Playtech in Licensing Deal with Marvel; Crypto Not Surprised

Playtech Ltd. on Tuesday announced a licensing deal with Marvel Entertainment Inc., and the company's rival and long-time Marvel licensor, CryptoLogic Ltd., told IGamingNews it was not surprised by the move.

"Where CryptoLogic has led, it’s not surprising to see others follow," Brian H. Hadfield, the chief executive of Crypto, said by e-mail Tuesday. "CryptoLogic was the first major software provider to see branded games as an exciting, game-changing opportunity."

Indeed, CryptoLogic was one of the industry's early adopters of branded content and has partnered with Marvel since 2004. And while the financial fortunes of Playtech and Crypto have taken disparate paths in recent years, Playtech, compared to its sector peers, is a relatively new entrant to the branded space.

In July 2008, Playtech did its first deal for themed content with Paramount Pictures Corporation, which gave it rights to develop slots adorned with images of the movies "Gladiator" and "The Untouchables."

Tuesday's deal, though, gives Playtech access to Marvel film brands like "The Incredible Hulk" and "Fantastic Four," which the company will use across its entire suite of products online, on mobiles, on television and on land.

Leisure analysts have noted that branded content -- slots, particularly -- drives higher customer yields, lengthens game play and increases retention rates.

"Branded slots just seem to generate far higher revenues," Richard Carter, an analyst with Numis Securities in London, told IGamingNews last year. "People seem to be able to relate to them, seem to understand them."

A look around the sector indicates that interest in branded content is on the up -- especially during a year that analysts, journalists and industry veterans agree will be largely defined by product innovation.

On its fourth-quarter performance indicators, PartyGaming announced it would launch a Frank Sinatra-themed slot in the second quarter of this year, following on from the success of earlier film-branded slots like "Mission: Impossible." Party has also taken branded slots content from WagerWorks, as has its competitor, 888 Holdings.

CryptoLogic in recent weeks did a deal with DC Comics Inc. for rights to Superman, Batman and Wonderwoman, and Probability, the mobile gambling operator, has launched a film-branded slot, "King Creole," as well as a virtual racing game themed after "The Italian Job." Microgaming Software Systems Ltd. has had on offer, since 2004, a "Tomb Raider" slot and did a deal subsequently to develop a slot based on the popular computer game, "Hitman."

Even FreemantleMedia, the London-based production company and rights holder to shows like "The Price is Right," has forayed into the online gambling space and has two deals already with NextGen Gaming of Australia and Electracade Ltd., which was acquired by Orbis Tecchnology Ltd. in December 2008.

"We are beginning to see greater crossover between video gaming/content and gambling via the use of brands in casino games, and we see the next stage of technological developments as critical for operators in improving customer service, game-play speeds, breadth of games offered and the ability to cross-sell owned sites into existing customers," James Hollins, an analyst with Daniel Stewart & Company, said in a January sector note.

Regarding Tuesday's deal with Marvel, Mor Weizer, the chief executive of Playtech, said it would "greatly extend the commercial appeal and cross-selling opportunities for our products."