NeoGames extends agreement with Czech market leader, SAZKA
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Insights
The extension of NeoGames' contract with SAZKA until 2028 represents a significant affirmation of the company's foothold in the European iLottery and iGaming market. By securing a long-term agreement with a major player in the lottery space, NeoGames demonstrates the competitive strength and attractiveness of its offerings. The inclusion of content aggregation from Pariplay, a NeoGames subsidiary, suggests a strategic move to enrich SAZKA's online gaming experience, potentially increasing user engagement and revenue streams.
From a market perspective, this partnership could be seen as a benchmark for stability and growth potential in the iLottery sector. The sustained collaboration since 2017 indicates customer satisfaction and a successful track record, which might influence investor confidence positively. However, it's essential to monitor how this contract renewal impacts NeoGames’ financials in upcoming quarters, particularly in terms of revenue growth and profit margins.
NeoGames’ contract renewal with SAZKA until 2028 is expected to provide a stable revenue source, which is important for financial planning and forecasting. The long-term nature of the deal may offer investors some assurance regarding the predictability of future earnings. Additionally, the expansion of services to include content aggregation could indicate potential for revenue diversification and margin improvement.
Given that NeoGames is listed on Nasdaq, it's important to consider how the market will react to this news. Typically, contract renewals with key customers can be viewed favorably, as they reduce business risk. However, the actual impact on the stock price will depend on the financial details of the agreement, which are not specified in the announcement. Investors should look for follow-up disclosures or earnings calls for more precise information on how this contract extension might affect the company's financial health.
The partnership between NeoGames and SAZKA, particularly the integration of Pariplay's content aggregation, highlights a trend in the iGaming industry towards offering a broader range of content to keep players engaged. For SAZKA, this move could enhance its competitive edge in the crowded online gaming market. The iLottery sector is known for its need for constant innovation to attract and retain players and NeoGames' NeoSphere platform is at the forefront of this innovation.
Understanding the impact of such technology on the user experience and the resultant player retention rates is key to evaluating the potential success of this extended partnership. It’s also indicative of the increasing importance of technology solutions in traditional lottery operations, which has been a growing trend in recent years. The success of this partnership could potentially serve as a case study for other lotteries looking to digitalize and modernize their offerings.
LUXEMBOURG, April 02, 2024 (GLOBE NEWSWIRE) -- NeoGames S.A. (Nasdaq: NGMS) (“NeoGames” or the “Company”), a technology-driven provider of end-to-end iLottery and iGaming solutions, has announced a three-year contract extension with its long-standing Czech lottery customer, SAZKA, with the agreement to remain in effect until the end of 2028. SAZKA, a part of Allwyn, is a multi-national lottery operator with leading market positions in the Czech Republic, Austria, Greece, Cyprus, Italy, the United Kingdom, and the United States (Illinois).
The agreement ensures that SAZKA will continue to leverage NeoGames’ industry-leading iLottery and iGaming solutions, including its market-leading NeoSphere platform and a diverse portfolio of interactive games.
The contract renewal will also see SAZKA integrate content aggregation into its offering, to be supplied by NeoGames’ subsidiary Pariplay, with the addition set to significantly enhance the lottery’s online gaming offering.
In partnership with NeoGames, SAZKA has established itself as one of the most robust and successful online lotteries in Europe. The long-standing collaboration, which began with the lottery’s 2017 launch of NeoGames’ iLottery solution, has driven remarkable growth for the European leader.
The contract extension solidifies the strong partnership between the two companies, further underscoring NeoGames' commitment to providing customers in the iLottery sector with cutting-edge solutions.
Moti Malul, CEO of NeoGames, said: “We consider SAZKA one of our most important and strategic customers, so we are thrilled about this extension. SAZKA has made remarkable growth in its online lottery channels, and we are proud to manage the operator’s entire digital activity, providing seamless operational support as it navigates the many regulatory changes taking place across the continent.”
Jan Horyna, Chief iGaming Officer at SAZKA, said: “We're pleased to announce the extension of our partnership with NeoGames. This collaboration isn’t just about technology; it’s about a mutually fruitful working relationship and about the value we’re creating for our players. Together, we're redefining what online lottery can be, and we’re eager to continue pushing the boundaries and set new standards as we build on the work we've undertaken throughout this longstanding partnership.”
About NeoGames
NeoGames is a technology-driven innovator and a global leader of iLottery and iGaming solutions and services for regulated lotteries and gaming operators. The Company offers its customers a full-service suite of solutions, including proprietary technology platforms, two dedicated game studios with an extensive portfolio of engaging games – one in lottery and one in casino games, and a range of value-added services. The recent strategic acquisition of Aspire Global Group enables NeoGames to offer the most comprehensive portfolio across iLottery, an innovative sports betting platform from BtoBet, an advanced content aggregation solution from Pariplay, and a complete set of B2B Gaming tech and Managed Services. NeoGames remains an instrumental partner to its customers worldwide, as it works to maximize their revenue potential through various offerings, including regulation and compliance, payment processing, risk management, player relationship management, and player value optimization. NeoGames strives to be the long-term partner of choice for its customers, empowering them to deliver enjoyable and profitable programs to their players, generate more revenue, and maximize proceeds to governments and good causes.
About SAZKA
SAZKA is the largest and oldest lottery company in the Czech Republic, providing customers with the widest portfolio of games and everyday entertainment through continuous innovation and responsible gaming. The most famous lottery is Sportka, a popular game with a history of over 65 years. Since 2014, the company has been the operator of the Eurojackpot lottery, one of Europe's largest games. The entertainment family also includes scratch cards, sports odds betting and quick-turn games. SAZKA provides its products on the online gaming portal www.sazka.cz and through a unique sales network with more than 7,600 points of sale across the Czech Republic. SAZKA's terminals can also be used for a number of common transactions, ranging from payment of deposit slips to credit top-ups to parcel collection.
Sazka is a leader in responsible gaming. In addition to the international audited certifications of the European Lotteries and World Lottery Association, it develops its own Play with Sense project and prevention programmes in cooperation with non-profit organisations. SAZKA's parent company is the Allwyn Group, which also operates lotteries in Austria, Greece, Cyprus and Italy, and will also become the operator of the UK National Lottery from 2024. At the end of last year, it also agreed to take over Camelot LS Group, which operates a lottery in the US state of Illinois. SAZKA is a member of the multinational investment group KKCG, operating in 38 countries. For more information visit www.sazka.cz and www.allwynentertainment.com.
Forward-looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such statements are based upon current plans, estimates and expectations of management that are subject to various risks and uncertainties that could cause actual results to differ materially from such statements. The inclusion of forward-looking statements should not be regarded as a representation that such plans, estimates and expectations will be achieved. Words such as “anticipate,” “expect,” “project,” “intend,” “believe,” “may,” “will,” “should,” “plan,” “could,” “may,” “continue,” “target,” “contemplate,” “estimate,” “forecast,” “guidance,” “predict,” “possible,” “potential,” “pursue,” “likely,” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. All statements, other than statements of historical fact, are forward-looking statements.
These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. In addition, these forward-looking statements reflect our current views with respect to future events and are not a guarantee of future performance. Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors including, without limitation the risk factors set forth in Item 3.D. “Key Information- Risk Factors” in our annual report on Form 20-F for the year ended December 31, 2022, filed with the Securities and Exchange Commission on April 28, 2023, and other documents filed with or furnished to the SEC. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release. You should not put undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by applicable law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
Contacts
Investor Contact:
ir@neogames.com
Media Relations
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