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AMaya Gaming and SHFl In Poker Deal

December 17, 2012 : AMAYA GAMING CLINCHES ANOTHER ONLINE GAMBLING DEAL
 
Agreement with SHFL will see the company become exclusive distributor of Amaya’s online poker and gaming platforms in the US
 
Amaya Gaming has inked a platform deal with the US company SHFL (formerly Shuffle Master) which appoints the American company as exclusive distributor of Amaya’s online poker and gaming platforms in the US in a 50-50 revenue share deal.
 
The 10-year deal includes Ongame product following that company's acquisition earlier this month by Amaya.
 
The terms of the agreement include SHFL making up to a $10 million payment to Amaya for the exclusive rights granted.
 
SHFL and Amaya will share all revenue equally and also split all direct U.S. operational expenses, such as hosting, hardware and licensing costs.
 
Upon the execution of the agreement, SHFL will pay Amaya $2 million and have the immediate ability to offer its business-to-business customers AGP casino content and Ongame Poker for free-to-play social casino, one of the fastest growing segments of online entertainment in North America.
 
The Amaya group includes online gambling software developers like Cryptologic and Chartwell Tech.
 
The distribution agreement takes cognisance of the difficult legal and political situation in the United States, making contingent provision regarding regulated, real-money online poker commencing under either a Federal statute or in California, in which case SHFL will pay Amaya an additional $8 million.
 
Alternatively, if individual states commence regulated, real-money online poker before commencement of such play under either a Federal statute, or such play becomes legalised in California, SHFL will pay up to an aggregate of $8 million on a pro-rated basis (based on population) as individual states commence regulated, real-money online poker.
 
In the event the Federal government or California commences regulated, real-money online poker after any other state, SHFL will pay Amaya the difference between $8 million and the aggregate amount previously paid.
 
“With over 90 companies around the globe currently using its platforms, we believe that Amaya is a leader in the online gaming market and working with them will offer many mutual benefits,” said Gavin Isaacs, SHFL’s chief executive officer.
 
“We are confident that the integration of our brands and content delivery technology into Amaya’s full suite of cutting-edge online platforms will create a turnkey solution for our customers.  Together with our many U.S. gaming licenses, we believe we will be able to maximize the market presence of these platforms.”
 
David Baazov, CEO of the Amaya group, said: “Strategic alliances have always been an integral part of Amaya’s strength and growth in key markets, and SHFL, with its reputation for gaming innovation and strong relationships in the U.S., is an ideal partner for us in the U.S. market.
 
“Amaya expects to leverage those qualities by combining our technologies and expertise and putting forward a very compelling offering to U.S. operators wishing to extend their brand and operations online.”



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