Scientific Games (SG) announced earlier this week that it was in the process of purchasing NYX Gaming, a competitor in the slot gambling market. They will be purchasing NYX Gaming at the cost of $632 million. With this purchase, the company will further increase its dominance in the slot market.
Scientific Games Hopes to Capitalize on Online Gambling
Both firms, Scientific Games and NYX Gaming, are based in Las Vegas, Nevada. Scientific Games announced its intentions on Wednesday to purchase all outstanding ordinary shares in NYX Gaming. NYX trades on the Toronto Venture Stock Exchange. At the close of trading on Tuesday, the 19th of September 2017, NYX Gaming’s shares very valued at US$0.92. However, since the announcement of the acquisition by Scientific Games, the share price has increased by more than 110%, to US$1.95.
The CEO of SG came out and said that he believes this new deal will allow Scientific Games to capitalize on Internet gambling and sports betting. Both of these markets are continuing to grow, so it’s important for the company to take advantage.
However, some of its investors weren’t so sure that this was a smart move and its shares would lose $0.1 over the course of the day.
NYX Gaming Provides Scientific Games with B2B Leader
Scientific Games is well known in the casino industry and is a leader in making slot machines and other casino games. It has been looking for a leading B2B internet casino company to add to its portfolio, which it found with NYX Gaming. NYX Gaming provides online gaming software to the likes of William Hill, Ladbrokes-Coral, Mr Green, and bet365. These are some of the largest online and mobile gambling companies in the world.
SG isn’t just buying companies; it is also making exciting collaboration deals. It recently made an agreement with IGT, which allows both companies to use each other’s licenses and patents. This should be a great collaboration between the two companies that will greatly benefit the players.