Company to Focus on Expanding Digital Offering
Scientific Games (NASDAQ: SGMS), a giant of the gambling technology world, has said that it will be divesting its lottery and sports betting business in order to ensure that the company can continue to enjoy “sustainable growth”.
According to the company, they are currently considering a number of methods to offload the divisions, including a sale, a combination with another business, an initial public offering, or a combination with a special purpose acquisition company (SPAC).
Jamie Odell, the company’s executive chair, and Barry Cottle, the president and chief executive, have both spoken about the need to reduce debt to ensure long-term viability.
When the divestment is complete, Scientific Games will consist of “leading gaming, iGaming and SciPlay businesses”. According to Cottle, the company wants to expand its digital offering so that it is of a similar size to the land-based business within three years.
Today’s announcement reflects key steps to optimise our portfolio and strengthen our balance sheet by significantly de-levering while also targeting investments in our largest growth opportunities. These steps will accelerate our path to become a content-led growth company focused on leading in both land-based and digital markets. Our company will be positioned to build great games that define the future of gaming, supported by platforms that power the best operators in the world.
Earlier this year, Scientific Games reported a year-on-year revenue increase and declining losses for Q1 2021. It enjoyed growth in its lottery segment as well as digital and social gaming, which helped to compensate for a drop in gaming machine sales in the three months to March 21. Overall, group revenue was up 0.6% to $729 million.