LIVERPOOL stockbroker Panmure Gordon says the hidden value of Walton-based gaming group Sportech is yet to be realised.

In an investment note on the football pools to e-gaming and horse betting group, the broker highlights improved prospects for Sportech after its £51.4m acquisition of US-based Scientific Games Racing, renamed Sportech Racing, which has operations in America and the Netherlands.

It also focuses on promising new international joint ventures with Indian gaming group Playwin and the more resilient football pools.

The note by Simon French and Lindsey Kerrigen at Panmure, which acts as Sportech’s broker, says Sportech has been transformed, but is still not well understood: “The group occupies unique positions in the highly-regulated gambling markets of the UK, the US and the Netherlands.”

It claims Sportech Racing will contribute more than 50% of estimated revenues in 2011, reducing the contribution of football pools to 43%.

But it says the pools operation is still a key player, adding: “Football pools continues to prove more resilient than has been expected.

“In addition, there is significant option value associated with the Spot the Ball VAT reclaim and the Indian JV (joint venture).”

Sportech claims it has over-paid £40m in VAT on its Spot the Ball game and has submitted an appeal: “Simple interest would likely be applied to a successful claim, bringing the total sum to circa £80m.”

Panmure says Sportech’s shares can reach 67p, against 39.62p last night.