proceeds received net of direct issue costs
financial liabilities
trade payables and other shortterm monetary liabilities are initially recognised at fair value and subsequently carried at amortised cost using the 
effective interest method
several of the group’s licensees participate in progressive jackpot games each time a progressive jackpot game is played a preset amount is added  
to a cumulative jackpot for that specific game the accrual for the jackpot at the consolidated balance sheet date is included in progressive jackpot  
and other operator’s jackpot liabilities
loans and bank borrowings are initially recognised at fair value net of any transaction costs directly attributable to the issue of the instrument such 
interestbearing liabilities are subsequently measured at amortised cost using the effective interest rate method which ensures that any interest expense 
over the period to repayment is at a constant rate on the balance of the liability carried in the consolidated balance sheet interest expense in this context 
includes initial transaction costs and premia payable on redemption as well as any interest or coupon payable while the liability is outstanding
fair value measurement hierarchy
ifrs 7 requires certain disclosure which require the classification of financial assets and financial liabilities measured at fair value using a fair  
value hierarchy that reflects the significance of the inputs used in making the fair value measurement see note 30 the fair value hierarchy  
has the following levels
a  quoted prices unadjusted in active markets for identical assets or liabilities level 1
b  inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly ie as prices or indirectly  
ie – derived from prices level 2 and
c inputs for the asset or liability that are not based on observable market data unobservable inputs level 3
the level in the fair value hierarchy within which the financial asset or financial liability is categorized is determined on the basis of the lowest level input 
that is significant to the fair value measurement financial assets and financial liabilities are classified in their entirety into only one of the three levels 68 playtech limited annual report and accounts 2012
note 2 – significant accounting policies continued
longterm liabilities
long term liabilities are those liabilities that are due for repayment or settlement in more than 12 months from balance sheet date
provisions 
provisions which are liabilities of uncertain timing or amount are recognised when the group has a present obligation as a result of past events  
if it is probable that an outflow of funds will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made
leases
where substantially all of the risks and rewards incidental to ownership are not transferred to the group an “operating lease” the total rentals  
payable under the lease are charged to the consolidated statement of comprehensive income on a straight line basis over the lease term  
the aggregate benefit of lease incentives is recognised as a reduction of the rental expense over the lease term on a straight line basis
noncontrolling interests
noncontrolling interest is recognised at the present ownership instruments’ proportionate share in the recognised amounts of the acquiree’s 
identifiable net assets the total comprehensive income of nonwholly owned subsidiaries is attributed to owners of the parent and to the  
noncontrolling interests in proportion to their relative ownership interests
treasury shares
consideration paidreceived for the purchasesale of treasury shares is recognised directly in equity the cost of treasury shares held is presented  
as a separate reserve the “treasury share reserve” any excess of the consideration received on the sale of treasury shares over the weighted average 
cost of the shares sold is credited to retained earnings
reclassifications in the prior year
the group has reclassified some of the comparatives in the balance sheet to show all security deposits along with progressive and other jackpots  
owed to customers for the year ended 31 december 201 1 trade receivables have increased by €99 million as a result of the reclassification  
of security deposit payables which are now included within progressive operators’ jackpots and security deposits in addition for the year ended  
31 december 201 1 security deposit payables of €56 million have been reclassified from trade payables to progressive and other operators’ jackpots 
within current liabilities 
there has been no impact on the net assets of the group in the current or prior year as a result of these reclassifications
note 3 – critical accounting estimates and judgements
the areas requiring the use of estimates and critical judgments that may potentially have a significant impact on the group’s earnings and financial 
position are impairment of goodwill the recognition and amortisation of development costs and other intangible assets and the useful life of property 
plant and equipment the fair value of availableforsale investments sharebased payments legal proceedings and contingent liabilities determination  
of fair values of intangible assets acquired in business combinations income tax and determination of fair value of contingent consideration
 
estimates and assumptions
impairment of goodwill
the group is required to test on an annual basis whether goodwill has suffered any impairment the recoverable amount is determined based on 
value in use calculations the use of this method requires the estimation of future cash flows and the choice of a discount rate in order to calculate the 
present value of the cash flows such estimates are based on management’s experience of the business but actual outcomes may vary more details 
including carrying values are included in note 12
amortisation of development costs and other intangible assets and the useful life of property plant and equipment
intangible assets and property plant and equipment are amortised or depreciated over their useful lives useful lives are based on management’s 
estimates of the period that the assets will generate revenue which are periodically reviewed for continued appropriateness 
changes to estimates can result in significant variations in the amounts charged to the consolidated statement of comprehensive income in specific 
periods more details including carrying values are included in notes 1 1 and 12
fair value of availableforsale investments
the group determines the fair value of availableforsale investments that are not quoted using valuation techniques those techniques are 
significantly affected by the assumptions used including discount rates and estimates for future cash flows in that regard the derived fair  
value estimates cannot always be substantiated by comparison with independent markets and in many cases may not be capable of being  
realised immediately 
the methods and assumptions applied and the valuation techniques used are disclosed in note 15
sharebased payments
the group has a share based remuneration scheme for employees the fair value of share options is estimated by using the blackscholes and  
binomial models on the date of grant based on certain assumptions those assumptions are described in note 10 and include among others  
the dividend growth rate expected share price volatility expected life of the options and number of options expected to vest 
notes to the financial statements continued
for the year ended 31 december 2012 overview sustainability governance accounts business  financial review
playtech limited annual report and accounts 2012 69
note 3 – critical accounting estimates and judgements continued
estimates and assumptions continued
legal proceedings and contingent liabilities
management regularly monitors the key risks affecting the group including the regulatory environment in which the group operates a provision  
will be made where there is a present obligation from a past event a transfer of economic benefits is probable and the amount of costs of the transfer 
can be estimated reliably in instances where the criteria are not met a contingent liability may be disclosed in the notes to the financial statements 
more details are included in note 32
determination of fair value of intangible assets acquired 
the fair value of the intangible assets acquired is based on the discounted cash flows expected to be derived from the use of the asset further information 
in relation to the determination of fair value of intangible assets acquired is given in note 27 
income taxes
the group is subject to income tax in jurisdictions in which it is registered and judgment is required in determining the provision for income taxes 
during the ordinary course of business there are transactions and calculations for which the ultimate tax determination is uncertain as a result the 
group recognises tax liabilities based on estimates of whether additional taxes and interest will be due the group believes that its accruals for tax 
liabilities are adequate for all open audit years based on its assessment of many factors including past experience and interpretations of tax law  
more details are included in note 8
determination of the fair value of contingent consideration
the fair value of contingent consideration is based on the probability of expected cash flow outcomes and the assessment of present values using 
appropriate discount rates further information in relation to the determination of the fair value of contingent consideration is given in note 26
the preparation of financial statements in conformity with generally accepted accounting principles requires the use of estimates and assumptions 
that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and 
the reported amounts of revenues and expenses during the reporting period although these estimates are based on management’s best knowledge 
of current events and actions actual results ultimately may differ from those estimates
note 4 – segment information
management considers that the group’s activity as a single source supplier of online gaming solutions constitutes one operating and reporting 
segment as defined under ifrs 8 
management review the performance of the group by reference to groupwide profit measures and the revenues derived from six 2011 six  
main product groupings
 ca s i no
 poker 
 bingo
 v i de ob et
 ser v ic es
 o t her
the groupwide profit measures are adjusted net profit and adjusted ebitda see note 5 management believes the adjusted profit measures 
represent more closely the underlying trading performance of the business no other differences exist between the basis of preparation of the 
performance measures used by management and the figures in the group financial statements
there is no allocation of operating expenses profit measures assets and liabilities to individual product groupings accordingly the disclosures  
overleaf are provided on an entitywide basis 70 playtech limited annual report and accounts 2012
note 4 – segment information continued
revenue by product
 
2012 
€’000
2011 
€’000
casino 151745 1 14385
poker 17 840 21793
bingo 17954 15064
videobet 10761 7 769
services 106326 43012
other 12878 5462
total revenues 317504 207485
in 2012 there were three licensees who individually accounted for more than 10 of the total revenue of the group 201 1 two licensees revenue from 
these licensees totalled €1622 million 201 1 €77 6 million
geographical analysis of revenues by jurisdiction of gaming license
analysis by geographical regions is made according to the jurisdiction of the gaming license of the licensee this does not reflect the region of the end 
users of the group’s licensees whose locations are worldwide
2012 
€’000 
2011 
€’000
antigua 102947 57 090
gibraltar 80386 54776
alderney 38214 24358
curacao 15069 14567
philippines 38626 21391
rest of world 42262 35303
317504 207485
geographical analysis of noncurrent assets
2012 
€’000
2011 
€’000
british virgin islands 351727 439033
isle of man 187 901 75802
sweden 19081 19167
cyprus 17 889 14418
estonia 7349 7 020
uk 3544 5698
rest of world 1744 3804
589235 564942
notes to the financial statements continued
for the year ended 31 december 2012 overview sustainability governance accounts business  financial review
playtech limited annual report and accounts 2012 71
note 5 – adjusted items
the following tables give a full reconciliation between adjusted and actual results
2012 
€’000
2011 
€’000
distribution costs before depreciation and amortisation – actual 156658 100830
employee stock option expenses 1817 281 1
distribution costs before depreciation and amortisation – adjusted 154841 98019
administrative expenses before depreciation and amortisation – actual 29630 25364
employee stock option expenses 586 1867
professional fees on acquisitions 496 1488
admission to premium listing on main market 2098 –
oneoﬀ legal costs related to the litigation with associate – 1389
decline in fair value of available for sale investments –551
total adjusted items 3180 5295
administrative expenses before depreciation and amortisation – adjusted 26450 20069
 
