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Scientific Games, a provider of gambling products and services, is making big changes under new management, according to Bloomberg.
The slot machine maker is looking to divest its lottery and sports betting businesses through a sale, initial public offering, or merger with a blank-check company.
The sports betting unit of the Las Vegas-based company is worth just under $1.3 billion while its lottery business could be worth as much as $5 billion.
Scientific plans to shift its focus to physical and online gambling games.
Since purchasing gaming device manufacturer Bally Technologies in 2014 for $5.1 billion, Scientific has continued to prioritize acquisitions.
- Signed cross-licensing agreement in March with International Game Technology
- Used its technology to deliver over 50 million bets in April during the three-day Grand National Racing Festival in England, a 60.5% increase compared to 2019.
- Acquired SportCast in June, a London-based leader in sports betting player engagement.
Despite the growth, Scientific is more than $9 billion in debt — divesting its lottery and sports betting businesses could alleviate some of the pressure.
The company generated $729 million in revenue for Q1 2021, compared to $725 million for the same period a year prior. Net losses reached $9 million for the quarter, compared to $155 million in Q1 2020.
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