Scientific Games (SG) announced Wednesday its NYX Gaming Group acquisition deal. Scientific Games acquired NYX Gaming for a total of C$774 million or US$631 million. The acquisition deal is set to bolster SG’s current assets. Another benefit is the addition of OpenBet Sportsbook to SG portfolio.
Kevin Sheehan, president of Scientific Game, said:
“This strategic and financially compelling acquisition combines NYX’s premier digital gaming and sports betting platforms and expansive distribution network to our own global, industry-leading content, technologies and digital products and services.”
SG acquired NYX Gaming for C$2.40 a share which is 112% premium to the closing stock price of NYX’s listing. The payment was financed with a mix of money on hand and debt.
Matt Davey, chief executive officer of NYX, will now supervise the new Digital Gaming and Sports division of SG. Davey will work with the leaders of both SG Interactive and NYX. This includes the managing director of SG’s B2B Interactive, Leigh Nissim. Davey will report to Kevin Sheehan, Scientific Games Chief Executive Officer and President.
NYX Acquisition benefits
The most important benefit that Scientific Games is looking for is the addition of a global sports betting platform to their portfolio. OpenBet, which was bought by NYX Gaming, is one of the longest-running sportsbooks and has a large customer base. In 2014, the sportsbook made more than a billion wagers.
With a top sportsbook brand in its portfolio, SG aims to reach out to the regulated US market. SG sees a potential in the market if the US Supreme Court removes the outdated prohibition on sports betting in the New Jersey sports betting case. The case is expected to be resolved early next year. If the case yields positive results next year, other states might follow New Jersey’s lead to legalizing sports wagers.
“We see great potential for the US market to accelerate over the next several years, in both gaming and sports betting, and we are well positioned for this opportunity, as it develops.”
OpenBet puts SG at the right position once sports wagers are made legal in the US. SG can deliver the sportsbook through its global gaming and lottery network. The company is seeing future opportunities in reaching out to regulated global markets where sports betting is legal.
Apart from the addition of sportsbook, SG is looking to strengthen its business through NYX Gaming’s global channels, customer base, and markets, including those in the Bitcoin casino market. The acquisition deal can help the growth of SG’s current interactive gaming business.
Scientific Games is not the only one to benefit from the deal. NYX Gaming can look forward to SG’s intellectual properties, customer base, and global market reach. These can help further the growth of NYX Gaming’s digital casino and account platform.