REG - Playtech PLC - Strategic investment in NorthStar Gaming Inc

PlaytechAnnouncement

13/02/2023 12:00

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RNS Number : 7095P  Playtech PLC  13 February 2023

Playtech plc

('Playtech' or the 'Company')

Strategic investment in NorthStar Gaming Inc

Playtech plc (LSE: PTEC), the leading platform, content and services provider
in the online gambling industry, is pleased to announce a strategic investment
in NorthStar Gaming Inc. ("NorthStar"), the Ontario-based online casino and
sportsbook operator. Playtech has also agreed an extension of its commercial
arrangements with NorthStar.

The investment of C$12.25 million (€8.4 million) has been made by way of a
convertible debenture that will convert into equity and warrants in connection
with NorthStar's proposed reverse takeover (the "RTO") of Baden Resources Inc.
Subject to completion of the RTO which will result in the listed entity moving
its listing to the Canadian TSX Venture Exchange ("TSXV"), Playtech will own
approximately 16% of the issued and outstanding common shares of the
TSXV-listed entity, and will also hold warrants giving it the right to further
increase its stake potentially beyond 20% of the issued and outstanding common
shares. Chris McGinnis, Playtech's CFO, will join the Board of Directors of
the listed entity as a Non-Executive Director, acting as Playtech's
representative.

Playtech entered into a software and services agreement with NorthStar in
December 2021, providing NorthStar with a suite of technology solutions,
including the IMS platform, Casino, Live Casino, Poker and Bingo. Playtech and
NorthStar have agreed a 10-year extension to the term of that agreement, as
well as the right to expand the agreement beyond Ontario and across the entire
Canadian market. Playtech will also provide strategic advice to NorthStar,
most notably in online operations, managed services and market expansion.

The funds raised by NorthStar will be used to support the growth of
NorthStar's footprint across Ontario and future Canadian markets, ensuring it
is well positioned to become a market leader in the attractive Canadian
market.

Mor Weizer, Playtech, CEO, said: "We are excited to expand our partnership
with NorthStar and build on the early success of our existing software and
services agreement. Playtech has extensive experience of what it takes to
succeed in newly regulated markets, as demonstrated by the Group's strategic
agreements in other markets across the Americas.

"We've been impressed by NorthStar's unique business model and product
offering, and look forward to supporting them in their mission to become the
market-leading online gaming platform in Canada."

Michael Moskowitz, NorthStar, CEO, said: "Playtech's unparalleled expertise in
the gaming industry will help NorthStar accelerate our growth and rapidly
expand our user base. With the additional investment, we look forward to
expanding our market share across Ontario and further enhancing our premium,
content-driven experience for consumers."

- ENDS -

 

For further information please contact:

 Playtech plc                                +44 (0) 20 3805 4822
 Sandeep Gandhi, Head of Investor Relations
 Headland (PR adviser to Playtech)           +44 (0) 20 3805 4822
 Lucy Legh, Jack Gault

 

About Playtech

Founded in 1999 and premium listed on the Main Market of the London Stock
Exchange, Playtech is a technology leader in the gambling industry with over
7,000 employees across 20 countries.

 

Playtech is the gambling industry's leading technology company delivering
business intelligence driven gambling software, services, content and platform
technology across the industry's most popular product verticals, including,
casino, live casino, sports betting, virtual sports, bingo and poker. It is
the pioneer of omni-channel gambling technology through its integrated
platform technology, Playtech ONE. Playtech ONE delivers data driven marketing
expertise, single wallet functionality, CRM and responsible gambling solutions
across one single platform across product verticals and across retail and
online.

 

Playtech partners with and invests in the leading brands in regulated and
newly regulated markets to deliver its data driven gambling technology across
the retail and online value chain. Playtech provides its technology on a B2B
basis to the industry's leading retail and online operators, land-based casino
groups and government sponsored entities such as lotteries. Playtech directly
owns and operates Snaitech, the leading sports betting and gaming company in
online and retail in Italy.

 

About NorthStar Gaming

NorthStar Gaming proudly owns and operates NorthStar Bets, a made-in-Ontario
casino and sportsbook gaming platform that provides players with a uniquely
local, premier user experience. The NorthStar Bets sportsbook provides
real-time news, stats, analysis and scores directly in the betting environment
along with the most popular online casino games.

 

A Canadian company, NorthStar Gaming is uniquely positioned to become a
convergence leader in the intersection of sports media and sports wagering
thanks to its partnerships and agreements with leading media companies.
NorthStar Gaming is committed to operating at the highest level of responsible
gaming standards and to ensuring local players' entertainment dollars stay in
the province of Ontario and other regulated jurisdictions as they develop.

 

 

 

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