- Scientific Game Corporation (SGC) wants to have a future that entails a large internet gambling presence.
- To make this goal of the company a reality, they have announced that they will be scaling back for a while to be able to capitalize on the gambling market in the future with new online products.
- SGC has done well with retail sportsbooks and other gambling but they have not yet reached the heights they want to for their mobile platforms which is what the endgame of this plan will be.
LAS VEGAS – Scientific Games Corporation (SGC) announced on Tuesday that they plan to scale down on their lottery and sports betting businesses in an effort to grow an even larger market in the future, specifically in the digital world.
At the moment, it is unclear as to how this will all take place as SGC is looking at a number of options to make this strategy work in their favor.
"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."
What Is The End Game Here?
SGC wants to be a content-based gaming platform for both retail and online gambling. Their businesses are presently more lucrative at land-based locations but with the Coronavirus, they’d be better suited to up their internet gaming platforms to match that of their retail facilities for bigger profit margins in the future.
Mobile gambling, from iCasino to iLottery and online sportsbooks are all areas that the company hopes to increase after their initial decrease in business to get these new ideas up and running.
It’ll cause a shortfall in profits in a minor way for a bit but it’s all being done for the big picture that looks to be a very profitable and highly lucrative one.
Through future strategies, more partnership deals will be available for the gaming operator as well as giving them the potential for long-term growth for their platforms in order to capitalize on the gambling business in the United States as a whole.
Will It Be Worth It?
All signs point to this move by SGC as being worth it for the overall future projections of the companies profit margins for all types of gaming in various state markets nationwide.
"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,” said Barry Cottle, President and Chief Executive Officer of Scientific Games.
“As the leading cross-platform global game company, we are uniquely positioned to take advantage of the incredible industry transition that is underway. 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."