Leading online gaming software and services provider Playtech has announced that it has signed a deal with Skywind Holdings, a company linked to Playtech’s largest shareholder, Teddy Sagi, in terms of which the group will be propelled into the fast growing social gaming arena.
The agreement will see Playtech gaining access to over 150 developers that specialize in social gaming solutions and real money mobile software. The real money gaming software that comprises the platform, rummy and poker will be licensed on a permanent basis while the rest of the social and real money software will be licensed for an initial three year term.
Playtech will pay Skywind the sum of EURO 6 million per year as well as 20 percent of the revenue it generates through the software.
According to the chief executive officer of Playtech, Mor Weizer, Social Gaming offers excellent growth opportunities for real money gaming organizations to apply their technological and marketing expertise. Weizer added that Skywind’s software license delivers a cost effective entry into social gaming, expanding Playtech’s real money offering, especially its market leading mobile capabilities.
Playtech has been keeping close watch of developments in the social gaming arena and has been examining numerous ways of entering the market.
The group revealed that the agreement with Skywind will see Playtech devoting resources to launching a full B2B social gaming model with immediate effect so as to maximize the time to market advantage created by entry into the software license agreement. Playtech added that the group anticipates that such investment and overall licensing costs will produce positive results for shareholders over the medium term