The partnership is another significant strategic step in Playtech's growth in Latin America. Playtech has a track record of developing newly regulated online markets in the region through the successful structured agreement with Caliente in Mexico, which has grown to become one of Playtech's largest licensees and the leading operator in Mexico.
Wplay, based in Medellin, was issued Colombia's first official online gambling license in June 2017 becoming the first licensed operator in the market. The retail brand operates more than 7,000 points of sale across its retail network. In line with the regulatory framework in Colombia, Wplay offers sports betting in its land-based channels, with the retail eco-system offering affiliation to the growing online betting and gaming market through registrations, deposits, and withdrawals.
The agreement is a continuation of Playtech's strategy to invest in the leading retail brands in newly regulated and fast-growing markets. Wplay is the official partner to some of the most high-profile sports organizations in Colombia, including leading Primera A league football teams and the Colombian Olympic football team, allowing the Wplay brand to resonate with more than 35 million sports fans across the country.
The agreement will see Playtech migrate all Wplay's retail and online activity to its IMS player management platform enabling Wplay to leverage its retail brand and footprint to drive online growth. Playtech will exclusively power all software across Wplay's regulated verticals including its Sports and Casino offering with the addition of third-party games through Playtech's open platform. There is an opportunity for further product verticals to launch as regulation in the region develops. Alongside the data-driven marketing and safer gambling platform tools, Playtech will also provide CRM and marketing expertise and personnel.
The strategic partnership will see Playtech make structured investments to deliver the platform technology, software and marketing expertise required to deliver an industry-leading omni-channel offering. As a result, Playtech will receive a share of profits in addition to revenue share as per its regular business model.
Mor Weizer, Playtech, CEO, said: "I am delighted and excited to announce this strategic partnership with Wplay. The strength and quality of the Wplay brand combined with Playtech's 20 years of technology leadership in the industry will see us drive the online growth of the market in Colombia.
"As outlined at the interim results, our pipeline of new licensees is strong across all segments of our core B2B offering. This agreement demonstrates the execution of our strategy to continue to deliver structured agreements with the leading brands in the most attractive markets globally. Latin America remains a key market for us and with this long-term partnership with Wplay we have added another important strategic partner in the region".
Julio César Tamayo, President, Wplay, said: "In addition to strengthening Wplay's leadership in Colombia this agreement will deliver the technology and expertise required to take the market in Colombia to the next level. Playtech has the track record and necessary scale to deliver industry-leading software, marketing, and responsible gambling tools to the number one brand in Colombia.
"We look to the future with great excitement and look forward to a long and prosperous partnership with Playtech."