Playgon Signs Strategic MOU with Digital Nation Entertainment to Reinvent Live Gaming with AI-Dealer Technology

Rhea-AI Summary

Playgon Games (OTC: PLGNF) signed a binding Memorandum of Understanding with Digital Nation Entertainment to co-develop AI Dealer technology and form a wholly owned subsidiary (NewCo) to commercialize it. Playgon committed $1 million USD in staged payments and expects development funding via an increased secured credit facility. The partnership is exclusive for an initial five-year term with revenue sharing to repay advances. Both parties will contribute IP; Playgon will retain full ownership of NewCo and resulting IP.

The companies aim for a Q2 2026 market-ready launch, 24/7 multilingual gameplay in 30+ languages, and direct integration into Playgon's certified platform without API or wallet changes.

Positive

• $1.0M committed to AI Dealer development
• Exclusive 5-year partnership with renewal options
• Targeting Q2 2026 market-ready launch
• AI Dealers to support 30+ languages and 24/7 operation
• Direct integration with existing platform no API/wallet changes

Negative

• Development funding dependent on increased secured credit facility
• Playgon bears upfront costs including non-refundable deposits
• Portion of NewCo net gaming revenue committed to repay advances

Vancouver, British Columbia--(Newsfile Corp. - November 12, 2025) - Playgon Games Inc. (TSXV: DEAL) (OTC Pink: PLGNF) (FSE: 7CR) ("Playgon" or the "Company"), a proprietary SaaS technology company delivering a 'state of the art' mobile live dealer technology and eTable games platform to online gaming operators globally, is pleased to announce it has signed a binding Memorandum of Understanding (the "MOU") with Digital Nation Entertainment ("DNE"), a multi-award-winning studio specializing in real-time animation, volumetric capture, and emotionally responsive digital performance, to co-develop and commercialize the next generation of AI Dealer technology for live gaming.

The MOU marks a strategic pivot for Playgon, moving away from human-hosted dealer studios and embracing a scalable, intelligent, future powered by AI-generated digital hosts. This exclusive engagement allows Playgon an expected first mover advantage to deliver immersive, multilingual gameplay around the clock, while eliminating the physical limitations of traditional live dealer operations and business models.

Under the terms of the MOU, among other things, Playgon will form a wholly owned subsidiary ("NewCo") to underwrite the development subject to a commercial revenue sharing agreement based on net gaming revenue for the term with DNE. Both companies will contribute elements of their respective intellectual property to accelerate the creation of Playgon's next-generation AI Dealer technology. Playgon is committed to invest $1 million USD (payable in tranches, with initial non-refundable deposits having been made and additional payments due upon executing the definitive agreement and completing development milestones). Playgon's development costs are expected to be funded by Playgon through its increased secured credit facility (the "Secured Loan") entered into with Pure Live Interactive (see Oct. 31, 2025 News Release).The partnership is exclusive for an initial five-year term, with options to renew. The Parties have agreed to a portion of the net gaming revenues realized by NewCo be committed to the repayment of the funds advanced by Playgon.

Playgon will retain full ownership of Newco and all intellectual property created through the partnership. Both companies intend to finalize and execute the definitive Technology Co-Development agreement within 45 days, with the current MOU remaining in effect until that agreement is completed. The Technology Co-Development agreement is expected to be a form customary for development projects of this nature, and will include standard representations, warranties, covenants and default provisions of the respective parties.

"Through this partnership with DNE, we are fundamentally transforming our live dealer strategy to focus on AI-driven hosts," said Darcy Krogh, CEO of Playgon Games. "Lifelike, multilingual, digital personalities that elevate the player experience while eliminating the operational constraints of traditional live dealer studios and business models. This is a transformational moment for Playgon, moving beyond human-hosted tables to a scalable, intelligent dealer layer that redefines how live gaming is delivered."

DNE brings proprietary capabilities in real-time digital human animation, including volumetric capture and ultra-responsive character performance. Their technology enables lifelike dealer behavior - complete with natural speech, emotional responsiveness, and contextual memory, delivering a believable and adaptive experience in real time.

This collaboration brings together Playgon's leading live dealer gaming platform and DNE's advanced digital human and interactive AI technologies. The goal is to create the world's first AI Dealer experience, offering lifelike, emotionally intelligent, gameplay at scale, for both social and real-money iGaming markets across 30+ languages, 24/7. These intelligent digital hosts will be layered on top of Playgon's certified platform, including its game engine, compliance layer, and integrations infrastructure.

"This partnership unlocks the next level of user experience - intelligent, expressive digital dealers capable of hosting hundreds of games simultaneously, in any language, around the clock. This isn't just an upgrade - it's a complete reinvention of how traditional live gaming is delivered," said Guido Ganschow, President of Playgon.

