Teddy Sagi, the multi-millionaire entrepreneur behind Playtech, is making headlines once again with his latest venture. This time, he is set to list Winvia Entertainment, a prize draw company, in the UK. Teddy Sagi is a name synonymous with success in the gaming industry. Born in 1972 in Israel, Sagi founded Playtech in 1999, which has since become one of the largest online gaming software suppliers globally.
Sagi’s journey is marked by several key milestones, including the successful IPO of Playtech on the London Stock Exchange in 2006. His ability to identify and capitalise on emerging trends has been pivotal in his career, and his latest venture with Winvia Entertainment is no exception.
The Vision Behind Winvia Entertainment
Winvia Entertainment aims to revolutionise the prize draw sector by offering a unique platform that combines entertainment with the thrill of winning. The company focuses on providing a transparent and engaging experience for users, ensuring that every participant feels valued.
Sagi’s vision for Winvia is to create a community where players can enjoy the excitement of prize draws while also having the opportunity to win substantial rewards. This aligns with the growing demand for interactive and engaging online experiences, particularly among younger audiences.
The UK has a robust regulatory framework governing online draws, which provides a level of security and trust for players. The UK Gambling Commission oversees the industry, ensuring that operators adhere to strict guidelines. This regulatory environment is conducive for new companies like Winvia, as it fosters consumer confidence and encourages responsible practices.
Winvia’s Unique Selling Proposition
Winvia Entertainment differentiates itself from traditional prize draw companies through its innovative model. The platform offers a variety of prize draws, ranging from cash prizes to luxury items, all designed to appeal to a broad audience.
Moreover, Winvia employs a transparent system that allows participants to track their entries and understand the odds of winning. This level of transparency is crucial in building trust with users the company says, especially in an industry often scrutinised for its fairness.
Community Engagement
Another key aspect of Winvia’s strategy is its focus on community engagement. The company plans to implement features that allow users to interact with one another, share experiences, and celebrate wins together. This sense of community is expected to enhance user loyalty and encourage repeat participation.
As Winvia Entertainment prepares for its listing in the UK, the company is undergoing a thorough evaluation of its operations and financials. This process is essential to ensure that it meets the stringent requirements set by the London Stock Exchange.
The listing of Winvia Entertainment is expected to have a considerable impact on the prize draw market in the UK. It will not only introduce a new player into the sector but also stimulate competition among existing operators. Looking ahead, Winvia Entertainment has ambitious plans for expansion. The company aims to diversify its offerings and explore international markets.
Showing posts with label Playtech. Show all posts
Showing posts with label Playtech. Show all posts
October 27, 2025
November 25, 2021
LVS To Make Offer For Playtech?
Is Las Vegas Sands About to join the battle for Playtech? According to sources close to the business it is rumoured that the company that was controlled by Sheldon Adelson until his death at the beginning of this year may make an offer for the online gambling technology supplier.
Indeed in reporting the companies first results since the death of their founder in January CEO Robert Goldstein was quoted that Las Vegas Sands were interested in getting into the sector by saying, “I have very strong thoughts about this, “we just want to keep working toward our goals. It’s a very interesting business. The question is can we bring something to the table that can make a lot of money.”
It was later mentioned that should they venture into the sector they would look at a B2B service provider to acquire possibly so the casino operator can develop their own software. That would allow them to gain a foothold in the ever expanding US sports betting market.
The current valuation of Playtech is at £2.7 billion even if that was to rise towards £3 billion it would not cause any problems for the operator that has casinos in the US, Macau and Singapore.
With Playtech management already accepting an offer from Aristocrat Leisure but now there are more players with former F-1 team owner Eddie Jordan and Keith O’Loughlin, a former senior executive from Scientific Games have along with major investors have asked also for due diligence on Playtech. Under the name JKO Play Limited Jordan and O’Loughlin are seeking institutional investment for a potential offer.
Playtech are certainly still in play and there is still time for Las Vegas Sands to enter the fray, if the rumours are true expect the US based casino giant to make a move before the end of the year.
November 09, 2021
Playtech in talks with shareholder Gopher on potential takeover; Aristocrat's bid faces competition
Weeks after agreeing to a buyout from Aristocrat Leisure, Playtech is now in talks with Hong Kong-based Gopher Investments over a possible takeover offer. The British online gambling software firm’s shares have seen a 3% increase on Monday.
Gopher is Playtech’s second-biggest shareholder, counting with a nearly 5% stake in the firm through an affiliate TT Bond Partners. A preliminary approach was made on October 21, seeking access to some due diligence information to weigh a possible offer, Playtech confirmed in a statement Monday.
Conversations with Gopher were described as in an early stage, and terms of the potential bid have not been disclosed yet. However, it is believed the takeover offer is worth about £3 billion, according to Sky News, which first reported on the subject.
A series of undertakings from Playtech shareholders to accept Aristocrat’s offer, worth about £2.1 billion, would lapse should a rival suitor offer a price at least 10% higher than that bid. In consequence, Gopher’s offer would have to be at least 748p-a-share to secure board recommendation.
Gopher, a prominent Playtech shareholder, is allegedly working with bankers at Rothschild in the offer, which would trump Aristocrat’s bid, first announced last month. Sources familiar with the matter have told the previously cited new source that Gopher’s deliberations were not guaranteed to lead to a formal offer, but that the company was looking “seriously” at doing so.
In September, Gopher managed a deal to buy Playtech’s financial trading unit, Finalto, following a months-long battle with the British company and an Israeli consortium led by Barinboim Group. The deal, for an enterprise value of $250 million in cash, is expected to be completed in the first half of 2022.
Regulators must now decide on a deadline by which the Hong Kong-based investment firm must either present a firm intention to bid for all of Playtech or walk away. It still remains unclear how Gopher would structure an offer for the entirety of Playtech, given the Finalto transaction has yet to reach its conclusion.
Aristocrat has acknowledged Gopher’s possible offer for Playtech in a new statement, defending its bid. “Aristocrat's long-term engagement with regulators across key gaming jurisdictions, together with strong financial fundamentals, deep customer relationships and established presence in global gaming markets, positions Aristocrat to complete the transaction as planned in the second quarter of calendar year 2022,” the Australian company said.
Moreover, the gambling machine manufacturer said the completion of its offer would provide “certain value to Playtech shareholders,” while the combined group would also provide “greater opportunities” to Playtech’s employees. Aristocrat says it will “continue to work” to progress the recommended acquisition and urges shareholders to vote in favor of its bid.
October 04, 2021
Israeli billionaire escapes attempted assassination in Cyprus
An Israeli billionaire was saved at the last minute from an assassination plot in Cyprus several days ago, after being warned about the attempt, Channel 12 news reported on Sunday. The man was later named as Teddy Sagi, a well-known Israeli-Cypriot businessman who founded the gambling software company Playtech and owns Camden Market in London.
According to the report, Sagi, 49, was the target of an assassination plot in Cyprus due to debts he owes to Russian business partners. A hired killer of Azerbaijani origin was reportedly waiting for Sagi there. According to Walla News, the assassin holds a Russian passport.
But Sagi fled the country at the last minute, after receiving a warning of the plot from authorities, reported Channel 12. According to Ynet, the assassin was arrested in Cyprus days later, after he crossed the Agios Dhometios checkpoint in Nicosia from the Turkish-ruled northern part of the country.
The attempted attack was originally thought to be an Iranian plot to target Israelis, but authorities now believe it was specifically against Sagi, and Iran may not be involved at all. According to Forbes, Sagi is worth $5.6 billion, and is the fourth richest person in Israel.
Cyprus is home to about 3,500 Jews. It is a particularly popular vacation destination for Israelis, at less than an hour’s flight from Tel Aviv.
September 30, 2021
Playtech signs multi-state agreement in U.S. with Unibet
Playtech, the gambling technology company, today announces the signing of a multi-state agreement with Unibet Interactive, a part of Kindred Group. Under the agreement, Playtech will provide its RNG Casino software to Unibet in New Jersey, with further states to follow in the coming months.
The partnership with Unibet Interactive is the next step in Playtech’s strategic expansion in the U.S. market. Unibet has established a market-leading product offering to its customers in New Jersey, which will be further bolstered by a range of Playtech’s best-performing RNG Casino software.
Shimon Akad, Playtech Chief Operating Officer, said: “We are delighted to announce this exciting step in Playtech’s U.S. growth. Unibet deliver a fantastic entertainment experience to their U.S. customers, and we are proud to partner with them to deliver Playtech’s Casino software as part of their market leading offering – starting in New Jersey. Playtech continues to partner with the leading operators in New Jersey to bring its industry leading Casino software to the U.S. market and we look forward to continuing to expand into new States’.
