LANDMARK CHINESE ONLINE GAMBLING DEAL FOR PLAYTECH
Playtech and SSI will be the first major distributor and promoter of Texas Hold'em Poker in the Chinese market.
Online gambling software provider Playtech earned itself a Christmas bonus this week when it clinched a landmark five year software licensing agreement with China's leading gaming group, Sino Strategic International. Certainly the investors were cheered by the deal, news of which pushed Playtech stock up 5 percent.
SSI is listed on the Australian Stock Exchange and is a diversified investment holding company. Its primary operations are in the large and fast growing Chinese gaming, internet and mobile media markets that are currently the focus of online gambling companies seeking new business to replace American opportunities impacted by the UIGEA.
SSI's subsidiary, Shanghai Kelo, operates the largest corporate retail gaming network in China, distributing the legalised keno, lotto, and Video Lottery Terminal (VLT) games. Shanghai Kelo currently runs more than 460 Point of Sale ("POS") gaming outlets in Shanghai under license from the Shanghai Welfare Lottery Centre. In October 2006, the license agreement was extended, allowing Shanghai Kelo to operate up to 600 outlets distributing keno and other welfare games for the next five years.
Playtech and SSI will be the first major distributor and promoter of Texas Hold'em Poker in the Chinese market. Following the launch of the poker product in the coming months, SSI expects to launch a selection of Playtech powered P2P Chinese tournament games through selected SSI outlets in China in the first half of 2007 after a testing, approval and implementation period.
Initially, a selection of P2P poker games will be offered, followed by games played more commonly in China such as mahjong, Do Di Zhu, Cho Da Di and To La Ji.
Avigur Zmora, Chief Executive Officer of Playtech, commented: "This is a major development for both Playtech and SSI bringing the Play for Real P2P tournament gaming experience to China at appropriately licensed gaming outlets for the first time. The Chinese market is a vast and incredibly exciting marketplace and Playtech is extremely well positioned to assist operators such as SSI in rolling out new gaming products in a phased manner in accordance with Chinese regulations. This license agreement will further establish Playtech's presence in Asia and is in line with the Company's ongoing strategy. Playtech is increasingly Asian-facing and this transaction is another milestone in further diversifying the geographical reach of the business and its customer base."
Richard Li, Chief Operating Officer, Australia, of Sino Strategic International states: "In Playtech, we have found a software provider that has a clear understanding of the Asian gaming marketplace and who understands the intricacies of gaming in
China. The private gaming network, consisting of up to 5,000 terminals to be implemented by Playtech, will upon completion, expand the SSI gaming terminal network significantly. SSI also intends to further expand this network via franchising to other parts of China over the next five years."
Playtech and SSI will be the first major distributor and promoter of Texas Hold'em Poker in the Chinese market.
Online gambling software provider Playtech earned itself a Christmas bonus this week when it clinched a landmark five year software licensing agreement with China's leading gaming group, Sino Strategic International. Certainly the investors were cheered by the deal, news of which pushed Playtech stock up 5 percent.
SSI is listed on the Australian Stock Exchange and is a diversified investment holding company. Its primary operations are in the large and fast growing Chinese gaming, internet and mobile media markets that are currently the focus of online gambling companies seeking new business to replace American opportunities impacted by the UIGEA.
SSI's subsidiary, Shanghai Kelo, operates the largest corporate retail gaming network in China, distributing the legalised keno, lotto, and Video Lottery Terminal (VLT) games. Shanghai Kelo currently runs more than 460 Point of Sale ("POS") gaming outlets in Shanghai under license from the Shanghai Welfare Lottery Centre. In October 2006, the license agreement was extended, allowing Shanghai Kelo to operate up to 600 outlets distributing keno and other welfare games for the next five years.
Playtech and SSI will be the first major distributor and promoter of Texas Hold'em Poker in the Chinese market. Following the launch of the poker product in the coming months, SSI expects to launch a selection of Playtech powered P2P Chinese tournament games through selected SSI outlets in China in the first half of 2007 after a testing, approval and implementation period.
Initially, a selection of P2P poker games will be offered, followed by games played more commonly in China such as mahjong, Do Di Zhu, Cho Da Di and To La Ji.
Avigur Zmora, Chief Executive Officer of Playtech, commented: "This is a major development for both Playtech and SSI bringing the Play for Real P2P tournament gaming experience to China at appropriately licensed gaming outlets for the first time. The Chinese market is a vast and incredibly exciting marketplace and Playtech is extremely well positioned to assist operators such as SSI in rolling out new gaming products in a phased manner in accordance with Chinese regulations. This license agreement will further establish Playtech's presence in Asia and is in line with the Company's ongoing strategy. Playtech is increasingly Asian-facing and this transaction is another milestone in further diversifying the geographical reach of the business and its customer base."
Richard Li, Chief Operating Officer, Australia, of Sino Strategic International states: "In Playtech, we have found a software provider that has a clear understanding of the Asian gaming marketplace and who understands the intricacies of gaming in
China. The private gaming network, consisting of up to 5,000 terminals to be implemented by Playtech, will upon completion, expand the SSI gaming terminal network significantly. SSI also intends to further expand this network via franchising to other parts of China over the next five years."
