NetPlay to Air Live Casino 28hrs a Week in ‘Five’ Deal8th September 2009 5:49 am GMT
NetPlayTV plc, the AIM-listed interactive gaming provider, said Monday that it has entered into a five-year commercial airtime deal with the UK's Channel Five, which will see its SuperCasino.com live interactive TV show broadcast for up to 28 hours each week.
The live interactive casino programming will initially air for three nights a week from September 17th between midnight and 4am Thursday through Saturday. The programming will be extended to six nights a week from October and seven nights a week beginning in 2010, offering 28 hours of live casino gaming each week.
The agreement follows a successful four-week trial by NetPlay and makes channel Five the first UK broadcaster to take advantage of new OFCOM teleshopping rules which allow night time gambling on TV. (more)
Under the terms of the agreement, NetPlay TV has also agreed to grant channel Five an option to purchase approximately 9.75 million shares, representing a 5% stake in NetPlay TV plc.
The strike price for the options is 28.5 pence per ordinary share, with the options subject to an orderly market clause which will run in conjunction with the agreement.
The options are exercisable from the first anniversary of signing the agreement and will cease six months post termination of the five year agreement.
'We are delighted to have successfully pitched for the simulcast teleshopping opportunity on Five. We identified Five as a great home for our brand SuperCasino.com and our beliefs were confirmed in the recent test. We look forward to making this venture a real commercial success," said Damon Letzer. Commercial Director of NetPlay TV.
Kelly Williams, Sales Director of Five, added: "The recent changes to the rules on teleshopping open up new opportunities for additional revenue streams for terrestrial broadcasters through advertising. Uppermost in our minds, however, was the need to secure a regulated product that we could offer with confidence to our viewers.
"During a trial period, we were satisfied by the robust nature of NetPlay TV's market-leading interactive TV casino product. Five is therefore delighted to have chosen NetPlay TV to feature in its teleshopping window."
Five is wholly owned by RTL Group, one of the world's largest media businesses with 45 TV channels and 32 radio stations in 11 countries. It is the largest media distribution company outside the USA.
Shares in NetPlay TV plc (Co. Profile) (AIM:NPT) are currently trading up 6.09% at 30.50 pence per share in London following the announcement.