GVC and Playtech agree “win-win” revised deal
New agreement gives GVC more flexibility on LCL integration and offers Playtech a route into the US
GVC and Playtech have announced a revised deal which clarifies the technology relationship between the two firms until 2025.
The new deal nixes the original 2021 expiry date for Playtech’s platform deal with Ladbrokes Coral, and allows GVC to migrate before then, perhaps by the end of the year.
In return, GVC will roll out Playtech products including slots, live casino and SSBTs to its full range of brands, including the likes of bwin and sportingbet which the provider has previously done little business with.
The two firms have also agreed to integrate Playtech’s products and services onto the GVC platform so they can be made available to the MGM-GVC JV, ROAR Digital.
“We are delighted that we have been able to agree a long-term relationship with Playtech,” said GVC CEO Kenny Alexander.
“Even more of our customers will now be able to enjoy content from one of the world’s leading suppliers of high-quality gaming product. At the same time the added flexibility around migration of technology platforms enables us to accelerate the integration of Ladbrokes Coral.”
The partnership also sees an extension of the agreement for Playtech BGT Sports to supply Ladbrokes Coral with SSBTs in the UK and Belgium.
Playtech CEO Mor Weizer added: “We are pleased to have reached a new agreement with GVC, which expands on the successful partnership we have established with Ladbrokes Coral over the last six years. This is testament to the strength of the Playtech proposition and we look forward to supporting GVC over the coming years.”
Playtech said its 2019 EBITDA projections were unchanged.
Berenber described the deal as a “win-win,” with GVC benefiting from quicker cost synergies and more products for its brands, and Playtech expanding and and lengthening a relationship with a key client.
The analyst said GVC’s contract with Playtech was worth approximately £40m a year including platform and services, but it was difficulty to split out the value of each part.