Scientific Games Corporation has announced a divestment plan that will capitalize on its sports betting and lottery segments as part of a strategic review of the business.
Lottery and Sports Betting Businesses to Provide Capital for Larger Growth Opportunities
Scientific Games Corporation has announced plans to divest from its lottery and sports betting businesses in an attempt to free up capital for larger growth opportunities. The company also said it will shift its focus toward digital markets.
The divestment is a part of a global strategic review at the company, executives said. The company’s Board of Directors, including executive chair Jamie Odell and executive vice chair Toni Korsanos, said Scientific Games Corporation is looking into a number of strategic alternatives which will make it possible to exit the lottery and sports betting segments.
The options include an initial public offering (IPO), a combination with a blank check company, a sale, or a merger with another business.
Portugal’s national lottery named Scientific Games its exclusive supplier of instant games this week. The agreement will require Scientific Games to supply SCML with instant game content for three years. The contract will also bring innovative designs, playstyles, and price points to players in Portugal.
Divestment Plan to Boost Scientific Games’ Portfolio
Barry Cottle, president and chief executive officer of Scientific Games, said the divestment plan is aimed at optimizing the company’s portfolio and boosting its balance sheet. This can be achieved by de-levering, while also working towards new growth opportunities, Cottle added.
“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.Barry Cottle, president and chief executive officer, Scientific Games
Cottle also said that the new strategy will be beneficial for the growth potential of each of the company’s businesses, as well as for their digital content offerings and platforms, as it will unlock value for shareholders, customers, and employees.
The refurbished Scientific Games will be divided into Gaming, iGaming, and SciPlay businesses. Cottle continued that the final objective is to position the company’s digital segments in terms of size next to the land-based gaming business within three years.
Jamie Odell, executive chair of Scientific Games, added that less than a year ago, de-leveraging the company’s balance sheet was just an idea, while today, Scientific Games has announced major initiatives aimed at achieving these key objectives and walking on a sustainable growth path.