PartyGaming Signs Deal With Danske Spil
11th January, 2010
According to an article written on eGaming Review, online gambling giant Partygaming has signed a five year B2B deal with the Danish state lottery Danske Spil.
The Danske Spil group is one of Europe’s leading betting and gaming organisations, boasting a turnover of DKK 10,955m (£1.32bn) during 2008 with a customer base of over 500,000. The product offering consists of the national lottery, egaming, machines, scratch cards and instant games.
PartyGaming’s B2B arm will give Danske Spil online poker and casino offerings in Denmark. Full commercial terms are expected to be finalized in the coming weeks.
Last year the Danish Government published draft legislation for a part liberalized gaming market which is expected to become law. With this, poker and casino will be open to competition in the Danish market.
PartyGaming CEO Jim Ryan said: “This is a landmark B2B deal for PartyGaming and validates our strategy to become a leading provider of B2B services to both corporates and governments around the world.”
Danske Spil CEO HC Madsen said: "PartyGaming is definitely a strong business partner for Danske Spil. Combining [it] with Danske Spil’s unique and strong position in the Danish market with more than 500,000 Danish online customers will guarantee that together we will deliver a highly attractive customer experience."
This deal reflects Jim Ryan’s view that B2B is essential to protect the company from protectionist regulation.
Paul Leyland at brokerage Collins Stewart said: “We suspect Party won this mandate against stiff competition and, with Danske Spil likely to play an important role in the shaping and eventual opening up of the Danish regulated market, Party should reap significant financial benefits.
“The targeting of State-owned operator B2B contracts has been high on the agenda of most entities ahead of the expected de-monopolisation of State markets such as Denmark, and Party has partially validated the investment in its own B2B operations in the past few years.”
James Hollins at Daniel Stewart said: “Denmark is likely to announce online regulations in months, to go live 2011; the national lottery will undoubtedly play a key part. On a standalone basis, therefore, the deal is highly attractive not only in terms of regulated exposure but also of quality of partner.”
By Faye
