Following the landmark deal last week between renowned online casino software developer, Playtech, and the investment holdings company, Sino Strategic International, it has certainly become apparent that Playtech is on the fast track to diversify its gaming offering. Sino Strategic International (SSI) is one of the leading suppliers of casino gambling related services in China, which for Playtech, means they will be infiltrating deep into an otherwise strictly protected industry in Asia. According to Playtech, they will be licensing their online gaming software to SSI for the next five years.

The two companies began talking shortly after the U.S. passed the Unlawful Internet Gambling Enforcement Act and Playtech decided to comply with the pending legislation and clos down all U.S. facing online casino operations. This coupled with the propitious timing of SSI's subsidiary gaming company, Shanghai Kelo, being granted an extended license agreement with the Shanghai Welfare Lottery Center brought the two company's together to discuss partnership opportunities.

Shanghai Kelo is currently the largest corporate retail gaming operator in China, holding a license that allows for them to operate their current workforce of 480 separate gaming outlets offering keno, lotto and video lottery machines. The extension of their license now permits Shanghai Kelo to operate up to 600 gaming outlets, which is where Playtech comes into the picture. Using the same graphics and technology used by Playtech's online casino and poker room licensees, Shanghai Kelo will be powering up to 5,000 betting terminals with a new Texas Hold'em poker game developed by Playtech.

Following a test run of poker tournaments, Shanghai Kelo says they will begin implementing games more familiar to Asians, such as mahjong, Do Di Zhu and Cho Da Di (also developed by Playtech). SSI CEO, Richard Li, says he is impressed with the understanding that Playtech has of the Asian casino gambling market as well as their flexibility in adapting to the "intricacies" of the gambling industry in China. CEO of Playtech, Avigur Zmora, expressed sheer optimism regarding Playtech's new business strategy, which is to establish a strong presence in the Asian gaming industry.