Playgon, Digital National enter MOU to develop AI hosts

Mr. Darcy Krogh reports PLAYGON SIGNS STRATEGIC MOU WITH DIGITAL NATION ENTERTAINMENT TO REINVENT LIVE GAMING WITH AI-DEALER TECHNOLOGY Playgon Games Inc. has signed a binding memorandum of understanding with Digital Nation Entertainment, a multiaward-winning studio specializing in real-time animation, volumetric capture and emotionally responsive digital performance, to co-develop and commercialize the next generation of artificial intelligence 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 (U.S.) (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 financed by Playgon through its increased secured credit facility 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 to 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, chief executive officer 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 ultraresponsive character performance. Their technology enables lifelike dealer behaviour -- 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-plus languages, 24-seven. 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, chief executive officer 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-seven. 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 second quarter 2026, subject to standard approvals and commercial readiness. About Playgon Games Inc. Playgon is a software-as-a-service technology company focused on developing and licensing digital content for the growing iGaming market. The company provides a multitenant gateway that allows on-line 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 has products ideal for turnkey solutions for on-line casinos, sports book operators, land-based operators, media groups and big database companies. We seek Safe Harbor.