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Scientific Games Corp (Nasdaq: SGMS) witnessed a sharp decline in its share price on Monday following reports it may be ending a joint venture with Playtech, one of online gambling’s leading software providers and poker networks.
eGaming Review claimed the joint venture between the two was reduced to a "strategic partnership" from a full-blown joint venture. More news was forthcoming.
Late last year, Playtech announced it was to “jointly develop and market next-generation Internet and land-based gaming products and services to regulated gaming operators in the US and other countries”.
Mor Weizer, CEO of Playtech and Mike Chambrello, CEO of Scientific Games together commented, both commented at the time:
"This is an important step for both companies. We have highly complementary skill-sets allied with a global reach and this partnership provides the opportunity to leverage off this combined know-how to maximum effect. This is an ideal partnership in many ways. Customers will benefit from best of breed content, sophisticated player management systems, and long-standing industry experience in providing highly secure, regulated, compliance-oriented services."
"The related gaming terminal partnership brings the potential for operators to enjoy a technology platform that is seamless, integrated and adaptable both to multiple delivery channels and cross-promotional opportunities."
The joint venture played an integral role in the development of California’s first online poker site, a free-to-play platform called CalShark.
The California Online Poker Association launched its CalShark.com website this past October after signing an agreement with both Scientific Games and Playtech to provide legal intrastate poker to California residents three months prior.
Shares of Scientific Games were down about 10 percent Monday.
- Chris Costigan, Gambling911.com Publisher
