Peermont Group teams up with Playtech in order to crack online gaming market
South African leisure company Peermont Group announced today that is has signed a deal with Playtech which will facilitate its move into the online gaming market in South Africa.
The joint venture will see Playtech, the leading designer and developer of online and mobile gaming software and services, provide a PTTS turnkey solution which will include online marketing and player-retention capabilities.
The terms of the deal is that each company will each own 50% of the new venture, and will provide equal amounts of start up capital, the majority of which will be used towards player marketing expenditure. The two companies will make preparations to establish the brand as a market leader in South Africa, in anticipation of current online gaming regulations being revised by the South African government.
Current regulations do permit online sports betting and it is expected that the venture will hold a sports betting license when it commences operations in 2012. Pending amendments to online gaming, customers will be able to access a raft of games including online poker and casino games in a “play for fun” environment.
A separate deal will see Playtech license its pioneering software and gaming platform to the joint venture. By utilizing its player management system and cutting edge technology, the new online offering will provide a market leading gaming experience to its South African customers. Playtech’s market leading mobile gaming capabilities will be essential in a market such as South Africa, where mobile usage has been steadily increasing.
As one of South Africa’s largest leisure and gaming operators, Peermont holds seven casino licenses in South Africa and three in Botswana. Its flagship property is the Emperors Palace Resort in Johannesburg and its combined revenues in 2010 totalled approximately €260 million.