depreciation – distribution costs 6913 4537
depreciation – administrative costs 1205 827
amortisation – distribution costs 8990 7935
depreciation and amortisation – adjusted 17 108 13299
amortisation of intangibles on acquisitions – distribution costs 26656 15838
amortisation of intangibles in associate 5729 5729
total depreciation and amortisation including amortisation of intangibles in associate 49493 34866
ebitda 181723 1 16818
employee stock option expenses 2403 4678
professional fees on acquisitions 496 1488
admission to a premium listing on the main market 2098 –
oneoﬀ legal costs related to the litigation with associate – 1389
decline in fair value of available for sale investments –551
adjusted ebitda 186720 124924
proﬁt for the year – attributable to owners of the parent 86755 77696
employee stock option expenses 2403 4678
professional fees on acquisitions 496 1488
admission to a premium listing on the main market 2098 –
oneoﬀ legal costs related to the litigation with associate – 1389
amortisation of intangibles on acquisitions including amortisation on investment in associate 32385 21567
decline in fair value of available for sale investments –551
movement in deferred and contingent consideration 44184 6075
oneoﬀ tax credit – 571
exchange diﬀerences – on deferred consideration – 26
adjusted proﬁt for the year – attributable to owners of the parent 168321 112847 72 playtech limited annual report and accounts 2012
note 6 – operating profit
operating profit is stated after charging
2012 
€’000
2011 
€’000
directors compensation
shortterm benefits of directors 1821 1603
sharebased benefits of directors 231 748
bonuses to executive directors 392 438
2444 2789
auditor’s remuneration
audit services
parent company and group audit 225 204
audit of overseas subsidiaries 221 138
total audit 446 342
nonaudit services
other acquisition and assurance services 357 379
taxation compliance 22 86
379 465
development costs including capitalised development costs of €148 million 2011 €95 million 34657 22844
note 7 – financing income and costs
2012 
€’000
2011 
€’000
a finance income
interest received 71 475
dividend received from available for sale investments 3625 3075
exchange diﬀerences 400 422
4096 3972
b finance cost
finance cost – movement in deferred and contingent consideration 44184 6075
bank charges and interest paid 3112 1186
47296 7261
net ﬁnancing expense 43200 3289
note 8 – taxation
2012 
€’000
2011 
€’000
current income tax
income tax on profits of subsidiary operations 3562 1866
previous year taxes – 571
deferred tax note 24 1461 338
total tax charge 2101 957
notes to the financial statements continued
for the year ended 31 december 2012 overview sustainability governance accounts business  financial review
playtech limited annual report and accounts 2012 73
note 8 – taxation continued
the tax charge for the year can be reconciled to accounting profit as follows
2012 
€’000
2011 
€’000
profit before taxation 89030 78663
tax at effective rate in isle of man ––
higher rates of current income tax in overseas jurisdictions 3562 1866
adjustments in respect of previous periods – 571
effect of deferred tax originating in overseas jurisdictions 1461 338
total tax charge 2101 957
the group is tax registered managed and controlled from the isle of man where the corporate tax rate is set to zero the majority of profits arise in  
isle of man which is the company’s country of incorporation the group’s subsidiaries are located in different jurisdictions the subsidiaries are taxed 
on their residual profit
the tax credit in 201 1 of €06 million related to the creation of deferred tax asset in one of the group’s subsidiaries 
the deferred tax is due to the reversal of temporary differences arising on the acquisition of certain businesses in the current and prior year
note 9 – earnings per share
a earnings per share have been calculated using the weighted average number of shares in issue during the relevant financial periods the weighted 
average number of equity shares in issue and the earnings being profit after tax is as follows
2012 2011
actual
€’000
adjusted
€’000
actual
€’000
adjusted
€’000
profit for the year attributable to owners of the parent 86755 168321 77696 112847
basic cents 300 581 318 462
diluted cents 294 571 314 457
    
number
2012
number
2011
denominator – basic
weighted average number of equity shares 289416759 244113262
denominator – diluted
weighted average number of equity shares 289416759 244113262
weighted average number of option shares 5296536 3066593
weighted average number of shares 294713295 247179855
as at 31 december 2012 out of the entire share options outstanding of 4616691 201 1 9716729 have been excluded from the calculation of diluted 
eps as their exercise price is greater than the weighted average share price during the year ie – they are out of the money and therefore it would not 
be advantageous for the holders to exercise those options the total number of options in issue is disclosed in note 10  74 playtech limited annual report and accounts 2012
note 10 – employee benefits
total staff costs comprise the following
2012 
€’000
2011 
€’000
salaries and employeerelated costs 98973 65630
employee stock option costs 2403 4678
101376 70308
average number of employees
distribution 2630 2145
general and administration 183 1 10
2813 2255
the group has the following employee share option plans esop for the granting of nontransferable options to certain employees 
 playtech 2005 share option plan the “plan” and israeli plans options granted under the plans vest on the first day on which they become 
exercisable which is typically between one to four years after grant date 
 gts 2010 company share option plan csop options granted under the plan vest on the first day on which they become exercisable which  
is three years after grant date
the overall term of the esop is five to ten years these options are settled in equity once exercised option prices are either denominated in usd  
or gbp  depending on the option grant terms
during the year the group amended some of the rules of the plan the amendments allow the group at the option holders consent to settle fully 
vested and exercisable options for cash instead of issuing shares as disclosed in the remuneration report some of the executive directors during  
the year received cash instead of shares
notes to the financial statements continued
for the year ended 31 december 2012 overview sustainability governance accounts business  financial review
playtech limited annual report and accounts 2012 75
note 10 – employee benefits continued
at 31 december 2012 options under these schemes were outstanding over
2012 
number
2011 
number
shares vested on 30 november 2008 at an exercise price of 25 per share 135734 141067
shares vested on 30 november 2008 at an exercise price of £145 per share 304915 410250
shares vested on 30 november 2008 at an exercise price of £232 per share – 133334
shares vested between 1 december 2006 and 6 february 2009 at an exercise price of 450 per share 25000 282046
shares vested between 1 december 2006 and 6 february 2009 at an exercise price of £255 per share 410000 610000
shares vested between 1 december 2006 and 1 december 2009 at an exercise price of £229 per share – 200000
shares vested between 28 march 2007 and 28 march 2009 at an exercise price of £257 per share – 200000
shares vested between 21 june 2007 and 21 june 2009 at an exercise price of 575 per share 11000 11000
shares vested between 21 june 2007 and 21 june 2009 at an exercise price of £316 per share 60334 60334 
shares vested between 1 1 october 2007 and 1 1 october 2009 at an exercise price of £172 per share – 208334 
shares vested between 1 1 december 2007 and 1 1 december 2009 at an exercise price of 435 per share 25000 65000
shares vested between 1 1 december 2007 and 1 1 december 2009 at an exercise price of £221 per share 182668 254669
shares vested between 31 december 2007 and 31 october 2010 at an exercise price of 7 48 per share – 75000 
shares vested between 16 may 2008 and 16 may 2010 at an exercise price of 7 50 per share 20000 20000 
shares vested between 16 may 2008 and 16 may 2010 at an exercise price of £379 per share 890000 1143000
shares vested between 18 june 2008 and 18 june 2010 at an exercise price of 7 79 per share 8501 9468
shares vested between 18 june 2008 and 18 june 2010 at an exercise price of £396 per share 97768 110252 
shares vested between 18 june 2008 and 18 june 2010 at an exercise price of £330 per share 10000 10000 
shares vested between 31 december 2008 and 31 december 2010 at an exercise price of 7 68 per share 18000 18000 
shares vested between 31 december 2008 and 31 december 2010 at an exercise price of £386 per share 34000 41000 
shares vested between 10 october 2008 and 10 october 201 1 at an exercise price of £351 per share 92500 112500 
shares vested between 20 november 2008 and 20 november 201 1 at an exercise price of 7 19 per share 30000 30000 
shares vested between 20 november 2008 and 20 november 201 1 at an exercise price of £351 per share – 55500 
shares vested between 31 december 2008 and 31 december 201 1 at an exercise price of £31725 per share 200000 200000 
shares vested between 25 april 2009 and 25 april 2012 at an exercise price of £435 per share 522667 522167 
shares vested between 21 may 2009 and 21 may 2012 at an exercise price of £531 per share 500000 500000 
shares vested between 28 november 2009 and 28 november 2012 at an exercise price of £320 per share 1311786 1502725 
shares vested on 22 may 2012 at an exercise price of £4155 per share 740000 765000 
shares vested on 22 may 2012 at an exercise price of £405 per share – 75000 
shares vested on 6 november 2012 at an exercise price of £37 per share 870000 1130000 
shares vest between 18 april 2012 and 18 april 2013 at an exercise price of £512 per share 844000 1063000
shares vest between 3 june 2012 and 3 june 2013 at an exercise price of £484 per share 220000 220000
shares vest between 26 august 2012 and 26 august 2013 at an exercise price of £416 per share 225780 264725
shares will vest on 26 august 2013 at an exercise price of £416 per share 158642 180275
shares will vest on 10 march 2014 at an exercise price of £35225 per share 1562850 1999950
shares will vest on 25 august 2014 at an exercise price of £30325 per share 100000 100000
shares will vest on 16 december 2014 at an exercise price of £23 per share 120000 120000
shares will vest on 23 june 2015 at an exercise price of £348 per share 380000 –
10111145 12843596
total number of shares exercisable as of 31 december 2012 is 7 262253 201 1 6220707 the total fair value of the options that were granted in respect 
of equity settled schemes for 2012 is €06 million 201 1 €41 million of which €01 million 201 1 €10 million has been recognised as an expense in the 
consolidated statement of comprehensive income 76 playtech limited annual report and accounts 2012
note 10 – employee benefits continued
the following table illustrates the number and weighted average exercise prices of shares options for the esop 
2012 2011 2012 2011
number of 
options
number of 
options
weighted 
average 
exercise price
weighted 
average 
exercise price
outstanding at the beginning of the year 12843596 11592082 458 £359 457 £362
granted during the year 420000 2331650 £3478 £344
forfeited 1538261 876434 676 £374 £387
exercised 1614190 203702 444 £255 450 £222
outstanding at the end of the year 10111145 12843596 436 £37 458 £359
included in the number of options exercised during the year is 591668 201 1 nil where a cash alternative was received 
the weighted average share price at the date of exercise of options was £447 201 1 £347 
the weighted average fair value of options granted during the year at the date of grant was £14124 201 1 £178
share options outstanding at the end of the year have the following exercise prices
expiry date exercise price
2012 
number
2011 
number
between 15 may 2012 and 31 december 2012 between 7 19 and 7 79 and between £330 and £396 – 310333
between 25 april 2013 and 31 december 2013 435 and between £317 and £531 357800 1323002
between 22 may 2014 and 6 november 2014 between £370 and £416 – 740000
1 december 2015 250 and between £145 and £232 440649 684651
between 6 february 2016 and 1 1 december 2016 between 435 and 575 and between £172 and £316 714002 1891383
between 15 may 2017 and 31 december 2017 between 7 19 and 7 79 and between £339 and £396 1200769 1314387
between 25 april 2018 and 31 december 2018 435 and between £317 and £531 2176653 1401890
between 22 may 2019 and 6 november 2019 between £370 and £416 1610000 1230000
between 18 april 2020 and 26 august 2020 between £416 and £512 1448422 1728000
between 10 march 2021 and 16 december 2021 between £230 and £352 1782850 2219950
21 june 2022 £348 380000 –
10111145 12843596
the fair value of the options granted under the esop is estimated as at the date of grant using the binomial model the following table gives the 
assumptions made during the years ended 31 december 201 1 and 2012
for options granted on 11 mar 2011 26 august 2011 and 16 december 2011
dividend yield 276281
expected volatility 498505
riskfree interest rate 215 to 378
weighted average exercise price £344
for options granted on 21 june 2012
dividend yield 295
expected volatility 4888
riskfree interest rate 182
weighted average exercise price £34775
the volatility assumption measured at the standard deviation of expected share price return is based on a statistical analysis of daily share price over  
a period starting from the initial date of flotation through to the grant date
notes to the financial statements continued
for the year ended 31 december 2012 overview sustainability governance accounts business  financial review
playtech limited annual report and accounts 2012 77
note 1 1 – property plant and equipment
 
