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    Will SG Digital shift its focus to the online casino market?

    news thumbnail image

    As SG Digital strikes a deal to sell off its land-based lottery business, industry leaders are wondering if a shift of focus is on the cards.

    For many years, SG Digital has built itself as a company that knows, breathes, and innovates as a casino software provider.

    SG Digital has a great range of online casino games currently available but they are widely known for their land-based casino offerings. Particularly the slot machines that are developed by the business.

    Another well-known part of Scientific Games’ business is SG Lottery. However, after agreeing to sell this part of their business, it seems there may be a shift of focus for Scientific Games in the very near future.

    For sale: Scientific Games Lottery

    It was recently announced that Scientific Games agreed to sell its land-based lottery division to Brookfield Business Partners – a private equity firm.

    The agreement was reached between the two businesses for a sum total of $6.05 billion. Brookfield has agreed to pay out $5.825 billion in cash with a further $225 million that will be paid as an earn-out once the business has met certain EBITDA targets in 2022 and 2023.

    With the sale of the lottery division underway and the recent sale of the sports betting division at Scientific Games, there are rumours that a shift is about to take place. Barry Cottle, the current president and CEO of Scientific Games commented on the sale, confirming that big changes are on the cards.

    “This transaction is transformative in accelerating the delivery of our stated strategy to optimize our portfolio, aggressively de-lever our balance sheet and position us to invest in future growth. We conducted a thorough review of paths to divest the Lottery business and we are confident that this transaction maximizes value and certainty while minimizing complexity and execution risk, and positions both Scientific Games and SG Lottery for continued success along their unique growth trajectories.”

    With games such as Pirate Pays Megaways, Rainbow Rich: Pots of Gold, and Danger High Voltage in the company’s portfolio, it’s no surprise that its digital business is as successful as it is. But this seems to only be the beginning of what Scientific Games has for the digital space.

    Scientific Games acquires Authentic Gaming

    Besides the thriving mobile market, the most prominently growing iGaming market at the moment is live casino. Almost every large-scale provider wants to have its own live casino games for a slice of the action and SG has made sure that they get their pie.

    Shortly after announcing that they would be selling their lottery division, Scientific Games announced that they would be acquiring Authentic Gaming.

    The live dealer creator provides games to top online casinos such as Betway, Entain and Mr Green, giving SG Digitial a great chance to spread its wings.

    As they aim to expand digital offerings as well as join in the action taking place in the US casino market, SG Digital believes that Authentic Gaming will only further these pursuits.

    Cottle commented: “The collective power of Authentic, our proven table games titles and our OpenGaming platform allow us to capitalise on a growing US market opportunity with our unique omnichannel approach.”

    It looks to be an exciting time for SG Digital games fans and we’re keen to see what the long-time iGaming giant has up its sleeve.

    Published: November 28, 2021

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    Article by Stelly

    CasinoWow Contributor

    Hey there! I am Stelly, and happily, I'm part of CasinoWow's content team. It excites me to be able to write and share with all gambling enthusiasts unbiased reviews and news that contribute to the gambling community and industry. Thankfully, I also have the chance to help you make an informed choice for casino brands and games, as well as provide interesting guides and news.

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