Playtech Partners with Rush Street Interactive to Expand in USA

UK-based gaming supplier Playtech (LSE: PTEC) announced a significant deal with US-based gaming giant Rush Street Interactive (NYSE: RSI). The partnership will integrate Playtech’s live-studio casino games into RSI’s BetRivers Casino platform across three US states, Canada, and Mexico. This deal represents a notable development in Playtech’s broader expansion strategy as the company seeks to grow its presence in North America and Latin America.

Under the agreement, Playtech will supply its online casino and live-action games, including live dealer table games, slots, and interactive gameshows, to RSI’s BetRivers platform. The integration has already been swiftly implemented, with BetRivers online casinos in New Jersey, Michigan, and Pennsylvania now offering Playtech’s gaming content. These states represent three of the most lucrative online casino markets in the US, collectively generating over $600 million in monthly revenue. In July 2024 alone, the combined revenue for the three states reached an impressive $602.1 million:

• Pennsylvania: $215.3 million
• New Jersey: $195.4 million
• Michigan: $191.4 million

By quickly launching its content in these markets, Playtech has positioned itself to capitalize on a growing industry that is experiencing robust demand for iGaming services. The seamless rollout highlights the operational efficiency of both Playtech and RSI, who did not delay in bringing this new content to market.

Strategic Implications for Playtech and RSI

For Playtech, this partnership is one of several recent moves aimed at expanding its reach in North America. Chief Operating Officer Shimon Akad emphasized that RSI, known for its successful operations across the Americas, is an ideal partner for Playtech’s North American growth strategy. Akad noted, “Our partnership with RSI…is going from strength to strength, and we’re delighted to be working alongside their team to bring our market-leading content to BetRivers players in North America.”

This expansion represents a crucial step for Playtech, which has steadily been increasing its footprint in the US market, particularly in states where iGaming is highly profitable. The partnership with RSI aligns with the company’s goal of becoming a dominant force in the growing online casino space, where competition among gaming suppliers has intensified.

Richard Schwartz, CEO of Rush Street Interactive, expressed enthusiasm for the collaboration, stating that the addition of Playtech’s content would bolster RSI’s efforts to lead the online gaming industry across the Americas. With Playtech’s content already live on BetRivers platforms, RSI is poised to enhance its offerings in regions where it competes with other leading online operators.

The timing of this deal is significant given the broader trends in the North American iGaming market. The US online casino industry has witnessed rapid growth, driven by regulatory developments that have expanded legalized online gambling across multiple states. New Jersey, Michigan, and Pennsylvania, in particular, have emerged as critical hubs for the industry, each boasting a mature market with substantial consumer engagement and revenue potential.

Playtech’s swift entry into these states allows the company to compete directly with other gaming suppliers that are vying for market share. Notably, this deal is only one of several that Playtech has executed over the past year, demonstrating its proactive approach to solidifying its presence in the region. Some key developments include:

• June 2024: Launch of livestream casino content through MGM Resorts properties in Las Vegas.
• February 2024: Announcement of “Who Wants To Be a Millionaire?”-branded live games in the US.
• February 2024: Partnership with Hard Rock Digital to provide live dealer games in New Jersey.
• December 2023: Opening of a live studio in Pennsylvania.
• October 2023: Securing rights to the “Family Feud” franchise for live gaming.

These moves demonstrate Playtech’s aggressive approach to forming high-profile partnerships, expanding its content library, and solidifying its brand presence within the competitive landscape of US online casinos.

Looking Ahead: Expansion into Latin America

While the North American market has been a focal point for Playtech, the company also has its sights set on expanding into Latin America, with Mexico being a key part of this latest deal with RSI. Latin America has emerged as a promising frontier for online gaming, with rising internet penetration rates and favorable regulatory environments creating opportunities for operators and suppliers alike.

Playtech’s foray into the Mexican market via RSI could pave the way for additional partnerships in the region. By leveraging RSI’s established presence in Mexico, Playtech can efficiently introduce its gaming content to a new audience and tap into Latin America’s untapped potential.

Conclusion

Playtech’s partnership with Rush Street Interactive underscores the company’s aggressive North American and Latin American expansion strategy. By integrating its live-studio casino games into BetRivers Casino across key US states, Canada, and Mexico, Playtech is positioning itself as a leading supplier in the rapidly growing iGaming industry. As the company continues to roll out new partnerships and gaming content, Playtech’s influence in the online casino market is set to grow, particularly as it looks to capitalize on the ongoing legalization and expansion of online gambling in both North America and Latin America.