Manuel Stan, SVP Kindred Group US, commented: “To add Playtech Casino software to our portfolio in New Jersey is very exciting. Partnering with Playtech enables us to offer our online casino customers a selection of some of the best quality content, and we look forward to further collaboration with Playtech across more U.S. states in the future.”
January 02, 2019
Playtech reaches £25 million deal with Israeli tax authorities
Playtech has agreed to pay Israeli authorities approximately £25 million following a civil tax audit assessing its activity in the country between 2008 and 2017.
The gambling software company confirmed this morning that it had reached a settlement on 31 December 2018, after acknowledging that the Israeli tax authorities had made “transfer pricing adjustments in relation to certain functions”.
The payment, expected to be made in the next 30 days, will be reflected as an exceptional item in the firm’s 2018 accounts. No further penalties are to be imposed as a result of the audit.
The news closes a turbulent year for Playtech, who now expect to take an earnings hit of up to €25 million (£22.5 million) in 2019 due to changes in Italy’s gambling taxes.
Online casino revenues will be taxed at 25% (up from 20%), while online sports betting will be subjected to a 2% increase from 22 to 24%. This is on top of the advertising ban, announced as part of the Lega-5 Star government’s ‘Dignity Decree’.
Playtech had moved to offset falling revenues in Asia by completing the acquisition of Italian betting group Snaitech for approximately €850 million in June of last year.
The gambling software company confirmed this morning that it had reached a settlement on 31 December 2018, after acknowledging that the Israeli tax authorities had made “transfer pricing adjustments in relation to certain functions”.
The payment, expected to be made in the next 30 days, will be reflected as an exceptional item in the firm’s 2018 accounts. No further penalties are to be imposed as a result of the audit.
The news closes a turbulent year for Playtech, who now expect to take an earnings hit of up to €25 million (£22.5 million) in 2019 due to changes in Italy’s gambling taxes.
Online casino revenues will be taxed at 25% (up from 20%), while online sports betting will be subjected to a 2% increase from 22 to 24%. This is on top of the advertising ban, announced as part of the Lega-5 Star government’s ‘Dignity Decree’.
Playtech had moved to offset falling revenues in Asia by completing the acquisition of Italian betting group Snaitech for approximately €850 million in June of last year.
April 12, 2018
Playtech makes a $1.05B play for Italian betting firm Snaitech
Online gambling technology provider Playtech has agreed to buy a 70.6% stake in Italian gambling firm Snaitech, a move that the UK company expects will enhance its “revenue mix towards regulated markets.”
Playtech makes a $1.05B play for Italian betting firm SnaitechThe “initial acquisition” of Snaitech carries a price tag of €846 million ($1.05 billion), Playtech announced in a Thursday filing. The British gambling company is required to make a mandatory takeover offer for the remaining stake in Snaitech after the initial acquisition is completed sometime in the third quarter of 2018. The mandatory takeover offer is aimed at delisting Snaitech from the Milan Stock Exchange, according to Playtech. It expects the entire transaction will be completed before the year ends.
The deal will be funded by Playtech’s existing cash resources, plus new debt, and is expected to deliver cost material annual cost synergies of €10 million.
If the deal manages to clear regulatory and shareholder approvals, it would mean that Playtech will be seeing 78 percent of its revenue from regulated markets. The Snaitech acquisition will allow Playtech to establish “strong presence in Italy, Europe’s largest and growing gaming market, a fragmented market which is relatively underdeveloped online.”
Playtech sees the acquisition as an opportunity to combine “two market leading players in the B2B/B2C space with brand strength and scalable offerings,” giving the British company “incremental organic growth potential and greater strategic optionality.”
Snaitech is licensed by the Italian Monopolies Authority to offer gaming services and products, including sport and horse racing betting; virtual sports; video lottery; online and mobile poker, skill games, casino games, bingo; esports; and pari-mutuel. The SNAI retail betting network has more than 1,600 points of sale located throughout Italy. The group also operates 60,000 “New Slot” as well as more than 10,000 video lotteries across the country.
In 2017, Snaitech generated revenue €890 million and EBITDA of €136 million.
The acquisition deal couldn’t have come at a better time for UK’s Playtech, which has been battling the sweeping regulatory changes at its home market on top of the persisting operational problems in Asia.
Playtech reported a modest 18% net revenue gain in 2017, following Malaysia’s crackdown on gambling in the country. In February, Playtech Chairman Alan Jackson said the company is looking to diversify its revenue base by investing in fast growing regulated and regulating markets in Europe and Latin America.
Playtech makes a $1.05B play for Italian betting firm SnaitechThe “initial acquisition” of Snaitech carries a price tag of €846 million ($1.05 billion), Playtech announced in a Thursday filing. The British gambling company is required to make a mandatory takeover offer for the remaining stake in Snaitech after the initial acquisition is completed sometime in the third quarter of 2018. The mandatory takeover offer is aimed at delisting Snaitech from the Milan Stock Exchange, according to Playtech. It expects the entire transaction will be completed before the year ends.
The deal will be funded by Playtech’s existing cash resources, plus new debt, and is expected to deliver cost material annual cost synergies of €10 million.
If the deal manages to clear regulatory and shareholder approvals, it would mean that Playtech will be seeing 78 percent of its revenue from regulated markets. The Snaitech acquisition will allow Playtech to establish “strong presence in Italy, Europe’s largest and growing gaming market, a fragmented market which is relatively underdeveloped online.”
Playtech sees the acquisition as an opportunity to combine “two market leading players in the B2B/B2C space with brand strength and scalable offerings,” giving the British company “incremental organic growth potential and greater strategic optionality.”
Snaitech is licensed by the Italian Monopolies Authority to offer gaming services and products, including sport and horse racing betting; virtual sports; video lottery; online and mobile poker, skill games, casino games, bingo; esports; and pari-mutuel. The SNAI retail betting network has more than 1,600 points of sale located throughout Italy. The group also operates 60,000 “New Slot” as well as more than 10,000 video lotteries across the country.
In 2017, Snaitech generated revenue €890 million and EBITDA of €136 million.
The acquisition deal couldn’t have come at a better time for UK’s Playtech, which has been battling the sweeping regulatory changes at its home market on top of the persisting operational problems in Asia.
Playtech reported a modest 18% net revenue gain in 2017, following Malaysia’s crackdown on gambling in the country. In February, Playtech Chairman Alan Jackson said the company is looking to diversify its revenue base by investing in fast growing regulated and regulating markets in Europe and Latin America.
November 03, 2017
Malaysian gambling crackdown forces Playtech to issue profit warning
Problems in Asia and a troublesome bingo contract have forced gaming and spread-betting company Playtech to issue a profit warning sending the shares plunging by a fifth.
Management at the Isle of Man-based business, which was founded by billionaire Teddy Sagi, said it expected annual profits to be 5pc lower than the bottom end of market expectations, prompting analysts to wipe about €20m (£17.8m) off their full-year earnings forecasts and sending Playtech shares down 218.5p to 768p.
A key problem for the company is understood to be Malaysia, which is presently an unregulated market and has seen its government move to prevent citizens from accessing online gambling sites and mobile apps.
The country’s leaders are considering changes to its Common Gaming House Act 1953 to plug loopholes which enable citizens to gamble online.
Deputy Prime Minister Ahmad Zahid Hamidi is quoted as saying that the government hasn’t decided on whether the change of the law will be in the form of an amendment or if the parliament will craft a new preventive law that will specifically target online gambling activities.
Analysts at Investec predicted the Malaysia issue was responsible for the bulk of the value of the profit downgrade by the company.
Investec added it thought Malaysia represented 5pc of Playtech’s total revenue, which came in at €709m in 2016.
Elsewhere, its contract with Sun Bingo, which involves Playtech providing the technology for the game, has continued to be problematic.
Earlier this year Playtech chief executive Mor Weizer admitted it had been forced to spend more money than planned to attract customers and that it was a year behind where it wanted to be with the project.
In its update this week, the company said the contract “remains challenging” partly due to the re-launch of the new Sun Bingo site.
The company’s financial division Tradetech, which serves professional traders, has performed as expected.
Management at the Isle of Man-based business, which was founded by billionaire Teddy Sagi, said it expected annual profits to be 5pc lower than the bottom end of market expectations, prompting analysts to wipe about €20m (£17.8m) off their full-year earnings forecasts and sending Playtech shares down 218.5p to 768p.
A key problem for the company is understood to be Malaysia, which is presently an unregulated market and has seen its government move to prevent citizens from accessing online gambling sites and mobile apps.
The country’s leaders are considering changes to its Common Gaming House Act 1953 to plug loopholes which enable citizens to gamble online.
Deputy Prime Minister Ahmad Zahid Hamidi is quoted as saying that the government hasn’t decided on whether the change of the law will be in the form of an amendment or if the parliament will craft a new preventive law that will specifically target online gambling activities.
