Playtech moves on live gaming with NetPlay deal
NetPlay TV is to migrate its online brands to the Playtech platform in return for providing its live gaming products to Playtech licensees and a £12.8m cash injection to fund future growth.
NetPlay TV is to migrate its online brands to the Playtech platform in return for providing its live gaming products to Playtech licensees and a £12.8m cash injection to fund future growth.
Playtech chief executive Mor Weizer said the five-year agreement with the interactive gaming provider would position Playtech as a market leader in live gaming.
“We believe ‘live’ gaming is going to be very big in the coming years and, as such, a significant investment in this business makes perfect sense. This agreement enables us to offer our licensees unique TV quality gaming shows, [and] enrich their offering to gamers,” he said.
NetPlay operates the Supercasino, Bingos and EuroTeleMillions online brands.
Weizer highlighted the value to Playtech of adding Netplay’s online Bingos brand to its bingo platform, which he said “will significantly increase Playtech’s bingo liquidity.” As reported on EGRmagazine.com, Playtech’s bingo network will suffer a liquidity drop when leading licensee Betfred switches to Virtue Fusion, which is expected soon.
The cash injection into the NetPlay will come from the purchase of new shares representing 29.9% of the group’s issued share capital by a company called Directforce Trading, the owner of which is also a significant shareholder in Playtech.
NetPlay chief executive Martin Higginson said: “The investment of £12.8m into our business, along with the strategic relationship both in terms of distribution and technology with Playtech, will enable us to drive the development of our converged gaming solutions.”
The share placing will be subject to the approval of the company’s shareholders. NetPlay said it had received irrevocable commitments from shareholders representing 43% of the company’s current issued share capital to vote in favour of the resolutions at a general meeting to be convened shortly.