Playtech Parts Ways with Chair Mattingley, Introduces Changes to Board
Gambling software powerhouse Playtech announced board changes, including the resignation of its chair and changes to the structure of its committees.
Mattingley to Exit After Four Years with the Company
On January 29, Playtech confirmed that Brian Mattingley has decided to step down as chair and depart from the board. He agreed to remain on board for a few months, allowing Playtech to find a successor and ensure a seamless transition of responsibilities.
Mattingley joined the board in 2021, bringing significant expertise to the team. Since then, he has made invaluable contributions to the business, overseeing a period of strong financial performance and strategic progress.
Playtech thanked Mattingley for his time as chair and his key role in the recently revised agreement of Cliplay and the disposal of Snaitech. During his tenure, the outgoing chair oversaw the company’s shift toward a pure B2B business.
Other Changes Will Also Take Effect
In addition to announcing Mattingley’s departure, Playtech’s board also confirmed changes to its committees that will come into effect from March 1 this year. These include the merging of the Regulatory & Compliance and the Sustainability & Public Policy Committees, which will combine into the Sustainability & Compliance Committee.
The new body will be chaired by Linda Marston-Weston and will also include Ian Penrose and Samy Reeb as ordinary members. Marston-Weston will also join the Nomination Committee.
Additional changes include the resignation of Anna Massion on February 28. In the meantime, Samy Reeb will be named chair of the Remuneration Committee, effective from March 1. Reeb currently chairs the Regulatory & Compliance Committee and is a member of the Sustainability & Public Policy Committee, which are set to merge into the Sustainability & Compliance Committee. He will also remain a member of the Audit & Risk Committee.
Mattingley Felt This Was the Right Time to Depart
Brian Mattingley commented on his exit, saying that he felt privileged to have been able to steer the company through a key phase of its business. Now that Playtech has hit many of the milestones it had set for itself and is ready to embark on a predominantly pure-play B2B journey, Mattingley felt that it was time to step down.
It is with that in mind that I feel now is the right time to step down. I would like to thank my fellow Board members, the leadership team and, above all, the wider Playtech family for their passion and commitment.
Brian Mattingley, outgoing chair, Playtech
Mor Wizer, Playtech’s chief executive officer, thanked Mattingley for his outstanding contributions to the business transformation and wished him the best in future endeavors.
We have benefitted enormously from his [Mattingley’s] strong relationships across the industry, and his depth of knowledge and experience. His presence on the Board will be greatly missed, and we wish him the very best.
Mor Wizer, CEO, Playtech
In the meantime, Playtech just helped NorthStar Gaming secure a $30 million credit facility. In return, NorthStar has issued 32,735,295 common share purchase warrants to Playtech, allowing it to purchase stock at a price of CAD 0.055 per share.
NorthStar Gaming Secures $30M Credit Facility
NorthStar Gaming announced that it has secured significant investment, as well as additional credit support. According to the company’s leadership, this is NorthStar’s largest financing to date.
The Biggest Investment in NorthStar’s History
NorthStar Gaming said that it has entered into a credit agreement to secure a CAD 43.4 million ($30 million) senior secured first lien term loan facility. Subject to final approval from the TSX Venture Exchange, the credit facility will be made available by Beach Point Capital Management.
NorthStar added that Playtech and some of its subsidiaries have agreed to provide credit support for certain obligations under the facility.
The credit facility has a SOFR + 9.35% interest rate, with a SOFR floor of 4.40%. Amortization payment has been deferred for the first 30 months, after which NorthStar will pay 2.5% of the principal amount per year until the 42nd month after the closing date. Following that, it will pay 5% a year until the maturity date.
Speaking of which, the facility is set to mature on January 24, 2030. According to the company, the agreement would significantly bolster its business.
NorthStar Gaming said that the purpose of the credit facility is to bolster its continued growth by reinforcing its balance sheet. The company clarified that the proceeds will allow it to repay the aggregate CAD 9.5 million principal amount loaned to it by Playtech. In addition to that, the company will channel CAD 7 million into an interest reserve account.
