UPDATE 1-NetPlay raises 12.8 mln stg; inks 5-yr Playtech deal

* Issues 58.4 mln new shares at 22p each

* Says to supply interactive games to Playtech

* Shares indicated up 10 pct

July 9 (Reuters) - British interactive gaming firm NetPlay TV Plc (NPT.L) said on Thursday it raised 12.8 million pounds ($20.6 million) in a discounted private placement and that it signed a five-year deal with Playtech Ltd (PTEC.L) to provide interactive games.

NetPlay will supply interactive games to Playtech network and migrate all of its services onto the online gaming software supplier's technology platform, NetPlay said.

"'Live' gaming is being demanded by more and more customers and this agreement will allow us to deliver our products to a much wider audience," Chief Executive Martin Higginson said in a statement.

NetPlay said the proceeds from the share placing, at 10 a percent discount to the stock's closing price on Wednesday, would strengthen its balance sheet and provide capital for future growth.

The investment, along with the strategic relationship, both in terms of distribution and technology with Playtech, will enable NetPlay to drive the development of its converged gaming solutions, Higginson said.

The company said it would place about 58.4 million new shares at 22 pence each with shareholder Directforce Trading Ltd, representing about 29.9 percent of its enlarged share capital.

NetPlay shares were indicated up 10.2 percent at 27 pence. They closed at 24.5 pence on Wednesday on the London Stock Exchange. ($1=.6219 Pound) (Reporting by Ramkumar in Bangalore; Editing by Gopakumar Warrier)