Playtech, Ladbrokes Agree To Online Gambling Deal Based on Rev Share Model
Ladbrokes, the UK’s second largest bookmaker, has entered into a five-year deal with online gambling software firm Playtech.
As part of the deal, Ladbrokes will set up a separate digital marketing team based out of Israel.
The Ladbrokes-Playtech partnership closely resembles that of William Hill’s often tense relationship with the software provider, that was severed a week ago.
In a no-win-no fee deal, Playtech will receive 27.5 per cent of increases to Ladbrokes’ digital earnings at triggered intervals, plus royalty fees from the marketing agreement, according to the Financial Times of London.
Ladbrokes has already utilized the online casino services of Playtech, offering bingo and a limited number of other games.
James Hollins of Investec told the Financial Times that a digital marketing function was “the key factor missing from the Ladbrokes online channel”, which would boost the turnround of its digital business.
“This is not a joint venture, it is 100 per cent controlled by us,” he added. "The goal was “to make sure we service our existing customers better". It's worth noting that Playtech doesn't seem to be on a good roll right now. New casinos, such as the recently established Slots Heaven receive rather poor reviews from the critics (see OCC's review here).
- Aaron Goldstein, Gambling911.com
