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Posted 2/23/11 : Joint venture interests remain unaffected by litigation
Yesterday's surprise announcement by William Hill plc that it had secured an injunction against Playtech plc has been matched with a fast response from Playtech, brusquely pointing out that its interests in the William Hill Online joint venture are unaffected by the injunction.
Media speculation is already mounting that recent reports of a possible GBP2.2 billion merger between online and land gambling group Ladbrokes and Playtech are behind the Will Hill move. Industry commentators speculated at the time that William Hill was unlikely to be comfortable with such a development with an arch rival.
There have been suggestions that Playtech has been in contact with Will Hill proposing "significant" amendments to unspecified facets of the five year joint venture agreement between the two companies, in which the latter holds the lion's share at 71 percent, and Playtech 29 percent.
In terms of the original agreement, William Hill has an option to buy out Playtech after four and six years on an independent fair value basis. The agreement, signed in 2008, called for Playtech to provide Will Hill with its online casino and poker software solutions.
William Hill's chief executive, Ralph Topping has in the past indicated that he views bigger and better online operations as an essential part of his group's future planning.
Wednesday's statement by Playtech references the William Hill interim injunction and comments: "Playtech's interests in the joint venture remain unaffected by the interim injunction."
The joint venture has been an increasingly successful one for the partners, with Playtech receiving profits of Euro 30.8 million last year.
Although the full detail on William Hill's motivation leading to the injunction is not yet clear, sources have been quoted as opining that William Hill management wants to stop Playtech from selling software to a merger partner such as Ladbrokes, or changing any part of the original joint venture agreement - especially any revisions that would enable the Israeli company to collaborate with Ladbrokes - a major competitor for William Hill.

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Gambling News :

Playtech Acquires ECM Systems - Online gambling soiftware provider Playtech plc has announced the acquisition of a ninety percent stake in UK bingo software developer ECM Systems for a consideration of GBP 14.9 million.

Marks and Spencer store Manager steals to Gamblie Online - The Cambridge News reports that a 28-year-old manager of a Marks and Spencer store, Martin Trenor, has been jailed for three years for stealing GBP 254,538.11 in shop takings over the course of a year and spending it almost immediately at online gambling websites.

Chinese Gambling crackdown could damage high roller revenue - Fast-moving events this week have seen Australian media reports quoting hundreds of millions of dollars wagered by Chinese high rollers in Aussie land casinos, offset to some extent by Crown claims that this whale gambler" demographic generates only 12 percent of turnover.

EvenBet Open Face Chinese Poker - Open Face Chinese Poker online games provider EvenBet has reported that its Open Face Chinese Poker product is gaining traction with games recently integrated for desktop action at the Malta-licensed operational site Poker Grant.

PartyPoker Millions tournament guarantee Now GBP 6 million - Online poker operator PartyPoker announced Thursday that it is to boost its PartyPoker Millions tournament guarantee by a million sterling to GBP 6 million, claiming it is now the biggest prize pool guarantee in European poker history.

2016 EPT Malta - The European Poker Tour is off to a good start in Malta, with German pro Dietrich Fast claiming a well-earned Euro 174,000 main prize in the Euro 10,000 buy-in Single-Entry Rebuy event.

Novomatic has announced a legal action against Euro Games Technology - Online and land gambling equipment and games provider Novomatic has announced a legal action against Euro Games Technology Ltd., which it claims has unfairly created imitations of its slot games.

Starcraft ProLeague SHutting Down after 14 Years - Announcing the end of the road for the League, once pre-eminent in Asian eSports gaming, the Korean Esports Association blamed ethical scandals and competition for its decline in popularity.

Team Hot Launches - #teamhot The Philippines licensed and GGNetwork-powered online poker operator Natural8 has announced the appointment to its "Team Hot" professional player line-up of Asian poker aces Kitty Kuo, Xuan Liu and Dong Kim.

Netent Q3-2016 Earnings Report - #netent The UK continues to be an important growth driver but the weaker pound had an estimated negative effect of about three percentage points on revenue growth compared to the same quarter last year.

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