Analysts at Investec predicted the Malaysia issue was responsible for the bulk of the value of the profit downgrade by the company.
Investec added it thought Malaysia represented 5pc of Playtech’s total revenue, which came in at €709m in 2016.
Elsewhere, its contract with Sun Bingo, which involves Playtech providing the technology for the game, has continued to be problematic.
Earlier this year Playtech chief executive Mor Weizer admitted it had been forced to spend more money than planned to attract customers and that it was a year behind where it wanted to be with the project.
In its update this week, the company said the contract “remains challenging” partly due to the re-launch of the new Sun Bingo site.
The company’s financial division Tradetech, which serves professional traders, has performed as expected.
August 18, 2017
Playtech BGT Sports momentum continues with BoyleSports extension
Playtech BGT Sports has agreed a deal to extend distribution of its self-service betting terminals (SSBTs) with BoyleSports.
As part of the agreement, another 325 of the terminals will be deployed within the Irish operator’s 225-strong estate, doubling the number to over 1,000 in the last 12 months.
Individual shop SSBT density will increase once the additional terminals have been installed, with many of the operator’s best performing shops hosting in excess of five SSBTs as they look to build upon their operating objective to offer their customers an all-encompassing service through a variety of modern mediums.
Dr. Armin Sageder, CEO of Playtech BGT Sports, said: “Our partnership with BoyleSports has been very successful since our initial deployment, and our second extension to the deal this year proves the strength of the product for the Irish customer base.
“Many shops will host more than four terminals, which illustrates that customers are seeing the tangible benefits of the machines, which have been shown to greatly add incremental revenue and increased margins, without the threat of cannibalisation to the over-the-counter product.”
Jenna Boyle, Head of Retail at BoyleSports, said: “Customer feedback for the increased offering provided by PBS’ SSBTs has required us to greatly increase the number of them across our estate to keep up with demand.
They have helped us generate record-breaking SSBT football betting turnover, and the significant incremental revenue each one generates has led to us making the decision to further increase the average density in our shop in order to further enhance our market leading retail offering.”
This agreement comes just four months after a similar deal extension, which saw PBS provide an additional 200 terminals to BoyleSports.
As part of the agreement, another 325 of the terminals will be deployed within the Irish operator’s 225-strong estate, doubling the number to over 1,000 in the last 12 months.
Individual shop SSBT density will increase once the additional terminals have been installed, with many of the operator’s best performing shops hosting in excess of five SSBTs as they look to build upon their operating objective to offer their customers an all-encompassing service through a variety of modern mediums.
Dr. Armin Sageder, CEO of Playtech BGT Sports, said: “Our partnership with BoyleSports has been very successful since our initial deployment, and our second extension to the deal this year proves the strength of the product for the Irish customer base.
“Many shops will host more than four terminals, which illustrates that customers are seeing the tangible benefits of the machines, which have been shown to greatly add incremental revenue and increased margins, without the threat of cannibalisation to the over-the-counter product.”
Jenna Boyle, Head of Retail at BoyleSports, said: “Customer feedback for the increased offering provided by PBS’ SSBTs has required us to greatly increase the number of them across our estate to keep up with demand.
They have helped us generate record-breaking SSBT football betting turnover, and the significant incremental revenue each one generates has led to us making the decision to further increase the average density in our shop in order to further enhance our market leading retail offering.”
This agreement comes just four months after a similar deal extension, which saw PBS provide an additional 200 terminals to BoyleSports.
June 27, 2017
William Hill shutting its online operations in Israel, laying off more than 200
Оnline gaming giant William Hill plc will be shutting its operation in Israel. More than 200 of the company’s approximately 250 Tel Aviv based employees will be laid off, and the company’s offices at the Azrieli Towers will be vacated.
A small number of William Hill Israel key employees will be offered relocation to head office in the UK or elsewhere in Europe.
Sources at the company were quoted as saying that representatives of William Hill had begun meeting individually with Tel Aviv based employees, explaining the company’s decision to consolidate the online portion of its business, which is what the Israel operation dealt mostly with.
Israel is a major center in the online gaming world as well as in areas such as online marketing and software development which are essential to the industry. However the strong Shekel, combined with rising real estate prices and low unemployment levels, has made Israel a much more expensive place in which to do business. Israeli technology companies have also been actively outsourcing to lower cost locations such as India and Eastern Europe.
William Hill began operating in Israel in 2008, when it created William Hill Online as a joint venture with Teddy Sagi’s Playtech PLC. Playtech transferred assets and technology into William Hill Online, including a large number of Israel-based employees, in return for a 30% interest in the venture. William Hill bought out Playtech’s holding in the JV in 2013 for £424 million.
A small number of William Hill Israel key employees will be offered relocation to head office in the UK or elsewhere in Europe.
Sources at the company were quoted as saying that representatives of William Hill had begun meeting individually with Tel Aviv based employees, explaining the company’s decision to consolidate the online portion of its business, which is what the Israel operation dealt mostly with.
Israel is a major center in the online gaming world as well as in areas such as online marketing and software development which are essential to the industry. However the strong Shekel, combined with rising real estate prices and low unemployment levels, has made Israel a much more expensive place in which to do business. Israeli technology companies have also been actively outsourcing to lower cost locations such as India and Eastern Europe.
William Hill began operating in Israel in 2008, when it created William Hill Online as a joint venture with Teddy Sagi’s Playtech PLC. Playtech transferred assets and technology into William Hill Online, including a large number of Israel-based employees, in return for a 30% interest in the venture. William Hill bought out Playtech’s holding in the JV in 2013 for £424 million.
December 02, 2016
Tedi Sagi sells 10% stake in Playtech
Tedi Sagi the founder of Playtech has decided to sell 10% of his stake in the company reducing it down to 23.6%, in a filing to the London Stock Exchange (LSE), Playtech announced the news that the billionaire is selling a third of his shares in the technology giant.
On completion of the sale it is estimated Sagi will receive £294 million for his 10% sale on the company that is currently valued at £2.94 billion. In the announcement Playtech said that following the sale Sagi and his investment vehicle he uses for the shares, Brickington Trading Limited will not sell any further shares for at least another 180 days.
The understanding for the sale is for Sagi to invest in other non-related sectors, the self made billionaire has diversified over the years and holds some 34 properties in Camden London with 465,000 square feet of space along with owning the famous Camden Market.
On completion of the sale it is estimated Sagi will receive £294 million for his 10% sale on the company that is currently valued at £2.94 billion. In the announcement Playtech said that following the sale Sagi and his investment vehicle he uses for the shares, Brickington Trading Limited will not sell any further shares for at least another 180 days.
The understanding for the sale is for Sagi to invest in other non-related sectors, the self made billionaire has diversified over the years and holds some 34 properties in Camden London with 465,000 square feet of space along with owning the famous Camden Market.
August 25, 2016
Playtech's share price and market capitalisation jump as group treats investors to €150m special dividend
Gambling software group Playtech's share price popped to a record high this morning after it announced it will treat shareholders to a bumper €150m special dividend.
Playtech said it will make the payout in December, though it has also hiked its interim dividend by 15 per cent to €0.11. The company said the boosts were in anticipation of higher growth and cash generation.
Revenue at the group was up 18 per cent to €338m in the six months to 30 June.
Adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) reached €144m, a rise of 27 per cent.
Playtech's stock jumped around five per cent to over 944p on the news and took its market capitalisation above £3bn for the first time.
The jump means it is now the second largest gambling company in the UK in terms of market capitalisation, behind only the merged behemoth Paddy Power Betfair.
Its stock was trading around four per cent higher at the time of writing to 934.7p.
In the first half of this year Playtech continued to push forward with its M&A strategy by acquiring Swedish software firm Quickspin in May for €24m and buying up 90 per cent of Best Gaming Technology for €138m in July.
Chief executive Mor Weizer told City A.M. Playtech remains an "opportunistic and highly acquisitive company".
However, it is not aiming to join the wave of high-profile mergers, such as those between Paddy Power and Betfair and Ladbrokes and Gala Coral, anytime soon.
"Given the health pipeline of M&A in discussion we expect to remain busy and active in the coming quarters. We would never say never to a merger – every opportunity would be considered – but we intend to be the group leading the consolidating rather than being consolidated by others.
"We are very much focused on certain companies that can add to our capabilities at the moment and help us target greater international expansion," Weizer said.
Playtech supplies some of the most profitable bookmakers in markets such as the UK and Spain, including Betfred, Codere, Coral, Ladbrokes, Paddy Power Betfair and William Hill.
However, Weizer said the company intends to be "the most important B2B provider" in the gambling industry in the key regulated markets of the Czech Republic, Slovakia, Poland, the Netherlands and Mexico, among others.