computers 
and gaming 
machines
€’000
oﬃce 
furniture and 
equipment
€’000
motor 
vehicles
€’000
building and 
leasehold
improvements 
€’000
total
€’000
cost
at 1 january 201 1 17056 1131 154 3040 21381
additions 8855 403 64 3240 12562
acquired through business combinations 2066 219 110 322 2717
disposals 1410 165 – – 1575
at 31 december 2011 26567 1588 328 6602 35085
accumulated depreciation
at 1 january 201 1 7738 495 63 209 8505
charge 4457 176 56 675 5364
disposals 262 70 – – 332
at 31 december 2011 11933 601 119 884 13537
net book value
at 31 december 2011 14634 987 209 5718 21548
computers 
and gaming 
machines
€’000
oﬃce 
furniture and 
equipment
€’000
motor 
vehicles
€’000
building and 
leasehold
improvements 
€’000
total 
€’000
cost
at 1 january 2012 26567 1588 328 6602 35085
additions 5764 490 96 1657 8007
acquired through business combinations 26––– 26
disposals 1403 97 121 202 1823
at 31 december 2012 30954 1981 303 8057 41295
accumulated depreciation
at 1 january 2012 11933 601 119 884 13537
charge 7350 206 72 490 81 18
disposals 352 63 47 202 664
at 31 december 2012 18931 744 144 1172 20991
net book value
at 31 december 2012 12023 1237 159 6885 20304 78 playtech limited annual report and accounts 2012
note 12 – intangible assets 
patents 
domain 
names and 
license
€’000
technology ip
€’000
development 
costs
€’000
customer list 
and aﬃliates
€’000
goodwill
€’000
total
€’000
cost
as of 1 january 201 1 7897 7702 24086 52414 36635 128734
additions 79 – 9542 287 – 9908
assets acquired on previous year business combinations – – – – 1200 1200
assets acquired on business combinations 965 4721 655 144256 129285 279882
as of 31 december 2011 8941 12423 34283 196957 164720 417324
accumulated amortisation
as of 1 january 201 1 1857 1986 9113 15394 – 28350
provision 836 2570 5805 14562 – 23773
as of 31 december 2011 2693 4556 14918 29956 – 52123
net book value
as of 31 december 2011 6248 7867 19365 167001 164720 365201
patents 
domain 
names and 
license
€’000
technology ip
€’000
development 
costs
€’000
customer list 
and aﬃliates
€’000
goodwill
€’000
total
€’000
cost
as of 1 january 2012 8941 12423 34283 196957 164720 417324 
additions 2130 – 14753 – – 16883
assets acquired on previous years business combinations –––– 178 178
reclassification – 2300 2300 – – –
assets acquired on business combinations 4514 3528 – 400 17329 25771
disposals – 308 – – – 308
as of 31 december 2012 15585 17943 46736 197357 182227 459848
accumulated amortisation 
as of 1 january 2012 2693 4556 14918 29956 – 52123
provision 935 3627 6787 24297 – 35646
disposals – 308 – – – 308
as of 31 december 2012 3628 7875 21705 54253 – 87461
net book value 
as of 31 december 2012 11957 10068 25031 143104 182227 372387
management believes that domain names with a carrying value of €02 million 201 1 €02 million have an indefinite life due to their nature 
amortisation of intangible assets is included in distribution costs 
in accordance with ias 36 the group regularly monitors the carrying value of its intangible assets including goodwill goodwill is allocated to eight cash 
generating units cgu 201 1 six management determines which of those cgu’s are significant in relation to the total carrying value of goodwill as follows
 carrying value exceeds 10 of total goodwill or
 acquisition during the year or
 contingent consideration exists at the balance sheet date
based on the above criteria management has concluded that the following cgus are significant
 ptts with a carrying value of €934 million 201 1 €934 million
 geneity with a carrying value of €148 million 201 1 €nil and
 mobenga with a carrying value of €159 million 201 1 €157 million
notes to the financial statements continued
for the year ended 31 december 2012 overview sustainability governance accounts business  financial review
playtech limited annual report and accounts 2012 79
note 12 – intangible assets continued
the recoverable amounts of all the above cgus have been determined from value in use calculations based on cash flow projections from formally 
approved budgets covering a four year period to 31 december 2016 beyond this period management has applied an annual growth rate of 2  
based on the underlying economic environment in which the cgu operates management has applied a discount rate to the cash flow projections  
of 155 201 1 155 for both ptts and mobenga and 15 201 1 nil for geneity
the results of the review indicated that there was no impairment of goodwill at 31 december 2012 management has also reviewed the key 
assumptions and forecasts for the customer lists brands and affiliates applying the above same key assumptions the results of the reviews  
indicated that there was no impairment of the intangible assets at 31 december 2012
note 13 – investments in equity accounted associates  joint ventures
 
2012 
€’000
2011
€’000
investment in equity accounted associates and joint ventures comprise
a investment in william hill online 150692 156618
b investment in sciplay –332
c investment in international terminal leasing 5344 6047
156036 162997
a investment in william hill online
the investment in william hill wh online has been accounted for using the equity method in the consolidated financial statements and has  
been recognised initially at cost being the group’s 29 share of the fair value of the total net assets of the associate together with the goodwill  
on acquisition in accordance with ias 28 profits distributed to the group in proportion of their respective shareholding have been recognised  
as share of profits of associates software license royalty fees charged to wh online have been recognised as revenues in the group accounts
wh online has an option to acquire the group’s interest in wh online on an independent fair value basis exercisable after four or six years  
from 31 december 2008 the “option” upon exercise of the option the group has the right to receive a portion of the proceeds in wh shares  
not exceeding 10 of william hill plc’s outstanding share capital at the time of issue on 1 march 2013 the group was informed by william hill plc  
that it will exercise its call option to acquire the group’s 29 stake in wh online for a total consideration of approximately £424 million
wh online entered into a contract with the group for a minimum term of five years from 31 december 2008 for the provision of online gaming 
software for poker and casino 
movements in the carrying value of the investment during the year are as follows
€’000
investment in equity accounted associates at 1 january 201 1 162245
income from associate 36073
amortisation of intangibles in associate 5729
dividend 35971
investment in equity accounted associates at 31 december 2011 156618
income from associate 50553
amortisation of intangibles in associate 5729
dividend 50750
investment in equity accounted associates at 31 december 2012 150692
management has reviewed the key assumptions and forecasts for the abovementioned assets and the result of the review indicated that there was  
no impairment of the group’s investment in wh online at 31 december 2012 80 playtech limited annual report and accounts 2012
note 13 – investments in equity accounted associates  joint ventures continued
aggregated amounts relating to associates are as follows
 
2012 
€’000
2011 
€’000
total assets 134856 167 337
total liabilities 84936 113388
revenues 567294 369945
profit 167005 122970
b investment in sciplay
on 21 january 2010 the group formed a strategic partnership with scientific games corporation to jointly develop and market nextgeneration 
internet and landbased gaming products and services to regulated gaming operators in the us and other countries
the investment in sciplay was sold to scientific games on 23 january 2012 for €nil consideration
the group’s loss on the sale was €01 million 2011 share of loss of €06 million and has been recognised in the consolidated statement  
of comprehensive income
c investment in international terminal leasing
on 8 march 2011 the group entered into an agreement with scientific games to form a partnership called international terminal leasing itl  
which relates to the strategic partnership with scientific games corporation
the group’s future profit share from this joint venture varies depending on the commercial arrangements in which itl and its partners enter into  
with third parties however the group’s share of profit is expected to be between 2050 
the group received a return on initial investments of €09 million during the year 201 1 €17 million 
movements in the carrying value of the investment during the year are as follows
€’000
reclassification of noncurrent asset as at 8 march 201 1 2430
additional contributions payable 5209
share of profit in joint venture 71
return of initial investment 1663
investment in joint venture at 31 december 2011 6047
share of profit in joint venture 156
return of initial investment 859
investment in joint venture at 31 december 2012 5344
aggregated amounts relating to the itl joint venture are as follows
2012 
€’000
2011 
€’000
total assets 27215 28764
total liabilities 614 226
revenues 4388 2881
profit 634 400
notes to the financial statements continued
for the year ended 31 december 2012 overview sustainability governance accounts business  financial review
playtech limited annual report and accounts 2012 81
note 14 – deferred and contingent consideration
note
2012 
€’000
2011 
€’000
noncurrent deferred consideration consists
acquisition of pt turnkey services limited 27 26735 41752
26735 41752
current deferred consideration consists
acquisition of pt turnkey services limited 27 69015 33591
acquisition of intelligent gaming systems limited 734 –
69749 33591
noncurrent contingent consideration consists
acquisition of intelligent gaming systems limited 27 400 709
acquisition of pt turnkey services limited 27 – 98643
acquisition of mobenga ab limited 27 15426 11633
15826 110985
current contingent consideration consists
acquisition of intelligent gaming systems limited 27 – 929
–929
note 15 – availableforsale investments
 
