London-listed mobile gaming platform provider Nektan has signed a joint venture deal with US games developer Spin Games to target expansion in the US casino market, with three contracts already agreed to launch in-venue mobile gaming with three land-based operators.
The joint venture, in which Nektan and Spin Games hold equal stakes, will see the companies work together to roll out mobile gaming solutions for land-based casino operators across the 32 US states that have legalised gambling.
The pair will look to facilitate existing operators’ entry into in-venue mobile gaming, with clients paying a daily fee per gaming cabinet.
Nektan and Spin Games will offer a solution that allows operators to add mobile technology and content to their existing offerings, with products to be made accessible to customers across both cabinets and mobile devices inside the casinos.
The joint venture has already agreed contracts with three unnamed tribal and commercial operators in California and Nevada, with these initial contracts expected to generate material revenue from the outset.
“With our joint mobile technology solution including the Evolve platform and Spin Games' gaming machine expertise we are offering a solution to introduce mobile gaming to land based casino operators across up to 32 states,” he explained.
Shaw also noted that the joint venture also provided Nektan with entry into a key US market without having to rely on state-by-state interactive gaming regulation – something he described as a longer-term opportunity for the business.
“We are delighted to be forming a joint venture with Netkan and feel our combined technology and expertise will allow us to exploit the opportunities in the North American gaming market,” Spin Games president and chief executive Kent Young added.
The deal further strengthens Spin Games’ presence in the US gaming market, with the supplier already active in New Jersey’s iGaming market through its partnership with KGM Gaming. The companies have already signed deals to supply Caesars Interactive and Golden Nugget with video poker, slots and table games.
Shares in Nektan plc (AIM:NKTN) are currently trading up 4.53 per cent at 196.00 pence per share in London this morning, having fallen sharply since being listed at a price of 255.00 pence in London earlier this month.