Business By The Books: IGT Considers Sports Betting Division Sale

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International slots developer and lottery operator IGT is considering a sale of its sports betting and global gaming businesses.

The PlayDigital segment includes omnichannel casino and sports betting operations. The B2B sports betting offering has been utilized by retail sportsbooks and lotteries in North America over the past five years.

The company retained Deutsche Bank, Macquarie Capital and Mediobanca as financial advisors, according to a release. IGT has international sports betting customers too, including OPAP in Greece and Lottomatica in Italy.

IGT focus elsewhere despite sports betting growth

The PlayDigital segment brought in $68 million in adjusted EBITDA in 2022. That was 41% higher than the $48 million from 2021.

Still, that is a relative drop in the bucket when compared to the $1.3 billion in adjusted EBITDA IGT saw from its global lottery business in 2022, even with its 15% drop from 2021.

“Over the last three years, IGT has sharpened its strategic focus by reorganizing around core product verticals, monetizing non-core assets, reducing structural costs and significantly improving its credit profile,” said Marco Sala, IGT Executive Chair. “We believe the intrinsic value of IGT’s market-leading businesses and diversified cash flow profile is not currently reflected in our stock price and the timing is right to assess opportunities that may enhance value for IGT’s shareholders.”

Light & Wonder, formerly Scientific Games, made $800 million from a similar sale of OpenBet. That price fell 33% from the original agreed upon price of $1.2 billion.

PBH: major shareholders align on sale

PointsBet has confirmation from eight of its 10 largest shareholders that they will vote in favor of a Fanatics acquisition of its US operation.

Those shareholders represent 44.58% of the company’s issued share capital, the company announced Wednesday.

The shareholder vote will happen on June 30.

SI Sportsbook owner gets activist investor

An investment group involving three former Entain board members now holds a stake in 888 Holdings, which operates SI Sportsbook in the US.

FS Gaming Investments reported a 6.57% stake in 888 early last week, with 2.02% of that stake held by former Entain COO and CEO Shay Segev.

Segev, now the CEO of DAZN Group, is joined at the investor by former Entain Chairman Lee Feldman and another former CEO in Kenny Alexander, according to the Financial Times.

The two parties have yet to meet, but FS could push for faster integration of 888 and the international businesses of William Hill, which it acquired last summer. The group could also push for a board seat for either Alexander or Feldman, according to FT.

BetMGM opens sports betting in Puerto Rico

BetMGM is the first operator to open mobile betting in Puerto Rico following the launch last week, the company said.

Sports betting was legalized in the US territory in February 2022.

BetMGM opened a permanent $3.5 million sportsbook and lounge at Casino del Mar in December.