William Hill Scientific Games Court Battle Looming

Published Sunday, November 12, 2017 - Online-Casinos.com
William Hill Scientific Games Court Battle Looming

The potential for profit in the USA for online sports betting operations is massive if the Supreme Court sides with the state of New Jersey in its bid to open up sports betting to the rest of America.

The battle lines are being drawn between William Hill and Scientific Games. William Hill has filed a legal challenge that looks to disrupt the acquisition by Scientific Games of NYX Gaming. William Hill is a minority shareholder in NYX Gaming and has threatened to convert a sizable minority stake in NYX Gaming preferred stock which could spoil the proposed acquisition of the NYX property. This action is in the face of the fact that NYX is an active partner in its deal with Scientific Games.  

The stock conversion would give William Hill 32% of the voting stock in NYX, producing a reasonable opportunity to block the Scientific Games purchase. The loss is great for William Hill which intends to cause a loss for all of NYX’s current shareholders by converting the outstanding preference shares. The conversion will ultimately stop NYX shareholders from acquiring a premium made available by the Scientific Games offer and instead will make William Hill “lose approximately $50M and perhaps even more than double the amount.” The firm is working hard to bring appropriate legal action or actions against William Hill to protect NYX shareholders.

It was announced in September that Scientific Games had agreed to purchase NYX for approximately €525m/US$609.2m, in a deal it said would lead to a “global digital gaming and lottery powerhouse”. William Hill said “no decision has been made at this time” and, despite reports, “refutes in the strongest terms that any anti-competitive measure have been requested or is being demanded”.

NYX is prominent on the B2B side of the online gambling industry and it offers a number of software platforms to many of the industry’s biggest participants including NYX’s sports-betting solution, Open Bet.

 

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