NorthStar will furthermore leverage the funding for working capital and general corporate purposes and will pay transaction costs related to the credit facility.
Playtech Backed NorthStar
As mentioned, NorthStar secured а credit guarantee from Playtech, allowing it to proceed with the transaction. As a result, NorthStar has issued 32,735,295 common share purchase warrants to Playtech, allowing it to purchase stock at a price of CAD 0.055 per share. This notably reflects a premium of roughly 8.7% to the five-day volume-weighted average price of the shares as of January 24.
Playtech, for context, is an insider of NorthStar Gaming. The issuance of the bonus warrants would therefore constitute a “related party transaction.”
NorthStar Thanked Beach Point for Its Trust
NorthStar Gaming’s chair and CEO, Michael Moskowitz, called the financing a “pivotal moment for NorthStar.” According to him, the new credit facility will significantly bolster the company’s ability to scale operations and drive profitability.
We are grateful to Beach Point Capital Management for their trust in our strategy and vision. We are also thankful for Playtech’s steadfast partnership which was instrumental in securing this funding, reinforcing their value both strategically and as a technology provider.
Michael Moskowitz, chair & CEO, NorthStar Gaming
Beach Point’s managing director, Gabriel Fineberg, was likewise pleased with the agreement, praising the growth of NorthStar and the iGaming sector as a whole. He emphasized that his team trusts Playtech’s contribution and vision towards NorthStar’s success.
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Star Entertainment Divests Non-Core Assets as Search for Liquidity Continues
The Star Entertainment Group announced that it selling non-core assets as the group desperately seeks to secure its financial position.
Star Sydney to Divest Its Event Center
In a release submitted to the ASX, the Australian casino and hospitality company confirmed that its New South Wales-facing branch, The Star Entertainment Sydney Properties, has secured agreements to sell some assets deemed to be non-core to the company’s business.
According to the announcement, these include The Star Sydney Event Center, as well as other additional spaces within The Star Sydney complex. The buyer, Foundation Theatres, has put forward $60 million for the transaction, subject to settlement adjustments.
Star Entertainment noted that the deal is still subject to the finalization of long-form transaction documents and certain customary conditions, such as government and regulatory approvals.
Star Entertainment clarified:
Foundation Theatres will pay a $60 million exclusivity fee in respect of the transaction into escrow on or before 31 January 2025 which will be released to The Star as consideration for the disposal subject to finalization of the long-form transaction documents and satisfaction of conditions.
Star Entertainment statement
The Star Is Happy to Sell the Assets to Foundation Theaters
Once the transaction has been completed, the consideration amount will be held in the group’s disposal proceeds account, which has been created under the terms of Star’s debt facility. It will notably constitute restricted cash.
The Star CEO Steve McCann commented on the matter, saying that his team is pleased to partner with Foundation Theaters.
The Star has worked closely with the team at Foundation Theatres since they acquired the sublease for the Sydney Lyric in 2011. We are pleased to partner with them as part of the continued evolution of our broad entertainment offerings at The Star Sydney.
Steve McCann, CEO, The Star
Star Entertainment expects to close the deal by February 28, 2025. McCann added that, in the meantime, the company is exploring sales of other non-core assets.
The Company’s Financial Trouble Worried Investors
The announcement comes shortly after Star Entertainment published its financial report for the second quarter of the fiscal year. In its report, the company outlined “limited” opportunities to raise funding in the absence of liquidity solutions.
The group’s overall metrics continued to decline amid economic and regulatory setbacks. While the company’s operating expenses also decreased due to the closure of Treasury Brisbane, Star Entertainment confirmed that fulfillment of its conditions for drawing the second tranche of its new facility remains elusive. The company confirmed that it is seeking external advice.
In any case, the company’s mixed results and precarious position have had a negative impact on its shareholders’ trust. Investors have gradually been losing tolerance, despite the leadership’s calls for patience. The rapid decline in the company’s available cash between September 2024 and December 2024 did little to improve this trend.
As a result, The Star’s shares have taken multiple blows, although the past few days have seen a slight rebounding.
