Scientific Games will divest its Lottery and Sports Betting businesses, with the decision backed by the company’s Board of Directors, including Executive Chair Jamie Odell and Executive Vice Chair Toni Korsanos.
Scientific Games said it is “evaluating strategic alternatives to execute the divestitures for each business,” which includes an initial public offering or a combination with a special purpose acquisition company, or indeed a sale or strategic combination with another business.
The decision comes as part of the group’s Strategic Review, with Scientific Games aiming to accelerate its path to becoming a content-led growth company focused on both land-based and digital markets.
“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,” said Jamie Odell, Executive Chair of Scientific Games.
“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.”
The company added that there can be no assurances that the decision will result in any transactions, and that it does not intend to further comment on the matter until it is necessary to do so.
Barry Cottle, President and CEO of Scientific Games, commented: “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.
“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.”