LAS VEGAS, Dec. 17, 2012 /PRNewswire/ -- SHFL entertainment, Inc. (NASDAQ Global Select Market: SHFL) ("SHFL" or the "Company") today announced that it has been selected as the exclusive distributor of Amaya Gaming Group's ("Amaya") state of the art Gaming Platform ("AGP") and the Ongame Poker Platform ("Ongame Poker") in the United States for a 10 year term commencing on the execution of the definitive agreement.
The terms of a definitive agreement will include SHFL making up to a $10 million payment to Amaya for the exclusive rights granted. SHFL and Amaya will share all revenue equally and also split all direct U.S. operational expenses, such as hosting, hardware and licensing costs. Upon the execution of the definitive agreement, SHFL will pay Amaya $2 million and have the immediate ability to offer its business-to-business ("B2B") customers AGP casino content and Ongame Poker for free-to-play social casino, which is one of the fastest growing segments of online entertainment in North America.
Contingent upon regulated, real-money online poker commencing under either a Federal statute or in California, SHFL will pay Amaya an additional $8 million. Alternatively, if individual states commence regulated, real-money online poker before commencement of such play under either a Federal statute or such play becomes legalized in California, SHFL will pay up to an aggregate of $8 million on a prorated basis (based on population) as individual states commence regulated, real-money online poker. In the event the Federal government or California commences regulated, real-money online poker after any other state, SHFL will pay Amaya the difference between $8 million and the aggregate amount previously paid.
"With over 90 companies around the globe currently using its platforms, we believe that Amaya is a leader in the online gaming market and working with them will offer many mutual benefits," said Gavin Isaacs, SHFL's Chief Executive Officer. "We are confident that the integration of our renowned brands and content delivery technology into Amaya's full suite of cutting-edge online platforms will create a turnkey solution for our customers. Together with our many U.S. gaming licenses, we believe we will be able to maximize the market presence of these platforms."
"Strategic alliances have always been an integral part of Amaya's strength and growth in key markets, and SHFL, with its reputation for gaming innovation and strong relationships in the U.S., is an ideal partner for us in the U.S. market," said David Baazov, Chief Executive Officer of Amaya. "Amaya expects to leverage those qualities by combining our technologies and expertise and putting forward a very compelling offering to U.S. operators wishing to extend their brand and operations online."
Added Louis Castle, SHFL's Chief Strategy Officer, "Free-to-play and social casino offer an exciting immediate opportunity for collaboration with Amaya. The U.S. online poker market is also very promising and we are thrilled to have the opportunity to work with Ongame, whom we have always believed has the best technology available for online B2B poker."
About SHFL entertainment, Inc.
SHFL entertainment, Inc. is a leading global gaming supplier committed to making gaming more fun for players and more profitable for operators through product innovation, and superior quality and service. The Company operates in legalized gaming markets across the globe and provides state-of-the-art, value-add products in five distinct categories: Utility products, which include automatic card shufflers and roulette chip sorters; Proprietary Table Games, which includes live games, side bets and progressives; Electronic Table Systems, which include various e-Table game platforms; Electronic Gaming Machines, which include video slot machines; and newly introduced iGaming, which features online versions of SHFL entertainment's table games, social gaming, and mobile applications. The Company is included in the S&P Smallcap 600 Index. Information about the Company and its products can be found on the Internet at www.shfl.com, or on Facebook, Twitter and YouTube.
SHFL Forward Looking Statements
This release contains forward-looking statements within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements included in this release other than statements that are purely historical are forward-looking statements. Forward-looking statements in this press release include, without limitation: our expectation that the definitive agreement will be executed in a timely manner, or at all, on terms that are beneficial to the Company; that regulated real-money online poker will be legalized through Federal legislation or one or more state legislations; that the AGP, Ongame Platform and our products will perform as they are designed to do and to and will meet the profitability, performance and innovation expectations; our strategy and ability for integration and subsequent innovation and exploitation of our brands and intellectual property across all of our product lines, including our interactive content; our belief that the requirements of our privileged licenses will not be changed, altered or revoked in a manner that would impact our ability to conduct our business or market our products as currently conducted or as we anticipate doing so. Our beliefs, expectations, forecasts, objectives, anticipations, intentions and strategies regarding the future, including without limitation those concerning expected operating results, revenues and earnings are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from results contemplated by the forward-looking statements, including but not limited to: unanticipated delays in the finalization of the definitive agreement; unexpected changes in the political or social climate that will negatively impact the political movement toward the legalization of regulated, real-money online poker in some states; our unanticipated inability to accomplish our innovation objectives or our inability to accurately gauge the commercial appeal of the AGP, Ongame Platform and our products; unexpected changes in the market and economic conditions and reduced demand for or increased competition with SHFL's products; increased infringement on SHFL's intellectual property or proprietary brands; unanticipated changes in the laws, rules or regulations governing gaming and iGaming.
SOURCE SHFL entertainment, Inc.