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Gambling technology giant Playtech plc (LSE:PTEC) has inked a new long-term software and service agreement with state-owned casino operator Holland Casino, which enjoys the legal monopoly of land-based gambling in the Netherlands where it is currently responsible for 14 brick-and-mortar gaming venues.
The “major” deal is in anticipation of the long-awaited launch of the iGaming market in the country in northwestern Europe. The Kansspelautoriteit (KSA) regulator announced on April 1st that it will, via the Remote Gambling Act, issue the first licenses by October 1, 2021, the day the market for online gambling in the Netherlands goes live. The governing body announced on April 19th that it had so far received 28 applications for a license to offer online games of chance in the country.
Agreement details:
According to the official press release, under the agreement, Playtech will become strategic technology supplier to the Dutch casino company, while providing the operator its comprehensive multichannel technology in addition to “certain ancillary services.” Holland Casino will additionally leverage the FTSE 250 firm’s IMS (information management solution) platform and its range of products including sports betting, online casino, live casino, poker and bingo, as well as “certain operational and marketing services.”
Also part of the deal, Playtech will reportedly build a live casino facility in the “immediate vicinity” of one of Holland Casino’s 14 existing physical locations.
With “high ambitions for the new online market,” Chief Executive Officer for Holland Casino, Erwin van Lambaart said that “Playtech has the track record and necessary scale to deliver industry leading software, marketing and responsible gambling tools.”
The CEO added that they “look forward to the online market launching in the Netherlands in October 2021 and to a long and successful cooperation with Playtech as we work together to capture this exciting opportunity.”
Founded in 1999 by Israeli-born billionaire businessman Teddy Sagi, Playtech described the move that expands its long-term strategic software and services agreement with Holland Casino, as “a significant strategic step for Playtech and builds on its track record of developing newly regulated online markets.”
U.S. launch:
The move comes on the heels of the Isle of Man-headquartered company’s first launch of its IMS platform in the United States courtesy of its new partnership with Parx Interactive and Gun Lake Casino with a new iGaming app in Michigan, Play Gun Lake. Announced in February this year, the strategic agreement with the online gaming arm of Greenwood Racing, Inc.-owned and operated Parx Casino sees Pennsylvania’s largest casino the first to launch Playtech’s IMS platform in the U.S. market.
As it pursues further U.S. expansion, Playtech reportedly plans to roll out additional products in Michigan, New Jersey, Pennsylvania, and Indiana as well as other jurisdictions in the States.
Dutch market ambitions:
Also commenting on the strategic cooperation with Holland Casino, Chief Executive Officer for Playtech, Mor Weizer explained that the “brand strength and local presence of Holland Casino combined with Playtech’s 20 years of technology leadership in the industry will see us drive the online growth of the market in Holland.”
He added that they look forward to working with the casino company “to offer the highest quality, most comprehensive responsible gambling entertainment experience across retail and online in the Dutch market.” And that the agreement “demonstrates the execution of our strategy to continue to work with the leading brands in the most attractive regulated markets globally.”
As of 2:56pm BST on May 5, 2021, shares of Playtech PLC were up 17.40 (3.69 percent) trading at 489.00, according to MarketWatch.
