Playtech CEO remains bullish on Hard Rock Digital’s future
Mor Weizer suggests the acquisition of evoke’s US B2C assets and the Floridian monopoly mean the operator will continue to go from strength to strength
Playtech CEO Mor Weizer has said Hard Rock Digital’s acquisition of evoke’s US B2C assets is a “good indication” of where the tribal operator is tracking up in the market.
Hard Rock Digital agreed to acquire the assets back in March, with the deal due to close before the end of the year.
Playtech holds a single-digit share in the operator after an $85m investment in the company last year, with Weizer having previously been bullish on the brand’s future.
Speaking to EGR earlier this year, Weizer said he envisioned Hard Rock Digital becoming a top five operator in the US as it uses its Florida sports betting monopoly as a launchpad to drive gains elsewhere.
This week, following the publication of Playtech’s H1 results, the CEO told analysts there were positive signs coming from Hard Rock Digital as he heaped praise on the operator.
The brand holds its sports betting monopoly in the Sunshine State via a tribal gaming compact with its parent, the Seminole Tribe.
The monopoly was allowed to continue by the US Supreme Court last year, with the Seminoles also fending off further challenges from pari-mutuel operators this year to maintain the model.
Weizer told analysts: “I think we all need to acknowledge the fact that they only just launched towards the end of last year, and obviously Florida they hold the prime position and therefore this is a key core market for them that they will focus on.
“There are massive investments going into this market to build the business there and create the brand recognition even though their brand is obviously very well recognised and is the most popular in Florida.
“Having said that, I think that certain steps they have taken establishing themselves in different states across the US and the fact that they acquired certain assets from another group to allow them a market entry is a good indication of where they’re headed.”
The Playtech CEO went on to note that while it was important to continue to strengthen in Florida, he had been encouraged by growth outside of the monopoly.
Hard Rock Digital is live in Ohio, Indiana, Arizona, New Jersey, Tennessee, Virginia, and Illinois, with the brand going live in the Prairie State at the end of August.
Weizer continued: “From the conversations we have had with them, it only makes sense for them to push as hard as possible and focus on Florida, and obviously build their presence alongside that throughout the coming years in the different states outside of Florida as well as outside of the US, which is something that they do consider actively and pursue.
“Over the time, we believe that they have all the characteristics to become a very significant contributor to Playtech from a B2B perspective.”
When pressed by Morgan Stanley’s Ed Young on the prospect of igaming legalisation in Florida, Weizer said that although he could not lay out a definitive timeline, Hard Rock Digital would serve as the “best partner” in the market.
He continued: “On Florida, I think that it is too early to refer to igaming. I think that the focus of Hard Rock currently is on sports betting, and we are very proud to be a partner of Hard Rock.
“I do believe that when it happens, we have secured the best partner for igaming in Florida. And therefore, this is a massive opportunity for us. When exactly it will happen, it is hard to say, and I can’t really tell at this point.”
Playtech reported H1 revenue of €906.8m for the first six months of the year, with the London-listed firm having recently confirmed the sale of Snaitech to Flutter and a fresh deal with Caliente in Mexico.