Online gaming technology supplier Playtech has announced the signing of two new full turnkey agreements with Mexican gaming group Caliente and an unnamed major media brand in Italy, with the company also set to provide its software as well as invest £10m in UK gaming operator BGO.
Playtech signed a software licensing deal with Caliente in March 2012 to launch online casino games in Mexico and other parts of Latin America.
The new deal sees Playtech provide its retail sports betting software to Caliente’s 140 locations in Mexico and to fifty locations in eleven other countries across South America for a minimum period of 10 years.
The long-term turnkey arrangement will also see Playtech provide its full suite of both online and mobile products and a full range of operational services in order to grow Caliente's existing online business.
In addition to software royalties, Playtech said that it will be paid income on a performance basis for the provision of these services.
The second agreement is with an as yet unnamed major Italian media brand for a minimum of five years. In an exclusive commercial relationship, Playtech will provide the technology and operational sports betting and gaming expertise for the launch of a new website for the Italian market.
Playtech said that the group behind the brand will support the venture with its “extensive” marketing assets, in print and online and through multiple channels including social media, native mobile apps, and sponsorship.
“Further partnership agreements will be based around a comprehensive software offering and are expected to earn a continual stream of revenue on an annual basis, with the possible injection of upfront cash by both parties so as to stimulate marketing efforts and fund working capital requirements,” said Playtech in a statement.
“These contracts do more than provide a financial upside; they give greater control over our future, ensure we have the best commercial arrangements in all key regulated markets and create greater liquidity for the entire Playtech ecosystem.”
Playtech also confirmed this morning that it is about to sign a software licensing and investment deal with BGO, the Alderney-licensed operator which launched in late 2012.
As well as a long-term contract to supply its full software product range to BGO, Playtech has agreed to invest £10m in BGO in exchange for a 33.33 per cent equity stake on customary terms. The funds invested will be used primarily to fund BGO's “innovative” marketing strategy, the company said.
BGO was founded by the same group of entrepreneurs who recently sold their Costa Bingo and Casino Choice businesses to Intertain Group.
BGO's management team is led by Ohad Narkis, who has previously worked for the likes of Williams Interactive and PokerStars.