Second joint venture for Playtech

Only a day after announcing a joint venture for the German market with gaming machine manufacturer Gauselmann Group, software designer and developer Playtech Limited has unveiled a similar agreement with Peermont Group for South Africa.

London-listed Playtech revealed that this second deal has been signed in anticipation of expected deregulation and will see the pair create an online gaming operation focused on the South Africa market.

Under the terms of the agreement, each company will commit equal amounts of working capital for an equivalent share in the new joint venture while Playtech is to deploy its PTTS turnkey solution that includes extensive online marketing and player-retention capabilities.

“South Africa currently permits online sportsbetting and it is intended that the joint venture will hold a sportsbetting licence and commence operations in 2012,” read a statement from Playtech.

“This will enable the joint venture to position itself as a well-recognised online brand in advance of regulations permitting online gaming ahead of which customers will be able to play online poker and casino games in a ‘play for fun’ environment.”

Playtech declared that it had also signed a separate agreement with Peermont to license its software and platform in order to provide ‘all permitted gaming products’ together with its player management system and technology ‘to deliver a market-leading gaming experience across online and mobile channels’.

“I am delighted to be able to announce another joint venture in a regulating market for Playtech,” said Mor Weizer, Chief Executive Officer for Playtech.

“Peermont is one of the leading players in the South African gaming market and I am confident that we will establish an exciting new online gaming business together, especially once a broader range of gaming products is permitted.

“We are working to establish our joint venture model in a range of international markets. I believe these will prove strongly accretive for shareholders as we align our interests with those of our customers and work to build several new business opportunities.

“Our strategy is to build long-term relationships with leading gaming groups in their local markets combining Playtech's technology and marketing expertise with our partner's local market presence and knowledge.”