MONTREAL, Dec. 17, 2012 /CNW/ - Amaya Gaming Group Inc. ("Amaya" or the "Corporation") (TSXV: AYA), an entertainment solutions provider for the regulated gaming industry, and SHFL entertainment, Inc. (NASDAQ Global Select Market: SHFL) ("SHFL" or the "Company") today announced that SHFL has been selected as the exclusive distributor of Amaya's state of the art Gaming Platform ("AGP") and the Ongame Poker Platform ("Ongame Poker") in the United States for a 10 year term commencing on the execution of the definitive agreement.
SHFL was founded in 1983 with corporate headquarters in Las Vegas, NV. The company posted 2011 revenues of US$228 million (all figures in US dollars) and has a current market capitalization of $887 million. SHFL has over 3,000 customers in six continents and holds more than 300 gaming licenses, approvals, authorizations and waivers from gaming authorities and regulators worldwide. In July, SHFL was one of the first three companies to be granted an unrestricted interactive license by the Nevada Gaming Control Board.
The terms of a definitive agreement will include SHFL making up to a $10 million payment to Amaya for the exclusive rights granted. SHFL and Amaya will share all revenue equally and also split all direct U.S. operational expenses, such as hosting, hardware and licensing costs. Upon the execution of the definitive agreement, SHFL will pay Amaya $2 million and have the immediate ability to offer its business-to-business ("B2B") customers the AGP casino content and Ongame Poker solution for free-to-play social casino, which is one of the fastest growing segments of online entertainment in North America.
Contingent upon regulated, real-money online poker commencing under either a Federal statute or in California, SHFL will pay Amaya an additional $8 million. Alternatively, if individual States commence regulated, real-money online poker before commencement of such play under either a Federal statute or such play becomes legalized in California, SHFL will pay up to an aggregate of $8 million on a prorated basis (based on population) as individual States commence regulated, real-money online poker. In the event the Federal government or California commences regulated, real-money online poker after any other State, SHFL will pay Amaya the difference between $8 million and the aggregate amount previously paid.
"With over 90 companies around the globe currently using its platforms, we believe that Amaya is a leader in the online gaming market and working with them will offer many mutual benefits," said Gavin Isaacs, SHFL's Chief Executive Officer. "We are confident that the integration of our renowned brands and content delivery technology into Amaya's full suite of cutting-edge online platforms will create a turnkey solution for our customers. Together with our many U.S. gaming licenses, we believe we will be able to maximize the market presence of these platforms."
"Strategic alliances have always been an integral part of Amaya's strength and growth in key markets, and SHFL, with its reputation for gaming innovation and strong relationships in the U.S., is an ideal partner for us in the U.S. market," said David Baazov, CEO of Amaya. "Amaya expects to leverage those qualities by combining our technologies and expertise and putting forward a very compelling offering to U.S. operators wishing to extend their brand and operations online."
Added Louis Castle, SHFL's Chief Strategy Officer: "Free-to-play and social casino offer an exciting immediate opportunity for collaboration with Amaya. The U.S. online poker market is also very promising and we are thrilled to have the opportunity to work with Ongame, whom we have always believed has the best technology available for online B2B poker."
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Founded in 2004, Amaya Gaming Group Inc. is a technology based gaming provider for the regulated gaming industry. An expansive global organization, present in North America, Latin America, Europe, and Asia, Amaya is an innovator in the gaming world. Headquartered in Montreal, Canada, Amaya provides a host of services and solutions that range from: online and mobile gaming casino games, poker games and platforms, traditional and mobile lotteries, networked electronic gaming systems, hospitality in‐room entertainment systems, management systems, content suites, advisory and management services, and integrity monitoring and auditing systems for the regulated gaming markets. For more information please visit www.amayagaming.com or www.amayaonline.com.
About SHFL Entertainment
SHFL entertainment, Inc. is a leading global gaming supplier committed to making gaming more fun for players and more profitable for operators through product innovation, and superior quality and service. The Company operates in legalized gaming markets across the globe and provides state-of-the-art, value-add products in five distinct categories: Utility products, which include automatic card shufflers and roulette chip sorters; Proprietary Table Games, which includes live games, side bets and progressives; Electronic Table Systems, which include various e-Table game platforms; Electronic Gaming Machines, which include video slot machines; and newly introduced iGaming, which features online versions of SHFL entertainment's table games, social gaming, and mobile applications. The Company is included in the S&P Smallcap 600 Index. Information about the Company and its products can be found on the Internet at www.shfl.com, or on Facebook, Twitter and YouTube.
Certain statements included herein, including those that express management's expectations or estimates of our future performance constitute "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward looking statements. Except as required by law, Amaya does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events.
SOURCE: AMAYA GAMING GROUP INC.
For further information:
Mr. Darcy Krogh
VP, Business Development
Amaya Gaming Group Inc.
SHFL ENTERTAINMENT, INC.
Vice President - Investor Relations / Corporate Communications
+1- 702- 897-7150