Las Vegas-based table game provider Galaxy Gaming said Monday completed a previously announced acquisition of Progressive Games Partners, which owns the online rights to a suite of proprietary casino table games.
The transaction, which was originally announced in February, gives Galaxy a larger foothold in the igaming business, where PGP has operated since 2003. A transaction price wasn’t disclosed.
In a statement, Galaxy said the transaction eliminates the distribution fee that Galaxy had paid to PGP on Galaxy-owned games and gives Galaxy additional iGaming licensing revenue from several titles owned by other licensors.
Galaxy CEO Todd Cravens said igaming has expanded during COVID-19, which closed casinos nationwide for as many as three months in several markets. Meanwhile, igaming revenues in the U.S. increased by more than 250% in the 2020 second quarter.
Five states currently offer online gaming – Delaware, Pennsylvania, Nevada (poker only), New Jersey, and West Virginia. Michigan has legalized online gaming but has not yet gone live with the activity. Seven states had online gaming legislation pending in the spring before the coronavirus outbreak caused lawmakers to suspend sessions indefinitely.
“The world has changed dramatically since we signed the purchase agreement for this deal back in February,” Cravens said in a statement. “Our casino clients in the physical world have been very hard-hit by the COVID-19 crisis and are generally struggling to get back to business levels they enjoyed before the lockdowns.”
Cravens said he believes additional states will consider legalizing igaming “as a way to prevent the tax revenue losses that occur when brick-and-mortar casinos are closed. We look forward to working more closely with our igaming operators as we bring our existing library and our pipeline of new products online.”
PGP CEO Chris Reynolds said in a statement many of the company’s online table game products originated in land-based casinos. He said he would continue working with Galaxy in growing the U.S. market and continuing the company’s work in the United Kingdom and Europe.
“Since U.S. igaming operators will want to offer to their online patrons many of the same games that are popular in the physical world, there should be good adoption of the PGP content in the U.S.,” Reynolds said.