Craig Evans, CEO of Digital Nation Entertainment, commented: "By combining DNE's digital human technology and real-time AI, capable of natural speech, memory, and session-level adaptation with Playgon's proven live dealer systems, we're creating a revolutionary new gaming experience that pushes the boundaries of what's possible in real-time digital performance."

For Playgon customers, the shift will be seamless. The AI Dealer technology will integrate directly into Playgon's certified platform, with no changes required to existing APIs, player flows, or wallet infrastructure. From a delivery perspective, everything remains familiar - except the dealer is now a digital performer capable of maintaining energy, presence, and multilingual engagement 24/7.

Playgon and DNE have already begun joint development under the MOU. The companies anticipate providing additional updates as they materialize. Playgon is targeting an initial market-ready launch of Playgon's AI Dealer technology to be available for Q2 2026, subject to standard approvals and commercial readiness.

About Digital Nation Entertainment

Digital Nation Entertainment ("DNE") is a Santa Monica-based technology and production studio specializing in immersive, volumetric, and interactive digital content. The company develops lifelike digital human experiences, leveraging volumetric 3D capture, AR/VR pipelines, and real-time game-engine technologies to deliver next-generation engagement across platforms. Digital Nation Entertainment is a multi-award-winning studio recognized for pioneering real-time digital human animation, with proprietary technology that delivers high-fidelity, responsive character performance for interactive environments. For further information, please visit the Company's website at www.digitalnationent.com.

About Playgon Games Inc.

Playgon is a SaaS technology company focused on developing and licensing digital content for the growing iGaming market. The Company provides a multi-tenant gateway that allows online operators the ability to offer their customers innovative iGaming software solutions. Its current software platform includes Live Dealer Casino and E-Table games, which through a seamless integration at the operator level, allows customer access without having to share or compromise any sensitive customer data. As a true business-to-business digital content provider, the Company's products are ideal turn-key solutions for online casinos, sportsbook operators, land-based operators, media groups, and big database companies. For further information, please visit the Company's website at www.playgon.com.

For further information, contact: 
Mike Marrandino, Director
Tel: (604) 722-5225
Email: mikem@playgon.com

Forward-Looking Statements

This release contains forward-looking statements, including with respect to the Company's proposed amendments to the Secured Loan, Playgon's ability to obtain TSXV approval for the extension and upsizing of the Secured Loan, the MOU, the entering into of a definitive agreement with DNE, Pure Live's intention to continue to advance funds to Playgon under the Secured Loan, Playgon's ability to fund the development costs and the anticipated benefits associated with the project. Forward-looking statements, without limitation, may contain the words believes, expects, anticipates, estimates, intends, plans, or similar expressions. Forward-looking statements are not guaranteeing of future performance. They involve risks, uncertainties and assumptions and actual results could differ materially from those anticipated, which would result in adverse impacts on Playgon and its financial condition, as well as on Playgon's ability to finalize the definitive agreement and move forward with the project as intended. Forward looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Except for historical facts, the statements in this news release, as well as oral statements or other written statements made or to be made by Playgon, are forward-looking and involve risks and uncertainties. In the context of any forward-looking information please refer to risk factors detailed in, as well as other information contained in the Company's audited financial statements for the year ended December 31, 2024 and Management Discussion and Analysis for the year ended December 31, 2024 and other filings with Canadian securities regulators (www.sedarplus.ca). Readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements contained in this press release represents Playgon's current expectations. Playgon disclaims any intention and assumes no obligation to update or revise any forward-looking information, except if required by applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/274105

FAQ

What did Playgon (PLGNF) announce on November 12, 2025 about AI Dealer technology?

Playgon announced a binding MOU with Digital Nation Entertainment to co-develop AI Dealer technology and form a wholly owned subsidiary, with Playgon committing $1M in staged payments.

When is Playgon targeting a market-ready launch for the AI Dealer (PLGNF)?

Playgon is targeting a Q2 2026 market-ready launch, subject to approvals and commercial readiness.

How will Playgon fund the AI Dealer development announced November 12, 2025?

Playgon committed $1M USD payable in tranches and expects to fund development through its increased secured credit facility.

What ownership and revenue terms did Playgon (PLGNF) disclose for the NewCo?

Playgon will retain full ownership of NewCo and its IP; a portion of NewCo net gaming revenue will be used to repay funds advanced by Playgon.

Will Playgon's AI Dealer require changes to existing integrations for customers?

No—Playgon says the AI Dealer will integrate directly into its certified platform with no changes to existing APIs, player flows, or wallet infrastructure.

How long is the exclusivity period between Playgon and Digital Nation Entertainment?

The partnership is exclusive for an initial five-year term with options to renew.