Video games publisher Atari is set to enter the real-money gaming sector through a long-term strategic partnership with Pariplay, a company owned by GMS Entertainment in which Zumba Fitness developer Majesco Entertainment holds a 50 per cent stake.

The deal covers online lottery, social, iGaming and mobile channels, with a number of brands earmarked for lottery clients. The first products are set to be rolled out in the fourth quarter of this year.

Pariplay will develop a real-money gaming platform for Atari, featuring games from the company's portfolio of popular brands including arcade classics Centipede, Asteroids, Tempest, Pong, and Missile Command among others.

In addition, Pariplay will distribute Atari branded games to operators through the Pariplay network.

Pariplay chief executive Gili Lisani described Atari as a pioneer in electronic entertainment that had “built tremendous brand equity through [its] rich suite of beloved brands.”

“We are proud to steward their entry into the evolving iGaming category where players can engage with their properties in exciting new ways,” Lisani commented.

Atari also recently established a partnership with social casino operator FlowPlay, to launch a new social casino gaming platform, Atari Casino.

The company’s chief executive Fred Chesnais said that Pariplay’s real-money gaming experience and its solid back-end system made them an ideal partner for Atari at a time when the company was looking to broaden its product range.

“This initiative, coupled with our recent FlowPlay social casino announcement, supports our broader vision to expand Atari's legacy properties outside of the gaming field,” he added.

Pariplay’s parent company, GMS Entertainment, has already entered the video lottery terminal market through a partnership with Intralot. Its games have launched for terminals in Idaho, and will be rolled out in more states over the course of the year.

Majesco has committed to investing up to $4.5m in the venture, and has identified the project as a key driver of future growth to offset its declining console games business.

Shares in Majesco Entertainment Co. (Co. Data) (NASDAQ:COOL) closed at $0.38 per share in New York yesterday, having hit a new 52-week low of $0.37 during trading.

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