Playtech Grabs Minority Stake In Hard Rock Digital
UK-based gambling technology firm Playtech has signed a partnership with Hard Rock Digital, the online gambling arm of Hard Rock International. The deal involves Playtech investing $85 million in Hard Rock Digital in exchange for a single-digit stake in the company.
Hard Rock International CEO Jim Allen said the partnership will help the company expand its online gambling operations beyond the United States.
“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.
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.”
Playtech will provide a variety of services to Hard Rock Digital
A statement filed with the London Stock Exchange Playtech offered insight into what the partnership will look like. According to the company, it will offer the following:
- License its tech solutions and online gambling titles for Hard Rock’s brick-and-mortar casinos
- Provide online gambling titles for online casino customers in the US and Canada, including slots games and live-dealer table games
- For international markets, Playtech will provide Hard Rock with services for operations, customer support, payments, and marketing
Playtech CEO Mor Weizer said the company is “thrilled” about its new relationship with Hard Rock Digital.
“Hard Rock International has cemented itself as a marquee name worldwide, not just in gambling, but more widely in entertainment,” Weizer said. “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.”
Cash from the partnership will help Hard Rock expand internationally
Playtech noted that Hard Rock plans to use the $85 million investment to expand into international markets “over the next several years.”
Playtech’s statement did not mention any specific international markets. However, Hard Rock could likely expand into the UK since Playtech is based there.
Additionally, Hard Rock’s global presence through its hotel and cafe brands adds to its ability to expand gaming operations to other countries. Hard Rock’s worldwide brand recognition is part of the reason Playtech chose to partner with the company.
Playtech expects revenue boost in 2024 from Hard Rock deal
In Playtech’s statement, the company said it does not expect the agreement to impact its business-to-business (B2B) results in the fiscal year 2023.
However, it anticipates a boost in B2B revenue in the fiscal year 2024 and beyond as Hard Rock enters new markets.