Scientific Games and Playtech Online Casino Software Restructure

The rumour mill proved right on again recently as was expected the relationship between Playtech and Scientific Games was experiencing some difficulty and as the recent announcement suggests there is a remedy in the works. The firms have stated now that they are entering into an “agreement to restructure their strategic relationship relating to internet gaming products and services.” The press released continued “Under the agreement, Playtech will license its leading online gaming software to Scientific Games on a mutually non-exclusive basis for use by certain categories of Scientific Games’ current and prospective customers, including U.S. casinos and lotteries worldwide.”

In an attempt to clear up the issues facing the two enterprises further hard copy details regarding the relationship the statement said that there will be more to the story and that more documentation will, “further detail certain aspects of the arrangement”

Mor Weizer the Chief Executive Officer for Playtech, the software giant second only to Microgaming described the situation at length,  “This is a sensible reflection of the changing nature of the opportunities and the expansion of the potential scope of our relationship. We will look to work together as we both recognise that a number of key opportunities are outside the initial arrangement.” Weizer continued with the comment, “It should also be noted that the formal joint venture structure had certain limitations and accounting complexities which we will no longer experience.”

Playtech has a positive attitude towards its growth and is experiencing considerable profits due to strategic decisions that have opened the firm up to opportunities and markets worldwide. Its partnership with Scientific Games has seen better days though and Playtech is acting on the fact that Scientific Games revenues are currently the lowest they have ever recorded has reduced the relationship to a “strategic partnership”. The current value of Scientific Games was down another 10 % in recent trading, and this announcement will only cause more concern for investors.