Playtech PLC Strategic investment in NorthStar Gaming Inc (7095P)
February 13 2023 - 7:00AM
UK Regulatory
TIDMPTEC
RNS Number : 7095P
Playtech PLC
13 February 2023
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 (EUR8.4 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."
- ENDS -
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.
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