SHFL enters exclusive platform deal with Amaya
Gaming supplier will become exclusive distributor of Amaya's online poker and gaming platforms in the US after signing 50-50 rev share deal.
SHFL entertainment has announced it will act as the exclusive distributor of Amaya Gaming’s online poker and platforms in the US for the next 10 years.
The deal will see SHFL able to offer Amaya’s gaming platform as well as the Ongame poker platform which the Canadian supplier acquired for up to 25m in October this year.
It represents a crucial turnaround for SHFL, previously Shuffle Master, which agreed to buy the then bwin.party-owned Ongame in March before pulling out of the deal in June citing lower-than-expected European revenues and lack of regulatory certainty in the US.
Under the terms of the agreement, SHFL will pay up to US$10m for the exclusive rights and divide all revenue equally with Amaya. The pair will also split all US operational expenses such as hosting, hardware and licensing costs.
Upon execution of the agreement SHFL will pay an initial $2m and be permitted to offer the two platforms to their B2B clients.
The rest of the payment will depend on US online gambling regulation. If real-money online poker commences in California, or across the entire country under a federal bill, the remaining $8m will be due immediately.
However if regulation continues in a state-by-state approach, SHFL will pay up to $8m based on which states regulate and the size of their population.
Gavin Isaacs (pictured), SHFL’s CEO, said of the deal: “With over 90 companies around the globe currently using its platforms, we believe that Amaya is a leader in the online gaming market and working with them will offer many mutual benefits.
“We are confident that the integration of our renowned brands and content delivery technology into Amaya’s full suite of cutting-edge online platforms will create a turnkey solution for our customers. Together with our many US gaming licenses, we believe we will be able to maximize the market presence of these platforms.”
David Baazov, CEO of Amaya, added: “Strategic alliances have always been an integral part of Amaya’s strength and growth in key markets, and SHFL, with its reputation for gaming innovation and strong relationships in the US, is an ideal partner for us in the US market.
“Amaya expects to leverage those qualities by combining our technologies and expertise and putting forward a very compelling offering to US operators wishing to extend their brand and operations online.”