Review of the Year: William Hill vs Playtech
eGR looks at the 10 biggest talking points of 2011.
William Hill and Playtech’s joint venture has been described as “transformational” by Hills CEO Ralph Topping, but 2011 saw a series of problematic events unfold, potentially damaging the relationship irreparably.
The first signs of trouble arose in February when William Hill took out a court injunction against Playtech to block a rumoured £2.2bn merger between the software provider and rival Ladbrokes. This was seen as an attempt to preserve Hills’ exclusive deal and give Playtech no room to rework the terms of the JV to allow it to work with Lads.
However, Playtech’s 10-year deal with Gala Coral, signed in July, showed that it was keen to continue to expand its business, whether it was working with Hills’ competitors or not.
The situation remained uneasy until the relationship worsened in October when William Hill Online staff in Tel Aviv staged a mass walk-out in protest over the departure of CMO Eyal Sanoff and rumours the marketing and customer service functions were being moved to Gibraltar. Hills Online CEO Henry Birch immediately sent a company-wide email in a bid to reassure staff that their jobs were safe, but his plea fell on deaf ears and the strikes spread to customer service centres in Manila and Bulgaria, with staff failing to return to the office until 10 days after the initial walkout.
Following the upheaval several stories emerged in the national press with The Times reporting that the offices had a £250,000 fish tank, with a fish feeder, a Rabbi, a hairdresser and a table tennis coach all on the payroll. These allegations have since been denied, but with Topping said to be “furious” over the action, it remains to be seen whether the joint venture will survive past 2013, when the initial five-year period ends and Hills has a call option to buy Playtech’s 29% stake.
Just over a fortnight after the strikers returned to work, however, Topping took to his blog to fire a few ‘light-hearted’ barbs in the direction of Playtech CEO Mor Weizer who found himself being mocked for his “Trappist-like silence” when he was expected to be answering emails, with Topping saying it was “easier trying to get through to Lord Lucan.”
Of course, when Henry Birch climbed to the stage at the eGR Awards to collect the operator of the year trophy, who else but Playtech could have presented it to him? The next two years should make for interesting viewing.
The key points of conflict between William Hill and Playtech in 2011:
William Hill takes injunction against Playtech
CMO resignation prompts mass William Hill walkout
William Hill statement fails to stop further unrest
William Hill offices resume operations after 10-day walkout
William Hill in better place after resolution, says Topping
Ralph Topping bemoans Mor Weizer’s personal technology “jinx”