London-headquartered Playtech PLC, a giant in the online gaming sector, has purchased a minority equity ownership stake in Hard Rock Digital (HRD), as part of a wider deal between the two businesses.
Hard Rock is a highly recognized brand in the United States, offering a variety of products and services, including the Hard Rock Cafe chain, resorts, hotels, merchandise, and many more. Hard Rock Digital (HRD) is the interactive gaming and sports betting division of Hard Rock International.
Making Its Mark On A Global Scale
In exchange for a minor ownership interest in HRD, Playtech will pay $85.0m (£69.8m/€79.5m), with the funds being utilized to support HRD’s worldwide growth plans.
As part of the wider deal with Playtech, HRD has agreed to license a selection of the developer’s technology solutions and iGaming content, “to deliver the authentic experience customers have come to expect across Hard Rock’s global ecosystem of entertainment, hospitality, and bricks and mortar casinos,” according to a press release.
On the other hand, Playtech’s investment will not only provide funding but also offer expertise in expanding into international markets, as well as the necessary software and services for such growth.
As part of the new supply agreement, HRD customers in the US and Canada will gain access to a range of Playtech content, including slots, RNG, and live dealer table games, which will be integrated into HRD’s existing proprietary platform and technology.
Playtech will primarily provide its products and services to HRD on a revenue-sharing basis through long-term commercial agreements.
When looking at the bigger picture, the arrangement between Playtech and HRD will see licensing of a collection of the developer’s products and iGaming offerings. Large markets such as those in the US and Canada will allow HRD’s customers to enjoy new online casino no deposit bonuses thanks to the assortment of Playtech’s slots and live dealer table games.
Comments From PlayTech
Playtech stated that it anticipates minimal impact on its B2B segment results for the full year of 2023 given the agreement, but expects HRD’s contribution to B2B revenue to increase in FY24 and beyond. This growth is expected as HRD expands its reach in established markets and enters into additional markets.
Playtech CEO Mor Weizer expressed the team’s delight in announcing a strategic partnership with HRD, adding that Hard Rock International, which has made a prominent name “not just in gambling, but more widely in entertainment,” will leverage the power of this worldwide brand by teaming up with an experienced management team, some of whom Playtech has been familiar with for several years, and are considered to be one of the most capable in the online gambling field.
Weizer concluded: “For Playtech, this partnership significantly advances our position in the North American market and is very much in line with our B2B strategy.”
Commentary On Behalf Of HRD
HRD has been managed by executive managing director and president Matt Primeaux since November 2020. Primeaux brings extensive expertise in the gambling sector, having held the position of president at Fox Bet, SVP of strategy and operations for the US at The Stars Group, and as a chief revenue officer and board member at PokerStrategy.com, which was acquired by Playtech in 2013.
Jim Allen from Hard Rock International, (also the chair of HRD) stated that the partnership will speed up HRD’s planned strategic initiative to broaden its online gaming services to international markets.
He clarified that the aim is to become the first operator with a global omnichannel offering under one unique brand. According to Allen, this move further solidifies the company’s commitment to lead innovation in the gaming industry and expand the ‘Hard Rock’ experience across the globe.
On behalf of HRD, Jim Allen concluded: “We look forward to providing an authentic, digital experience for Hard Rock’s global fan base within a comprehensive, omnichannel offering.”
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