2012 
€’000
2011 
€’000
availableforsale investments comprise
a investment in asianlogic 12513 2054
b investment in sportech plc 17 148 10322
c investment in philweb 5672 –
35333 12376
2012 
€’000
2011 
€’000
change in fair value of availableforsale investments during the year net
a investment in asianlogic 10459 –
b investment in sportech plc 6826 1444
c investment in philweb 2058 –
15227 1444
the fair value of quoted investments is based on published market prices the fair value of unquoted investments is based on valuation techniques  
as described below
the maximum exposure to credit risk at the reporting date is the carrying value of the financial assets classified as availableforsale
a as at 3 july 2009 asianlogic shares were delisted from aim at that date the share price was £0245 the directors do not consider there  
to have been any further impairment in the investment since 3 july 2009 
 the group has increased the carrying value of the investment in asianlogic to €125 million 201 1 €21 million the valuation technique used  
to determine the fair value as at 31 december 2012 was the dividend income approach in valuing the investment management applied a discount 
rate of 28 to future dividend income with an annual growth rate of 2 the increase of €105 million has been recognised in equity within the 
availableforsale reserve 
 during the year the group received a dividend of €36 million 201 1 €31 million that has been reflected in the consolidated statement  
of comprehensive income as finance income 82 playtech limited annual report and accounts 2012
note 15 – availableforsale investments continued
b  on 27 january 2010 the group acquired a 999 stake in sportech plc a uk’s leading parimutuel football gaming business and owner of  
the new football pools for a total consideration of €1 13 million as at 31 december 2012 the market value of this investment was €17 1 million  
201 1 €103 million and the increase of €68 million has been recognised directly in equity within the availableforsale reserve during the prior  
year the movement of €14 million represented an increase in the investment of €20 million recognised in equity and an impairment in the first  
half of 201 1 of €06 million which was recognised in the consolidated statement of comprehensive income
 roger withers chairman of the group during the year was appointed as nonexecutive chairman of sportech plc in 201 1 mor weizer was 
appointed as a nonexecutive director of sportech plc on 23 march 201 1
c on 30 october 2012 the group acquired a 175 stake in philweb a leading gaming technology provider in the asia pacific region for a total 
consideration of €7 7 million as at 31 december 2012 the market value of this investment was €57 million an amount of €20 million has been 
recognised directly in equity within the availableforsale reserve 
 as at 12 march 2013 the closing price of philweb shares was php 1456 compared to php 1256 as at 31 december 2012 this has resulted in an 
increase in the fair value of the available for sale investments of €10 million since the balance sheet date this increase in value is a nonadjusting 
post balance sheet event and has not therefore been accounted for as at 31 december 2012
note 16 – other noncurrent assets
2012 
€’000
2011 
€’000
loan to customer 221 221
loan to affiliate 2255 1845
rent and car lease deposits 642 743
other 2057 11
5175 2820
 
note 17 – trade receivables
2012 
€’000
2011 
€’000
customers 45981 26531
related parties note 28 1803 4408
47784 30939
note 18 – other receivables
2012 
€’000
2011 
€’000
prepaid expenses 6120 4871
vat and other taxes 2064 3643
shortterm deposits 6490 2106
advances to suppliers 389 152
related parties note 28 6203 2871
loan to customer 530 530
loan to affiliate 3390 4700
other receivables 1374 1355
26560 20228
notes to the financial statements continued
for the year ended 31 december 2012 overview sustainability governance accounts business  financial review
playtech limited annual report and accounts 2012 83
note 19 – cash and cash equivalents
 
2012 
€’000
2011 
€’000
cash at bank 96473 111492
deposits 24407 53340
120880 164832
the group held cash balances which include monies held on behalf of operators in respect of operators’ jackpot games and poker operation the balances 
held at the yearend are set out below and the liability is included in trade payables
2012 
€’000
2011 
€’000
funds attributed to jackpots 15339 20491
poker security deposits 16268 15562
other 430 272
32037 36325
note 20 – shareholders’ equity
a share capital
share capital is comprised of no par value shares as follows
2012 
number of 
shares
2011 
number of 
shares
authorised na na
issued and paid up 290236870 289314348
 the group has no authorised share capital but is authorised under its memorandum and article of association to issue up to 1000000000 shares  
of no par value
 
b treasury shares
on 25 june 2012 the group cancelled all of the 100000 ordinary shares of no par value held by the company in treasury these shares were purchased 
in june 201 1 the weighted average cost of own shares held in treasury was £328 per share
c share options exercised
during the year 1022522 201 1 203702 share options were exercised
d distribution of dividend
in may 2012 the group distributed €47 889585 as a final dividend for 201 1 
in october 2012 the group distributed €22550631 as an interim dividend for 2012
e reserves
the following describes the nature and purpose of each reserve within owner’s equity
   
reserve description and purpose
additional paid in capital share premium ie amount subscribed for share capital in excess of nominal value
availableforsale reserve changes in fair value of availableforsale investments note 15
retained earnings cumulative net gains and losses recognised in the consolidated statement of comprehensive income 84 playtech limited annual report and accounts 2012
note 21 – non current liabilities
2012 
€’000
2011 
€’000
longterm trade payables –756
severance pay 215 667
215 1423
note 22 – loans and borrowings
2012 
€’000
2011 
€’000
current bank borrowings 37970 13787
noncurrent bank borrowings 31250 13746
69220 27533
the loans are repayable in eight quarterly instalments and two annual instalments starting july 2012
the rate at which the liabilities are payable is a fixedrate plus movements in the euribor and euro libor rates
the group has undrawn committed borrowing facilities available at 31 december 2012 of €350 million
note 23 – trade payables
2012 
€’000
2011 
€’000
suppliers 12259 8577
customer liabilities 1373 3293
related parties note 28 23 75
other 867 1111
14522 13056
note 24 – deferred tax liability
the deferred tax liability is due to temporary differences on the acquisition of certain businesses
the movement on the deferred tax liability is as shown below
2012 
€’000
2011 
€’000
at the beginning of the year 5287 1950
arising on the acquisitions during the year note 26 1406 3675
reversal of temporary differences recognised in the consolidated statement of comprehensive income  1461  338
 5232 5287
note 25 – other payables
2012 
€’000
2011 
€’000
payroll and related expenses 11750 10262
accrued expenses 7165 4104
related parties note 28 506 –
other payables 3040 1534
22461 15900
notes to the financial statements continued
for the year ended 31 december 2012 overview sustainability governance accounts business  financial review
playtech limited annual report and accounts 2012 85
note 26 – acquisitions during the year
a acquisition of geneity limited
on 23 january 2012 the group acquired 100 of the shares of geneity limited “geneity” geneity is a provider of egaming software products 
focused primarily on the sportsbook and lottery sectors
the group paid an initial consideration including working capital adjustments of €151 million £1 14 million in cash of which €47 million £40 million 
is held in escrow for 30 months a further €47 million £40 million was also being held in escrow to be released subject to certain agreed deliverables 
being met these deliverables were met in september 2012
details of the fair value of identifiable assets and liabilities acquired purchase consideration and goodwill are as follows
book value 
prior to 
acquisition 
€’000
 adjustments 
€’000
 fair value on 
acquisition
€’000 
property plant and equipment 26 – 26
intangible assets 65 3864 3929
trade and other receivables 654 – 654
cash and cash equivalents 1657 – 1657
deferred tax liability 138 966 1104
trade payables 1 10 – 1 10
net identiﬁed assets 2154 2898 5052
goodwill 14805
fair value of consideration 19857
cash purchased 1657
net cash paid 18200
 
adjustments to fair value include the following
 
amount 
€’000
amortisation

ip technology 3464 8
customer list 400 8
total intangible assets 3864
the main factors leading to the recognition of goodwill are the synergistic growth and revenues expected to be created by the combined highly 
complementary business activities and the strengthening of the group’s position in comparison to its competitors in the market in accordance  
with ias36 the group will regularly monitor the carrying value of its interest in the geneity business
the key assumptions used by management to determine the value in use of the ip technology and customer list within the geneity business  
are as follows
 the income approach in particular the relief of royalty approach was applied for the valuation considering projected revenues derived  
from the business
 the royalty rate was based on a thirdparty market participant assumption for use of the ip technology considering market competition  
quality absolute and relative profitability
 the discount rate assumed is equivalent to the wacc for the ip technology and the customer relationships and
 the growth rates and attrition rates were based on market analysis
management has disclosed neither geneity’s contribution to group profit since the acquisition date nor the impact the acquisition would have  
had on the group’s revenue and profits if it occurred on 1 january 2012 because the amounts are not material 86 playtech limited annual report and accounts 2012
note 26 – acquisitions during the year continued
b acquisition of juego online ead
on 27 december 2012 the group acquired 100 of the shares of juego online ead “juego” juego is a provider of online gaming services for the 
spanish market
the group paid a consideration including working capital adjustment of €109 million €62 million was paid in cash and the remaining amount  
was paid by conversion of a prior year loan to juego’s ultimate parent company
details of the fair value of identifiable assets and liabilities acquired purchase consideration and goodwill which are all provisional are as follows
book value 
prior to 
acquisition
€’000 
 adjustments
€’000 
 fair value on 
acquisition
€’000 
intangible assets –4514 4514
trade and other receivables 4553 – 4553
cash and cash equivalents 174 – 174
trade payables 443 – 443
deferred tax liability –451 451
net identiﬁed assets 4284 4063 8347
provisional goodwill 2523
fair value of consideration 10870
conversion of prior year loan 4700
cash purchased 174
net cash paid 5996
adjustments to fair value include the following
amount
€’000
amortisation

license 4514 10
the main factors leading to the recognition of goodwill are time to market advantage and the option for the renewal of the license in the future  
in accordance with ias36 the group will regularly monitor the carrying value of its interest in the juego business
the key assumptions used by management to determine the value in use of the gaming license within juego business are as follows
 the income approach in particular the relief of royalty approach was applied for the valuation considering projected revenues derived from 
the business
 the royalty rate was based on a third party market participant assumption for use of the ip license considering market competition quality 
absolute and relative profitability
 the discount rate assumed is equivalent to the wacc and
 the growth rates and attrition rates were based on market analysis
management have not disclosed juego’s contribution to group profit since the acquisition date nor have they disclosed the impact the acquisition 
would have had on the group’s revenue and profits if it occurred on 1 january 2012 because the amounts are not material
note 27 – acquisitions in prior year
a acquisition of intelligent gaming systems limited
on 26 january 201 1 the group acquired 100 of the shares of intelligent gaming systems limited “igs” igs is a provider of softwarebased casino 
management systems to landbased casinos
the group paid an initial consideration of €28 million £25 million in cash and additional contingent consideration of up to €35 million £30 million 
was payable in respect of the adjusted pbt performance in 201 12013 at the start of each following year during the year the group signed a deed of 
variation to vary the conditions of the contingent consideration it was agreed that a sum of €14 million £12 million will be paid in two instalments 
according to the original terms and the remaining contingent consideration amount is now based on adjusted income and product deliverables  
the movement in contingent consideration in the year of €04 million is included in finance costs
notes to the financial statements continued
for the year ended 31 december 2012 overview sustainability governance accounts business  financial review
playtech limited annual report and accounts 2012 87
note 27 – acquisitions in prior year continued
b acquisition of pt turnkey services limited
on 10 march 201 1 the group entered into an agreement to purchase 100 of the issued share capital of pt turnkey services limited “ptts” from 
worldwide online enterprises limited “woe” on completion 1 july 201 1 ptts a newlyincorporated holding company established in connection 
with the acquisition owned a group of new companies together the ptts group which owned the assets carrying out a range of complementary  
b2b online gaming service operations that provide support to the group’s licensees
woe is related to playtech by virtue of a significant common shareholder
the ptts group provides marketing and ancillary services to operators of online gaming businesses and comprises four separate service offerings 
– marketing operations payment advisory and network management
in consideration the group paid an initial amount of €140 million as follows
 
