Jason Ader: new Playtech Chairman is crucial for company’s future
Ader has voiced his support for the appointment, claiming it to be crucial for the company’s recovery from COVID-19 losses, despite the fact that many stated the appointment was quite orthodox since Mattingley ended his 15-year term at 88 Holdings as CEO and chairman.
Ader voiced his opinion on the matter and said:
“I got to know Brian from 888’s attempt to acquire bwin. One thing that you immediately notice is that he gets along with everybody – management, the board, investors and regulators. Brian is a stellar appointment, who is well regarded across the industry. He knows what is at stake for Playtech, and as a Chairman will challenge management where necessary.”
After two whole years of shareholder altercations, the company could really use an experienced expert like Mattingley as a leader. Ader also wanted, however, that Mattingley shouldn’t try to be a arbitrator. Playtech has been suffering massively as of late, and this has been no secret as it fell off after being one of the most valuable tech stocks in the FTSE100.
This is an extremely vital time for such an appointment, seeing as the European markets are currently facing some pretty strenuous regulatory judgements and changes, and the US market is looking to its post-pandemic future and the digitization of assets.
Ader went on to explain:
“The company had a legacy strategy implemented by its former owners, that had to be challenged by someone. It was simply carrying too much weight from bolt-on acquisitions, whilst the US market was opening up. We fought hard for Playtech to wake-up and sell its financial trading assets. The board had to realise that the playbook is to sell technology to US companies, that is what Playtech is best at”.
Ader admitted that Playtech is a little late to the scene, but stressed that the company still possesses some exceptional qualities, despite the fact that it may need a few improvements, and he believes that the group has the capability to prosper even against the new US demands.
“The technology deals that have been made are almost all exclusively sports betting focused. However, the conditions will change when demand for online casino gaming surges across states… No one can match Playtech in iGaming, and it cannot miss this opportunity. The market is still in its infancy. We are not in the fourth quarter, we have only played the first five minutes, so there is a long way to go. Playtech should present itself as the comprehensive solution as US incumbents realise the limitations of their initial technology stacks, impeding their mass-market ambitions.”
Aside from that, the fact that the current technology partnerships in the market will be in for an unpleasant surprise once Texas, Florida and New York launch their online gambling jurisdictions, is all in favour of Playtech.
Ader is currently keeping tabs on developments by state via his brand new 26 Capital SPAC vehicle, which has Rafi Ashkenazi, the former Star Group Inc CEO, on its board.
Ader ended by saying:
“You have to take a step back and look at what has happened. Let’s be real about what is facing each state post-Covid… they need money to fill black holes and online gambling offers that. Michigan with a full regime declared a tax windfall, after just two weeks, others should follow. I hope that these changes present the opportunities for the best technologies to win.”