The news that Party Gaming is to acquire Empire Online and Intercontinental
Online Gaming - subject to shareholder approval - has been followed
with a statement from online casino and poker software developer Playtech
that it has concluded a long term agreement with Party for the continued
use of its software to run the newly acquired gaming websites.
The firm said the agreement will come into effect after Party Gaming
completes the acquisition of both businesses and assets from, and
will be in exclusive force for 4 years.
Chief executive of Playtech Avigur Zmora said his company's software
will compliment Party Gaming's existing products and provide additional
sources of revenue.
The Party Gaming acquisition deal in late December involved the acquisition
of Internet assets from Empire Online for GBP19.2 million, and those
of IOG for around GBP14 million. Party Gaming said at the time that
the two deals would help increase its earnings by more than GBP4 million
this year.
The changes in U.S. gambling laws and total ban on internet-based
betting financial transactions in that country have severely affected
Party Gaming and it is now using the merger and acquisition route
to build up its business in other regions.