Playtech Lands Strategic Partnerships in New Markets

Playtech has announced a series of partnerships that may allow the online gambling software company to position itself in several emerging markets. In total, three different acquisitions were made by Playtech, each of which gives them a strategic partner in a different market.

First, Playtech purchased a 49.99% stake in a new joint venture with Gauselmann, the parent company of the German gambling machine manufacturer Merkur. This venture was made in anticipation of expected German regulations that will allow for online sports betting in the country. In addition, the company would sell other gaming products, taking advantage of the partners' respective expertise in online and land-based gambling systems.

In another move, Playtech entered into a pure 50-50 partnership with Peermont, a casino operator located in South Africa. Again, the idea behind this venture was to offer sports betting in South Africa; however, if new regulations allow for the introduction of further online gambling, Playtech would be in position to offer a wider range of internet gambling products.

Finally, Playtech purchased Geneity, a sportsbook developer based in the United Kingdom. The purchase, which cost Playtech about £11 million, will ultimately lead to a replacement of Playtech's current sportsbook products.

While these were the only deals announced on Tuesday, they may not be the last moves made by the online gambling giant. According to a statement by Playtech CEO Mor Weizer, the company is also in talks with several potential partners in the United States. Many online gambling groups are involved in such talks, as the industry anticipates the potential for new regulations governing online poker (and perhaps other games) in the USA.

The new partnerships and acquisitions game on a day when Playtech announced an 89% increase in year-over-year revenues in the fourth quarter of 2011. Playtech is the world's largest provider of online gambling software, and saw revenues of $90.8 million in the quarter.