Scientific Games has confirmed it is divesting its sports betting and lottery businesses. The decision comes following a strategic review which launched in September 2020.
“We have concluded that our lottery and sports betting businesses will be better positioned for the future as independent businesses with their own capital structures and investment strategies,” said Scientific Games’ executive chair Jamie Odell. “We therefore intend to divest those businesses.”
Odell added that the net proceeds from the divestitures will be used to “delever the balance sheet and to invest in high-growth opportunities to accelerate our strategies”.
“It enables us to really deliver on the vision to become the leading cross-platform global gaming company,” he stated. “Collectively, gaming, igaming and SciPlay will be singularly focused on building and deploying great games and franchises across all platforms.” Scientific Games EVP and CFO Michael Eklund explained there is currently no timeline for the divestment of the businesses.
“At this point the market is going to determine the timing, the value, the final structure of the deal,” Eklund said. “We are very well advanced in the process. It’s been a thoughtful, detailed planning process we’ve gone through with all the teams….We think we can move pretty quickly and maximise value while we’re going through this.”