In its statement, SG said the acquisition was fueled in part by positioning itself for the future in the US:
“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.”
NYX CEO Matt Davey echoed these sentiments during the company’s most recent earnings call:
“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.”
Setting aside the sports betting component (you can read Dustin Gouker’s analysis of that at Legal Sports Report), here’s what the acquisition means for New Jersey online gambling.
NYX currently provides the online casino software for three New Jersey online casino operators:
Despite being late to the party, NYX is one of the preeminent online platforms in the state. (Resorts’ foray into New Jersey began a year and a half after the initial online casino market launch.)
Combined, NYX’s online casino partners have accounted for nearly half of NJ online casino revenue this year. That’s $66.8 million of the total of $146.6 million.
One of those partners expects the acquisition to benefit all parties.
“I think this is a great move from Scientific Games and NYX alike and one that should benefit their clients, especially in the US online gaming space,” said. Golden Nugget VP of Online Gaming Thomas Winter.
“SG and NYX have been important partners for Golden Nugget over the last few years, both land-based and online. We look forward to strengthening our relationship with them.”
Coincidentally, Golden Nugget partnered with NYX in part because of a previous acquisition by Scientific Games.
When New Jersey online gambling launched in November 2013, Golden Nugget was partnered with Bally Technologies. But following the $5.1 billion acquisition of Bally by Scientific Games the next fall, Golden Nugget went in search of a new partner.
It eventually settled on NYX.
“On our end, we wanted a fully committed partner to keep improving their platform and our players’ experience,” Winter said in a July 2015 interview with Play NJ. “So we both figured out it was best to change.”
“NYX is one of the best if not the best platform available in NJ. And because they have multiple clients in NJ, they are fully committed to enhancing the platform.”
Golden Nugget completed the platform shift in late 2015. The partnership has since surged to the top of the New Jersey online casino pack.
As Winter indicated in July 2015, the impetus for the change was having a partner dedicated to the US market. That’s something Golden Nugget didn’t believe was the case with Scientific Games in 2015.
But things have changed dramatically in the past two years.
The NYX acquisition would seem to be a sign that Scientific Games ramping up its presence in the US market. It will likely dedicate more resources. That’s particularly true if the federal ban on sports betting is struck down the US Supreme Court.