Companies Already Fighting To Claim Stake In U.S. Sports Betting Market
With the U.S. Supreme Court expected to make a decision on New Jersey’s appeal to legalize sports betting in the State, the local competition is heating up. The biggest talking point in the U.S sports betting market, is that of the lawsuit between Canadian based Nyx and London based William Hill over the proposed acquisition of Nyx by Las Vegas based Scientific Games.
William Hill who owns stock in NYX is threatening to torpedo their Scientific Games Acquisition until it gets the assurances it needs. Nyx in response have dubbed these conditions imposed by William Hill as “extortionate” and anti–competitive.
The background to this new feud is the potential for a legalization of sports betting in New Jersey and perhaps in a federal level. Many experts believe that whether it is this New Jersey case or another, the sports betting market will finally open up and that the time is now to establish a position as operators will be looking for a technology partner. Insiders like David Schwartz, director of the Center for Gaming Research at the University of Las Vegas believe that,” For the past 30 years, gaming companies have been driven by the promises of expansion. In the past that meant more states opening themselves up to casino gaming, but the final frontier may be sports betting.”
Nyx from their side released a statement reacting to William Hill’s threat to block the Scientific Games Deal. They said,” William Hill has made clear to (Scientific Games) and NYX that it fears competition in the marketplace,” NYX wrote in its lawsuit. “William Hill has expressed its view that the U.S. sports betting market is a ‘two-horse race’ between William Hill and NYX, and that as of now, William Hill has control over NYX.
In response William Hill Spokesman Ciaran O’Brien re-iterated their position that they are defending the rights of their shareholders. It is worth bearing in mind that the competition to provide online technology to power sports betting in the U.S. is set to come from big names like Boyd Gaming, CG Technology and the South Point Race Book that are already based in Las Vegas.