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Scientific Games and Playtech to Conquer the iGaming Industry
Scientific Games and Playtech forge an international distribution agreement aiming to explore new market opportunities.
Scientific Games Partners with Playtech
Scientific Games (SG), the giant gaming technology provider, and European gaming company Playtech have signed a new agreement, paving their way to capitalize off each other in different regions worldwide.
Under the deal, Playtech’s software will be available for operators via SG’s Open Gaming System (OGC) offering, including slots table and live casino games integrated into SG’s features. Playtech content will be rolled out in New Jersey first, followed by other states, according to a statement.
Scientific Games Sets Eyes on the iGaming Sector
Playtech provides software for fixed-odds arcade and online games, as well as services for scratch games. Founded in Estonia, the company makes software for internet casinos, online sports betting and web-based poker rooms. Its headquarters is currently located in the Isle of Man.
With this collaboration, Scientific Games shows its dedication to enhance its presence in the fast-growing internet casino industry. Last month, SG announced it would divest its lottery and sports betting units to relieve some of its debt burdens and make room for other growth opportunities.
SG’s strategy could prove successful in the long run, as some analysts estimate that online casino and sports betting markets in North America could be worth $42 billion and more in the future. The iGaming market is the more prominent segment of the two because it has better margins and a longer runway for state-level legalization.
It recently became clear that SG plans to offload its lottery and OpenBet units. Eddie Jordan, a former owner of an F1 team, was named one of the possible buyers of the billion-dollar sports betting unit. At the same time, the company hinted last week at its desire to acquire the 19% of SciPlay Corp, a social casino developer, it doesn’t already control.
Playtech and Scientific Games to Explore New Markets
For both companies, the new agreement means that they will enter new markets, which they haven’t yet explored.
According to the statement, the new partnership would enable SG and Playtech to benefit from each other’s scale and allow them to reach new markets across the US, as well as regulated markets in Central, Eastern and Western Europe, and Latin America.
Playtech and SG didn’t disclose details of the deal. According to rumors, Playtech is a potential acquisition target for SG. However, this distribution agreement is not necessarily a precursor to another deal.
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Eva is a PR specialist and communications expert with ten years of experience in campaign organizing and creative writing. She is also a published author of fictional stories. Eva recently developed an interest in economics and the gaming industry after discovering the inspirational story of Molly Bloom.
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