Playtech Reaping Rewards of Betfair Deal
Date published: 11 June 2009
This SlideShowPro photo gallery requires the Flash Player plugin and a web browser with JavaScript enabled.
Playtech, which has grown into the world's most successful online
gambling software development firm, is renowned in the online gambling
industry for its cutting edge online casino software, hosting and transaction
management systems, and forging smart deals such as its most recent with Betfair.
Like the Isle of Man-based Playtech, Betfair too is a major player in the online
gambling arena, having evolved into one of the UK's leading online betting
exchanges. As such, a deal between the two gambling giants made perfect sense,
backed up by Playtech's strong share price on the London Stock Exchange.
Under the terms of the deal, Betfair became a Playtech licensee. This means
Betfair's sizeable customer base can now access and enjoy a multitude of
Playtech-powered online casino games. Interestingly, the deal went ahead despite
Playtech's existing relationship with Betfair's UK betting rival, William Hill.
The reason for this, according to financial analysts, is that Playtech's deal
with William Hill involves a joint venture called William Hill Online (of which
Playtech owns 29 percent and receives royalties), but does have any
representatives on the William Hill board of directors. Hence, there is no
conflict of interest.
Playtech could not ask for a better testimony to the quality and popularity of
its online gambling software, than to have two major online betting rivals only
too happy to promote its wares. In fact, it is for this reason that Playtech has
overtaken Microgaming to become the global market leader in online software.
In terms of Playtech's performance on the London Stock Exchange, the company's
first quarter results very impressive. Its gross income increased by 46 percent
on last year, which translated to 32 million pounds. Its 29 percent share in
William Hill Online was worth 6.7 million pounds in profit for the quarter.
One of the many reasons that Playtech has become the online gambling software
giant it has, is due to the fact that its directors are constantly on the
lookout for strategic and exciting partnerships and alliances that can push the
company into new and unchartered online gambling territories around the world.
|
