Market opportunities
Playtech is thus well positioned to take advantage of opportunities wherever they
present themselves. With market-leading technology and content, and partners with
substantial global footprints in particular segments, it has a highly flexible offering
which can be tailored for each licensee and each market. Key market opportunities
are highlighted below.
Global market
Playtech sees growth in the global offshore segment coming both from existing licensees
increasing their product range and geographic reach, and from a number of potential
new licensees seeking to upgrade their technology platform or content. This segment
remains a very substantial market and a key portion of Playtech's business, and
our licensees include many of the most successful and well-known operators.
Through recent acquisitions, Playtech has also strengthened its relationships with
a number of major operators, and in particular Europeanfocused sportsbooks. These
are looking to offer an increasingly broad range of products to their players and
offer significant revenue growth potential.
For example, in advance of the 2010 Football World Cup, many European sportsbooks
are enhancing their games tab capabilities and incorporating a wide range of casino
games, as their clients look for additional entertainment both before and during
football matches.
Locally regulated markets
A number of countries are in the process of establishing a legal framework for online
gambling. Significant opportunities are available to Playtech, given its flexibility,
to tailor its product range and services according to the framework and rules of
a local jurisdiction, as well as its suite of tools for promoting responsible gaming
and managing compliance reporting.
For example, in Italy, Playtech rapidly developed the leading poker network with
licensees that include the two largest retail sports betting operators, of which
one is a leading lottery operator. Despite the regulations being limited to tournament
poker only, the Italian market grew eight-fold in its first 18 months, (Playtech
has a 16% market share) reflecting the benefits of offline advertising and the entrance
of well-known local operators into the marketplace.
Online bingo was recently permitted, and Playtech immediately added this product
to its Italian product range. Regulations enabling cash poker tables and casino
are expected later in the year, indicating that the Italian market is set for further
growth.
Other regulatory models adopted in Europe have restricted licenses to a single or
limited number of operators. Where this has occurred, in countries such as Serbia
and Estonia, casino and poker have typically been regulated simultaneously. This
structure also plays to Playtech's strengths, given the extensive product portfolio
working on the platform.
Playtech now has a full suite of products supported by the most sophisticated operating platform in the market.
The single unified platform is a significant competitive advantage, and gives operators the ability to maximise the substantial cross-selling opportunities.