Nevada Gaming Commission Approves Aristocrat Acquisition of NeoGames

Article by : Erik Gibbs Apr 21, 2024

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The Nevada Gaming Commission has approved Aristocrat Leisure Limited’s acquisition of NeoGames S.A. for an impressive AUD$1.5 billion (US$962 million), as confirmed by NeoGames and Aristocrat in a press release.

This strategic acquisition is set to provide Aristocrat with a robust entry point into the lucrative iLottery market, while also bolstering its presence in the broader online gaming verticals.

NeoGames, which emerged in 2014 as a spinoff from the established Aspire Global, brings a wealth of experience and innovation to the table that is anticipated to catapult Aristocrat to the forefront of the online gaming domain.

The approval process was overseen by Tracey Elkerton, Aristocrat’s Chief Compliance Officer, who received licensing from the Commission specifically for this transaction. Elkerton, a veteran at Aristocrat with nearly 26 years of service, shared her enthusiasm for the acquisition, noting the expanded role and the wealth of learning opportunities it presents in the realm of online gaming.

Aristocrat’s commitment to due diligence was evident in the comprehensive background checks conducted on NeoGames’s executives. These checks ensured a transparent and responsible acquisition process, which received the green light in May 2023.

The deal encompasses not only NeoGames but also its four complementary business segments: Aspire Core, Pariplay, and BtoBet, each bringing unique strengths and capabilities that are expected to synergize with Aristocrat’s existing operations.

The financial framework for this acquisition is robust, relying on a mix of existing cash reserves, internal dividends, strategic loans, and the issuance of new shares. This reflects Aristocrat’s solid financial planning and confidence in the venture.

Aristocrat’s strategy through this acquisition is to harness its global scale and capabilities to make a significant impact in the online gaming industry. The operational logistics include redomiciliation NeoGames to the Cayman Islands, and the acquisition process is slated for completion by April 25th.

Aristocrat has meticulously secured all necessary antitrust, foreign investment and remaining regulatory approvals, showcasing its thorough approach to compliance and strategic expansion.

The acquisition has been met with positive remarks from industry officials, including Commissioner Brian Krolicki, who lauded the move as a compelling strategic narrative for both Aristocrat and the wider gaming industry.