Scientific Games, Playtech form alliance to develop new products for online gaming

Scientific Games, Playtech to develop online games

NEW YORK — Scientific Games Corp., a maker of video lottery terminals and other gaming systems, said Thursday it’s joining forces with gaming software developer Playtech Ltd. to develop new products.

The two companies will form a joint venture called Sciplay, which will focus on the online market for government-regulated lottery and gaming. The online games will include poker, instant games, sports and others.

“We anticipate that Internet (and associated multimedia distribution) will be the next large wave of growth in gaming,” said Mike Chambrello, CEO of Scientific Games.

Richard Weil will be the managing director of Sciplay. He formerly was president of Fun Technologies, an online games company. Weil also has been vice president of international sales at Scientific Games.

Scientific Games and Playtech, based in the British Virgin Islands with corporate offices in the Isle of Man, also will work together on developing gaming terminals using the latter’s Videobet software and technology expertise.

They will partner in ventures in fixed odds betting and video lottery gaming terminals.

The companies said their partnerships won’t significantly affect Scientific Games’ 2010 earnings but will add slightly to Playtech’s this year. Thereafter, the ventures are expected to boost earnings at both companies.

Shares of Scientific Games, based in New York, were up 64 cents, or 4.1 percent, to $16.09 in midday trading.