Nektan and Spin Games LLC announce US Joint Venture AgreementPosted on November 19, 2014
B2B mobile gaming platform provider Nektan has signed a joint venture agreement with US-licensed gaming content supplier Spin Games to bring mobile gaming to the floors of US casinos. The joint venture, in which Nektan and Spin Games hold equal stakes, will also see the companies work together to roll out mobile gaming solutions for land-based casino operators across the 32 US states that have legalised gambling.
Nektan and Spin Games will offer a solution that allows operators to add mobile technology and content to their existing offerings, with products to be made accessible to customers across both cabinets and mobile devices inside the casinos.The joint venture has already signed three contracts with both tribal and commercial operators in California and Nevada. Through the JV with Spin Games, Nektan will facilitate existing operators’ entry into in-venue mobile gaming for a daily fee per gaming cabinet (slot machine).
“This joint venture and the announcement of our first contracts with US land-based operators is a significant step in the execution of our US growth strategy,” said Gary Shaw, executive chairman of Nektan. “The joint venture’s pipeline of contracts continues to develop and we will update the market as appropriate.
“The joint venture also provides Nektan an entry into the key US market without reliance on state-by-state interactive gaming regulation, which remains a longer term opportunity for the group.”
The deal further strengthens Spin Games’ presence in the US gaming market, with the supplier already active in New Jersey’s iGaming market through its partnership with KGM Gaming. The companies have already signed deals to supply Caesars Interactive and Golden Nugget with video poker, slots and table games.
The two companies signed a game licensing development and integration agreement last October, since when Nektan have opened a US headquarters in Las Vegas. Under that agreement, Spin Games licensed game content and its remote gaming server, the ROC (Robust Online Client), to Nektan for deployment on the their platform in the UK and other regulated markets.
Nektan, which also has offices in London and Gibraltar, raised ￡4.1m (€5.1m/$6.4m) in share placement when it was listed on the FTSE AIM at the start of this month. It was valued at ￡50.1 million on placement but saw shares fall from 236p on November 3 to 180p four days later. The share price has rallied since then and closed at 196.50p yesterday.
Spin Games, which is based in Reno, Nevada and Bangkok, designs and develops gaming content and solution technology for the online, interactive and land-based markets.
Kent Young, Spin Games’ president and chief executive, added: “We are delighted to be forming a joint venture with Netkan and feel our combined technology and expertise will allow us to exploit the opportunities in the North American gaming market.”
Spin Media Contact