Scientific games sets to divest sports betting and lottery businesses
The decision was unanimously supported by the Scientific Games board.
Scientific Games announced that as part of its strategic review, the company is planning to divest both its sports betting and lottery businesses in an effort to focus on becoming a leader in the land-based and online gaming sectors.
In a statement to the companies investors, the company’s executive chairman, Jamie Odell, highlighted Scientific Games’ need to reduce their bloat and long term-debt.
Speaking on the choice he said: “When I joined the board in September 2020, I told stakeholders that we were focused on rapidly de-leveraging the balance sheet, unlocking the value of the company’s products and technologies, and creating a flexible, nimble company positioned to deliver above-market returns to investors.”
He continued: “Today, we have announced major initiatives aimed at achieving each of these key objectives, recognizing significant value in each of the businesses and positioning the company for sustainable growth, all as a result of the dedicated work of our teams.”
This move sees the organization move away from its long-term strategy in an attempt to reduce the company’s debt that has been expanding since its 2014 $5.1bn acquisition of Bally’s Technologies.
The choice to divest will see them move their sights to more content led growth, with a focus on digital markets.
“Today’s announcement reflects key steps to optimize our portfolio and strengthen our balance sheet by significantly de-levering while also targeting investments in our largest growth opportunities,” said Scientific Games CEO Barry Cottle. “At the conclusion of this process, the new company will consist of leading gaming, igaming and sciplay businesses, all of which have great momentum and will collectively deliver great value. We will capitalize on the increasing convergence of these businesses, as players look to play their favorite games wherever and whenever they want to play. Given this significant opportunity, we are targeting our digital businesses to be comparable in size to the land-based gaming business within three years. I’m confident that, with these steps, we are well-positioned for future growth prospects.”
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