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GOODS&SERVICES
SCIENTIFIC GAMES AGREES TO SALE OF LOTTERY BUSINESS
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cientific Games Corp. has entered into a definitive agreement to sell the lottery business on which the company was founded to Brookfield Business Partners for a total consideration of $6.05 billion. It is the second and final divestment in the plan, announced last summer by company President and CEO Barry Cottle, to shed the company’s lottery and sports betting businesses to concentrate on its core business of providing content to both landbased and online casinos. In September, the company entered into a definitive agreement to sell its sports betting business, OpenBet, to Endeavor Group Holdings, in a cash and stock transaction valued at $1.2 billion. Under the agreement, Brookfield and its institutional investors will pay $5.825 billion in cash for the lottery business, and an earn-out of up to $225 million 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 was founded in Alpharetta, Georgia in 1973 to supply state and provincial lotteries in North America. The company, originally part of parimutuel supplier Autotote, introduced the first instant lottery ticket in 1974. Today, it supplies 130 government and non-government lotteries in more than 50 countries across the world with tickets, systems and other lottery services. SG’s lottery division provides a 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. The lottery business is the market leader in instant games with a broad array of products and services powering approximately 69 percent of instant product retail sales globally. “This transaction is transformative in accelerating the delivery of our stated strategy to optimize our portfolio, aggressively de-lever our balance sheet 62
and position us to invest in future growth,” said Cottle in a statement. SG Lottery will remain headquartered in Alpharetta, in the metro-Atlanta area, with operations expected to continue around the world. SG Lottery has entered into a transitional services agreement with Scientific Games Corporation whereby Scientific Games will provide SG Lottery certain finance, information technology, regulatory compliance, legal, human resources and facilities at cost for an initial term of 12 months. Scientific Games had been in discussions with Apollo Global Management as well as Brookfield in its search for suitors interested in buying the SG lottery business, which had been valued at up to $7.5 billion.
ARISTOCRAT TO PRODUCE NFL-THEMED SLOTS
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he National Football League and Aristocrat Gaming have announced an exclusive multiyear slot machine licensing agreement. Under the terms of this agreement, Aristocrat will have an exclusive global license to build land-based NFLthemed slot machines as well as a non-exclusive license for virtual sports games, marking the first deal of its kind for the NFL. The partnership will provide the NFL an opportunity to further drive fan engagement through a new gaming experience. “The world of casino gaming is transforming, and the NFL is thrilled to be teaming up with industry leader Aristocrat Gaming, with their proven track record in slot machine innovation and commitment to responsible gaming,” said Rachel Hoagland, vice president, gaming and partnership management for the NFL. “At Aristocrat, we are changing the game,” said Hector Fernandez, president of Aristocrat Americas
Global Gaming Business DECEMBER 2021
and EMEA. “In that spirit, we are thrilled to enter this agreement with the NFL, whose similar mission made this a natural partnership. Fans worldwide love watching the NFL, and casino players worldwide enjoy Aristocrat games. This agreement presents a new opportunity to reach tens of millions of NFL and Aristocrat fans with exciting new entertainment options on the casino floor and beyond.” The NFL-themed slot machines, which will offer fans the ability to customize their experiences based on their favorite teams, are expected to hit casino floors during the 2023 NFL season.
BALLY’S ACQUIRES CREATIVE GROUP DEGREE 53
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ally’s Corp. has announced its acquisition of Degree 53, a Manchester, U.K.-based creative agency that specializes in multi-channel website and personalized mobile app and software development for the online gambling and sports industries. According to the operator, the agency’s “awardwinning approach and diversified skill set will advance Bally’s global omnichannel offering, providing key functionality for integrating Bally’s various mobile platforms.” Degree 53’s team of 54 design and technical experts will continue to operate out of its Manchester studio.
Degree 53’s team offers a range of services, including sportsbook and casino mobile app and website development, complex system integration, data feed management, and API development. By delivering customized technology solutions, Degree 53 will enhance Bally’s diversified mobile platform, which includes integration to the Gamesys Group’s player account management and iGaming solution, in addition to supporting key audience engagement initiatives with Monkey Knife Fight and SportCaller. Degree 53 will also support product development as part of Bally’s media partnership with Sinclair Broadcast Group. “We have ambitious plans for our multifaceted sports offering as we strive to appeal to new audiences across North America,” said Raja B-Sheikh, senior vice president of sports products for Bally Interactive. “The Degree 53 team arms us with a unique perspective and skill set that will further advance not only the core Bally Sports product, but also our ambitious plans for innovative and connected experiences. I am excited to work closely with the team as they contribute to our
