[toc]Scientific Games is acquiring NYX Gaming Group, a move that appears to be designed, at least in part, to exploit a future regulated market for US sports betting.
Scientific Games + NYX
The two giants in the world of gaming will be joining forces, as Scientific will take over NYX for about $631 million.
The move, Scientific said in a press release, will further strengthen its “leadership position and ability to provide the broadest portfolio of content, technologies and digital products and services for its global Gaming and Lottery customers.”
Adding NYX to its portfolio certainly makes Scientific an even bigger force in both land-based and online gambling in the US and around the world.
But the intriguing part, for proponents of legal sports betting, is that the company publicly says it is looking at the future in American markets.
Sports betting, SG and NYX
How do we know that SG is bullish on the future outside of Nevada sports betting? Because it explicitly said so in its announcement of the deal to acquire NYX (emphasis added):
Scientific Games will now be perfectly positioned to capitalize on future regulatory developments in real-money wagering and sports betting by adding NYX’s industry-leading OpenBet Sportsbook. NYX’s digital Sportsbook can be seamlessly delivered throughout Scientific Games’ global gaming and lottery networks in existing and future regulated US and global markets.
“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,” Scientific Games CEO Kevin Sheehan said. NYX ideally positions us to capitalize on the growing online gaming and sports betting markets.”
In an earnings call for Q2, NYX CEO Matt Davey was also sounding positive notes:
“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,” Davies said last month.
Why the optimism, and why now, for sports betting?
The future for legal and regulated sports betting in the US could be here very soon.
In that scenario, states could quickly start changing their laws to allow for sports betting in their jurisdictions. And suppliers such as Scientific/NYX will be among those poised to offer their services.
While policymakers are figuring out what they want to do with sports betting, gaming companies will be getting ready for a world where it’s increasingly legal in the US. And this deal is evidence of that.