Playtech restructures Sun Bingo deal to revenue-share basis
Extended deal to cover new verticals including potential Sun casino product
Playtech has announced a revised and extended deal with News UK that will see the provider continue to operate the Sun Bingo brand on a revenue-share basis from 2021 rather than minimum revenue guarantees.
The new deal extends the relationship for up to 15 years and covers the launch of new verticals including casino.
Minimum guarantee cash payments will continue until mid-2021 under the terms of original contract and swithc to revenue share form there.
“From 2019 onwards, Sun Bingo contract should no longer be loss making,” Playtech said.
EGR understands no agreement has been made about a Sun Bets relaunch.
The previous Sun Bingo cost Playtech €20.1m in 2018 and €28.8m in 2017.
Mor Weizer, CEO of Playtech, said: “This is a significant extension and expansion to our collaboration with Sun Bingo, which focuses on offering a first-class service to customers while improving value to both Playtech and News UK over the long term. We’re looking forward to continuing our strong relationship.”
David Dinsmore, COO of News UK, added: “Sun Bingo is one of a raft of major brand extensions we see driving valuable engagement and revenue growth over the long term.
“The last twelve months have shown a significant hike in registrations and revenues, and this extended collaboration with Playtech will allow us to build on that momentum in the years ahead.”
The deal was announced this morning alongside Playtech’s FY18 results which saw the firm’s total revenues climb 54% to €1.24bn.