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Leading online casino gaming provider PlayAGS is well on its way to approving its acquisition of $1.1 billion by Brightstar Capital Partners. This past week, a majority of the company’s shareholders voted to approve the acquisition.
According to SEC Form 8-K filed by PlayAGS, the votes were 26.2 million shares for and 3.3 million shares against. Just under 520,000 shares that abstained.
The shareholder vote came just a few months after PlayAGS’ board of directors voted to approve the Brightstar sale.
The acquisition is expected to be complete in the second half of 2025, according to a press release from PlayAGS. PlayUSA reached out to PlayAGS for comment but did not receive a response.
Key takeaways
- PlayAGS shareholders voted to approve Brightstar Capital Partners’ $1.1 billion acquisition offer.
- The company’s board of directors approved the sale in the spring.
- PlayAGS anticipates the acquisition will be complete in the second half of 2025.
PlayAGS president believes acquisition will help company expand
While PlayAGS offered no quotes regarding the shareholder vote, past insights from the company’s president, David Lopez, indicate that it turned out exactly how the company wanted it to.
After all, the board of directors approved the acquisition and an influx of capital from Brightstar will no doubt help PlayAGS meet the expansion goals Lopez mentioned after news of the acquisition broke. Lopez said:
“Joining forces with Brightstar represents an exciting new chapter for AGS and our mission to provide exceptional gaming solutions for our operator partners.
With Brightstar’s resources and strategic guidance, we believe AGS will be well-positioned to make targeted investments in R&D, top talent, operations, and industry-leading innovation, which should accelerate our global footprint.”
What’s next for PlayAGS’ online casino business?
It’s not every day that a private equity firm (PE) buys a $1.1 billion gaming company with a thriving online casino division. Typically, a PE firm will find ways to maximize profit by laying off employees and introducing new sales models emphasizing upselling.
In the case of PlayAGS, Brightstar likely saw a company that had closed deals with major online casinos such as DraftKings and Caesars and is active in Pennsylvania and New Jersey, two of the biggest online casino markets in the country.
Additionally, Brightstar knows more states will legalize iGaming, although there’s no telling how long that will take. This could be a move by the firm to get in on iGaming before the market explodes.
