Playtech gears up to enter U.S. regulated market
Playtech is positioning itself to take advantage of a coming regulated U.S. online poker market. The company has signed a deal to provide online poker software California casinos.
Online gambling giant
Playtech has moved itself into position to be ready once and if legalized
online poker hits the United States.
According to the
Financial Times, Playtech has signed a licensing agreement with the California Online Poker Association, a coalition of Indian tribal governments and card rooms who are licensed to offer land-based poker.
The agreement will see the company enter a joint venture with Scientific Games Corporation to provide the COPA with online poker platforms, the paper says.
As real-money play is currently illegal in California, Playtech and its partners will for now be offering play-money games, while awaiting further developments in legislation.
The company may however very well be in good company with the COPA, which accounts for 29 tribal governments and 31 card clubs across the state. The group works by lobbying for the introduction of legalized intrastate online poker as it has been seen among other places in Washington D.C.
James Hollins, analyst with Investec said that the move will position Playtech on the forefront of developments, boding for a favorable point of departure if legislation comes through.
"We see California as the key state in terms of poker liquidity and COPA a highly attractive licensee with it," Hollins said,
"Playtech is therefore very well placed for potential U.S. poker legislation," he added.
Despite processing funds such as winnings from online poker being illegal in the United States under the 2006 UIEGA act, the COPA estimates that up to 2 million Californians were playing online poker on unlicensed sites before Black Friday.
The combined wagering of the poker-happy Californian residents is estimated to reach $13 billion a year, making California he most active online poker state in the U.S.
Playtech will not be the only major online gambling company or software provider to seal deals with existing players in the U.S. online gambling market, and the move indeed follows several similar efforts to strengthen ties with American casinos and gambling operators.
Bookmaker William Hill has bought three land-based sports betting businesses in Nevada and Delaware, while 888 Holdings earlier this year announced a new commercial partnership with one of the industry's true giants, Las Vegas-based casino group Caesars Entertainment.