“Orderly transition” from MPN to iPoker planned as part of wide-reaching new online partnership.In a deepening of its existing relationship with Playtech, Ladbrokes has announced that it will “in due course” move its online poker operation off Microgaming (MPN) and onto Playtech’s iPoker network.
In a press release issued Monday, Ladbrokes confirmed that it will launch Playtech’s “full suite of products over time,” including online poker.
“n line with our contractual commitments we will continue to work with Microgaming … until such time as we have agreed an orderly transition,” a spokesperson clarified in a statement to pokerfuse.
Initially Ladbrokes will add a “Vegas” tab to their website and mobile products which will give access to Playtech casino products and games. This will later be joined by online poker, though no timescale has been announced.
Ladbrokes poker is currently one of the most prominent brands on the Microgaming network, operating a dot.com room under Gibraltar license, Ladbrokes.DK in regulated Denmark, and one of the only rooms on Microgaming Spain under its LBApuestas brand.
Online poker has been a declining source of revenues for the company. The shift to iPoker, which has grown recently thanks to the successful courting of high profile brands, aims to reinvigorate the online poker offering.
Industry rumors suggest that this is a move which Ladbrokes has wanted to make for some time, but had been prevented from doing so by Playtech’s close relationship with William Hill, Ladbrokes’ great competitor in the UK market.
Playtech owns 29% of William Hill Online, the joint venture which offers all William Hill’s internet gambling. The venture agreement included non-compete clauses which have hampered Playtech’s access to agreements with William Hill competitors. Disagreements over these clauses have resulted in a fractious relationship between the two companies.
On March 1, William Hill announced that it had decided to exercise its call option to buy Playtech’s stake in William Hill Online. It is funding this with a rights issue which will raise £375m and by borrowing £50m. The total cost of buying Playtech’s shares will be £424m, which places an enterprise value of just under £1.5bn on William Hill Online: 50% of the value of the whole group.
....
see link for the rest of the article.