Sportech steps back from NYX Gaming joint venture

Sportech steps back from NYX Gaming joint venture

Thursday, May 28, 2015 Totally Gaming
Sports wagering operator to accelerate development plans

Sportech has opted to offload a 50-per-cent stake in Sportech-NYX Gaming to joint venture partner NYX Social Gaming in a deal worth up to C$22.9m (€16.8m/$18.3m).

The pools and sports wagering operator had been running the joint venture in partnership with NYX Social Gaming, a subsidiary of online gaming technology firm NYX Gaming Group. However, Sportech has now opted to step back from the venture and focus on other sectors of its wide-ranging business.

The sale comes despite Sportech having recently used the joint venture to launch online gaming services in the US state of New Jersey for the first time through a partnership with Resorts Casino Hotel.

Sportech will generate an estimated pre-tax profit C$16.8m on its investment in the joint venture through the sale of its stake, which includes one customer contract, online casino software and a number of employees.

Upon completing the sale, Sportech confirmed its intention to use proceeds from the deal to help accelerate its “near-term development plans”. The company will retain a material interest in casino and poker online gaming through an equity stake in NYX Gaming.

“We are pleased to have reached this agreement with NYX, generating a significant return for the group in a short space of time,” Sportech chief executive Ian Penrose said.

“The structure of the deal enables us to reinvest in our US growth activities in the sports gaming market, whilst retaining a material stake in the future of online casino gaming in North America.

“NYX is endeavouring to build a market leading position and we look forward to sharing in this opportunity with them.”

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