€’000
working capital adjustment 14800
paid in 201 1 45000
paid in 2012 as early settlement 76000
discounting of initial consideration 4200
total initial consideration 140000
in addition to the initial amount the group will pay a further €140 million contingent consideration which became payable during the year and thus 
treated as deferred consideration as at 31 december 201 2 after meeting the accelerated payment mechanism the acceleration has occurred by virtue  
of ptts having achieved an annualised adjusted ebitda in excess of €40 million by reference to its actual performance for the period ended 30 june 201 2 
in accordance with the original acquisition terms the deferred consideration is payable in four noninterest bearing instalments over the following  
18 months from the 31 july 2012 as detailed in note 14 the movement in fair value of contingent and deferred consideration in the year of €391 million 
is included in finance costs the finance cost related to initial consideration in the year amounts to €07 million
c acquisition of mobenga ab limited
on 31 august 201 1 “completion” the group acquired 100 of the shares of mobenga ab “mobenga” the leading mobile sportsbook betting 
platform provider
immediately prior to completion the group acquired the intellectual property and technology “ip technology” of mobenga for cash consideration 
of €1 million an initial consideration including working capital adjustments of €82 million was paid in cash and additional contingent consideration 
of up to €158 million may be payable in the first quarter of 2014 
management has determined the fair value of contingent consideration using valuation techniques taking into account the probability of expected 
outcomes and appropriate discount rates the computed fair value at the balance sheet date is €154m 201 1 €1 16m and the undiscounted range of 
possible payments is between €nil and €158 million the movement in contingent consideration in the year of €38 million is included in finance costs
d acquisition of ash gaming limited
on 15 december 201 1 the group acquired 100 of the shares of ash gaming limited “ash gaming” the leading developers of interactive gambling 
and betting games
the total consideration of €27 4 million £230 million was paid in cash of which €89 million £7 5 million was paid into an escrow account to be  
held and released to the venders over the next three years depending upon the successful completion of certain conditions and indemnities  
if such conditions are not satisfied some of the funds held in escrow may be repaid back to the group 
e acquisition of stech limited
on 24 november 201 1 the group acquired 85 of the shares of stech limited “stech” a live games provider in asia as of the purchase date stech 
had net liabilities and therefore the consideration paid was the 1 par value of 85 shares
during the year the group recognised a noncontrolling interest of €02 million 201 1 €nil owing to the 15 minority shareholder 88 playtech limited annual report and accounts 2012
note 28 – related parties and shareholders
parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party making  
financial or operational decisions or if both parties are controlled by the same third party
gamepark trading ltd tech corporation and 800pay ltd were previously related by virtue of a common significant shareholder however on 1 july 
201 1 they sold their assets to ptts subsidiary companies immediately prior to the acquisition by playtech as referred to in note 27b netplay tv plc 
skywind holding limited “skywind” and anise development limited “anise” are related by virtue of a common significant shareholder 
sportech plc is related by virtue of common nonexecutive directors wh online sciplay and international terming leasing itl are associates  
of the group 
the following transactions arose with related parties
2012
€’000
2011
€’000
revenue including income from associate
sportech 131 1 167
skywind 120 –
netplay tv plc 3366 2266
william hill online 82806 58497
share of proﬁt loss in joint venture
itl 155 72
sciplay 164 618
operating expenses
gamepark trading limited –95
tech corporation –136
800pay ltd –63
anise 538 –
skywind 3333 –
additions to property plant and equipment
anise 396 –
  
the following are yearend balances  
  
tech corporation –43
800pay ltd –32
total related party payables –75
sciplay –39
skywind 20 –
netplay tv plc 484 270
sportech 31 73
william hill online 7471 6897
total related party receivables 8006 7279
sportech plc note 15b 17 148 10322
total investment in related party 17 148 10322
the details of key management compensation being the remuneration of the directors are set out in note 6
notes to the financial statements continued
for the year ended 31 december 2012 overview sustainability governance accounts business  financial review
playtech limited annual report and accounts 2012 89
note 29 – subsidiaries 
details of the group’s principal subsidiaries as at the end of the year are set out below
name country of incorporation
proportion of 
voting rights 
and ordinary 
share capital 
held nature of business
playtech software limited british virgin islands 100 main trading company of the group owns the intellectual property 
rights and licenses the software to customers
ou playtech estonia estonia 100 designs develops and manufactures online software
techplay marketing limited israel 100 marketing and advertising
video b holding limited british virgin islands 100 trading company for the videobet software owns the intellectual 
property rights of videobet and licenses it to customers
ou videobet estonia 100 develops software for ﬁxed odds betting terminals and casino 
machines as opposed to online software
playtech bulgaria bulgaria 100 designs develops and manufactures online software
ptvb management limited isle of man 100 management
evermore trading limited british virgin islands 100 holding company
genuity services limited british virgin island 100 holder of investment in wh online 
playtech services cyprus limited cyprus 100 activates the ipoker network in regulated markets owns the 
intellectual property of gts ash and geneity businesses
vb video cyprus limited cyprus 100 trading company for the videobet product to romanian companies
techplay sa software limited israel 100 develops online software
technology trading iom limited isle of man 100 owns the intellectual property rights of virtue fusion business
gaming technology solutions 
limited
uk 100 holding company of vs gaming and vs technology
vs gaming limited uk 100 develops software and casino games
vs technology limited uk 100 develops edge platform 
virtue fusion alderney limited alderney 100 online bingo and casino software provider
virtue fusion cm limited uk 100 chat moderation services provider to end users of vf licensees
vb cms ou estonia 100 develops software for ﬁxed odds betting terminals and casino 
machines
playtech software alderney 
limited
alderney 100 to hold the company’s alderney gaming license
intelligent gaming systems limited uk 100 casino management systems to landbased businesses
vf 2011 limited alderney 100 holds license in alderney for online gaming
pt turnkey services limited british virgin islands 100 holding company of the turnkey services group
pt turnkey eu services limited cyprus 100 turnkey services for eu online gaming operators
pt entretenimiento online ead bulgaria 100 poker and bingo network for spain
pt marketing services limited british virgin islands 100 marketing services to online gaming operators
pt operational services limited british virgin islands 100 operational and hosting services to online gaming operators
tech hosting limited alderney 100 alderney hosting services
paragon international customer 
care limited
british virgin island  
branch oﬃce in the 
philippines
100 english customer support chat fraud ﬁnance dedicated employees 
services to parent company
csms limited bulgaria 100 consulting and online technical support data mining processing and 
advertising services to parent company
tcsp limited serbia 100 operational services for serbia 90 playtech limited annual report and accounts 2012
name country of incorporation
proportion of 
voting rights 
and ordinary 
share capital 
held nature of business
stech limited british virgin islands 
and branch oﬃce in 
the philippines
85 live games services to asia
pt advisory services limited british virgin islands 100 holds pt processing advisory ltd
pt processing advisory limited british virgin islands 100 advisory services for processing and cashier to online gaming 
operators
pt processing eu advisory limited cyprus 100 advisory services for processing and cashier for eu online gaming 
operators
pt network management limited british virgin islands 100 manages the ipoker network
playtech mobile cyprus limited cyprus 100 holds the ip of mobenga ab
playtech holding sweden ab 
limited
sweden 100 holding company of mobenga ab
mobenga ab limited sweden 100 mobile sportsbook betting platform developer
ash gaming limited uk 100 develops interactive gambling and betting games
geneity limited uk 100 develops sportsbook and lottery software
factime limited cyprus 100 holding company of juego
juego online ead bulgaria 100 gaming operator holds a license in spain
playlot limited british virgin islands 100 distributing lottery software 
note 30 – financial instruments and risk management
the group is exposed to a variety of financial risks which results from its financing operating and investing activities the objective of financial risk 
management is to contain where appropriate exposures in these financial risks to limit any negative impact on the group’s financial performance  
and position the group’s financial instruments are its cash availableforsale financial assets trade receivables loan receivables bank borrowings 
accounts payable and accrued expenses the main purpose of these financial instruments is to raise finance for the group’s operation the group 
actively measures monitors and manages its financial risk exposures by various functions pursuant to the segregation of duties and principles  
the risks arising from the group’s financial instruments are credit risk and market price risk which include interest rate risk currency risk and equity 
price risk the risk management policies employed by the group to manage these risks are discussed below 
a interest rate risk
interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in market interest rates the group’s income and 
operating cash flows are substantially independent of changes in market interest changes the management monitors interest rate fluctuations  
on a continuous basis and acts accordingly 
where the group has generated a significant amount of cash it will invest in higher earning interest deposit accounts these deposit accounts are  
short term and the group is not unduly exposed to market interest rate fluctuations
during the year the group advanced loans to affiliates and customers for a total amount of €23 million 201 1 €50 million the interest on the loans is 5
during the year the group drew down €750 million from its available credit facilities 201 1 €50 million the rate at which the liabilities are payable  
is a fixed rate plus movements in the euribor and euro libor rates
the loans are repayable in monthly instalments
a 1 change in deposit interest rates would impact on the profit before tax by €23000
a 1 change in euribor and euro libor interest rates would impact on the profit before tax by €750000
as at 31 december 2012 the group holds undrawn credit facilities of €350 million 201 1 €826 million
note 29 – subsidiaries continued
notes to the financial statements continued
for the year ended 31 december 2012 overview sustainability governance accounts business  financial review
playtech limited annual report and accounts 2012 91
note 30 – financial instruments and risk management continued
b credit risk
credit risk arises when a failure by counterparties to discharge their obligations could reduce the amount of future cash inflows from financial assets  
on hand at the balance sheet date
the group closely monitors the activities of its counterparties and controls the access to its intellectual property which enables it to ensure the prompt 
collection of customers’ balances
the group’s main financial assets are cash and cash equivalents as well as trade and other receivables and represent the group’s maximum exposure  
to credit risk in connection with its financial assets trade and other receivables are carried on the balance sheet net of bad debt provisions estimated 
by the directors based on prior year experience and an evaluation of prevailing economic circumstances
wherever possible and commercially practical the group invests cash with major financial institutions that have a rating of at least a as defined by 
standard  poors the group maintains monthly operational balances with banks that do not meet this credit rating in israel and in the philippines  
to meet local salaries and expenses these balances are kept to a minimum and typically do not exceed €1 million at any time during the monthly 
payment cycle group holds approximately 30 of its funds in financial institutions below a rate 201 1 14
 
