PLAYTECH EYES EUROPEAN RIVALS

17 August 2007

Acquisitions in mind for turnkey provider

A confident Playtech executive told Reuters news agency this week that the company was planning to buy up European rivals to increase its market dominance and boost the number of poker and casino players on its network.

The online gambling games developer and turnkey provider's vice chairman, Avigur Zmora revealed that the firm was looking to buy up rivals to bolster its position in Europe.

"We are looking for the opportunity and when the opportunity is there we usually move very quickly," Zmora told Reuters by phone from Israel. "We think that this is the right time to prepare the company to be almost the only alternative out there," he said.

In Europe Playtech competes mainly against Swedish firm's Boss Media and Net Entertainment, while it also comes up against Cryptologic and the privately owned and Isle of Man-based Microgaming.

"I don't think there will be a financial problem," said Zmora. "Our competitors in Europe are now relatively small in market value and are usually cash rich. We haven't yet concluded what should be the right opportunity or who should be the first target for us."

He added that tumbling global stock markets were making potential deals cheaper.

"What is happening at the moment in the markets is working in our favour... People see their shares slumping whether it's related to their business or not."

He said that Playtech would also look to adding sports betting software to its product offering as it looks to make itself a one-stop-shop for online gambling technology.

"We want to have a sportbook offer to give the whole suite of services to our licensees," he said.

"We want to be ready for the change of regulations and when that happens all the key [gambling firms] players will go to shop for software."

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