Playtech Preparing for Return to the US

January 25, 2010 | News Category: Gaming Law

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Although the laws regarding online gambling in the United States have not changed yet, there is much anticipation that Congress will accept Barney Frank’s online gambling bills, and that online gambling will be legalized and regulated in the near future.

The European online casino software developer, Playtech, is working towards putting themselves in a position in which they will be ready to power United States online casinos when the time comes. Playtech is one of those online casino software providers that stopped allowing US players to play in their online casinos since the UIGEA (Unlawful Internet Gambling Enforcement Act) was introduced.

The general feeling in the online gambling world, however, that it is just a matter of time before online gambling operators that left the US will be able to, once again, return to the United States.

Playtech has recently partnered Scientific Games Corporation. On the day that the deal was announced, Playtech’s stock jumped by a full eleven percent. The two companies have come to an agreement whereby they will work together to develop gambling products for both land-based casinos, as well as online casinos.

According to James Hollins, an analyst at Daniel Stewart, who was quoted in The Wall Street Journal, this new Playtech and Scientific Games Corporation deal would most certainly be one that could assist Playtech in getting new contracts with United States online casino operators, once the US online casino market has been regulated.

James Hollins told The Wall Street Journal, "This deal sets Playtech apart as the market-leading technology provider in our [coverage] universe, with the means, scale, capabilities and likely traction to build a massive global entity with minimum upfront costs and strong potential returns."

The joint product of Scientific Games Corporation and Playtech will be known as SciPlay. The contract between the two companies will bring a new product which will feature both online poker and other Internet casino gambling. The contract will be assisting the blend of Playtech’s B2B Internet gaming software with Scientific Games Corporation’s government-compliant gambling products.

There are often many mergers and deals made between online gambling companies throughout the industry, since competition is great, and growth is a key factor to remaining strong in the online gambling industry. At this time, many online gambling companies are looking to broker deals with other online gambling companies that will help them to return to the US market when the expected law changes take place.