Playtech and IGT Deal

‘Playtech Enters the US Market With Live Games a Possibility!’ (image source: https://www.playtech.com/news)

It is official, the London Stock Exchange-listed gambling software development firm Playtech has an iGaming license in the US after announcing a new partnership agreement with IGT.

IGT is currently the USA’s leading online slots and land-based slots provider boasting with a collection of slot titles unmatched by any of its rival in the country. The terms of the new deal allow Playtech to offer its games within the US with New Jersey casinos being the first port of call where the license agreement is currently valid. As for expansion into other states such as Pennsylvania, Delaware, Michigan, and West Virginia, there are surely plan in the pipeline.

Playtech games are already live in Bet365 and BetMGM casinos via a separate deal. While the IGT deal is one that both makes sense for the brand but also comes as a surprise, as Playtech and IGT are very similar gambling software development firms competing in similar markets across the globe.

Is there scope for Playtech Live in this scenario?

The question now is who is going to challenge Evolution and Ezugi within the live casino sphere in the US to avoid a monopoly on the live casino vertical in each state. However, another question is whether there is room for another live casino brand as the rules require the live studio to be in the state the live casino games are available.

A live dealer studio is an expensive proposition and currently, there may not be enough market share for a third live dealer studio in New Jersey. As Playtech operates in New Jersey at this time, the right assumption to make would be to open a live casino studio in a casino in Atlantic City. That would mean Ezugi, Evolution, and Playtech Live operating in the same state.

New Jersey iGaming revenue plateau in November

Before Playtech decide whether the live casino scene is worth competing for in New Jersey, there would need to be some improvements in the state’s iGaming revenues.  That said, it has been a record year for New Jersey for online casino specifically. Monthly income directly from online casinos usually rises month-by-month in the state, but for Playtech Live to partner with a casino to operate a live dealer studio, there would possibly need to be further revenue rises.

November 2020 Records Close to 90% Rise in Online Gambling in NJ

December 2019 recorded a record of $49.3 million (€49.3m/£37.0m) directly from online casinos, but it did not take long for the new year to break that milestone. In January 2020, another new record was set at $55 million (€45.0m/£41.3m) in revenue, which set the trend for a profitable 2020 in the NJ online gambling market.

From January onward, every new month was a record-breaker with the ‘Division of Gaming Enforcement’ in New Jersey eventually reporting the most online casino had taken in a single month which was $93.5 million (€76.5m/£70.2m) in October 2020.

There were just 2 minor noticeable setbacks during 2020, but the next month would always come back and beat it. It began with a slight drop in June to $84.9 million (€69.5m/£63.8m) from May’s $85.9 million (€70.3m/£64.5m) record-breaking figures, but then July, August, September, and October all set new records month-by-month. November 2020 was also a rare stumbling point after falling back slightly on October 2020’s record-breaking revenue month of $93.5 million (€76.5m/£70.2m). However, if we go by trends, December should be a record-breaking month once again.

November revenue figures were reported as $91.8 million (€75.1m/£68.9m). $89.4 million (€73.2m/£67.1m) which was directly from casino table games and online video slots while only $2.4 million (€2.0m/£1.8m) coming from online poker revenue.

Since 2019’s record finish, until now the online casino industry in New Jersey reports almost a 90% rise in revenue in the online gambling sector. Therefore, if 2021 continues to show a rise in casino revenues in New Jersey in the same way as 2020, then there is a good possibility the Playtech Live brand is on the horizon for New Jersey online casino players!

Monthly New Jersey Online Casino Revenue
  • November – $91.8 million (€1m/£68.9m)
  • October – $93.5 million (€5m/£70.2m)
  • September – $87.6 million (€7m/£65.8m)
  • August – $87.8 million (€9m/£65.9m)
  • July – $87.5 million (€6m/£65.7m)
  • June – $84.9 million (€5m/£63.8m)
  • May – $85.9 million (€3m/£64.5m)
  • April – $80.0 million (€5m/£60.0m)
  • March – $64.8 million (€0m/£48.7m)
  • February – $52.0 million (€42.6m/£39.0m)
  • January – $55.0 million (€0m/£41.3m)

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