Posted: July 20, 2021, 10:46 p.m.
Last update on: July 20, 2021, 10:46 a.m.
Gaming technology provider Scientific Games (NASDAQ: SGMS) and European games company Playtech (OTC: PYTCY) have reached agreement that paves the way for companies to capitalize on each other’s scale in various regions of the world .
As part of the agreement, Playtech’s software will be accessible to operators through Scientific Games’ Open Gaming System (OGS) offering.
Playtech’s software will be available to operators through the Open Gaming System (OGS). The deal covers the scope of Playtech’s industry-leading casino offering, including its portfolio of slots, table games and live casino entertainment, all of which will be integrated with features and functions. Scientific Games promotions. Playtech’s game content will be rolled out across the OGS initially in New Jersey with other states to follow, âaccording to a statement released by Scientific Games.
Founded in Estonia over twenty years ago and based on the Isle of Man, Playtech manufactures software for online casinos, online poker rooms and online sports betting, which makes the company somewhat comparable. at GAN Ltd. (NASDAQ: GAN). Playtech also provides software for fixed odds arcade games, online games and provides services for scratch cards.
IGaming Play Science Games
The deal with Playtech is the latest sign of Scientific Games’ desire to dig deeper into the growing world of online casinos.
This could be a prudent move on the part of the Las Vegas-based company as by some estimates North American online casinos and sports betting markets could potentially be worth $ 42 billion or more and iGaming is considered the more lucrative of the two segments because it has better margins and a longer track for state-level legalization.
Late last month, Scientific Games announced it would divest its Don Best lottery and sports betting units to strengthen its balance sheet and allow it to focus on higher growth opportunities. Last week, the company offered to acquire the 19% stake in social casino developer SciPlay Corp. (NASDAQ: SCPL) which it does not already control – another sign of its intention to get into online gaming.
Geographic scale with Playtech Deal
For Playtech and Scientific Games, the newly signed agreement paves the way for companies to enter markets where they previously lacked exposure.
“This new partnership, featuring two of the largest companies in the industry, will allow Scientific Games and Playtech to mutually benefit from each other’s scale and reach in the United States, in addition to America’s regulated markets.” Latin and Central, Eastern and Western Europe â, according to the statement.
Financial terms of the deal were not disclosed. Playtech was rumored to be a potential acquisition target, but the deal with Scientific Games isn’t necessarily a precursor to a deal.