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Toronto IPO Coming for NYX After Purchasing Ongame

By: Russell Potvin , Thurs. Nov. 27, 2014

NYX Gaming Group IPO

After buying Ongame from Amaya, the NYX Gaming Group is announcing an IPO in Toronto in a particularly bold move by the company.

Big business moves are happening on a regular basis in the online gambling world, but Canadian players really need to pay attention to what's happening right now between Amaya and NYX. After a purchase of Ongame from Amaya, the NYX Gaming Group has announced their plans to go public. This will happen on the Toronto TSX Venture Exchange. Of particular note in the deal is that Amaya is investing $10 million in NYX along these lines, and NYX also has the option to purchase Amaya's B2B casino offerings. This is a combination of well-known CryptoLogic and Chartwell Technologies.

Some industry experts think that Amaya is being sneaky here. It wasn't very long ago that they announced the introduction of sports betting and casino games on the PokerStars platform which was purchased earlier this year, so it's not entirely clear how much they are relying on the CryptoLogic/Chartwell combination for casino content. In any event, NYX paid eight times the 2015 EBITDA value for Ongame, so they're definitely making a strong statement that they believe it will be a winning bet in the long run.

This IPO could see NYX join Amaya as one of the bigger Canadian gaming stocks. The Amaya Gaming Group has been growing in a major way over the past couple of years as they have bought up a number of properties and either turned them around completely or drastically increased the profitability of them overall.

One major move that Amaya got a lot of credit for was taking CryptoLogic from the worst position it had been in as far as losing money goes and turning it around as a part of their B2B casino solution that has helped it to become profitable. When they purchased the Rational Group (owners of PokerStars and Full Tilt Poker) earlier this year, they brought the center of the online poker world to Canada. So far, they've been doing a great job in increasing the profitability of those properties as well. If NYX follows in Amaya's footsteps, then they could become the next big Canadian gambling stock.