Sportech invests £100,000 in US Pick6 partner

Sportech has invested £100,000 in 123gaming, a UK company which offers Pick6 contests on US horseracing.

London-listed Sportech, which plans to refocus its attention on the US after selling the Football Pools, already offers Pick6 through its tote platform and provides back-end wagering services and technology to 123gaming.

“Based on our experience distributing the 123racing wager in the USA, Sportech continues to be bullish on the appeal of the 123gaming platform in the US gaming marketplace and the opportunity for expansion in the UK,” said Andrew Gaughan, ‎president of Sportech Racing/Digital.

The £100,000 investment kicks off a £1m crowdfunding campaign being run by 123gaming through Seedrs.com.

The firm is seeking to raise £1m for 23% of the company, valuing it at £4.3m.

Money raised will go towards a planned technology upgrade in the US and marketing to support the launch of a UK online horseracing contest and wagering site in mid-2017.

“We are very pleased that Sportech has helped us get this funding underway,” said Rob Earle, CEO of 123gaming. “There has been a significant response to our games in the US, with very little marketing spend, and we are now 100% focused on expanding our offering in both the US and UK with Sportech as our partner.”

123gaming is licensed to accept online horseracing wagers through 123gaming.com from residents in 24 states and provides a free-to-play version of its Pick6 game in other states.

The market for real-money and free-to-play Pick 6 style contests has become increasingly congested in the UK in recent months, with ITV Racing launching its own version to go alongside offerings from traditional bookmakers and the Tote.