It said it is "locking in" future growth in its gaming division, after announcing important new licensees this year including PokerStars and SunBets, as well as a slew of contract renewals that now put seven of its top 10 licensees on contracts with at least three years remaining.
Weizer told City A.M. he expects Playtech's casino and sports products to generate the most growth in the coming quarters, while mobile will be the group's most lucrative channel. Mobile growth grew 29 per cent in the first half in total and generated 54 per cent of UK revenues.
Chairman Alan Jackson said:
"Playtech has made significant progress in 2016 as we have delivered on our strategic objectives. The gaming division continues to deliver strong growth, driven by our industry-leading casino offering.
Given this progress, we remain confident of strong growth in 2016 and beyond."
Playtech said it will make the payout in December, though it has also hiked its interim dividend by 15 per cent to €0.11. The company said the boosts were in anticipation of higher growth and cash generation.
Revenue at the group was up 18 per cent to €338m in the six months to 30 June.
Adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) reached €144m, a rise of 27 per cent.
Playtech's stock jumped around five per cent to over 944p on the news and took its market capitalisation above £3bn for the first time.
The jump means it is now the second largest gambling company in the UK in terms of market capitalisation, behind only the merged behemoth Paddy Power Betfair.
Its stock was trading around four per cent higher at the time of writing to 934.7p.
In the first half of this year Playtech continued to push forward with its M&A strategy by acquiring Swedish software firm Quickspin in May for €24m and buying up 90 per cent of Best Gaming Technology for €138m in July.
Chief executive Mor Weizer told City A.M. Playtech remains an "opportunistic and highly acquisitive company".
However, it is not aiming to join the wave of high-profile mergers, such as those between Paddy Power and Betfair and Ladbrokes and Gala Coral, anytime soon.
"Given the health pipeline of M&A in discussion we expect to remain busy and active in the coming quarters. We would never say never to a merger – every opportunity would be considered – but we intend to be the group leading the consolidating rather than being consolidated by others.
"We are very much focused on certain companies that can add to our capabilities at the moment and help us target greater international expansion," Weizer said.
Playtech supplies some of the most profitable bookmakers in markets such as the UK and Spain, including Betfred, Codere, Coral, Ladbrokes, Paddy Power Betfair and William Hill.
However, Weizer said the company intends to be "the most important B2B provider" in the gambling industry in the key regulated markets of the Czech Republic, Slovakia, Poland, the Netherlands and Mexico, among others.
It said it is "locking in" future growth in its gaming division, after announcing important new licensees this year including PokerStars and SunBets, as well as a slew of contract renewals that now put seven of its top 10 licensees on contracts with at least three years remaining.
Weizer told City A.M. he expects Playtech's casino and sports products to generate the most growth in the coming quarters, while mobile will be the group's most lucrative channel. Mobile growth grew 29 per cent in the first half in total and generated 54 per cent of UK revenues.
Chairman Alan Jackson said:
"Playtech has made significant progress in 2016 as we have delivered on our strategic objectives. The gaming division continues to deliver strong growth, driven by our industry-leading casino offering.
Given this progress, we remain confident of strong growth in 2016 and beyond."
April 06, 2016
Playtech’s Teddy Sagi linked to 16 offshore accounts by Panama Papers
Well known names like Vladimir Putin and the Prime Minister of Iceland have been mentioned around the seismic leak of documents surrounding off-shore law firm, Mossack Fonseca of Panama City, Panama. On Sunday an international coalition of media outlets published the results of an ongoing investigation based on secret documents provided by an anonymous source. The cache of documents totaling some 11.5 million records gave the cadre of more than 100 journalists worldwide a behind-the-scenes look into the offshore banking activity of world leaders, businessmen, celebrities, sports stars, and criminals. One of the businessmen linked to offshore corporations was Israeli gaming entrepreneur and Playtech founder, Teddy Sagi.
Among correspondences examined were those between the Panamanian law firm and Israel’s Bank Leumi. According to Haaretz, the communications discussed Leumi’s Jersey branch in the Channel Islands; a tax haven. One of the bank’s customers is billionaire Teddy Sagi who founded Playtech in 1999 and grew it into one of the most powerful gaming companies in the world. Mr. Sagi also invests in real estate, having contributed heavily to the development of Camden Market into a vibrant a commercial real estate space in London.
Most of the 16 offshore companies Sagi owns, that were established by Mossack Fonseca, deal in real estate. Sagi is listed as the sole shareholder of all 16 companies. Branch officers of Bank Leumi serve as directors on many of the company boards.
None of the companies have been linked to wrong-doing. Sagi is well known in the casino industry as a creative entrepreneur who gained much of his fortune through legally buying or creating gaming related companies and then selling them to Playtech or subsidiaries at substantial profits. Analysts, if not regulators, have raised concerns on several occasions that Playtech acquiring assets from its founder and largest shareholder could some day put the larger company in a tight spot. The fact that Sagi controlled many of those companies was not known until the sales were publicized.
As the result of a 2014 investigation not connected to the Jersey branch, Bank Leumi was found to have assisted about 1,500 American clients evade taxes. The bank paid a fine of 1.5 billion shekels (US$400 million).
All indications are that Sagi turned his life around after being convicted of, and sentenced for, fraud and bribery in a Tel Aviv court 20 years ago after he admitted to manipulating bond prices according to Wikipedia and the International Business Times. There are no allegations that he has done anything illegal with the offshore companies revealed today. For all his success there would likely be more without that dark mark from a virtual lifetime ago. In spite of that, Sagi was listed as a Forbes billionaire before the age of 40, and in 2014 alone floated three companies on the London Stock Market.
Haaretz reports that associates have said Sagi didn’t create the companies, only purchased them. They said that having branch bank managers on the boards of those companies was simply a service Bank Leumi provides its customers. Bank Leumi told the outlet that it’s sale of the Jersey branch last October was “part of the bank’s policy to diminish its international activity,” that the branch operated within the laws and regulations of the Jersey Financial Services Commission, and that, “Naturally, we are unable to address specific costumer issues due to banking confidentiality,” a representative said.
Playtech (LON: PTEC) stock closed at 841.50 GBX down 20.50 points (2.38%) unaffected by the news that the company’s founder has had 16 offshore accounts revealed. Hundreds of other prominent Israeli business persons and lawyers were also linked to shell companies in the documents.
Among correspondences examined were those between the Panamanian law firm and Israel’s Bank Leumi. According to Haaretz, the communications discussed Leumi’s Jersey branch in the Channel Islands; a tax haven. One of the bank’s customers is billionaire Teddy Sagi who founded Playtech in 1999 and grew it into one of the most powerful gaming companies in the world. Mr. Sagi also invests in real estate, having contributed heavily to the development of Camden Market into a vibrant a commercial real estate space in London.
Most of the 16 offshore companies Sagi owns, that were established by Mossack Fonseca, deal in real estate. Sagi is listed as the sole shareholder of all 16 companies. Branch officers of Bank Leumi serve as directors on many of the company boards.
None of the companies have been linked to wrong-doing. Sagi is well known in the casino industry as a creative entrepreneur who gained much of his fortune through legally buying or creating gaming related companies and then selling them to Playtech or subsidiaries at substantial profits. Analysts, if not regulators, have raised concerns on several occasions that Playtech acquiring assets from its founder and largest shareholder could some day put the larger company in a tight spot. The fact that Sagi controlled many of those companies was not known until the sales were publicized.
As the result of a 2014 investigation not connected to the Jersey branch, Bank Leumi was found to have assisted about 1,500 American clients evade taxes. The bank paid a fine of 1.5 billion shekels (US$400 million).
All indications are that Sagi turned his life around after being convicted of, and sentenced for, fraud and bribery in a Tel Aviv court 20 years ago after he admitted to manipulating bond prices according to Wikipedia and the International Business Times. There are no allegations that he has done anything illegal with the offshore companies revealed today. For all his success there would likely be more without that dark mark from a virtual lifetime ago. In spite of that, Sagi was listed as a Forbes billionaire before the age of 40, and in 2014 alone floated three companies on the London Stock Market.
Haaretz reports that associates have said Sagi didn’t create the companies, only purchased them. They said that having branch bank managers on the boards of those companies was simply a service Bank Leumi provides its customers. Bank Leumi told the outlet that it’s sale of the Jersey branch last October was “part of the bank’s policy to diminish its international activity,” that the branch operated within the laws and regulations of the Jersey Financial Services Commission, and that, “Naturally, we are unable to address specific costumer issues due to banking confidentiality,” a representative said.
Playtech (LON: PTEC) stock closed at 841.50 GBX down 20.50 points (2.38%) unaffected by the news that the company’s founder has had 16 offshore accounts revealed. Hundreds of other prominent Israeli business persons and lawyers were also linked to shell companies in the documents.
