Playtech Clarifications and News

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Earlier this week the leading online casino software provider Playtech had announced its financial results for 2011 along with some plans for the coming year. Now, through separate announcements Playtech has elaborated on a few of these issues.

The first of these issues is SciPlay, the Playtech and Scientific Gaming joint venture, which was restructured to overcome operational problems. This announcement saw the Scientific Games share price fall by 10%. Mor Weizer, chief executive officer of Playtech pointed out that the formal joint venture structure had certain limitations and accounting complexities that were preventing maximum utilization of opportunities. The revised structure allows both parties to come together in several areas of mutual interest and at the same time take advantage of key opportunities are outside the initial arrangement. Under the new terms of the agreement, Playtech will license its online gaming software to Scientific Games on a mutually non-exclusive basis for use by certain categories of Scientific Games' current and prospective customers. These include USA casinos and lotteries worldwide. SciPlay will become a wholly owned subsidiary of Scientific Games.

Playtech also elaborated a bit on its efforts to tie up partners aimed at the potential legalization and regulation of the US online gambling market. However, no names were revealed. Weizer said that some potential customers have approached Playtech on their own with proposals for entering the American market when allowed to do so. Playtech has also approached parties it thinks would be suitable partners. Weizer said, "There is a lot of work being done behind the scenes in various states by various local authorities. We have people on the ground now in the USA working with us in order to monitor all these processes."

Jersey, one of the Channel Islands, is working to put in place a licensing and regulatory framework for online gambling. The Jersey authorities had approached Playtech last year and have convinced the online casino software provider that its licensing regime meets all the requirements of a top notch operation. Playtech has existing licensees with operations in the Channel Islands and therefore has applied for an online gambling license from the Jersey Gambling Commission. Jersey Economic Development Minister Alan Maclean said that this license application from a market leader like Playtech was a stamp of approval for Jersey's new online gaming industry. Jersey has a long standing reputation for excellent regulation, infrastructure and professional services and can extend these to the online gambling sector. This would develop exciting new opportunities for the island jurisdiction from the lucrative global online gambling market and would boost its economic development.

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