Playtech and California Poker Group Sign Deal
This was published 23-06-2011Playtech, the international software and content provider to the online and land-based gaming industry, has become the first UK gambling group to prepare itself to enter the United States gambling market when legislation will allow it. The gambling group announced that it has signed a licensing agreement in terms of which it will provide the powerful Californian Online Poker Association (COPA) with online software ahead of the anticipated relaxation of the internet gambling restrictions.
This follows William Hill’s recent purchase of three land based sports betting businesses and 888’s commercial agreement with Caesars.
The California Poker Association is made up of a coalition of Native American governments and licensed card rooms and Playtech’s Sciplay International joint venture will also provide COPA with “play-for-fun internet games.
Despite the fact that online poker is currently not legal in California, sixty percent of American poker players live in California and the association estimates that there is presently up to 2 million Californians who gamble online at illegal off-shore poker sites each year spending more than $13 billion and leaving them vulnerable to fraud and theft.
Playtech believes that its license with the California Online Poker Association will become one of its top five revenue generators if and when online poker becomes regulated in the state.
James Hollins, an analyst, noted that California is seen as the key state in terms of poker liquidity and stated “Playtech is therefore very well placed for potential US poker legislation, in our view.”
The California Online Poker Association (COPA) made the decision to work with Playtech over many of its other rivals, including bwin.party. This resulted in shares in the group rising by more than 6% this week. Playtech also stated that it would be examining deals with other United States based gambling groups and the group’s CE, Mor Weizer, said “There are deals to be done with the casinos in Vegas, which are very well established.” Meizer added that when it comes to California, COPA is the most important.