total
€’000
financial 
institutes 
with a and 
above rating
€’000
financial 
institutes 
below  
arating
€’000
at 31 dec 2012 120880 84710 36170
at 31 dec 201 1 164832 141463 23369
the ageing of trade receivables that are past due but not impaired can be analysed as follows
total
€’000
not past due
€’000
12 months 
overdue
€’000
more than 2 
months past 
due
€’000
at 31 dec 2012 47784 27840 15788 4156
at 31 dec 201 1 30939 20048 7920 2971
the above balances relate to customers with no default history
a provision for doubtful debtors is included within trade receivables that can be reconciled as follows
2012
€’000
2011
€’000
provision at the beginning of the year 1829 121
charged to income statement 29 2019
utilised 1029 31 1
provision at end of year 829 1829
related party receivables included in note 17 are not past due
c currency risk
currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates 
foreign exchange risk arises because the group has operations located in various parts of the world however the functional currency of those 
operations is the same as the group’s primary functional currency euro and the group is not substantially exposed to fluctuations in exchange  
rates in respect of assets held overseas
foreign exchange risk also arises when group operations are entered into in currencies denominated in a currency other than the functional currency 
the group’s policy is not to enter into any currency hedging transactions 92 playtech limited annual report and accounts 2012
note 30 – financial instruments and risk management continued
d equity price risk
the group’s balance sheet is exposed to market risk by way of holding some investments in other companies on a shortterm basis note 15  
variations in market value over the life of these investments have or will have an impact on the balance sheet and the income statement
the directors believe that the exposure to market price risk is acceptable in the group’s circumstances
the group’s balance sheet at 31 december 2012 includes available for sale investments with a value of €353 million which are subject to fluctuations  
in the underlying share price 
a change of 1 in share price will have an impact of €04 million on the consolidated statement of comprehensive income and the fair value of the 
available for sale investments will change by the same amount
e capital disclosures
the group seeks to maintain a capital structure which enables it to continue as a going concern and which supports its business strategy the group’s 
capital is provided by equity and debt funding the group manages its capital structure through cash flow from operations returns to shareholders 
primarily in the form of dividends and the raising or repayment of debt
the group has net cash and cash equivalents at the balance sheet date of €521 million 2011 €1373 million which includes loans and borrowings  
of €688 million 2011 €275 million accordingly management do not believe that there are significant capital risks
f liquidity risk
liquidity risk arises from the group’s management of working capital and the financial charges on its debt instruments 
the group’s policy is to ensure that it will have sufficient cash to allow it to meet its liabilities when they become due 
the following are the contractual maturities representing undiscounted contractual cash flows of the group’s financial liabilities
total
€’000
within 1 year
€’000
1 2 years
€’000
25 years
€’000
2012
trade payables 14522 14522 – –
loans and borrowings 69220 37970 31250 –
other accounts payable 22461 22461 – –
progressive operators’ jackpots and security deposits 31607 31607 – –
deferred consideration 98000 70000 28000 –
contingent consideration 16950 737 413 15800
other noncurrent liabilities 424 – – 424
201 1
trade payables 13056 13056 – –
loans and borrowings 27 533 13787 13746 –
other accounts payable 15900 15900 – –
progressive operators’ jackpots and security deposits 36053 36053 – –
deferred consideration 80194 35195 45000 –
contingent consideration 131331 929 768 129634
other noncurrent liabilities 1423 – 756 667
notes to the financial statements continued
for the year ended 31 december 2012 overview sustainability governance accounts business  financial review
playtech limited annual report and accounts 2012 93
note 30 – financial instruments and risk management continued
g total financial assets and liabilities
the fair value together with the carrying amount of the financial assets and liabilities shown in the balance sheet are as follows
2012 
€’000 
fair value
2012 
€’000 
carrying 
amount
2011 
€’000 
fair value
2011 
€’000 
carrying
amount
cash and cash equivalent 120880 120880 164832 164832
available for sale investments 35333 35333 12376 12376
other assets 79619 79619 52575 52575
deferred consideration 95750 95750 75343 75343
contingent consideration 16560 16560 111914 111914
loan and borrowings 69220 69220 27533 27533
other liabilities 56796 56796 56500 56500
included in available for sale investments is €228 million and €125 million measured at fair value using level 1 and level 2 respectively contingent 
consideration of €166 million is measured at fair value using level 3 in accordance with ias 39 these are the group’s only financial assets and liabilities 
which are measured at fair value
note 31 – post balance sheet events
on 1 march 2013 playtech was informed by the board of william hill plc “william hill” that it intended to exercise its call option to acquire playtech’s 
29 stake in william hill online for a total consideration of approximately £424 million the group will continue to be entitled to a proportionate share 
of the fy2013 profits of william hill online until the date of completion
note 32 – contingent liabilities
the group is not a gaming operator and does not provide gaming services to players as part of the board’s ongoing regulatory compliance process 
the board continues to monitor legal and regulatory developments and their potential impact on the group
management is not aware of any contingencies that may have a significant impact on the financial position of the group
note 33 – operating lease commitments
the group has a variety of leased properties the terms of property leases vary from country to country although they tend to be tenant repairing 
within rent reviews every two to five years and many have break clauses
the total future value of minimum lease payments is due as follows
2012 
€’000
2011 
€’000
not later than one year 5246 2887
later than one year and not later than ﬁve years 13380 7312
later than ﬁve years 10184 2956
28810 13155 94 playtech limited annual report and accounts 2012
note
2012 
€’000
2011 
€’000 
noncurrent assets 
property plant and equipment 87 84
intangible assets 261 290
investments 1208642 208543
available for sale investments 229661 12376
other noncurrent assets 241 7
238892 221300
current assets 
trade and other receivables 3275994 275229
cash and cash equivalents 432096 84757
308090 359986
total assets 546982 581286
equity 
additional paid in capital 310469 307 853 
available for sale reserve 19280 1995
retained earnings 29539 52593
equity attributable to equity holders of the parent 5 359288 362441
non current liabilities 
loans and borrowings 631250 13746
deferred consideration 726735 41752
contingent consideration 7–98643
57985 154141
current liabilities 
loans and borrowings 637970 13787
trade and other payables 8 22724 17326
deferred consideration 769015 33591
129709 64704
total equity and liabilities 546982 581286
parent company financial statements
company balance sheet 
as at 31 december 2012 overview sustainability governance accounts business  financial review
playtech limited annual report and accounts 2012 95
note 1 – investments
2012  
€’000
2011  
€’000
investment in subsidiary undertakings – cost 208642 208543
details of investments in subsidiary undertakings are as follows
subsidiaries country of incorporation activity holding 
playtech software limited british virgin islands main trading company of the group owns the intellectual property 
rights and licenses the software to customers
100
video b holding limited british virgin islands trading company for videobet software owns the intellectual property 
rights of videobet and licenses it to customers
100
ptvb management limited isle of man management 100
playlot limited british virgin islands distributing lottery software 100
trading technology iom ltd isle of man owns the intellectual property rights of virtue fusion business 100
pt turnkey services limited british virgin islands holding company of the turnkey services group 100
playtech holding sweden ab sweden holding company of mobenga ab 100
note 2 – available for sale investments
2012 
€’000
2011 
€’000
available for sale investments comprise
a investment in asianlogic 12513 2054
b investment in sportech plc 17 148 10322
29661 12376
2012 
€’000
2011 
€’000
change in fair value of available for sale investments during the year net
a investment in asianlogic 10459 –
b investment in sportech plc 6826 1444
17285 1444
note 3 – trade and other receivables
2012 
€’000
2011 
€’000
other receivables 284 832
amounts due from subsidiary undertakings 275710 274397
275994 275229
notes to the company financial statements
for the year ended 31 december 2012 96 playtech limited annual report and accounts 2012
note 4 – cash and cash equivalents
2012 
€’000
2011 
€’000
cash at bank 20977 44906
deposits 1 11 19 39851
32096 84757
note 5 – shareholders’ equity
a share capital
share capital is comprised of no par value shares as follows
2012 
number of 
shares
2011 
number of 
shares
authorised na