February 25, 2016
Playtech unit Markets.com sees mass layoffs in restructuring of sales, retention and customer service operations
Retail Forex and CFD broker Markets.com, a unit of Playtech PLC (LON:PTEC), has issued pink slips to a large number of its sales, retention and customer service employees in both Israel and Bulgaria, as part of a major restructuring. More than a hundred employees in Israel, and several dozen in Sofia, Bulgaria have been affected.
The move affects many of the employees of TradeFXL, the Playtech unit which served the group’s online brokerage brands including Markets.com and binary options broker TopOption.
Apparently many top-level decisions at Markets.com are being made nowadays by Playtech management. One of those decisions was to automate the operations of Markets.com and the group’s other online trading brands. And, to remove incentive compensation (i.e. commissions) for most of those employees who remained.
The layoffs and departures have occurred in stages since last October, but apparently accelerated over the past few weeks since the company’s planned acquisitions of rivals AvaTrade and Plus500 were called off (more on that below).
Apparently a large number of sales and retention staff were summarily laid off, while another group was offered to stay but on new terms – fixed salaries instead of salary-plus-commission. Not surprisingly, many of that second group of employees have also left, especially the higher-performing sales people who could no longer earn large commissions.
The move to automate is not a new one in the industry, but seems to be a big gamble at a broker such as Markets.com, which as far as we can tell was performing very well of late before implementing the changes.
The reasons behind the move?
Other than the obvious benefits of automation (less people to manage, lower costs), a major driver was avoiding future potential regulatory problems.
Apparently the new bosses at Playtech were concerned with all the telephone contact commission-hungry sales and retention people were having with clients – a feature at many Forex brokers – and made a strategic decision to automate (virtually) all sales and retention operations, and eliminate commissions.
Internally, the company has been referring to operating ‘more like a bank’, meaning a more conservative approach to the business.
Playtech Plus500 deal cancelledThe restructuring is in part an outcome of Playtech’s inability to close on the acquisition of rival Plus500 Ltd (LON:PLUS), and adopt Plus500’s ‘automated’ approach to customer acquisition and retention. Playtech had offered to buy Plus500 mid last year for $700 million. The deal was approved by the boards and shareholders of both companies, but was cancelled in November after the UK financial regulator The FCA indicated that it was not going to approve the transaction.
As we wrote at the time, beyond pure growth and the desire of Playtech’s controlling shareholder Teddy Sagi to build Markets.com into the world’s leading retail FX broker, the key behind the planned deal was acquiring Plus500’s technology and processes. Plus500 has grown to be one of the world’s largest retail Forex and CFD brokers (2015 revenues of $276 million) with a bare minimum of staff, focusing its efforts on onboarding and serving clients in as automated a way as possible.
Without Plus500, Markets.com is instead going it alone in trying to automate a lot of internal processes and operations. And that means a lot fewer employees.
As we wrote above, most affected are employees at Markets.com / TradeFXL in the company’s Tel Aviv, Israel offices. The company is also shutting down its operations in Bulgaria, engaged mainly in customer service and documentation processing, shifting some of those jobs to Cyprus where Markets.com operating company Safecap is based.
Markets.com parent company Playtech is set to release Full Year 2015 results tomorrow, Thursday, February 25. We would expect the announcement will include some mention of the restructuring at Markets.com.
We have seen automating broker operations becoming a key competitive point lately among leading platform providers as well, such as at Leverate and SpotOption with its Spot+ system.
The move affects many of the employees of TradeFXL, the Playtech unit which served the group’s online brokerage brands including Markets.com and binary options broker TopOption.
Apparently many top-level decisions at Markets.com are being made nowadays by Playtech management. One of those decisions was to automate the operations of Markets.com and the group’s other online trading brands. And, to remove incentive compensation (i.e. commissions) for most of those employees who remained.
The layoffs and departures have occurred in stages since last October, but apparently accelerated over the past few weeks since the company’s planned acquisitions of rivals AvaTrade and Plus500 were called off (more on that below).
Apparently a large number of sales and retention staff were summarily laid off, while another group was offered to stay but on new terms – fixed salaries instead of salary-plus-commission. Not surprisingly, many of that second group of employees have also left, especially the higher-performing sales people who could no longer earn large commissions.
The move to automate is not a new one in the industry, but seems to be a big gamble at a broker such as Markets.com, which as far as we can tell was performing very well of late before implementing the changes.
The reasons behind the move?
Other than the obvious benefits of automation (less people to manage, lower costs), a major driver was avoiding future potential regulatory problems.
Apparently the new bosses at Playtech were concerned with all the telephone contact commission-hungry sales and retention people were having with clients – a feature at many Forex brokers – and made a strategic decision to automate (virtually) all sales and retention operations, and eliminate commissions.
Internally, the company has been referring to operating ‘more like a bank’, meaning a more conservative approach to the business.
Playtech Plus500 deal cancelledThe restructuring is in part an outcome of Playtech’s inability to close on the acquisition of rival Plus500 Ltd (LON:PLUS), and adopt Plus500’s ‘automated’ approach to customer acquisition and retention. Playtech had offered to buy Plus500 mid last year for $700 million. The deal was approved by the boards and shareholders of both companies, but was cancelled in November after the UK financial regulator The FCA indicated that it was not going to approve the transaction.
As we wrote at the time, beyond pure growth and the desire of Playtech’s controlling shareholder Teddy Sagi to build Markets.com into the world’s leading retail FX broker, the key behind the planned deal was acquiring Plus500’s technology and processes. Plus500 has grown to be one of the world’s largest retail Forex and CFD brokers (2015 revenues of $276 million) with a bare minimum of staff, focusing its efforts on onboarding and serving clients in as automated a way as possible.
Without Plus500, Markets.com is instead going it alone in trying to automate a lot of internal processes and operations. And that means a lot fewer employees.
As we wrote above, most affected are employees at Markets.com / TradeFXL in the company’s Tel Aviv, Israel offices. The company is also shutting down its operations in Bulgaria, engaged mainly in customer service and documentation processing, shifting some of those jobs to Cyprus where Markets.com operating company Safecap is based.
Markets.com parent company Playtech is set to release Full Year 2015 results tomorrow, Thursday, February 25. We would expect the announcement will include some mention of the restructuring at Markets.com.
We have seen automating broker operations becoming a key competitive point lately among leading platform providers as well, such as at Leverate and SpotOption with its Spot+ system.
November 24, 2015
Teddy Sagi’s Playtech Losing Two Major Acquisitions In One Day
Major London listed gambling software company Playtech may have suffered a double reverse as it has been forced to cancel one major acquisition, with a second also, seemingly, headed for the rocks. The two deals were intended to help diversify the company away from its existing business which, while still profitable, may be facing pressures in the future if its gambling company customers start to develop their own software for their casinos.
The UK’s financial regulator is the FCA, or Financial Conduct Authority, which has to this point refused to permit Playtech’s previously announced deal to acquire Plus500, a junior London listed company, for about $700 million to go through citing certain concerns, according to a press release put out by Playtech earlier today. Cyprus financial regulators, who also have jurisdiction, have earlier already approved the transaction.
Plus500 are in the business of enabling trading for contracts for difference, or CFDs, which is a form of speculation on movements in the prices of equities without owning the underlying security. With substantial leverage available the prices of CFDs can fluctuate widely, and carry significant risk therefor and these are products generally suitable for sophisticated investors as a result. In addition to covering equity CFDs, the company trades CFDs for other financial markets including commodities and foreign exchange.
As a company engaged in such financial products, within the UK Plus500 is regulated by the FCA who, it is said by a number of news media today, may indeed be worried by the background of Playtech’s founder, and major shareholder, Teddy Sagi. Though he no longer sits on its board of directors Sagi, who still owns around 30 percent of Playtech, was apparently convicted of fraud in Israel some twenty years ago.
In addition, some analysts have noted, the FCA may have been legitimately nervous of Playtech’s lack of knowledge and experience in the CFD business itself, which occupies a fairly esoteric and specialized corner of the financial marketplace.
Israeli financial newspaper Globes reports that, after extensive representations to the FCA over the last few months, the deal finally may have cratered over demands by the FCA to significantly reduce Sagi’s personal financial holding in Playtech as a condition for approval, though this is unconfirmed.
Since it never rains but it pours, another currently pending Playtech acquisition, to buy a second, smaller, broker of CFDs, the Dublin based trader Ava Trade, for $105 million also appeared near to collapse today after, Playtech said in the same press release, concerns stated by the Central Bank of Ireland back in October.
Playtech has stated it will not incur any penalties relating to these set-backs, except to have to give up a $5 million non-refundable deposit it has made for the second, Ava Trade, deal in the event it also collapses as well.
