Post Perelman, Scientific Games Auctions Sports-Betting Unit
Scientific Games Corp, the slot machine company built by investor Ron Perelman through a series of acquisitions, is undergoing a retooling session under the new management.
Scientific Games, located in Las Vegas, said in a statement Tuesday that the business is considering selling its lottery and sports betting operations in the form of an initial public offering or a merger with a particular acquisition business purpose. The firm is one of the world’s leading providers of casino equipment and services, said it plans to focus on gaming content, such as its physical and online games.
Meanwhile, market shares of the Scientific Games surged 2.1% to $77.58 at 3:32 p.m. in New York.
Scientific Games developed quickly during the last decade under the leadership of Perelman. In 2014, it paid $5.1 billion for slot machine producer Bally Technologies Inc. and took over sports betting provider NYX Gaming Group. WMS Industries and ShuffleMaster were two other purchases.
However, this buyout left the business with a debt of more than $9 billion. Last year, as part of a larger reassessment of personal assets, Perelman liquidated the majority shares.
According to Truist Securities analyst Barry Jonas, the lottery industry has a value of around $5 billion, while the sports betting division is potentially just under $1.3 billion. The decision to sell some of the company’s assets shows that the consumer purchase method is becoming specialized and that bundling with other items is becoming less common.