NYX Gaming Buys Ongame And Announces IPO

The NYX Gaming Group has announced its intent to launch an IPO in the Toronto TSX Venture Exchange in Canada. A statement released by the company said that it has filed a preliminary long form prospectus on November 21 with the securities commissions of each of the provinces and territories of Canada in connection with the initial public offering of its ordinary shares. The offering is being underwritten by Canaccord Genuity Corporation as lead underwriter.

There are several reasons this move has drawn interest in Canadian and global online gaming circles. The foremost of them is that NYX Gaming has just bought Ongame from the Canadian online gaming company Amaya. Canadian online casino players are generally interested only in the games the operators offer and not so much in the ownership changes. But what is happening here is really interesting. Amaya is investing $10 million in NYX Gaming and NYX has the option to purchase Amaya’s B2B online casino offerings that include the combination of well-known Cryptologic and Chartwell Technologies.

It has been understood since the last few years that the number of players in the online gaming industry will decrease as a result of the big fish eating the small fish. But this type of coming together through strengthening of cross-holdings is new. It is not that long ago that Amaya first purchased the Rational Group PokerStars and Full Tilt online poker brands and then introduced sports betting and casino games on those platforms. NYX Gaming has paid eight times the 2015 EBITDA value for Ongame, so it definitely considers it a winning prospect in the long run. However, the worth of the Cryptologic-Chartwell combination for casino content is not that apparent.

In any event, this IPO will see NYX Gaming join Amaya as one of the bigger Canadian gaming stocks. Amaya has been growing by leaps and bounds over the past couple of years. They have bought near defunct brands and turned them around completely or bought running brands and drastically increased their profitability. With Amaya holding a stake in NYX Gaming, it is very likely that the latter will be a stock to watch out for on the Toronto Stock Exchange.

NYX Gaming Group is headquartered in Las Vegas with development out of Stockholm and Sydney. Game development arm NextGen Gaming is the industry’s leading provider of engaging, slot machines. NYX Gaming is the recipient of the Special Achievement Award from EGR Magazine.

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