Last checked at 13 Feb 2023 12:00
Playtech plc
('Playtech' or the 'Company')
Strategic investment in NorthStar Gaming Inc
Playtech plc (LSE: PTEC), the leading platform, content and services provider in the online gambling industry, is pleased to announce a strategic investment in NorthStar Gaming Inc. ("NorthStar"), the Ontario-based online casino and sportsbook operator. Playtech has also agreed an extension of its commercial arrangements with NorthStar.
The investment of C$12.25 million (€8.4 million) has been made by way of a convertible debenture that will convert into equity and warrants in connection with NorthStar's proposed reverse takeover (the "RTO") of Baden Resources Inc. Subject to completion of the RTO which will result in the listed entity moving its listing to the Canadian TSX Venture Exchange ("TSXV"), Playtech will own approximately 16% of the issued and outstanding common shares of the TSXV-listed entity, and will also hold warrants giving it the right to further increase its stake potentially beyond 20% of the issued and outstanding common shares. Chris McGinnis, Playtech's CFO, will join the Board of Directors of the listed entity as a Non-Executive Director, acting as Playtech's representative.
Playtech entered into a software and services agreement with NorthStar in December 2021, providing NorthStar with a suite of technology solutions, including the IMS platform, Casino, Live Casino, Poker and Bingo. Playtech and NorthStar have agreed a 10-year extension to the term of that agreement, as well as the right to expand the agreement beyond Ontario and across the entire Canadian market. Playtech will also provide strategic advice to NorthStar, most notably in online operations, managed services and market expansion.
The funds raised by NorthStar will be used to support the growth of NorthStar's footprint across Ontario and future Canadian markets, ensuring it is well positioned to become a market leader in the attractive Canadian market.
Mor Weizer, Playtech, CEO, said: "We are excited to expand our partnership with NorthStar and build on the early success of our existing software and services agreement. Playtech has extensive experience of what it takes to succeed in newly regulated markets, as demonstrated by the Group's strategic agreements in other markets across the Americas.
"We've been impressed by NorthStar's unique business model and product offering, and look forward to supporting them in their mission to become the market-leading online gaming platform in Canada."
Michael Moskowitz, NorthStar, CEO, said: "Playtech's unparalleled expertise in the gaming industry will help NorthStar accelerate our growth and rapidly expand our user base. With the additional investment, we look forward to expanding our market share across Ontario and further enhancing our premium, content-driven experience for consumers."
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For further information please contact:
Playtech plc | +44 (0) 20 3805 4822 |
Sandeep Gandhi, Head of Investor Relations | |
Headland (PR adviser to Playtech) | +44 (0) 20 3805 4822 |
Lucy Legh, Jack Gault |
About Playtech
Founded in 1999 and premium listed on the Main Market of the London Stock Exchange, Playtech is a technology leader in the gambling industry with over 7,000 employees across 20 countries.
Playtech is the gambling industry's leading technology company delivering business intelligence driven gambling software, services, content and platform technology across the industry's most popular product verticals, including, casino, live casino, sports betting, virtual sports, bingo and poker. It is the pioneer of omni-channel gambling technology through its integrated platform technology, Playtech ONE. Playtech ONE delivers data driven marketing expertise, single wallet functionality, CRM and responsible gambling solutions across one single platform across product verticals and across retail and online.
Playtech partners with and invests in the leading brands in regulated and newly regulated markets to deliver its data driven gambling technology across the retail and online value chain. Playtech provides its technology on a B2B basis to the industry's leading retail and online operators, land-based casino groups and government sponsored entities such as lotteries. Playtech directly owns and operates Snaitech, the leading sports betting and gaming company in online and retail in Italy.
About NorthStar Gaming
NorthStar Gaming proudly owns and operates NorthStar Bets, a made-in-Ontario casino and sportsbook gaming platform that provides players with a uniquely local, premier user experience. The NorthStar Bets sportsbook provides real-time news, stats, analysis and scores directly in the betting environment along with the most popular online casino games.
A Canadian company, NorthStar Gaming is uniquely positioned to become a convergence leader in the intersection of sports media and sports wagering thanks to its partnerships and agreements with leading media companies. NorthStar Gaming is committed to operating at the highest level of responsible gaming standards and to ensuring local players' entertainment dollars stay in the province of Ontario and other regulated jurisdictions as they develop.