SHFL Entertainment, Amaya sign online poker platform distribution agreement
December 21, 2012
SHFL
entertainment has been selected as the exclusive distributor of Amaya Gaming
Group's Gaming Platform and the Ongame Poker Platform in the United States for
a 10 year term commencing on the execution of the definitive agreement.
The
terms of a definitive agreement will include SHFL making up to a $10 million
payment to Amaya for the exclusive rights granted. SHFL and Amaya will share
all revenue equally and also split all direct U.S. operational expenses, such
as hosting, hardware and licensing costs. Upon the execution of the definitive
agreement, SHFL will pay Amaya $2 million and have the immediate ability to
offer its business‐to‐business customers AGP casino content
and Ongame Poker for free‐to‐play social casino, which is one
of the fastest growing segments of online entertainment in North America.
Contingent
upon regulated, real‐money online
poker commencing under either a Federal statute or in California, SHFL will pay
Amaya an additional $8 million. Alternatively, if individual states commence
regulated, real‐money online
poker before commencement of such play under either a Federal statute or such
play becomes legalized in California, SHFL will pay up to an aggregate of $8
million on a prorated basis (based on population) as individual states commence
regulated, real‐money online
poker. In the event the Federal government or California commences regulated,
real‐money online
poker after any other state, SHFL will pay Amaya the difference between $8
million and the aggregate amount previously paid.
"With
over 90 companies around the globe currently using its platforms, we believe
that Amaya is a leader in the online gaming market and working with them will
offer many mutual benefits," said Gavin Isaacs, SHFL's CEO. "We are
confident that the integration of our renowned brands and content delivery
technology into Amaya's full suite of cutting‐edge online platforms will create a turnkey solution
for our customers. Together with our many U.S. gaming licenses, we believe we
will be able to maximize the market presence of these platforms."
"Strategic alliances have always been an integral part of Amaya's
strength and growth in key markets, and SHFL, with its reputation for gaming
innovation and strong relationships in the U.S., is an ideal partner for us in
the U.S. market," added David Baazov, CEO of Amaya. "Amaya expects to
leverage those qualities by combining our technologies and expertise and
putting forward a very compelling offering to U.S. operators wishing to extend
their brand and operations online."
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