na

issued and paid up 290236870 289314348
 the group has no authorised share capital but is authorised under its memorandum and article of association to issue up to 1000000000 shares of no par value
b treasury shares
on 25 june 2012 the group cancelled all of the 100000 ordinary shares of no par value held by the company in treasury these shares were purchased 
in june 201 1 the weighted average cost of own shares held in treasury was £328 per share
c share option exercised
during the year 1022522 201 1 203702 share options were exercised
d distribution of dividend
in may 2012 the group distributed €47 889585 as a final dividend for 201 1 
in october 2012 the group distributed €22550631 as an interim dividend for 2012
e reserves
the following describes the nature and purpose of each reserve within owner’s equity
reserve description and purpose
additional paid in capital share premium ie amount subscribed for share capital in excess of nominal value
availableforsale reserve changes in fair value of availableforsale investments note 15
retained earnings cumulative net gains and losses recognised in the consolidated statement of comprehensive income
note 6 – loans and borrowings
2012 
€’000
2011 
€’000
current bank borrowings 37970 13787
noncurrent bank borrowings 31250 13746
69220 27533
the loans are payable in eight quarterly instalments and two annual instalments starting july 2012
the rate at which the liabilities are payable is a fixed rate plus movements in the euribor and euro libor rates
the company has undrawn committed borrowing facilities available at 31 december 2012 of €350 million
notes to the company financial statements continued
for the year ended 31 december 2012 overview sustainability governance accounts business  financial review
playtech limited annual report and accounts 2012 97
note 7 – deferred and contingent consideration
2012 
€’000
2011 
€’000
noncurrent deferred consideration consists
acquisition of pt turnkey services limited 26735 41752
current deferred consideration consists
acquisition of pt turnkey services limited 69015 33591
noncurrent contingent consideration consists
acquisition of pt turnkey services limited –98643
note 8 – trade and other payables
2012 
€’000
2011 
€’000
suppliers and accrued expenses 2418 1499
payroll and related expenses 5970 5816
amounts owed to group undertakings 14336 1001 1
22724 17326 98 playtech limited annual report and accounts 2012
notes overview sustainability governance accounts business  financial review
playtech limited annual report and accounts 2012 99
notes 100 playtech limited annual report and accounts 2012
copyright
the avengers front cover front ﬂap 
© marvel
spiderman front cover 
© marvel
pink panther front ﬂap 
tm  © 1964  2013 metrogoldwynmayer 
studios inc all rights reserved
the six million dollar man front ﬂap
tm  © 2013 universal studios licensed by 
nbcuniversal television consumer products 
group 2013 all rights reserved
captain america page 13 
© marvel
hot 50 page 53
© 2012 gaming intelligence
wwwgamingintelligencecom 2012 
€m
2011 
€m
2010 
€m
2009 
€m
2008
€m
2007 
€m 
income statement
total revenues 3175 2075 1423 1148 1115 657
associate income william hill online 506 361 308 225 – –
gross income 3681 2436 1731 1373 1115 657
adjusted ebitda 1867 1255 1031 937 747 430
adjusted net proﬁt 1683 1128 932 894 786 439
balance sheet
noncurrent assets 5892 5649 2928 2520 2352 424
current assets 1952 2061 913 751 444 884
current liabilities 1819 1102 643 321 177 286
noncurrent liabilities 884 1821 198 251 317 221
net assets 5142 47873000 26992302 801
equity 
additional paidin capital 3105 3079 1897 1836 1801 391
availableforsale reserve 172 20 – 10 – 02
retained earnings 1864 1689 1103 853 501 409
statistics 
basic adjusted eps in euro cents 581 462 385 373 345 204
diluted adjusted eps in euro cents 571 457 371 360 334 195
dividend per share in euro cents 232 165 190 183 152 101
share price lowhigh 2773p4327p 2155p420p 390p548p 29175p482p 305p550p 242p4125p
five y ear financial summary registered office 
2nd floor 
st george’s court 
upper church street 
douglas 
isle of man im1 1ee
stockbroker
canaccord genuity 
9th floor 
88 wood street 
london ec2v 7qr
auditors 
bdo llp 
55 baker street 
london w1u 7eu
financial pr 
pelham bell pottinger 
5th floor 
holborn gate 
330 high holborn 
london wc1v 7qd
solicitors 
berwin leighton paisner llp 
adelaide house 
london bridge 
london ec4r 9ha
registrars 
computershare investor services 
isle of man limited 
international house 
castle hill 
victoria road 
douglas 
isle of man im2 4rb
wwwplaytechcom


