Summary: Top software company Playtech is looking to move into the United States with licensing application.
Playtech is a top-rated software company that supplies gaming content for major gambling companies around the world. For years, Playtech has been known for creating top-notch content and their most recent half-year results show their business relies heavily on the Asian market. However, the gaming division is now starting to focus their efforts on the United States.
Looking for An Opportunity
Playtech currently operates the iPoker network, a network that is used by top poker companies like Bet365, William Hill and Paddy Power Betfair. The network was set to try for US operations but never was able to become involved in states that had legalized online poker gaming.
Betfair launched an online poker room in the state of New Jersey but decided to use the Ongame platform instead, keeping the iPoker network for their global offerings. Online poker has continued to do poorly in the US, with New Jersey, Delaware and Nevada unable to come up with enough traffic to bring in high revenues.
Now, it seems Playtech is focusing on moving into the US, not by way of poker, but sports betting. Since a May ruling by the United States Supreme Court, sports betting has skyrocketed in the nation. State after state has passed legislation to begin offering sports betting, be it online or via land-based casinos. Playtech has a product suite known as Playtech ONE which would work well in the United states to provide sports betting as well as other products like poker.
The sports betting option of Playtech is operated by Playtech BGT Sports, a subsidiary of the brand. The company is active around the world and provides sports betting services in regions like Mexico. During a recent earnings call, CEO Mor Weitzer discussed the ambitions of the company with the United States.
Weitzer stated that the Playtech BGT Sports has the capability to provide a compelling offering in the US. The sportsbook is ready now and is already one of the largest traders involving sports in the US due to their offering in Mexico. A popular market for the country is US sports.
Currently, Playtech is working to apply for a license in New Jersey to get started in the sports betting industry. They also have their eye on other states to expand their footprint across the nation. During the earnings call, Weitzer explained further that the sportsbook of Playtech BGT Sports is suitable for the US market as it is scalable for state to state. One casino looking to offer sports betting could use the process of adding the sportsbook, helping to avoid any development cost or issues starting from scratch.
Links in the US
Playtech already has links in the United States that should prove useful when trying to enter the country for sports betting or other online activities. The brand started to build relationships years ago when online gaming first launched in 2013. In June of 2017, Playtech announced a deal with Caesars Entertainment EMEA.
With the deal, Playtech would work with Caesars eight UK properties to provide their Neon Enterprise system. Caesars of course operates land-based and online gaming sites in the US, so they could inevitably decide to partner up with Playtech in the future to focus on sports betting or other aspects, if the brand is able to obtain licensing in the US. It will be interesting to see if they are approved by New Jersey regulators and just how they plan to get started in the US once any approval is given.