Playgon Games Inc gaining traction in the global iGaming sector with its mobile-first content
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Playgon Games Inc (CVE:DEAL) (OTCQB:PLGNF) (FRA:7CR) is a technology company focused on delivering mobile live dealer technology to online gaming operators.
Playgon’s technology combines high definition live streaming dealers with state of the art augmented reality betting to provide an authentic casino experience. It provides a multi-tenant gateway that allows online operators the ability to offer their customers innovative iGaming software solutions.
The company’s current software offerings include Live Dealer Casino, E-Table games and Daily Fantasy Sports.
Playgon differentiates itself with its mobile-focused content, which it says attracts the “most sought-after” higher-value, returning players. It streams HD content from its Live from Las Vegas studio, and its portrait mode only offers a better user experience, being designed for one-handed play.
The company plans to gain a foothold in the booming gaming sector by licensing its Live Dealer technology worldwide. The global iGaming and betting market is expected to exceed $100 billion in market size by 2025. The US iGaming and betting market alone is expected to exceed US$12.9 billion in addressable market size by 2025. The firm also has deals in place in South Africa, Europe and the UK.
Live Dealer is licensed as a B2B solution under a typical SaaS fee agreement, with fees ranging from 6 to 12% of gross gaming revenue and varying on the size of the customer and market.
Operator gross gaming revenue, which is defined as player bets minus player wins before operating expenses, settled monthly. What’s more, Playgon has no user acquisition costs.
Headquartered in Vancouver with 60 employees and consultants, Playgon’s management team, led by CEO Darcy Krogh, has a number of successful prior exits under their belt.
The world is a playground for Playgon.
The company recently went live in South Africa with digital content supplier Intelligent Gaming Pty Ltd (IGL), which has a letter of certification and board approval from the regulators, granting it approval under their manufacturers license to offer Playgon's live dealer product to operators in the South African market.
IGL is a top tier aggregator of content in the South African gaming market, which is pegged at annual revenues of $2.9 billion.
The firm said the first IGL operator to offer Playgon’s live dealer technology will be Supabets (www.supabets.co.za), which is a leading sports betting and casino brand. It has a vast retail and digital business in South Africa and other African countries including Nigeria, Zambia, Ghana, Tanzania, and Zimbabwe.
South Africa’s gaming market is expected to generate gross gaming revenue in 2020 of $2.9 billion and is expected to grow by a 6% compound annual rate. Casino games alone make up 72% of the revenue generated from gaming.
Meanwhile, its proprietary Vegas Lounge offering, a live dealer casino games platform, is now live with SWINTT Malta Ltd, a subsidiary of Glitnor Group.
Playgon previously signed a software licensing and distribution agreement with SWINTT, under which SWINTT will offer Playgon's technology for three years and pay Playgon revenue based on a percentage of gross gaming revenue.
SWINTT will initially onboard two operators of its 93 brands through existing integrations, with an additional 20 anticipated in the future. All of SWINTT's operator brands now have access to Playgon's live dealer studio.
More recently, Playgon inked a software license and distribution agreement with Isle of Man-based Solid Gaming, which is a content aggregator platform owned by the Gamesys Group PLC.
Under the agreement, Solid Gaming will add and market Playgon's proprietary mobile-first live dealer and E-table offerings under the Vegas Lounge brand to its content library for availability and distribution to all of Solid Gaming's global client base.
The agreement is for three years with license fees based on commercial revenue sharing rates. Integration work is already complete and client on-boarding will start immediately.
- Expand current studio to 25 tables by end of 2021
- Establish and announce its US strategy; adding licensing deals for the burgeoning US market
- Aiming to integrate a minimum of 18 operators in 2021 and 36 by 2022
- Targeting US$19.6 million in annual revenue during its first year and $50.5 million in the second year
Playgon CEO Darcy Krogh recently told investors that the company is launching its US entry much quicker than anticipated, calling the US market a “blue sky opportunity”.
“We are now in the process of pursuing licenses in New Jersey, Pennsylvania and Michigan for our Live Dealer technology and are confident that Duane Morris will successfully guide us through the process,” Krogh said in a statement earlier this year.
“In tandem, we will remain in active conversations with operators throughout the US to increase interest and opportunities while also focusing on developing business in the regulated markets we are currently approved in.”