Clearly regulators are very sensitive these days to which entities can play in the financial services game and have raised the bar, it seems, in this case to block an entity controlled currently by a complete outsider to the industry, and someone who clearly has something of a checkered past moreover.
The UK’s financial regulator is the FCA, or Financial Conduct Authority, which has to this point refused to permit Playtech’s previously announced deal to acquire Plus500, a junior London listed company, for about $700 million to go through citing certain concerns, according to a press release put out by Playtech earlier today. Cyprus financial regulators, who also have jurisdiction, have earlier already approved the transaction.
Plus500 are in the business of enabling trading for contracts for difference, or CFDs, which is a form of speculation on movements in the prices of equities without owning the underlying security. With substantial leverage available the prices of CFDs can fluctuate widely, and carry significant risk therefor and these are products generally suitable for sophisticated investors as a result. In addition to covering equity CFDs, the company trades CFDs for other financial markets including commodities and foreign exchange.
As a company engaged in such financial products, within the UK Plus500 is regulated by the FCA who, it is said by a number of news media today, may indeed be worried by the background of Playtech’s founder, and major shareholder, Teddy Sagi. Though he no longer sits on its board of directors Sagi, who still owns around 30 percent of Playtech, was apparently convicted of fraud in Israel some twenty years ago.
In addition, some analysts have noted, the FCA may have been legitimately nervous of Playtech’s lack of knowledge and experience in the CFD business itself, which occupies a fairly esoteric and specialized corner of the financial marketplace.
Israeli financial newspaper Globes reports that, after extensive representations to the FCA over the last few months, the deal finally may have cratered over demands by the FCA to significantly reduce Sagi’s personal financial holding in Playtech as a condition for approval, though this is unconfirmed.
Since it never rains but it pours, another currently pending Playtech acquisition, to buy a second, smaller, broker of CFDs, the Dublin based trader Ava Trade, for $105 million also appeared near to collapse today after, Playtech said in the same press release, concerns stated by the Central Bank of Ireland back in October.
Playtech has stated it will not incur any penalties relating to these set-backs, except to have to give up a $5 million non-refundable deposit it has made for the second, Ava Trade, deal in the event it also collapses as well.
Clearly regulators are very sensitive these days to which entities can play in the financial services game and have raised the bar, it seems, in this case to block an entity controlled currently by a complete outsider to the industry, and someone who clearly has something of a checkered past moreover.
October 09, 2015
Playtech confident on acquisitions despite CBI opposition
Playtech remains confident it would receive the necessary regulatory permissions for its two proposed financial trading acquisitions despite the intervention from Ireland’s financial watchdog with regard to one of the deals in question.
The announcement by Playtech on Monday that the Central Bank of Ireland (CBI) had notified the company of its opposition to the AvaTrade buyout late the previous week came out of the blue for both Playtech and the analysts who follow the group.
The company said on Monday it would be “seeking clarification from the CBI” and will “engage with them in order to discuss certain issues raised in the letter which the company believes can be addressed to the CBI’s satisfaction”.
It followed that up with another stock exchange announcement on Tuesday saying it had heard back from the CBI and “following this communication and having taken legal advice, the company intends to formally challenge the decision”.
Nick Batram at Peel Hunt suggested the CBI news was “undoubtedly a setback”, particularly given that the AvaTrade deal is commonly thought to be less contentious than the Plus500 deal, where Playtech is also currently engaged with the regulators across various jurisdictions to gain deal clearance.
“In the grand scheme of things AvaTrade is not a material transaction,” Batram said of the US$105m deal in a note to clients on Monday.
“However, it clearly creates uncertainty around the Plus500 deal. We don’t know whether the (UK’s Financial Conduct Authority) will be influenced or not by the CBI, but the Plus500 deal is already taking longer to complete than originally expected.”
For its part, Playtech remained tight-lipped over the details of the CBI objections, but sources close to the company suggest it is set to vigorously defend the deal and added that it is “very, very surprised” at the intervention.
It is understood the company received the notice late on Friday evening, after the markets had closed, and that up until that point there had been minimal contact with the regulator.
It will be appealing through the official regulatory process and it is thought that recourse to further legal avenues is available should it become necessary.
Combined, the AvaTrade and Plus500 deals mark a further evolution of Playtech’s march into financial trading (paywall), a move that began at the start of the year when it bought TradeFX, a company owned by Playtech’s majority shareholder Teddy Sagi.
The “opportunistic” Plus500 acquisition came after that company fell foul of the UK’s financial watchdog over its client ‘onboarding’ techniques. The FCA intervention saw Plus500’s share price take a 50% tumble, at which point Playtech stepped in with its takeover offer.
The original completion date for the Plus500 deal was pencilled in for September, but in a stock exchange announcement in mid-September, the company said that the necessary regulatory approvals were “taking longer than… originally anticipated”.
It said at the time that it was “currently not aware of any issues which would give rise to the required regulatory approvals not being granted in due course”.
The US$105m AvaTrade acquisition is the lesser of the two deals, compared with the £460m deal for Plus500. Playtech sees the AvaTrade deal as a bolt-on acquisition that had been agreed upon by TradeFX before the Playtech deal.
Goodbody analyst Gavin Kelleher said “in its own right AvaTrade is not huge driver of the investment case”. But he added: “However, given the delays with the Plus500 deal, which is a significant driver of the investment case, the market will be looking for that deal to complete within the next month.”
Playtech is understood to remain confident it will gain clearance from the UK’s FCA and other regulators involved in the Plus500 deal, including Singapore and Australia. The company noted at the time of the publication of the Plus500 buyout prospectus that further enquiries regarding Plus500 had been received from an unnamed regulator.
The deal already has clearance from the Cyprus Securities and Exchange Commission (CySEC) and from the British Virgin Islands, however, analysts from Cannaccord Genuity pointed out that the news of the Irish issues “will clearly raise some concerns over the potential for the FCA to block the Plus500 deal”.
Batram at Peel Hunt pointed out there were questions about whether the FCA would be influenced by the Irish central bank’s intervention. “The Plus500 deal is already taking longer to complete than originally expected,” he added.
Playtech said this week that both deals were proceeding in line with regulatory guidelines and would be completed either this month or in November.
Canaccord Genuity said it believed the “heightened concerns over the timing and certainty of completion” of the two deals could cause some share price uncertainty. The Playtech share price suffered on the CBI news, falling from around 840p last week to 784p as of Thursday (yesterday).
In tangential news, financial trading rival IG Group announced on Wednesday it had settled a compensation deal with clients over events at the beginning of the year related to trading on the Swiss franc.
The company has accepted the Financial Ombudsman Service’s decision that the company could have settled certain ‘fill orders’ at a more beneficial price than that given to some of its clients. It said the decision would cost it £1m to rectify all accounts affected.
This stands in contrast to Plus500, which said at the time of the extraordinary movements in the Swiss franc that it had made money from the movements caused by the Swiss National Bank decision to end its currency peg to the euro (paywall).
The announcement by Playtech on Monday that the Central Bank of Ireland (CBI) had notified the company of its opposition to the AvaTrade buyout late the previous week came out of the blue for both Playtech and the analysts who follow the group.
The company said on Monday it would be “seeking clarification from the CBI” and will “engage with them in order to discuss certain issues raised in the letter which the company believes can be addressed to the CBI’s satisfaction”.
It followed that up with another stock exchange announcement on Tuesday saying it had heard back from the CBI and “following this communication and having taken legal advice, the company intends to formally challenge the decision”.
Nick Batram at Peel Hunt suggested the CBI news was “undoubtedly a setback”, particularly given that the AvaTrade deal is commonly thought to be less contentious than the Plus500 deal, where Playtech is also currently engaged with the regulators across various jurisdictions to gain deal clearance.
“In the grand scheme of things AvaTrade is not a material transaction,” Batram said of the US$105m deal in a note to clients on Monday.
“However, it clearly creates uncertainty around the Plus500 deal. We don’t know whether the (UK’s Financial Conduct Authority) will be influenced or not by the CBI, but the Plus500 deal is already taking longer to complete than originally expected.”
For its part, Playtech remained tight-lipped over the details of the CBI objections, but sources close to the company suggest it is set to vigorously defend the deal and added that it is “very, very surprised” at the intervention.
It is understood the company received the notice late on Friday evening, after the markets had closed, and that up until that point there had been minimal contact with the regulator.
It will be appealing through the official regulatory process and it is thought that recourse to further legal avenues is available should it become necessary.
Combined, the AvaTrade and Plus500 deals mark a further evolution of Playtech’s march into financial trading (paywall), a move that began at the start of the year when it bought TradeFX, a company owned by Playtech’s majority shareholder Teddy Sagi.
