December 16, 2013
Sportech Reaches Agreement to Develop Branded Wagering ("Betting") and
Sports Bar Venues in California
Sportech PLC ("Sportech") is pleased to announce that it has signed an agreement with one of the governing bodies for horseracing in California, the Southern California Off Track Wagering, Inc. ("SCOTWinc"), for a license to allow Sportech to operate up to ten innovative retail venues offering customers the ability to bet on horseracing in a high-end sports bar and restaurant facility.
The agreement will enable Sportech to expand its established sports bar and betting business in Connecticut to California, a State in which Sportech's technology systems process all bets on horseracing, which in 2012 exceeded $2 billion in total value. There are currently only 36 locations in California where a bet may be placed on horseracing for a gambling market worth an estimated $15 billion, and this agreement will significantly expand our footprint while attracting new fans and revenues to the sport.
Sportech will open the first sports bar, restaurant and betting venue at a location in the City of Norco, Riverside County, Southern California. The California Horse Racing Board ("CHRB") approved the proposal on the 12th December, following Sportech's receipt of all relevant approvals from the City of Norco.
The proposed 10,000 square feet purpose built facility in Norco is scheduled to open in the summer of 2014 and will combine state-of-the-art betting technology with food and beverage retail operations. This location will be developed under a joint venture between Sportech and the Silky Sullivan Group LLC, a food and beverage operator based in Southern California. The joint venture will share equally the cost of construction (estimated at $1.6m for Sportech) and the profits generated.
Sportech and SCOTWinc have already partnered to open five locations in Southern and Central California, where Sportech provide betting technology and services for customers of third party sports bars to place bets.
Ian Penrose, CEO of Sportech, stated: "We are delighted to have received approvals to develop a branded sports bar and betting retail chain. We have worked closely with the horseracing and licensing authorities in California for a number of years, and I am pleased that we have reached this important milestone. We look forward to establishing a dynamic and successful venture."
Phil Balderamos, Managing Director of Sportech Venues California added: "We have been working on developing this new area of business for 12 months, to build on our core strengths of processing all betting on horseracing in California. We look forward to expanding the distribution, appeal and revenues of horseracing with this innovative concept."
Jack Liebau, Chairman of Southern California Off Track Wagering, Inc., stated: "We are pleased to be working with Sportech to create these new first class facilities in order to showcase the great sport of horse racing and to attract new customers."
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Contact:
Sportech PLC 020 7268 2400
Ian Penrose, Chief Executive
Brunswick Group LLP 020 7404 5959
Mike Smith, Tom Williams sportech@brunswickgroup.com
About Sportech Venues California LLC
Sportech Venues California LLC was established as a division of Sportech PLC to develop innovative horseracing betting sports bar and restaurant locations in California. The division combines the betting technologies and services of Sportech Racing and Digital - a leading global provider of betting technology solutions to licensed racetracks, off-track betting networks, Internet betting operators and casinos - with Sportech Venues Inc, the venue management division of Sportech's consumer-facing horseracing betting operations in Connecticut and other territories. The Sportech Venues, Inc. division currently owns and operates fifteen off-track betting locations in the State of Connecticut, many of which offer full service restaurants, sports bars and entertainment.
About Sportech PLC
Sportech PLC is a sports, gaming and entertainment company and one of the world's leading pool and tote wagering organisations focusing on highly regulated markets worldwide. Sportech provides betting technology for football (soccer), horseracing and greyhounds, processing over $13 billion in bets annually, with a presence in 30 countries. Sportech is headquartered in London, England with operational offices in Liverpool, England, Atlanta, Connecticut, California, New Jersey, Netherlands, Germany and Ireland. For more information aboutSportech PLC, please visit www.sportechplc.com.
About Norco, Riverside County
Norco is situated within Riverside County California and is known as 'Horsetown USA' due to its strong heritage and links to horse racing and stabling. Over 750,000 people within a 25 minute drive (20 mile radius) of Norco and the city is currently undergoing significant commercial development plans which include new hotels, retail and entertainment facilities including the proposed $40 million Silverlakes sports development set to become a California center of excellence for horse related sports and other activities including football (soccer).
About the California Horse Racing Industry
SCOTWinc is a partnership of Southern California racetracks and horsemen that manages the off-track wagering locations where customers can bet and watch horseracing.
California is a state with expansive facilities and a high level of interest in the sport of horseracing, with world famous racetracks that includes Del Mar and Santa Anita. Total horseracing handle (the amount wagered on horseracing in California) exceeded $2 billion in 2012.