NYX shareholders approve acquisition by Scientific Games

In Las Vegas on Wednesday, NYX Gaming Group Limited’s (TSXV: NYX) shareholders overwhelmingly approved Scientific Games Corporation (NASDAQ: SGMS) acquisition of the company for $631 million by way of a court-sanctioned “scheme of arrangement” under Part VIII of Guernsey Law.

According to the press release, the acquisition must still be sanctioned by the Royal Court of Guernsey via a court hearing, which has been scheduled to be held at 10am on January 5, 2018.

Kevin Sheehan, CEO and President of Scientific Games, said, “We are thrilled by the strong support from NYX shareholders and we are very excited about our combined companies’ future growth potential. By bringing together Scientific Games and NYX, we will create a world leader in digital gaming and sports betting, a company with an unrivaled, end-to-end product portfolio and an innovative driving force in the industry.”

Also commenting on the sale, NYX Gaming Group CEO Matt Davey said, “The Acquisition will be a win-win for both companies and our collective shareholders. By joining Scientific Games, we will become part of a company with unmatched global reach, 7BALL CX resources and industry leading content. The leaders of both NYX and Scientific Games are committed to delivering significant value for our customers across the full spectrum of digital gaming.”

In the two meetings yesterday, 99.57 percent of scheme shares voted “FOR” in the Court Meeting, while at the Extraordinary General Meeting, 99.83 percent of NYX shareholders voted to approve the acquisition.

The approval paves the way for the Las Vegas-based Scientific Games to become a major player in nationwide sports wagering should the Supreme Court free states from the federal anti-gaming law, Professional and Amateur Sports Protection Act of 1992, and legalize sports betting.

On December 4, the U.S. Supreme Court heard oral arguments in the Christie vs. NCAA, New Jersey sports betting case. It is likely that the case will not only decide the future of sports betting in the Garden State but the United States as well. A decision regarding nationwide sports betting is anticipated in the New Year. The most recent case is the second attempt by New Jersey to legalize sports betting, however, it is the first trip to the nation’s highest court.

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Over the past month, Scientific Games has been busy acquiring shares and warrants of NYX stock in an effort to garner support for the purchase. The two companies announced on Sunday that Pollard Equities Ltd., which held 4 million warrants and 8.6 million shares, pledged its support of Scientific’s NYX acquisition bid.

Prior to that, on November 21, Scientific Gaming announced that it purchased $21.3 million worth of NYX shares, which was followed by another purchase on November 24, this time for $69 million in NYX shares.