IGT Announces a Triumphant Return to Nevada

In a strategic move that signals the return of International Game Technology (IGT) to its roots, the company announced it would spin off its land-based and digital businesses, merging them with Everi Holdings. The $6.2 billion deal, expected to be finalized by late 2024 or early 2025, involves the creation of a new entity retaining the IGT brand.

The Merger Should Bring Substantial Long-Term Value

The newly formed IGT will have its management operations based in Las Vegas, with primary manufacturing in Reno, Nevada, where IGT originated. The move is a significant shift, reflecting a strategic decision to streamline the company’s focus. Current CEO Vince Sadusky will retain his position, while Everi’s Michael Rumbolz will become chairman of the new company’s board of directors.

Las Vegas will host the core of IGT’s business, while the company’s lottery division will persist as a standalone venture. After the merger, the new entity will trade on the New York Stock Exchange under the familiar “IGT” ticker symbol. Everi executive chairman Michael Rumbolz noted that the synergies between the two companies would allow them to remain at the industry’s forefront.

We expect the combined company will deliver a comprehensive range of products and services that will engage gaming patrons and drive efficiencies and revenues to our customers.

Michael Rumbolz, Everi executive chairman

IGT’s substantial global operations, spanning over 100 countries, represent a significant regulatory hurdle, justifying the long finalization timeline. However, the move should bring considerable long-term benefits, as IGT’s slot machines and commercial and tribal casinos across the United States represent the company’s core market. Consolidating manufacturing should improve logistics and cut costs, bolstering the overall business.

Nevada Will Benefit from a Revitalized Manufacturing Sector

IGT has long been a prominent player in gaming manufacturing, spearheading industry innovation with its cutting-edge video poker games and slot machines. The decision to return to Nevada and establish manufacturing operations in Reno should invigorate the state’s gaming industry and give local operators access to some of the best machines on the market.

Daron Dorsey, executive director of the Vegas-based Association of Gaming Equipment Manufacturers, commented on this news for the Las Vegas Review-Journal, stating that the industry was due for a change, and the merger aligned with the cyclical nature of merger and acquisition activity. He hoped IGT’s return would bolster Nevada’s economy, reinstating its position as a leading gaming manufacturing jurisdiction.

We’ll see a greater Nevada presence with some of these iconic brands and iconic companies that operate on a global scale.

Daron Dorsey, Association of Gaming Equipment Manufacturers executive director

As IGT returns to Nevada, the state’s gaming manufacturing sector anticipates a renewed era of growth and innovation, with the iconic brand again making its mark on the global gaming stage. If successful, this move could herald a similar M&A trend in the gaming supplier world over the coming years as other businesses consolidate their offerings.