The “opportunistic” Plus500 acquisition came after that company fell foul of the UK’s financial watchdog over its client ‘onboarding’ techniques. The FCA intervention saw Plus500’s share price take a 50% tumble, at which point Playtech stepped in with its takeover offer.
The original completion date for the Plus500 deal was pencilled in for September, but in a stock exchange announcement in mid-September, the company said that the necessary regulatory approvals were “taking longer than… originally anticipated”.
It said at the time that it was “currently not aware of any issues which would give rise to the required regulatory approvals not being granted in due course”.
The US$105m AvaTrade acquisition is the lesser of the two deals, compared with the £460m deal for Plus500. Playtech sees the AvaTrade deal as a bolt-on acquisition that had been agreed upon by TradeFX before the Playtech deal.
Goodbody analyst Gavin Kelleher said “in its own right AvaTrade is not huge driver of the investment case”. But he added: “However, given the delays with the Plus500 deal, which is a significant driver of the investment case, the market will be looking for that deal to complete within the next month.”
Playtech is understood to remain confident it will gain clearance from the UK’s FCA and other regulators involved in the Plus500 deal, including Singapore and Australia. The company noted at the time of the publication of the Plus500 buyout prospectus that further enquiries regarding Plus500 had been received from an unnamed regulator.
The deal already has clearance from the Cyprus Securities and Exchange Commission (CySEC) and from the British Virgin Islands, however, analysts from Cannaccord Genuity pointed out that the news of the Irish issues “will clearly raise some concerns over the potential for the FCA to block the Plus500 deal”.
Batram at Peel Hunt pointed out there were questions about whether the FCA would be influenced by the Irish central bank’s intervention. “The Plus500 deal is already taking longer to complete than originally expected,” he added.
Playtech said this week that both deals were proceeding in line with regulatory guidelines and would be completed either this month or in November.
Canaccord Genuity said it believed the “heightened concerns over the timing and certainty of completion” of the two deals could cause some share price uncertainty. The Playtech share price suffered on the CBI news, falling from around 840p last week to 784p as of Thursday (yesterday).
In tangential news, financial trading rival IG Group announced on Wednesday it had settled a compensation deal with clients over events at the beginning of the year related to trading on the Swiss franc.
The company has accepted the Financial Ombudsman Service’s decision that the company could have settled certain ‘fill orders’ at a more beneficial price than that given to some of its clients. It said the decision would cost it £1m to rectify all accounts affected.
This stands in contrast to Plus500, which said at the time of the extraordinary movements in the Swiss franc that it had made money from the movements caused by the Swiss National Bank decision to end its currency peg to the euro (paywall).
July 30, 2015
Playtech launches Ladbrokes Omni sportsbook
Playtech has launched its first omni-channel HTML5 front-end solution with Ladbrokes, enabling a seamless, fully responsive desktop and mobile user experience and a host of unique, new sportsbook features.
In a market-first, Ladbrokes’ new Playtech Sports HTML5 solution will significantly boost its sportsbook performance and optimisation capabilities ahead of the forthcoming English Premier League season.
It will offer players an unrivalled and personalised mobile and desktop experience in line with ‘Playtech ONE’, the cutting-edge omni-channel solution that allows customers to play any content, across any channel and is responsive to any device using one account and one wallet.
This is the second Playtech omni-channel HTML5 product rollout with several others due later this year. Earlier this month Playtech Bingo launched the industry’s first HTML5-only platform with a number of key licensees in the process of migrating to the new solution.
Playtech Bingo’s move to HTML5-only means it operates from one code base, increasing the number of software and content releases and enabling players to have a true omni-channel look and feel offering across both desktop and mobile.
The latest Ladbrokes desktop sportsbook will also be supported by Playtech Sports’ new NGen system, a fully bespoke solution capable of handling large volumes of data across concurrent sporting events and thousands of betting markets.
Playtech, under its Mobenga subsidiary, first partnered with Ladbrokes in May 2013 launching its mobile sportsbook platform in December of that year and completing the integration of Playtech Casino and all its digital products onto the market-leading IMS platform in April 2014. This has since allowed Ladbrokes to market effectively to its digital customers and significantly boost its online and mobile revenues.
The front-end desktop-mobile solution project began in January this year and has been completed in record time.
Since its launch on the Playtech Sports mobile platform Ladbrokes mobile sportsbook has gone from strength-to-strength with staking up 110% and active users up 62% for the year ended December 31st 2014.
The HTML5 omni-channel front-end is the first of several releases with the next in the autumn. It contains a number of new and exciting features designed to significantly boost the current user experience. These include:
Liron Snir, VP Product, Playtech, said: “Playtech has been pioneering in releasing the industry’s first omni-channel products and platforms across bingo, sports and casino. A fully responsive desktop and mobile front-end solution is just the beginning of much more omni-channel ‘Playtech ONE’ activity we have planned in partnership with Ladbrokes.
“This has been a fantastic project to work on from start to finish with our Mobenga team completing their work in record time. We very much look forward to continuing our journey in partnership with Ladbrokes and helping them with the rapid growth of their digital business,” Snir added.
Andrew Bagguley, Ladbrokes Managing Director, Digital said: “We’ve developed and now delivered this new desktop platform with a combined team approach and in less than a year we have a very strong, joined up sportsbook proposition which we believe is the quickest and easiest customer experience in the market, across all digital devices.
“Delivering this adaptive experience allows us to empower the customer to engage with our digital product however and wherever they want with no experiential compromises for any channel.
“Customers expect a consistent approach and we’re providing it with a single platform. We’ll be releasing new updates to all our digital sites in sync every few weeks. We are experts in sports betting and want to carry on delivering real value to customers with a series of innovations and continual improvements throughout the summer and into the latter part of the year,” Bagguley added.
In a market-first, Ladbrokes’ new Playtech Sports HTML5 solution will significantly boost its sportsbook performance and optimisation capabilities ahead of the forthcoming English Premier League season.
It will offer players an unrivalled and personalised mobile and desktop experience in line with ‘Playtech ONE’, the cutting-edge omni-channel solution that allows customers to play any content, across any channel and is responsive to any device using one account and one wallet.
This is the second Playtech omni-channel HTML5 product rollout with several others due later this year. Earlier this month Playtech Bingo launched the industry’s first HTML5-only platform with a number of key licensees in the process of migrating to the new solution.
Playtech Bingo’s move to HTML5-only means it operates from one code base, increasing the number of software and content releases and enabling players to have a true omni-channel look and feel offering across both desktop and mobile.
The latest Ladbrokes desktop sportsbook will also be supported by Playtech Sports’ new NGen system, a fully bespoke solution capable of handling large volumes of data across concurrent sporting events and thousands of betting markets.
Playtech, under its Mobenga subsidiary, first partnered with Ladbrokes in May 2013 launching its mobile sportsbook platform in December of that year and completing the integration of Playtech Casino and all its digital products onto the market-leading IMS platform in April 2014. This has since allowed Ladbrokes to market effectively to its digital customers and significantly boost its online and mobile revenues.
The front-end desktop-mobile solution project began in January this year and has been completed in record time.
Since its launch on the Playtech Sports mobile platform Ladbrokes mobile sportsbook has gone from strength-to-strength with staking up 110% and active users up 62% for the year ended December 31st 2014.
The HTML5 omni-channel front-end is the first of several releases with the next in the autumn. It contains a number of new and exciting features designed to significantly boost the current user experience. These include:
- New, dynamic layout with faster and easier navigation when searching for, and clicking on, the events and markets punters want to bet on
- New football and horse racing homepages that allow players to switch from league-to-league, match-to-match and race to race in a single-click
- New in-play enabling players to watch live and simultaneously access a variety of markets
- New ‘My Accas’, a personalised accumulator feature allowing punters to bet in-play on multiple markets, follow their bet progress in real-time, or choose to cash-out early
- New quick links enabling customer’s immediate access to sporting highlights, price boosts and offers
Liron Snir, VP Product, Playtech, said: “Playtech has been pioneering in releasing the industry’s first omni-channel products and platforms across bingo, sports and casino. A fully responsive desktop and mobile front-end solution is just the beginning of much more omni-channel ‘Playtech ONE’ activity we have planned in partnership with Ladbrokes.
“This has been a fantastic project to work on from start to finish with our Mobenga team completing their work in record time. We very much look forward to continuing our journey in partnership with Ladbrokes and helping them with the rapid growth of their digital business,” Snir added.
Andrew Bagguley, Ladbrokes Managing Director, Digital said: “We’ve developed and now delivered this new desktop platform with a combined team approach and in less than a year we have a very strong, joined up sportsbook proposition which we believe is the quickest and easiest customer experience in the market, across all digital devices.
“Delivering this adaptive experience allows us to empower the customer to engage with our digital product however and wherever they want with no experiential compromises for any channel.
