Aristocrat announced its plans to take over NeoGames in the previous year. Making this move interesting is the fact that NeGames is seeking a meet-up with the Nevada Gaming Control Board right in the following week.
Speculation states otherwise, but if statements by Brendan Bussmann are anything to go by, then this is nothing but a series of events happening at the same time. The acquisition deal is worth approximately $1 billion. It is closely followed by the meeting with the Gaming Control Board in relation to granting a license to the game provider.
The Control Board will soon hear the application for getting listed as a publicly traded corporation. To top this move, there are applications for manufacturers and distributors in the pipeline that could see the light of day at any given moment.
Michael Lawton from the Gaming Control Board has confirmed the development, also informing that it is on Thursday’s agenda for the monthly meeting.
When asked if the talks with the regulator will still go through, assuming a situation where the takeover talks fall apart, Brendan Bussmann assured that it would not have any impact since the application and talks with regulators have been on the move even before the takeover deal was considered. The gaming consultant has shed some light on the matter that this has been taken up in the special meeting, something that is held when applications cannot be finalized before the regular meetings.
NeoGames is somewhat in a tough spot. They are expected to have a discussion about the takeover deal with Aristocrat at the regulator’s office. Having a license will simply make things convenient for them.
NeoGames is licensed in other states, and Nevada could be a fresh addition following the hearing with the Gaming Control Board. A lot of components will be on the table, like remote gambling. Some lawmakers are also eyeing to bring justice to the lottery system in Nevada. Lacking a clear connection, the approval for NeoGames could make way for them to put the case forward.
To brief a bit more about the takeover deal, Barry Jonas estimates that Aristocrat and NeoGames will close limited liabilities in the next 1 year. The financial analyst believes that there is no other offer for NeoGames on the table. Meaning, Aristocrat is the sole candidate coming up with the takeover deal. The break-up fee roughly comes to $40 million without any financing option for an all-cash offer.
Aristocrat’s takeover of NeoGames helps the venture gain a position in the iGaming segment. It has already established a name in land-based casinos. The takeover deal moving forward will see Aristocrat gain an edge in iGaming, or lottery and slot segments.
A financial statement by Jonas highlights that Aristocrat and NeoGames joining hands together will take up the revenue number to a minimum of $500 million by 2028.