Popular UK online gaming operator BGO have announced that they will be receiving a large investment from online gaming software giant Playtech.
Playtech, who provide software for a wide variety of online casino websites and games, have said that as part of three upcoming deals they’re first planning on investing £10million ($16,258,300) into BGO to strengthen the brand and bring some of their popular games like Bingo to a wider market.
Originally launched in 2012 BGO replaced their operator’s former main website Xbingo and claims to have begun their own in-house created software. When news of this development broke BGO confirmed that this was part of a long term contract they had signed with Playtech that would help the BGO brand reach a wider market.
Although BGO is already incredibly popular, it has a relatively large library of games, is mobile compatible and caters to an already pretty wide audience of players, so it’s still unclear as to what this investment will actually result in.
According to Playtech their investment of £10million also came with an agreement with BGO that states they will expect a return of 33.33% of equity stakes within BGO.
With Playtech’s support behind it BGO is still expected to remain a strong contender in the online gaming circuit for the foreseeable future.
This large investment plan by Playtech also comes alongside two other new turnkey deals with other gaming groups, one of which is with the Mexican gaming group Caliente and another unnamed big media brand in Italy.
The deal with Caliente was signed on March 2012 and was a software licensing plan that allowed Playtech to distribute online casino games that used retail sports betting software to 140 locations across Mexico and 50 locations and 11 other countries within Latin America.
According to a report following the agreement with Caliente, this deal would last between the two brands for a total of 10 years meaning Playtech has essentially cornered the Latin America online casino game market. The long-term plan of Playtech’s Caliente deal would also see them help grow the brand by providing them with various online and mobile casino products that would benefit the Mexican gaming group.
The second agreement that Playtech signed was with a so far unnamed popular Italian media group, unlike the Caliente agreement this proposal would last for only the next 5 years and would involve a close and exclusive commercial relationship between the two popular brands.
Playtech’s would provide the Italian group with software for sports betting and online gaming areas to help launch the Italian gambling market. The Italians would then use their various online and media assets to promote both companies.
In a statement to the press Playtech said their latest deal would involve further agreements with their partners that would be based around usage of their various gaming software assets. They also said they expect to “earn a continual stream of revenue” from their deals for the next few years.