Scientific Games sells lottery business for US$6.05bn

Home » Scientific Games sells lottery business for US$6.05bn

Scientific Games today announced that it plans to sell its lottery business to Brookfield Business Partners.


The deal is for a total consideration of $6.05bn, consisting of $5.825bn in cash and an earn-out of up to $225m based on the achievement of certain EBITDA targets in 2022 and 2023.

The transaction is expected to close in the second quarter of 2022, subject to applicable regulatory approvals and customary closing conditions.

Scientific Games’ lottery business has long-standing relationships with approximately 130 government and non-government lottery entities in over 50 countries. It provides an innovative suite of turnkey solutions covering the entire lottery ecosystem, including instant and terminal-generated lottery games, sports betting, lottery systems and retail technology and the fast-growing ilottery market. Its products and services power approximately 69 per cent of instant product retail sales globally.

More about:  Novomatic turnover 36 per cent down

“This transaction is transformative in accelerating the delivery of our stated strategy to optimise our portfolio, aggressively de-lever our balance sheet and position us to invest in future growth,” said Barry Cottle, president and chief executive officer of Scientific Games.

“We conducted a thorough review of paths to divest the lottery business and we are confident that this transaction maximises value and certainty while minimising complexity and execution risk, and positions both Scientific Games and SG Lottery for continued success along their unique growth trajectories.” 

“The significant near-term proceeds from this transaction as well as our previously announced sale of sports betting will transform our balance sheet and provide the financial flexibility to invest organically and inorganically to accelerate our strategies. This marks a major milestone and puts us on a clear path to achieve our vision to become the leading cross-platform global game company and unlock our full value for shareholders.”

More about:  Rogge takes chair at VDAI

“We are thrilled with this outcome and what it means for the future of Scientific Games lottery and our customers,” said Patrick McHugh, chief executive of Scientific Games Lottery. “I am confident that, with Brookfield’s support, we will have the flexibility and agility to expand our deep product portfolio to meet our customers’ evolving needs and maximise lottery beneficiary proceeds across the globe, enabling us to capture the significant opportunities we see ahead.”

“The Scientific Games lottery team has built a leading business, which has innovated its industry, at the convergence of games, technology and services, across retail and digital channels for its global customers,” said David Nowak, managing partner, Brookfield Business Partners. “With our capabilities and global reach, we look forward to supporting management in the continued growth of the business.”

More about:  Las Vegas casinos closed until May

Leave a Reply

Your email address will not be published. Required fields are marked *

Gambling News from NewsCasinoNew.com is made for the most passionate fans of online casinos and internet gambling. We cover everything: from popular gambling world events and trends to new casino slot game releases and reviews, you will find the latest news stories.