“Customers expect a consistent approach and we’re providing it with a single platform. We’ll be releasing new updates to all our digital sites in sync every few weeks. We are experts in sports betting and want to carry on delivering real value to customers with a series of innovations and continual improvements throughout the summer and into the latter part of the year,” Bagguley added.
July 05, 2015
Playtech win deal to supply Norsk Tipping
Playtech have signed an agreement to supply locally adapted content to gaming operator Norsk Tipping.
The deal which will supply game content to over 4,300 interactive gaming terminals will start from August this year with the first delivery of the content of retail gaming specifically for the Norwegian Belago (bingo halls) and Multix (retail) sectors.
The company, under Playtech subsidiary Videobet Interactive Sweden, is one of three suppliers selected to provide new content for all Norsk Tipping interactive gaming terminals. The duration is for an initial two-year period that includes an option for two further one-year extensions.
Shimon Akad, chief operating officer at Playtech, said: “We have an excellent relationship with Norsk Tipping and this news only serves to reinforce this. We’re delighted both with the outcome of the procurement process and scoring highest among our competitors.”
He added: “The content agreement is in line with our regulated markets strategy and strengthens our market share in Norway alongside our existing software, systems and hardware provision.”
Lene Finstad, executive vice president of product and brands at Norsk Tipping, said: “We are excited to have Playtech as one of our three partners for the delivery of new interactive terminal games. In its tender the company demonstrated a deep understanding and a highly attractive games strategy for the Belago and Multix markets, and we look forward to bringing a wide range of new content to these markets to further develop them in a responsible, yet attractive way.”
The deal which will supply game content to over 4,300 interactive gaming terminals will start from August this year with the first delivery of the content of retail gaming specifically for the Norwegian Belago (bingo halls) and Multix (retail) sectors.
The company, under Playtech subsidiary Videobet Interactive Sweden, is one of three suppliers selected to provide new content for all Norsk Tipping interactive gaming terminals. The duration is for an initial two-year period that includes an option for two further one-year extensions.
Shimon Akad, chief operating officer at Playtech, said: “We have an excellent relationship with Norsk Tipping and this news only serves to reinforce this. We’re delighted both with the outcome of the procurement process and scoring highest among our competitors.”
He added: “The content agreement is in line with our regulated markets strategy and strengthens our market share in Norway alongside our existing software, systems and hardware provision.”
Lene Finstad, executive vice president of product and brands at Norsk Tipping, said: “We are excited to have Playtech as one of our three partners for the delivery of new interactive terminal games. In its tender the company demonstrated a deep understanding and a highly attractive games strategy for the Belago and Multix markets, and we look forward to bringing a wide range of new content to these markets to further develop them in a responsible, yet attractive way.”
June 05, 2015
Playtech releases slot games to Spanish licensees
Playtech will extend its dominance of the Spanish casino market by supplying all existing local licensees with access to its extensive, industry-leading slots portfolio.
Playtech’s existing licensees will offer the company’s industry-leading online and mobile slot content from today – the official date set by Spanish regulator La Dirección General de Ordenación del Juego (DGOJ) for the allowance of casino slot games.
As a result, each licensee will offer Playtech’s best-performing slot content including locally themed in-house and premium branded games from major studios such as Paramount and Universal and popular land-based titles, giving them access to the most complete Omni-Channel offering available within the Spanish market.
The Playtech offering in Spain is unrivalled delivering cutting-edge, profitable Omni-Channel gaming solutions to leading online, mobile and land-based brands across all verticals via Playtech ONE.
Playtech’s pioneering ONE technology allows players a seamless, anywhere-anytime gaming experience across any product, channel and device all using a single account and single wallet.
The Spanish gaming regulator approved slot games in July last year and re-opened its licensing window in November, the first time this has taken place since the market regulated in June 2012.
Shimon Akad, COO, Playtech, said: “The inclusion of online casino games and slots in Spain is a major breakthrough and will serve to increase our market share there.
“Our licensees and their players can now enjoy a complete Omni-Channel gaming solution online, on any mobile device, in-venue, and in retail outlets, across casino, bingo, poker, sports, virtual, live, and social, casual and fixed-odds games.”
Playtech’s existing licensees will offer the company’s industry-leading online and mobile slot content from today – the official date set by Spanish regulator La Dirección General de Ordenación del Juego (DGOJ) for the allowance of casino slot games.
As a result, each licensee will offer Playtech’s best-performing slot content including locally themed in-house and premium branded games from major studios such as Paramount and Universal and popular land-based titles, giving them access to the most complete Omni-Channel offering available within the Spanish market.
The Playtech offering in Spain is unrivalled delivering cutting-edge, profitable Omni-Channel gaming solutions to leading online, mobile and land-based brands across all verticals via Playtech ONE.
Playtech’s pioneering ONE technology allows players a seamless, anywhere-anytime gaming experience across any product, channel and device all using a single account and single wallet.
The Spanish gaming regulator approved slot games in July last year and re-opened its licensing window in November, the first time this has taken place since the market regulated in June 2012.
Shimon Akad, COO, Playtech, said: “The inclusion of online casino games and slots in Spain is a major breakthrough and will serve to increase our market share there.
“Our licensees and their players can now enjoy a complete Omni-Channel gaming solution online, on any mobile device, in-venue, and in retail outlets, across casino, bingo, poker, sports, virtual, live, and social, casual and fixed-odds games.”
May 19, 2015
The Online Gambling Battle For Bwin.Party
Online Gambling firm 888 Holdings is making a run at buying Bwin.Party Digital Entertainment, the Gibraltar-based online gambling company. There are reports that Amaya, the world’s biggest publicly-traded online gambling company, is joining tiny GVC Holdings to try to buy and carve up Bwin.Party. Playtech, the gambling software developer, has not emerged as a potential bidder, but has shown interest in Bwin.Party in the past.
The sale of Bwin.Party may still not happen, but negotiations for the company have reached their most serious stage since activist hedge fund manager Jason Ader’s SpringOwl Asset Management struck a deal with Bwin.Party last year that seemed to put the company in play. The details of the bids have not been disclosed and remain murky.
A deal for Bwin.Party would be a big moment in the online gambling industry. Bwin.Party was formed in 2011, combining Bwin’s sports betting business and PartyGaming’s online casino and online poker offerings. Before it chose to leave the U.S. market in 2006, PartyGaming was the most valuable online gambling company in the world.
What makes Bwin.Party valuable to other online gambling companies today, however, is its big sports betting business. Billionaire Denise Coates’ Bet365 is the world’s biggest online sports betting company, but Bwin’s sports betting business is one of the next largest. Bwin’s sport betting business in Europe might be bigger than Bet365.
Amaya, 888 and Playtech have been working on becoming big online sports betting players. For any online gambling company looking for a sports betting business, buying Bwin would be the quickest way to do it.
Amaya reportedly is bidding with GVC by creating a special purpose vehicle controlled by GVC that would hold the bulk of Bwin.Party’s assets. There is precedent for such a partnership. GVC, which focuses on so-called gray markets, teamed up with British bookmaker William Hill in 2013 to buy Sportingbet for $850 million. William Hill took Sportingbet’s online gambling operations in Australia and Spain; GVC took Sportingbet’s business in unregulated markets.
Bwin.Party is scheduled to host its annual shareholders meeting in Gibraltar on Thursday.
The sale of Bwin.Party may still not happen, but negotiations for the company have reached their most serious stage since activist hedge fund manager Jason Ader’s SpringOwl Asset Management struck a deal with Bwin.Party last year that seemed to put the company in play. The details of the bids have not been disclosed and remain murky.
A deal for Bwin.Party would be a big moment in the online gambling industry. Bwin.Party was formed in 2011, combining Bwin’s sports betting business and PartyGaming’s online casino and online poker offerings. Before it chose to leave the U.S. market in 2006, PartyGaming was the most valuable online gambling company in the world.
What makes Bwin.Party valuable to other online gambling companies today, however, is its big sports betting business. Billionaire Denise Coates’ Bet365 is the world’s biggest online sports betting company, but Bwin’s sports betting business is one of the next largest. Bwin’s sport betting business in Europe might be bigger than Bet365.
Amaya, 888 and Playtech have been working on becoming big online sports betting players. For any online gambling company looking for a sports betting business, buying Bwin would be the quickest way to do it.
Amaya reportedly is bidding with GVC by creating a special purpose vehicle controlled by GVC that would hold the bulk of Bwin.Party’s assets. There is precedent for such a partnership. GVC, which focuses on so-called gray markets, teamed up with British bookmaker William Hill in 2013 to buy Sportingbet for $850 million. William Hill took Sportingbet’s online gambling operations in Australia and Spain; GVC took Sportingbet’s business in unregulated markets.
Bwin.Party is scheduled to host its annual shareholders meeting in Gibraltar on Thursday.
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