Playtech signs 10-year Gala Coral deal
Supplier pens one its biggest ever contracts worth an estimated 5m a year that will see it provide the operator with a full range of products, its open platform and see the group move to Virtue Fusion.
Playtech has signed one its largest contracts agreeing a decade-long 5m a year deal with Gala Coral to supply the group with a full range of gaming products including its IMS platform that will support the operator’s entire product range as well as see it migrate to its Virtue Fusion bingo network.
The supplier will be responsible for software across Gala Coral’s online gaming products, including sports betting, casino and bingo with migration from existing suppliers to the Playtech Information Management Solution platform and products expected to commence in the first half of next year, it announced in a statement this morning. The deal is thought to be its first multi-product deal, and is expected to be cash generative by 2012.
According to the Financial Times the deal ranks as one of its top three or four deals and could be worth up to 5m a year in pre-tax profits.
Gala Coral signed a memorandum of understanding with Playtech in June allowing the bookmaker to migrate a number of its platforms onto technology from the London-listed company.
It is thought William Hill Online, Playtech’s egaming joint venture partner, despite taking out an injunction earlier that month preventing the software supplier from doing similar deals with rivals Ladbrokes, was given prior warning to today’s agreement and has given its blessing. At the time Playtech reached a resolution with William Hill allowing it to licence its software to another, at the time, unnamed UK operator. Both parties are thought to have agreed that Playtech is allowed to complete software agreements but not joint ventures with rival businesses.
According to the FT “amendments to its joint venture allows Playtech to offer poker and casino products to Ladbrokes”.
Gala uses Playtech’s Videobet software through its contract with Global Draw, that supplies 6,500 gaming terminals to the group as well as its rivals, William Hill and Ladbrokes.
Gala Coral’s current suppliers include Geneity (sportsbook platform), Ash Gaming (games), Chartwell (casino), Cryptologic (slots games), Evolution (live casino), IGT (jackpot, games and slots), Ongame (poker network), Jadestone (Dice Arena – skills games network) and Game Account (skill games), Mfuse (mobile), Inspired Gaming (slots), Betradar (sports betting on Coral).
According to chief executive Mor Weizer, only Geneity will remain as a supplier to Gala Coral with the others gradually leaving between now and next year.
On Monday eGaming Review exclusively revealed that former HBOS chief executive Andy Hornby had agreed to join Coral as its new manging director after a year-long search to fill the position.