Playtech has informed investors that it has purchased $85m worth of stock in Hard Rock Digital for a “low single-digit minority equity ownership” in the firm it has partnered with for online casino solutions.
Unveiling a strategic partnership with the US online operator, Playtech will deliver its technology solutions and online casino content to Hard Rock Digital in the US and Canada.
Meanwhile, the $85m investment is set to be used to fund Hard Rock’s global expansion across the US and “select international markets” in the next few years.
As well as its cash injection, Playtech stated that it will provide Hard Rock with its “broad international market knowledge and software and services” to help the operator in its global ambitions.
Despite the significant monetary value of the agreement, Playtech has stated that it expects “minimal impact” from the deal in its B2B results in 2023, whilst it is expected to contribute to B2B revenues from 2024 onwards.
Mor Weizer, Playtech CEO, said: “The Playtech team is thrilled to announce our strategic partnership with HRD. Hard Rock International has cemented itself as a marquee name worldwide, not just in gambling, but more widely in entertainment.
“HRD will combine the strength of this global brand with a proven management team, some of whom we at Playtech have known for many years and believe to be among the strongest in the online gambling industry.
“For Playtech, this partnership significantly advances our position in the North American market and is very much in line with our B2B strategy.”
Aside from the investment, Playtech is set to supply Hard Rock’s online casino with its igaming content including its slots, random number generators, and live dealer table games to be deployed across the operator’s existing offering.
Meanwhile, the content can be used in global markets where Hard Rock will also be able to leverage additional software and services from Playtech, including its IMS player management platform and ancillary services.
“This partnership will act as an accelerator to Hard Rock Digital’s planned strategic initiative to expand its online gaming offerings to international markets, becoming the first operator with a global omnichannel offering under a singular, irreplaceable brand,” said Jim Allen, Chairman of Hard Rock International and Chairman of the Board of HRD.
“This announcement only reinforces our commitment to lead innovation in the gaming industry and expand the ‘Hard Rock’ experience worldwide. We look forward to providing an authentic, digital experience for Hard Rock’s global fan base within a comprehensive, omnichannel offering.”
This deal comes shortly after Playtech made its US retail gaming debut via a deal with Gold Rush Gaming in Ohio.