Ladbrokes have announced a new deal with software giant Playtech which will see a ‘Vegas’ tab appearing on Ladbrokes.com later on this year, along with an additional 200 casino type games.
This has been described by Ladbrokes as the next step in the re-invigoration of their digital business. Playtech already work with Ladbrokes as they provide Videobet and bingo technology for the gaming machines in their betting shops but this next step will strengthen their co-operation, with a 5 year deal to start off with.
Ladbrokes have fallen behind some of their rivals as they had concentrated on their online sportsbook, which saw revenues increase by 9% to £178.1 million in 2012. Their digital arm saw operating profits of £31 million in 2012.
Playtech are based in the Isle of Man and have been operating since 1999. They currently have over 2500 employees who work in casino, sports betting, bingo and poker. They played a large role in the growth of William Hill and recently sold the 29% stake they held in the digital operation of William Hill which has added £424 million to their coffers.
The announcement of this new co-operation saw shares in Playtech grow by 3% whilst those of Ladbrokes increased by 6%. The speed of growth in Ladbrokes’ digital business will determine the payments which Playtech will receive.