It has been an interesting decade for Playtech, one of the main iGaming operators. The studio’s slot portfolio has been growing. Their live offers have become more sophisticated and yet increasingly easy to access thanks to HTML5. Naturally, with results – interest in what they have to offer has also increased.
Investing in Playtech by Jason Ader
If the world of businesses knows one name that is Jason Ader’s. An activist investor, Mr Ader is now moving on Playtech. The Time’s report on his activities has caused some excitement indeed. According to the news, Ader has managed to silently buy up $100 million stake from the UK-based company. In other words, Ader owns as much as 5% of the total company, giving him an opportunity to influence affairs.
According to the report, Ader is going to push and try to sell the company. He also decided to leverage his power and put Playtech Chairman Alan Jackson at the helm of the company. To reaffirm his trust in Jackson, Ader influenced a salary bump by $72,000, even though Playtech has been posting some disconcerting results.
On top of that, shareholders have been quite reluctant to endorse and reward leadership for the performance. They even voted against the remuneration policy within the company several months before the latest developments.
Ader has said that he will seek to optimize the company’s offer and make sure that it excels financially, satisfying both the preferences of its shareholders, but also its own immediate businesses-specific needs.
A Bright New Opportunity in the US
Playtech is playing the Brave New World card. Ader’s interest in the company coincides with Playtech’s desire to scout new opportunities in a market that promises huge revenue for the entities that manage to enter and operate it safely.
Playtech has its visor on the United States where the online gambling market is just burgeoning and there is no legislation that allows it to expand geographically. However, the industry is estimated at $150 billion annually, the bulk of which goes to offshore bookmakers and iGaming operators.
With the legalization of the sector, though, this capital will start to float back home, which will make it possible for companies, including Playtech, to benefit in full from the fresh influx of gamers. Casinos will ultimately seek the services to introduce a reliable array of titles quickly and without delay.
One crucial aspect of the gaming experience will be the rapid adoption of HTML5 to make sure that iOS compatible devices, which are popular in the United States, will have no trouble running the gaming products.
Ader has done quite a few things over the years, particularly insofar as iGaming goes. He helped The Stars Group fend off takeover bids and he additionally fought Bwin back in 2014 via a proxy.
A known name in business, it’s not difficult to see Ader taking Playtech and pushing the company into brave new markets occasioning a time of rapid expansion. However, as experienced an investor he is, he will still have to respect the pace at which the industry is developing in the United States.