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GALA CORAL IN TALKS WITH ONLINE GAMBLING SOFTWARE PROVIDER
Written On 5/18/11 By Recentpoker.com staff writer Lenny Wasman :
Internet software collaboration with Playtech?
The Israeli and UK press started reporting Sunday that internet gambling software developer Playtech and the Brit land and online gambling group Gala Coral are negotiating a software supply deal.
Playtech is reportedly still engaged with the Ladbrokes group in talks on a possible merger or acquisition agreement, and partners William Hill plc in the William Hill Online joint venture.
Gala Coral reportedly wants to use Playtech technology for its online bingo, sports betting and casino games.
Unidentified company sources at Gala have stressed that the relationship will be one of supplier-customer rather than an acquisition initiative.
Playtech recently resolved its contractual dispute with William Hill plc in respect of the two companies' joint venture in William Hill Online, and Playtech is free to enter into software provision agreements in the normal run of business.
One report, in the Daily Mail, revealed that Gala Coral IT staff have been warned that there may be job cuts if a software deal goes through.
The company is currently splitting itself into largely autonomous divisions in an internal reorganisation in which it has previously claimed that 100 new jobs will be created. There has been speculation that this move is to prepare for the sale of some divisions when the market improves; Gala has already rejected one bid for its bingo business.
Gala recently completed a complex refinancing but still has a GBP2 billion debt burden.
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Ujjwal Doshi, lead analyst at the research firm, says, “Low-cost cross-border service delivery is opening up sports betting markets, which were previously protected by state-regulated monopolies or dominant local operators.”
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