by Renee Israel
January 31 – Playtech, a world-leading online gambling software
provider, has signed agreements that will initiate joint ventures
in Germany and South Africa.
The London-listed leading software designer and developer for
online gambling products is renowned for extending its
geographical reach via joint ventures, and its agreements with
firms in Germany and South Africa respectively, are proof of this.
Playtech has been particularly active in jurisdictions where
online gambling has just been legalised or is likely to be
legalised soon, as is the case with Germany and South Africa.
Playtech Joint Venture in South Africa
Late last week there was an announcement of a Playtech
joint venture agreement with Peermont Group of South
Africa.
South Africa as of now allows only online sports betting. As
such, the Peermont Playtech joint venture will obtain a sports
betting licence and commence operations in 2012.
Playtech, however, pointed out that licensed and regulated
online poker and online casino gambling are expected to become a
reality in South Africa shortly and the joint venture will also
participate in those markets when the time comes.
Until then the Peermont Playtech joint venture will offer online
poker and casino games in a ‘play for fun environment’ and create
space for itself as ‘a well-recognised online brand’.
Each partner of the Peermont Playtech joint venture will commit
equal amounts of working capital for an equivalent share. Playtech
has signed a separate agreement with Peermont to license its PTTS
turnkey solution software and platform for ‘all permitted gaming
products’, together with its player management system and
technology. This will enable South African players to derive the
best gaming experience across online and mobile channels.
Mor Weizer, Chief Executive Officer for Playtech, acknowledged
that Peermont is one of the leading players in the South African
online gaming market.
He said that the Peermont Playtech joint venture follows from
Playtech’s strategy to build long-term relationships with leading
gaming groups in their local markets combining Playtech’s
technology and marketing expertise with the partner’s local market
presence and knowledge.
Playtech Joint Venture in Germany
Based on the same strategic philosophy, Playtech had earlier in
the week announced a joint venture with the German gaming machine
manufacturer, the Gauselmann Group. The Playtech joint venture was
with Merkur Interactive GmbH, the online gambling division of the
Gauselmann Group.
This joint venture will also start with online sports betting
and move into other online gambling products as regulation in
Germany permits. Playtech will provide the technology and
marketing know how while Gauselmann will provide its online gaming
brands, related infrastructure and business relationships.
Although each partner of the Gauselmann Playtech joint venture
will have the same number of directors on the board, Gauselmann
will hold a controlling interest of 50.01%.
