SHFL entertainment to be the Exclusive Distributor of Amaya's
Online Poker and Gaming Platforms in the United States
LAS VEGAS, Dec. 17, 2012 /PRNewswire/ -- SHFL entertainment,
Inc. (NASDAQ Global Select Market: SHFL) ("SHFL" or the "Company")
today announced that it has been selected as the exclusive
distributor of Amaya Gaming Group's ("Amaya") 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.
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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 AGP casino content
and Ongame Poker 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, Chief Executive
Officer 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."
About SHFL entertainment, Inc.
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.
SHFL Forward Looking Statements
This release contains forward-looking statements within the
"safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. All statements included in this release other
than statements that are purely historical are forward-looking
statements. Forward-looking statements in this press release
include, without limitation: our expectation that the definitive
agreement will be executed in a timely manner, or at all, on terms
that are beneficial to the Company; that regulated real-money
online poker will be legalized through Federal legislation or one
or more state legislations; that the AGP, Ongame Platform and our
products will perform as they are designed to do and to and will
meet the profitability, performance and innovation expectations;
our strategy and ability for integration and subsequent innovation
and exploitation of our brands and intellectual property across all
of our product lines, including our interactive content; our belief
that the requirements of our privileged licenses will not be
changed, altered or revoked in a manner that would impact our
ability to conduct our business or market our products as currently
conducted or as we anticipate doing so. Our beliefs, expectations,
forecasts, objectives, anticipations, intentions and strategies
regarding the future, including without limitation those concerning
expected operating results, revenues and earnings are not
guarantees of future performance and are subject to risks and
uncertainties that could cause actual results to differ materially
from results contemplated by the forward-looking statements,
including but not limited to: unanticipated delays in the
finalization of the definitive agreement; unexpected changes in the
political or social climate that will negatively impact the
political movement toward the legalization of regulated, real-money
online poker in some states; our unanticipated inability to
accomplish our innovation objectives or our inability to accurately
gauge the commercial appeal of the AGP, Ongame Platform and our
products; unexpected changes in the market and economic conditions
and reduced demand for or increased competition with SHFL's
products; increased infringement on SHFL's intellectual property or
proprietary brands; unanticipated changes in the laws, rules or
regulations governing gaming and iGaming.
SOURCE SHFL entertainment, Inc.