Gaming technology supplier and operator Playtech has added a stake in Hard Rock Digital to the company’s portfolio of holdings.
Playtech has invested US$85m in Hard Rock Digital as part of a landmark strategic partnership that will see the supplier provide games to Hard Rock Digital’s customers in the United States and Canada, and power operations in select international markets.
This will include the rollout of Playtech’s IMS player management platform and certain ancillary services, including operational, customer support, payment advisory and marketing services.
Hard Rock Digital (HRD), the interactive gaming and sports betting arm of Hard Rock International and Seminole Gaming, will take Playtech’s products and services under a predominantly revenue share basis.
Playtech’s investment in the business will give the company a low single digit percentage ownership stake, with the funds being used to drive HRD’s continued global expansion beyond the current markets of Arizona, Indiana, Iowa, New Jersey, Ohio, Tennessee, and Virginia in the United States.
“The Playtech team is thrilled to announce our strategic partnership with HRD. Hard Rock International has cemented itself as a marquee name worldwide, not just in gambling, but more widely in entertainment,” said Mor Weizer, chief executive of Playtech.
“HRD will combine the strength of this global brand with a proven management team, some of whom we at Playtech have known for many years and believe to be among the strongest in the online gambling industry. For Playtech, this partnership significantly advances our position in the North American market and is very much in line with our B2B strategy.”
The HRD partnership is expected to contribute to Playtech’s revenue in 2024 and beyond.
“This partnership will act as an accelerator to Hard Rock Digital’s planned strategic initiative to expand its online gaming offerings to international markets, becoming the first operator with a global omni-channel offering under a singular, irreplaceable brand,” said Jim Allen, chairman of Hard Rock International and chairman of the board of HRD.
“This announcement only reinforces our commitment to lead innovation in the gaming industry and expand the ‘Hard Rock’ experience worldwide. We look forward to providing an authentic, digital experience for Hard Rock’s global fan base within a comprehensive, omni-channel offering.”
HRD generated a net loss before tax of $76.3m in the twelve months to December 31, 2022.
Shares in Playtech plc. (LSE:PTEC) were trading 0.27 per cent lower at 542.50 pence per share in London Tuesday morning.