Summary:
 4 playtech limited annual report and accounts 2012
regulated markets
regulated markets continue to present 
significant potential for revenue growth and 
playtech is in a prime position to take advantage 
of global market developments such as those  
in italy denmark spain the netherlands 
greece and germany pleasingly we announced 
that playtech’s joint venture with gauselmann 
created in january 2012 was awarded two 
licenses by the state of schleswigholstein for 
online casino and sports betting a year later
while playtech continued to focus on  
increasing income from regulated markets 
revenue from dotcom operators also increased 
in 2012 these operators provide liquidity in 
most regulated markets and are important  
to the company’s strategy as they establish 
themselves in regulated markets and provide 
the cornerstone for our activities in regulated 
and soon to be regulated markets
in france betclic everest launched with 
playtech’s ipoker network on ipokerfr and 
ipokercom in november this was followed by 
the launch of unibetfr at the beginning of this 
year betfair has also commenced its migration 
onto the ipoker network which is due to be 
completed in july 2013 these developments 
have cemented playtech’s leadership in the 
poker market as the natural network of choice
during the year playtech undertook a 
significant level of activity in anticipation of 
spanish regulation and further liberalisation  
in italy the company has enjoyed pleasing 
revenue growth following the launch in june  
of regulated casino poker and sports betting in 
spain and the launch in december of regulated 
online slots in italy
in the uk the third and final phase of the gala 
coral programme was completed in the last 
quarter of the year and betfair commenced  
its poker migration to the ipoker network  
after the highly successful launch of coralcouk 
gala migrated most of its product verticals onto 
playtech’s ims platform the offering includes 
some of playtech’s more recent innovations 
including the playtech portal a new mobile  
hub and an improved ims the current results 
from gala coral are exceeding expectations 
illustrating the cumulative positive impact 
derived through the crossselling opportunities 
afforded by an integrated offering 
in november the dutch government 
announced plans to sell the stateowned  
casino monopoly and legalise online gaming  
to increase competition the government  
is expected to introduce a draft framework  
for consultation in the spring of 2013 with a 
finalised law expected to be approved by the 
end of the year we anticipate that playtech  
and its licensees will seek to benefit from  
these changes in the dutch market
overview
playtech again delivered an outstanding 
financial and operational performance  
in a year of significant change for the online 
gaming market the company increased 
revenue by 53 to €317 5 million gross income 
by 51 to €3681 million and adjusted ebitda 
grew by 49 
during the period playtech expanded its 
product offering both organically and through 
acquisitions secured 19 new licensees including 
major operators such as gala coral and betclic 
everest further extended its relationships with 
existing licensees and entered into significant 
new joint venture opportunities
the company has the operational capacity  
to stimulate future growth specifically in  
mobile gaming which enjoyed a triple digit 
percentage performance increase in order  
to maintain its high level of customer service 
playtech invested in new product development 
related to the mobile hub ims and player portal 
enabling operators to create a bespoke player 
experience and grew its employee base by  
63 to support the business and its customers
importantly the company surpassed a major 
milestone in achieving a premium listing on 
london’s main market in july and was included 
in the ftse 250 index in september 
chief executive officer’s report
 “in 2012 playtech strengthened its position 
as the clear market leader in the provision 
of software and services to the global 
gaming industry”
business review overview sustainability governance accounts business review
playtech limited annual report and accounts 2012 5
signs from the us are encouraging with  
the news that the states of new jersey and 
nevada are to legalise online gaming and poker 
respectively as a result other us states may 
contemplate similar actions however such 
developments are in their infancy and there 
remains much work to do to resolve regulatory 
political and practical considerations a number 
of strategic partnerships are being pursued to 
prepare for the potential opportunities offered 
by this large diverse market
elsewhere the company signed an agreement 
with mexican market leader caliente and 
management believes that playtech given  
its commitment and proven track record is 
positioned as the natural choice for operators  
in different regulated markets 
strategic positioning
playtech’s strategy of organic development 
targeted acquisitions partnerships and  
joint ventures has enabled it to maximise 
opportunities created by the significant 
changes in the online gaming industry  
the industry is moving towards locally 
regulated markets as governments see the 
implementation of gaming tax and the sale  
of regulatory licenses as significant revenue 
streams landbased and digital channels  
are converging as regulatory authorities issue 
gaming licenses to landbased casinos for both 
static and online offerings through being able 
to offer a full turnkey solution playtech is able  
to partner with local brands and casinos to take 
advantage of these opportunities
mobile gaming continues to be one of the  
most significant growth drivers of the global 
online gaming industry playtech’s launch of  
the mobile hub in late 2012 has combined the 
established mobenga mobile sports betting 
solution with other gaming products this 
combination uniquely positions the company 
to capitalise on further developments in this 
sector mobile gaming is essential to playtech’s 
future success and we have invested heavily  
to develop the next generation of products 
maximising new functionality on tablets and 
smartphones while continuing to roll out 
products across all mobile platforms including 
android apple ios and html5
playtech’s proven strategy further strengthened 
its market position and the company is seen  
as the leading software and services supplier  
to the online gaming industry as evidenced  
by playtech winning the gaming awards for 
igaming software supplier of the year
acquisitions 
playtech’s recent acquisitions including 
mobenga ash gaming and geneity along  
with ptts have been fully integrated and 
continue to deliver significant benefits in  
terms of revenue product capability crosssell 
opportunity and licensee relationships 
playtech’s capacity for further bolton 
acquisitions and joint ventures will be enhanced 
considerably following receipt of approximately 
£424 million for the sale of playtech’s 29  
stake in william hill online which is expected  
to complete by the end of april 
“ playtech’s recent 
acquisitions continue  
to deliver significant 
benefits in terms of 
revenue product capability 
crosssell opportunity  
and licensee relationships”
industry awards in the past year 6 playtech limited annual report and accounts 2012
on 1 1 march 2013 playtech announced 
landmark software and services agreements 
with ladbrokes the existing playtech offering 
to ladbrokes which includes the provision  
of bingo and software for landbased video 
licensing terminals will extend to all product 
verticals other than sports betting using a 
phased approach the second is a significant 
agreement for ptts to provide ladbrokes with 
advisory services and to license sophisticated 
crm methodologies and business intelligence 
to assist in the development and growth  
of ladbrokes’s digital business this is an 
outstanding transaction for ptts which 
continues to develop delivering significant 
returns for the company which are anticipated 
to increase following the agreement with 
ladbrokes 
products and services
in 2012 playtech made further investment into 
its product offering extending its capabilities 
both horizontally and vertically through 
inhouse development as well as through the 
introduction of acquired products playtech’s 
licensees benefitted from the introduction of 
the mobile hub and portal as well as the ims 
enabling operators to offer a bespoke player 
experience available in all formats and channels 
the combined system facilitates a twoway 
information flow from the ims providing 
licensees with greater realtime insight and 
control and players with an improved user 
experience thereby maximising the potential  
of licensee online gaming operations
casino 
playtech’s flagship product delivered another 
outstanding performance in 2012 revenues 
increased 33 from a combination of organic 
growth the addition of new licensees 
expansion of the games portfolio now 
including all ash gaming products growth from 
mobile and the revamped live dealer offering 
which is now available through all interactive 
channels including mobile branded games  
are a valuable marketing tool for playtech  
and the company has the largest portfolio  
of games available across multiple delivery 
channels including online mobile tv and 
gaming terminals during 2012 playtech 
launched 35 games and 21 branded games
ptts
playtech offers affiliate marketing services and 
sophisticated crm solutions combined with 
advanced player management tools which  
are of particular interest to new market entrants 
requiring a full turnkey solution as well as 
existing operators that would like to boost  
their online gaming operations
during the year ptts grew to become 
playtech’s second largest vertical in july 
playtech announced that ptts had achieved  
an annualised adjusted ebitda in excess of  
€40 million in the first two quarters of 2012 
fulfilling the condition for acceleration of  
the additional consideration of €140 million  
the additional consideration outstanding  
at year end is scheduled to be paid in three 
instalments ending in january 2014
licensees
playtech aims to provide its licensees with 
marketleading content features tools and  
a broad range of services that support and 
enhance their businesses
betclic everest launched its poker products  
on the ipoker network for dotfr and dotcom  
in addition several other licensees increased  
the number of product verticals licensed from 
playtech these developments reflect playtech’s 
success in strengthening its relationships  
with existing licensees through an integrated 
solution which helps deliver maximum  
player yields
gala coral completed its threestage 
programme to move its entire online gaming 
operation to playtech’s ims which we believe 
serves as a significant endorsement of the 
company’s marketleading crossproduct 
technology playtech now provides gala coral 
with an improved ims a newly developed 
portal innovative mobile hub and a full  
range of gaming products gala coral will use 
playtech’s systems to manage all of its online 
activities including gala casino and gala bingo 
as well as coral
pleasingly betfair decided to migrate its  
poker offering to playtech’s ipoker network 
commencing the migration plan in the year  
with completion anticipated for july 2013
in connection with the regulation of the 
spanish french and danish markets playtech 
gained a number of new licensees certain 
existing licensees also underwent regulation 
and now offer their services on a dotlocal  
basis as compared to a previous dotcom basis
chief executive officer’s report continued
business review
playtech’s flagship  
casino product delivered 
revenue growth of 33  
in 2012 overview sustainability governance accounts business review
playtech limited annual report and accounts 2012 7
the acquisition of ptts has been highly 
successful delivering outstanding results  
we have also demonstrated that the ability to 
offer a full turnkey solution or advisory services 
is essential to attracting further business 
opportunities through ptts we can provide 
operators both existing and new licensees 
including dotcom operators or new entrants  
in regulated markets access to best of breed 
marketing and crm services as well as other 
ancillary services ptts has a proven track 
record of more than a decade and is a 
fundamental element to the future success  
of the company 
bingo
playtech provides the industry’s leading bingo 
offering and operates the industry’s largest 
bingo network bingo continues to perform 
strongly increasing revenue in the period  
by 19 to €180 million 2011 €151 million 
strong organic growth was complemented  
by the launch in the third quarter of gala bingo 
and in the fourth quarter of vernonscom and 
our mobile bingo offering which is available  
on android and apple ios supported by 
promotional activity during the final two  
weeks of the year
playtech’s bingo brand virtuefusion has  
once again won a number of industry awards 
including egaming review’s bingo network  
of the year and the bingo summit’s best bingo 
software for the third year running
poker 
the international poker market remained 
challenging throughout the year however 
playtech recorded an uplift in revenue in  
the latter part of the fourth quarter and  
the beginning of 2013 following a number  
of new licensees joining the ipoker network
during the year as part the phased migration 
plan gala coral launched on the ipoker network 
followed by betclic and everest who launched 
on the ipokerfr and ipokercom networks and 
betfaircom which launched on ipokercom and 
ipokeres these licensee wins in conjunction 
with playtech’s poker liquidity programme 
initiated in august significantly increase the 
poker network’s liquidity which is seen as  
key to attracting poker players and licensees 
when choosing a supplier and supported the 
ongoing improvement in poker performance 
in addition playtech also introduced a variation 
of speed holdem which increased revenue from 
cash games
ipoker remains the largest and leading 
worldwide independent poker network  
a number of significant licensees are in 
discussion with playtech regarding joining  
the network during the year a number  
of new crm tools and an improved user 
interface supported by a revamped version  
of the poker client were launched 
“ the acquisition of  
ptts has been highly 
successful delivering 
outstanding results”
once again playtech had a very substantial presence at the ice gaming show in london in january 2012 8 playtech limited annual report and accounts 2012
return on invested marketing playtech’s 
experience so far is that mobile presents an 
incremental opportunity as revenues margins 
and activity levels are higher compared with 
other interactive channels mobile remains a  
key focus for the company and development 
continues of the next generation of the mobile 
offering that will be even more exciting and 
appealing to a larger audience
live
playtech was the first company to introduce  
live gaming products specifically tailored for 
local markets as technology has evolved the 
popularity of live gaming formats has grown 
significantly in 2012 the live gaming product 
underwent a comprehensive redevelopment  
to include new features and functions appealing 
specifically to live gaming players and designed 
to capitalise on our first mover advantage  
in order to retain that lead in parallel we 
introduced a mobile version for the live gaming 
product complementing the product offering 
available on other interactive channels in 2012 
gala coral migrated its live casino across its 
brands and we expect additional licensees to 
migrate to our live gaming offering in the near 
future in spain playtech partnered in january 
2013 with casino gran madrid to offer live dealer 
services to the spanish market
sports 
sports is one of the largest gaming markets  
and frequently acts as the gateway for  
players to access other gaming experiences 
furthermore recent events have shown that 
sports is typically one of the first products to  
be approved in newly regulated markets in line 
with our strategy to provide a comprehensive 
solution and our focus on regulated markets 
the company acquired geneity a world class  
fully integrated and complete sports platform 
there are significant opportunities for this 
business which has been integrated with both 
the mobenga mobile sports product and ims 
and which has already won its first two sports 
licensees we expect to see significant growth 
from sports over the next quarters as more 
licensees are added
videobet
in 2012 videobet technology was deployed  
in more than 400 additional terminals ending 
the year with approximately 23000 machines 
the expansion of videobet into emerging and 
other markets such as mexico and puerto rico 
together with location growth by some existing 
licensees and new markets currently in test 
provide a solid pipeline for 2013
mobile
the growth of mobile continues to outperform 
all other product channels the success by 
different operators has led to significant 
investments by the company to ensure that  
it captures the market leading position in the 
space following the acquisition of mobenga 
the market leader in mobile sports betting  
the company has initiated an innovative internal 
programme called the mobile hub converging 
mobile sports betting and mobile gaming 
products into one offering enabled by mobile 
touch screen functionality the new mobile hub 
creates an exciting new experience for players 
with the same products that are available 
through other interactive channels and share 
the same poker and bingo pools and jackpots  
it also creates for the first time in our industry 
the ability to acquire players through the sports 
betting vertical and then offer other verticals 
within the same application maximising the 
chief executive officer’s report continued
business review
mobile and mobile hub
the mobile hub combined  
with the marketleading mobile 
sportsbook provider and 
playtech subsidiary mobenga  
is an open framework  
designed to integrate content 
and deliver players a seamless 
user experience on mobile 
devices through a branded 
and unified interface an 
operator’s full product offering 
is available to players on  
their smartphone or tablet  
and can be customised and 
managed through a centralised 
management system
as an open platform the mobile hub allows 
operators to integrate any software and content 
using standard and friendly api’s the new 
technology has made it quick and easy to  
plugandplay both playtech and third party  
mobile content minimising the work load for 
operators built on html5 technology the mobile 
hub is compatible with web browsers native 
applications and across all html5 ready devices overview sustainability governance accounts business review
playtech limited annual report and accounts 2012 9
people
playtech’s people remain key to the company’s 
continued success a great example of the 
quality of the company’s employees are their 
great achievement to ensure that playtech 
established itself as market leader in the mobile 
gaming space following the introduction  
of mobile technologies when the company 
assesses potential acquisition targets or 
potential joint ventures it places a high  
value on the existence of a complementary 
culture of employee service and innovation
in terms of delivery human capital is as critical 
as financial capital playtech has continued  
to invest significantly in human resources  
to maintain its position as a leading quoted 
supplier of software and services to the online 
gaming industry by delivering innovative high 
quality products and services to its clients 
william hill online
with the agreed valuation of approximately 
£424 million for its 29 stake in william hill 
online together with dividends received  
over the four years since inception playtech  
has generated a cash return on investment  
of more than 35 times the success of the  
joint venture demonstrates the potential of 
creating significant value by combining a well 
established brand with playtech’s best of breed 
technologies products and services through 
participation in this joint venture playtech 
widened the breadth of its expertise and proved 
how successful and valuable a partnership of 
this nature can be for its stakeholders while  
the sale of its stake will bring to a close a highly 
successful and profitable joint venture for 
playtech the company will continue to enjoy  
a close working relationship with william hill 
which will remain a topfive licensee
the sale process is expected to complete by  
the end of april 2013 and the board with its 
advisers is undertaking a broad review of the 
most effective use of the proceeds from the 
disposal taking into consideration feedback 
from shareholders and the company’s 
requirements going forward the board  
will amongst other strategic options assess  
the potential for further valueenhancing 
acquisitions joint ventures and partnerships 
focusing on regulated markets together  
with the possibility of a return of capital to 
shareholders playtech has a proven ability to 
provide shareholder value through successful 
acquisitions and management is confident  
that this will continue
outlook
playtech has made a strong start to 2013  
with average daily revenues for the first 1 1 
weeks of 2013 up over 15 on q1 2012 and  
up 5 on q4 2012
the anticipated revenue from the number of 
new licensees who launched during the last 
quarter of 2012 the introduction of slots in italy 
and the extension of existing relationships such 
as the migrations of betfair poker and unibetfr 
followed by the progress made in the year  
to date such as the landmark agreement with 
ladbrokes secures the company’s position  
in 2013 and beyond playtech is in a prime 
strategic position and is well capitalised to take 
advantage of opportunities from the evolving 
global regulatory landscape and we look 
forward to the future with confidence 
mor weizer
chief executive oﬃcer
14 march 2013