Playtech Signs JV with German Gaming Firm

Playtech online gambling software developer seems poised to take over the global online gambling industry judging by the number of partnerships, acquisitions and joint ventures it has facilitated over the last few years, the most recent being with German gaming firm, Merkur Interactive GmbH.

According to reports, Playtech entered into a joint venture (JV) with Merkur - the internet arm of leading gaming machine vendor Gauselmann Group - to give it a foothold in the lucrative German online gambling market as soon as it is deregulated, which is expected to happen this year.

Joint Venture Between Playtech and Merkur

The JV between Playtech and Merkur will see the creation of a German-focused online gaming site that will be powered by the former's state-of-the-art online gaming software and use its robust and reliable player management system.

The new site is expected to include sportsbook and gaming services, for which Playtech will apply for the respective German gaming licenses which will be dependant on the respective territory and gaming activity.

Said Playtech CEO, Mor Weizer, 'We're delighted to be able to announce this significant joint venture with such a leading German gaming brand. Gauselmann and its Merkur brand are renowned throughout Germany and will provide a fantastic springboard for the business once regulations permit online activity.'

'Although the regulatory and fiscal environment [in Germany] remains uncertain, it is clear that a partnership between Playtech and Gauselmann can deliver a combination of market-leading capabilities, which have the potential to achieve a significant market share however the market regulation develops,' he added.

Gauselmann will hold a 50.01 percent controlling interest in the JV - which is expected to be in place until at least 2019 - while both firms will have equal representation on the board of directors.

The JV will Amalgamate the Expertise of Both Firms

Where Playtech's contribution will include its German-focused marketing managers, affiliate marketing contacts and marketing expertise, Gauselmann will provide exclusive online rights to its Merkur and Gauselmann brands as well as related infrastructure and business relationships.

Said Merkur CEO, Dirk Quermann, 'As a distribution channel, the internet provides a wide range of opportunities for us. This equally applies to gaming and cash winning games. Due to the prevailing legal framework, it has hitherto been impossible in Germany to domestically offer such games online.

'In Playtech we found the right partner to work with to provide a successful offer for the German online market even in the face of tough competition from international gaming groups,' he said.