888.com step out with Sportech
If there is one thing to say about 888 it is that they are dynamic. I have high praise for 888's management. There is a land grab going on and 888 intend to be in the mix. This is evidenced by the continued signing of agreements.
Whilst today's deal with Sportech may appear at first glance to be fairly run of the mill it does represtent an impressive roll out of its B2B turnkey solutions and brings 888 into competition with other turnkey solutions e.g. Cyptologic who are also in the land grab area. This represents a loss to Cyptologic and is not a good development for them.
However, before we get too excited, the deal is only with Sportech which have some well established but unexciting brands - calling them "legendary" gets closer to the truth than even 888 may realise.
This deal is also the culmination of a lot of work behind the scenes and explains why 888 has been signing agreements and taking games from a lot of smaller dynamic online games providers. 888 is now able to go to Sportech and offer a wide and comprehensive range of products for a competitive price. 888 are to be applauded.
I would however mention that their affiliate system is poor to the extent that I have been unable to register or get set up due I think to filtering somewhere somewhere in the system. Also, their Poker offering is looking rather dated and unexciting.
For Sportech there are clear gains. I am not a fan due to the possible legacy issues and the demise in popularity of football pools. If anything will work, using 888 gives them a chance even if the cost in terms of revenue sharing is high.
Agreement [ADVFN]
24 June 2008
888 signs strategic partnership with Sportech PLC
888, one of the world's most popular gaming entertainment companies, announces a strategic partnership with Sportech PLC, one of the UK's leading gaming businesses, in what represents a step-change for 888 in its B2B operations.
Under the partnership, 888 will power Sportech's legendary brand and customer base with a turnkey online gaming operation including its market-leading gaming and back-end software, customer support and payments processing services. In addition, 888 will also provide knowledge services relating to Sportech's marketing, brand and customer base, aiming to extend the reach of Sportech's business.
888 will also provide Sportech with international distribution services for the New
Football Pools ("the Pools"). Leveraging Sportech's brand and the re-launch of the Pools, 888 will also actively assist in marketing Sportech's products to both 888's and Sportech's customers in the UK and worldwide, with a clear goal to achieve groundbreaking expansion.
888 believes that the combination of Sportech's status as one of the most respected brands in global pools sports betting and 888's software, operations, internet marketing and online gaming capabilities will yield significant mutual benefits. As such, 888 expects this agreement to be material in terms of its earnings in 2009 and beyond.
Gigi Levy, Chief Executive Officer of 888, commented:
"888 is an outstanding consumer brand in itself, however it is part of our strategy to be the engine behind other great brands via our strategic partnership programme and the strategic consulting skills we can offer. This phenomenal partnership represents the full evolution of our B2B offering and is a milestone agreement."
Ian Penrose, Chief Executive Officer of Sportech, commented:
"This is a strong strategic partnership for Sportech. It offers an unparalleled
opportunity for all of our products to be effectively marketed online. Importantly this extends beyond the traditional online poker and casino offering and includes the Pools business which we believe will become an international online gaming brand. This fits exactly with our strategy of reinvigorating the pools business and
delivering an enhanced and modern product for today's gaming customers."
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