AUSTIN, Texas – AUSTin, Texas-based hedge fund manager has sold his stake in the company that owns the lottery operator’s shares for $7.5 million to a hedge fund led by a Dallas investor who made a big splash in the stock market last year.
The Dallas Investment Group LLC announced Tuesday that it had bought a 49.9% stake in Texas Lottery Inc., or TexasLotto, for $2 million.
The company’s shares have risen nearly 60% this year as the state has become the largest lottery market in the country, with more than 2 million people playing on more than a million games.
The hedge fund’s investment was valued at about $6.6 million, and it is the first time the Dallas Investment group has sold a share of the company’s stock in TexasLotte.
The investment comes a week after the company posted a quarterly loss of $2,924 million.
TexasLottos shares were trading at $2 per share Monday.
TexasLotto is the nation’s largest lottery operator and operates nearly 20,000 games across Texas.
Its shares closed Tuesday trading at more than $1,200.
Dallas Investment Group was founded by Michael Hays, who was a co-founder of the investment firm BlackRock.
Hays, a Dallas native who also co-founded a private equity firm, is the second Dallas-based investor to invest in Texas Lotto.
His stake in DallasLotto’s stock was valued about $2 billion, and his firm holds about $5 million in the Dallas investment.
Holliday Capital Group LLC, a company in Dallas, also announced it had purchased a 49% stake of TexasLobo’s stock for $1.8 million.
Hays has been involved in several high-profile fund and hedge fund transactions.
He also is the largest Texas investor in a new fund that was founded earlier this year by Dallas-area hedge fund billionaire Mark Cuban.
Honeywell International Inc., Honeywell’s global consumer technology and health products unit, has announced that it will purchase a 49%, 50%, or 75% stake that was previously held by TexasLopez’s parent company, Texas Lobo.
The deal, which is subject to regulatory approvals, is valued at $1 billion.