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Sep 08, 2018

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It’s worth noting that all of this revenue is generated through B2B activities where Playtech’s technology platform known as Playtech ONE is used by other gaming brands. US sports betting offers “strategic optionality” Inevitably Playtech’s current interest in the US results from the opportunities in sports betting . However, online poker is part of the Playtech ONE product suite and can easily be deployed in US states such as Pennsylvania where regulations allow. Playtech’s sports betting product is operated by its subsidiary Playtech BGT Sports (PBS). PBS is active worldwide and significantly is now a major player in the Mexican market through its use by regulated market leader Caliente. During the earnings call, Weitzer explained the importance of this to Playtech’s US ambitions: “In terms of the opportunity in the US, the capabilities of PBS position Playtech with a compelling offering. Playtech’s sportsbook is ready now and is already one of the largest traders in US sports due to our activity in Mexico whose most popular markets are the US sports markets.” Playtech is in the process of applying for a New Jersey license but indicates that it is looking for a much larger US footprint. Weitzer explained that the PBS sportsbook is particularly suited to the fragmented US market because it is extremely scalable on a state by state basis. A single casino looking to get into the market can use PBS in a simple “one-step process” avoiding the development costs and problems of starting from a blank sheet. The full “strategic optionality” was set out in a single slide but at the end of his explanation Weitzer significantly added “watch this space!” Caesars is partnered with Playtech in the UK When the Kindred Group announced its Q2 results on July 25, CEO Henrik Tjärnström produced a very similar slide to the one Mor Weitzer offered. Any doubts as to Kindred’s commitment were quickly dispelled when only three weeks later the company announced a 10-year partnership with the new Hard Rock Casino in New Jersey.

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