Playtech not giving up on US as Asia rises in importance
CEO Mor Weizer willing to bide time on US while pinpointing Asia and the Netherlands as new markets of potential
Playtech remains intent on cracking the US market despite strong growth in Asia, with CEO Mor Weizer stating the company is prepared to take its time before making a transatlantic move.
With the New Jersey market due to launch in November and Nevada already open for business, Playtech is notable by its absence at the current time, and it’s tempting to think they can see better opportunities elsewhere.
The egaming software provider recorded significant growth in Asian markets during the first half of 2013, with revenues deriving from the region up 41% year-on-year and the company confessing to be “actively pursuing” markets there.
It is not, however, a case of the company prioritising the Far East over what lies to the west. “We continue to monitor closely the developments in the US and once we identify a significant commercial opportunity, Playtech will position itself,” Weizer told eGaming Review.
Playtech had maintained an interest in the US with its involvement in Sportech, but that ended when the company spun off its remaining stake in the business in June, a move that took analysts by surprise.
Weizer regarded the sale to be purely financial and representative of a wise investment for the company. “We saw a window of opportunity to sell our shares and we simply sold it based on the information we had at the time,” he added.
Delaware and New Jersey look set to regulate in October and November respectively, but Playtech said it is keeping a close watch on more populous states and California, where Playtech have operated a freeplay poker site in the past, is the likely long-term target.
Closer to home, Playtech considers the Netherlands to be the European soon-to-be-regulated market of choice. Moves to regulate the country are currently underway, yet concerns have already been raised regarding its proposed tax rate of 20%.
Weizer said he was confident of the company’s prospects in the country, considering Playtech to be in a good position regardless of market conditions. “We believe that in the Netherlands, while it could obviously be better, it’s still a very lucrative market and we are actively pursuing opportunities there,” he said.