Gaming and sports betting technology company Elys Game Technology has entered a binding term sheet with Lottomatica S.p.A. for the development of a customized sportsbook platform with a focus on North America, the business announced on Tuesday.
“We are very pleased to collaborate with industry leader Lottomatica and their proven leadership on global sports betting opportunities as we continue to expand our operational footprint,” stated Michele Ciavarella, Executive Chairman of Elys Game Technology.
By partnering with Lottomatica, a preeminent global brand and leader in the Italian gaming market, Elys intends to collaborate in the design, development and service of a customized sportsbook technology platform focused on Lottomatica’s North American growth initiatives.
$Elys This agreement will allow Lottomatica to accelerate its plans for North America by leveraging on Elys’ deep knowhow and strong technology in this segment, Giuseppe Portoricco, Lottomatica SVPN. We are excited to collaborate with Elys on these developments. pic.twitter.com/05rndni48R— Elys Game Technology (@ELYS_Gaming) January 25, 2022
Lottomatica, one of the major players in Europe, is currently active in three product areas, including sports betting, online games, amusement and entertainment machines. In 2019, the company posted about €1.6 billion ($1.8 billion) in revenue and managed nearly €22 billion ($24.8 billion) in wagers on an aggregated basis.
“This partnership adds a new evolution for Elys' innovative sportsbook technology and is yet another example of our modular architecture's ability to seamlessly integrate,” added Ciavarella. “We look forward to working closely with Lottomatica and their commercial partners to provide a competitive, flexible, and effective technology solution throughout this long-term relationship.”
The Executive Chairman of Elys Games Technology further said he believes that the new partnership “could also foster significant synergies” in the online gaming industry, both domestically and internationally, in addition to being positioned to drive long-term shareholder value “for both companies.”
“This agreement will allow Lottomatica to accelerate its plans for North America by leveraging Elys' deep know-how and strong technology in this segment,” stated Giuseppe Portoricco, Lottomatica Senior Vice President for North America. "We are excited to collaborate with Elys on these developments."
Under the terms of the agreement, Elys will contribute a commercial partition of its betting technology to integrate within the Lottomatica environment. Elys will also assure the functional operation of the product through dedicated engineering and technical service teams.
Moreover, Elys is set to earn “tiered license fees” from the operation of the product, explains a press statement. In addition, subject to regulatory approvals where applicable, the parties “may also collaborate on additional growth initiatives.”
A day later, on Wednesday, Elys made a second announcement that advances the company’s expansion plans: it submitted its US Gameboard sports betting platform for certification to the New Jersey Division of Gaming Enforcement, and applied for a Transactional Waiver which, once approved, would permit the company to begin installation procedures in the state.
The announcement marks a vital step in the company’s partnership through its US Bookmaking subsidiary with Ocean Casino Resort in Atlantic City. A new sports betting lounge is expected to be operational by summer.