Scientific games for sale by sports betting and lottery companies
Las Vegas-based Scientific Games announced today that it will sell its sports betting and lottery businesses. The sale, which has no buyer yet, is central to a company’s decision to focus on developing games and content for the industry.
Scientific Games’ board of directors has approved the strategy that will result in a leaner company focused on internet games and content and allowing the company to expand into the digital market. Scientific Games stated that it “aims to make our digital businesses comparable in size to land-based gaming business within three years”.
“[T]The new company will consist of leading gaming, iGaming and SciPlay companies, all of which are very dynamic and add great value together, ”said Barry Cottle, President and Chief Executive Officer of Scientific Games, in the press release.
Scientific games and sports betting
Scientific Games joined the growing sports betting industry with the acquisition of NYX Gaming Group in January 2018. The purchase included OpenBet, which NYX had acquired prior to the SG merger. This led to the development of the company’s OpenSports platform.
Major sports betting providers use OpenSports in a variety of functions including FanDuel, William Hill, WynnBET, and Caesars. The platform is also used by sports betting companies in Canada, the UK and Australia.
Scientific games and casino betting
Scientific Games is known for its manufacturing of gaming goods, namely: computerized and mechanical gaming machines, electronic card shufflers, instant lottery games and gaming terminals. Following the rise in popularity of online gambling, the company has added game apps, server-based interactive gambling terminals, gambling control systems, social games and online sports betting to its product range through various mergers and acquisitions.
The announced divestment of the company’s sports betting and lottery lines will allow the company to specialize in games and land-based products.
Lottery systems pioneer
In 1974, Scientific Games introduced the first secure instant lottery ticket and quickly became the lottery industry leader in hardware and technology. Under its lottery division, the company offers lottery POS systems for Mega Millions, Powerball, and other popular games.
With today’s announcement, Scientific Games is turning the company around. “These steps will accelerate our path to becoming a content-driven growth company focused on leading the way in both land-based and digital markets,” said Cottle.