Skip to main content

Gambling Provider Scientific Games Explores New Markets and Growth Opportunities through Strategic Acquisitions

In the gambling world, there is a vast variety of titles and games which have the ability to provide the players with endless hours of entertainment and deeply immersive experience. They offer an escape to a whole other world which is nothing like we have seen before, one with vibrant colors and cheerful music, where excitement floats in the air and the player feels like impossible is nothing. There are many big companies which develop such gaming titles and improve them in a way which elevates them to a higher level of entertainment. This is the secret to the addictive qualities of gambling machines and why so many people feel the need to play every day – they find an escape from reality in both online and brick-and-mortar casino venues.

One of the big names in the gambling industry is Scientific Games Corporation which is a world-known provider of gaming equipment and lottery services with many new ideas as to how to attract more players and to explore new markets around the world. The American company was founded 44 years ago, back in 1973 and ever since then the driving force of it has been helping players be content with their gaming experience. One of the winning strategies which the company has been employing in the recent years is the active policy of diversifying the brand and signing partnerships and purchases of companies.

NYX Gaming as the New Additions to Scientific Games

The most recent new came last week when Scientific Games announced that the company is purchasing the Canada-listed gaming developer NYX Gaming and the hole-card readers supplier Tech Art Inc. These new acquisitions will help the gaming equipment provider expand its range of services provided and it will also introduce a breath of fresh air to the world of Scientific Games. The purchase of NYX Gaming was funded by the private offering of $350 million in senior secured promissory notes. These promissory notes will have to be repaid in 2025, as it was confirmed by Scientific Games. Later on, the company agreed to purchase NYX Gaming and all the outstanding shares of the company for C$2.40 per share. The total amount was estimated to cost about C$775 million (US$631 million).

This new addition will help the company in many ways and boost its development as a whole. As it was confirmed following the official acquisition of the company, Matt Davey, the Chief Executive Officer of NYX Gaming was going to manage the brand new Digital Gaming and Sports Division at Scientific Games. It was confirmed that Kevin Sheehan was going to continue being Chief Executive Officer and President. A new addition to the management was Shawn Dennis, who became the new Chief Marketing Officer and was granted the responsibilities to promote the brand and increase the engagement of the brand with customers and players.

When asked about the reasons behind the acquisition of NYX gaming, Mr. Davey stated that it is going to help the company’s plans to capitalize on future regulatory development in real-money betting and sports wagering. OpenBet Sportsbook, the leading digital betting solution provided by NYX is now part of Scientific Games’ portfolio and it is going to be offered at all currently existing US-based and international markets. This will officially introduce Scientific Games in the sports betting field and the overall popularity of OpenBet is going to help with that. Before the acquisition, NYX was providing with content leading brands to the likings of the Golden Nugget, Caesars, as well as two online casinos – Resorts Casino and Mohegan Sun Casino.

Online Gambling Legalization in the US

NYX provides content to both land-based and online gambling operators which is what makes it so desired by Scientific Games. This August saw the statement of the company’s CEO Matt Davey, who said that the company is very interested in exploring the US market and it sees a great potential in the online market in particular. Both the gaming and sports betting sectors are bound to develop rapidly and provide players with many exciting possibilities, when and if they are legalized in the US.

As it is known, the state of Pennsylvania is looking for new ways to amass the funding of the state budget and one of the topics which are going to be discussed by the lawmakers, is that of the online gambling and its potential to bring more than $2 billion in revenue. The state of Illinois showed some signs for legalizing online gambling back in the spring, but ever since there have not been any signs that the state Senate has continued its work on the new bill. Whatever the case is. NYX remain optimistic about the opportunities the US online gambling sector has to offer.

Tech Art is the Next Acquisition of Scientific Games

Another major new addition was the manufacturer of associated gaming equipment for use in blackjack games Tech Art. The deal is still ongoing and both parties are negotiating their conditions and working on finalizing it. It is expected that the purchase will be official at the beginning of 2018, as confirmed by Scientific Games. As it is well-known, Tech Art was founded in 1989 and this is the company inventor of the so-called MAXTime device, which is a system improving the security level of blackjack games and the dealing process in particular. For the time being, the two companies have not disclosed any details around the deal and the amount of money involved in it is unknown.

Last Tuesday saw the announcement that the company will provide its purchaser with the new MAXTime 4H solution which will improve the productivity. In its essence this is a mixture of a blackjack hole-card reader and a chip tray, implementing the technology in the real-life experience of the players. This will allow Scientific Games to assist casino operators around the world in boosting the speed of play and enhancing the security of the blackjack games. Other new offerings by Tech Art are going to be the new table games titles “Super Fun 21” and “Bet the Bust”. These new additions to the portfolio of titles offered to the players around the world are expected to keep the shares of the company at the high level at which they currently are. In the past year, they have gained 234.7 percent, marking a leading position for the company in the industry.

Scientific Gaming’s Overall Strategy for Branching Out

An ongoing trend in the development of Scientific Games has been the practice of diversifying and purchasing of companies, which provide a different direction for expanding. This is the so-called strategy for organic growth which is proving to be very successful for the company and its offerings. As it could be recalled, back in November 2014 the company merged with Bally Technologies which resulted in the improved gaming and lottery entertainment technology company. This merger introduced the company to the rapidly-moving Australasia region which proved to be a very successful move in the right direction.

It also expanded the portfolio of Scientific Gaming and made it able to support a wider variety of business objectives. This merger saw the union of interactive systems, platforms and gaming products brands, which makes the multi-channel distribution of content and offerings effortless and seamless for all land-based, social, mobile, and online platforms managed by Scientific Games.

 Author: Hannah Wallace

Hannah Wallace has been part of our team since the website was launched. She has a master’s degree in IT.