Nevada regulatory board approves merger between IGT and Everi
The IGT-Everi merger, spearheaded by Apollo Global Management, is a game-changer in the US iGaming industry, with ripples across the real money online casino market. This hefty $6.3 billion deal is on its way to completion after passing Nevada's Gaming Control Board.
Representatives from IGT, Everi, and Apollo met with the board to discuss ownership transfers, corporate procedures, and compliance requirements tied to the deal. Both IGT and Everi are renowned for their popular online casino games, making their merger one of the biggest in the industry.
The approval process has been a breeze since all three companies have strong ties to Nevada. Everi is based in Nevada, while IGT's roots stretch back to 1975 in the state. Apollo owns major Vegas resorts like The Venetian and Palazzo. Following the Nevada's Gaming Control Board's go-ahead, Nevada and Pennsylvania regulators will review the proposal on June 26. If both approve, the deal could close as soon as July 1.
The original plan saw IGT proposing the merger in February to separate its digital gaming and lottery operations. However, Apollo's dual acquisition strategy shifted things. With a £20 million ($27 million USD) backing, the new deal merges both firms into a private company under Apollo's control. The new business will retain IGT's name, with a focus on lottery products, and will be headquartered in Las Vegas.
Nevada Control Board Chairman Kirk Hendrick pointed out that the review was easier given the strong ties between the companies.
Apollo is merging IGT's gaming business with Everi's gaming and fintech operations into a private company keeping the IGT name. Meanwhile, IGT's lottery business will become a separate, publicly traded company under a new brand.
Over the past 20 years, Apollo's gaming investments have increased steadily. These include owning PlayAGS and controlling The Venetian-Palazzo casino on the Las Vegas Strip. Apollo bought the casino for $6.25 billion in 2022, a figure close to the IGT-Everi acquisition price.
Daniel Cohen, a partner at Apollo, emphasized their focus on creating long-term value, highlighting their past successful gaming industry investments. Cohen stated, "Our goal, long term, is to become the operator's supplier... So if you're the Venetian or Caesars or anyone else, you can come to IGT for basically every one of your product needs, which will allow us to continue to invest in products and innovate with our customers to really create the next generation of what casino technology products will look like."
If the IGT-Everi merger materializes, it will be a significant milestone, not just for the companies, but for the real money online casino market. This consolidation could pave the way for more big-name mergers in the future.
The merger of IGT and Everi, facilitated by Apollo Global Management, will combine their gaming and fintech operations, potentially impacting the real money online casino market. The approved $6.3 billion deal, with a focus on creating long-term value, could set a precedent for future mergers in the industry.
