Gaming - Playtech announces acquisition of Snaitech as it strives for regulatory diversification

Davy Research
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This deal, which sees Playtech, a B2B provider of gaming services, acquire Snaitech, an Italian B2C player, reflects Playtech’s desire to increase its exposure to large regulated gaming markets. In the aftermath of a clampdown on online gaming in Malaysia last year, the market and operators are very focused on the sustainability of earnings within the gaming sector, with the risk premium being attached to unregulated markets once again on the rise. We believe that this is driving those operators will significant unregulated market exposure to develop ways to de-risk their businesses. This deal falls into that category and therefore makes sense. It will likely be welcomed by investors.