GVC and Playtech in talks to secure “long-term mutually beneficial relationship”

Multinational sports betting and gaming group GVC Holdings has revealed that its in talks with Playtech, in an attempt to secure a long-term deal with the gambling software developer

Disclosing the news in its trading update for the first 20 weeks of the year, GVC noted that such a deal would enable Playtech to access new significant brands.

In the ‘Integration and Synergies update’ section of the report, it read: “GVC and Playtech plc (“Playtech”) are in discussions to update the existing services agreement between the two companies, in order to secure a long-term mutually beneficial relationship.

“This would allow Playtech access to new significant brands, revenue streams and secure long term revenues, whilst providing GVC operational flexibility to realise its synergies plan. In the meantime, GVC will continue to honour the existing Playtech contract and maintain the positive working relationship.”

Elsewhere, the firm’s European retail operation rose by 28% thanks chiefly to its Eurobet business, while online net gaming revenue also saw an increase, up 18%.

One blight on the report was UK gaming revenue, which fell by 5% – a decline that GVC put down to adverse weather conditions for the first five months of the year.

“UK Retail NGR was 5% behind last year with OTC net revenue 8% behind, impacted by severe weather,” the report read.

“During the 20 week period, 12% of all planned horse racing fixtures were cancelled. Volumes were also adversely impacted by lower levels of recycling at the start of the period due to the exceptionally strong gross win margins at the end of Q4 2017.”

Another notable highlight from the period was GVC’s acquisition of Ladbrokes Coral, in a deal that could eventually be worth up to £4 billion. The firm stressed that the integration is still very much in its infancy.

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