Playtech purchased a minority stake in Hard Rock Digital, the interactive gaming division of Seminole Gaming and Hard Rock International. This was part of a larger deal between the two companies.
Playtech will pay $85.0m ($PS69.8m/EUR79.5m), for a small, single-digit percent stake in HRD. The proceeds of the investment will be used to fund HRD’s global expansion.
Hard Rock currently offers online and retail sports betting in select US states, including Arizona, Indiana and Iowa. In the future, it plans to expand its online sportsbook as well as igaming offerings into select international markets.
Global supply agreement
HRD will be able to license various technology solutions and igaming content as part of the larger agreement with Playtech.
HRD’s existing technology platform and platform will allow customers in the USA and Canada to play a variety of Playtech’s slot machines, random number generators, and live dealer tables through HRD.
These products will also go out of the US and Canada. HRD will have access to additional software solutions and services from Playtech, including the IMS player management platform, and certain ancillary service such as customer support, marketing, and payment advisory services.
Playtech will primarily supply its products and services on a revenue-share basis under long-term contractual agreements. The deal will have minimal impact on Playtech’s B2B results for FY23. However, the developer stated that its contribution to B2B revenues is expected to increase in FY24.
Position advanced
Mor Weizer, Playtech’s chief executive, stated that the Playtech team was thrilled to announce a strategic partnership with HRD. “Hard Rock International is a global marquee brand in both gambling and entertainment.
“HRD will bring together the strength of the global brand and a proven management team. Some of these people we know from Playtech for many years, and they are among the best in the online gambling world.
“This partnership is a significant advance for Playtech in the North American market, and it aligns with our B2B strategy.”
Hard Rock Digital was founded in December 2020 by Stars Group veterans and Fox Bet veterans. Marlon Goldstein, PokerStars’ former chief lawyer officer, is the company’s CEO. Rafi Ashkenazi, former CEO of Stars Group and Fox Bet, serves as executive managing director and chair.
Hard Rock International chairman Jim Allen said: “This partnership will act an accelerator for Hard Rock Digital’s planned strategic initiative, to expand its online gambling offerings to international markets. It will also make Hard Rock Digital the first operator to offer a global omnichannel offering under one brand.
“This announcement reinforces our commitment in leading innovation in the gaming sector and expands the ‘Hard Rock” experience worldwide. We are looking forward to offering a digital experience that is authentic and engaging for Hard Rock’s worldwide fan base through an omni-channel platform.”
