Scientific Games $SGMS Stock Up In After-hours On Deal Termination

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SGMS stock rose 7.5% in after-hours trading on December 22, 2021, after the company withdrew its offer to acquire 19% interest in SciPlay.

Scientific Games withdraws offer to acquire 19% interest in SciPlay

Scientific Games (SGMS) announced that it has withdrawn its previously announced July 15, 2021 all-stock offer to acquire the remaining 19% equity interest in SciPlay (SCPL) that it does not currently own. SGC previously offered to merge with SciPlay in a transaction that would have resulted in SciPlay shareholders, other than SGC, receiving 0.25 shares of SGMS stock for each share of SciPlay stock. The company will retain its 81% economic interest and 98% voting interest in SciPlay. “In line with our approach to capital management and disciplined M&A we have decided that continuing to pursue this opportunity would not be prudent for our shareholders at this time,” said Barry Cottle, President and Chief Executive Officer of Scientific Games. “We remain committed to our strategy of leveraging our unparalleled portfolio of hit franchises, world-class talent and premium content engine to develop great games fully cross-platform. SciPlay remains a strategic asset and has the opportunity to drive meaningful value as it grows its social casino market share and expands into the $20B casual genre leveraging its expertise in engagement and monetization. We will continue to invest in this sector in a disciplined manner. Importantly, as we advance our strategy, we will continue to take a holistic approach to capital management as we focus on allocating capital to drive growth in earnings per share.”

SCIENTIFIC GAMES AND WESTERN CANADA LOTTERY CORPORATION KICK OFF SINGLE GAME SPORTS BETTING

On December 16, 2021, Scientific Games Corporation (NASDAQ: SGMS) and its longtime Canadian customer, Western Canada Lottery Corporation (“WCLC”) introduced an array of new offerings for players, including single-game sports lottery betting, real-time odds and futures. The launch is powered by Scientific Games Lottery’s sports betting engine, customized for WCLC to integrate directly with its central gaming system also provided by the Company. Scientific Games Lottery’s global sports betting business provides sports products and services to multiple lotteries in Canada, Europe and the U.S.

“We’re extremely proud of the hard work by both the WCLC and Scientific Games Lottery teams that helped us rejuvenate the sports betting experience in western Canada and introduce real-time odds, futures and single-game betting,” said Tedda Sandercock, Vice President of IT for WCLC. “By integrating new sports betting functionality with our gaming system, we’re now able to offer players an experience they’ve never had before.”

As part of the modernization, WCLC offers several betting options under the umbrella of SPORT SELECT, including Point Spread, Pro-Line, Props, Over/Under, Pools, and Futures. There is a $100 limit on wagers.

“By using the new ticket builder functionality found online at sportselect.com, players can make their picks using real-time odds to generate a QR code which they then take to a lottery retailer to purchase their ticket,” said Sandercock. “We’re thrilled to offer this convenient new online approach to building a betting slip, while maintaining a more traditional method of building a ticket at retail for players who prefer it.”

“We are excited to collaborate with WCLC to bring another first-to-market lottery offering to western Canada and support WCLC’s strategic plan and generate maximum proceeds for the provincial partners it serves. This is another great example of a multi-channel solution from Scientific Games Lottery technology that is modernizing the lottery experience,” said Christian KOMETER, Managing Director International Lottery Systems for Scientific Games.

In addition to the new sports betting solution and central gaming systems technology, Scientific Games also provides WCLC with an online subscription program that utilizes a player account management platform as well as online instant games.

The Company launched the world’s first secure retail instant game in 1974, the first digital instant game in the U.S. in 2014, and is the leading provider of lottery interactive games, mobile apps, player loyalty programs, and other interactive products and services in the U.S. lottery industry. The Company provides games, technology and services to 130 lotteries in 50 countries, including nearly every North American lottery.

Ohio legislature passes sports betting bill

On December 10, 2021, the Ohio legislature passed HB 29 Wednesday afternoon clearing a path for sports betting in Ohio to start by January 1, 2023. According to Matthew Waters of Legal Sports Report, the work went quickly for HB 29 after a close to four-hour delay. Reportedly, the conference committee favorably reported the bill in under five minutes and it took fewer than 10 minutes to accept the conference report on the Senate floor. The House passed the bill on Wednesday. Now the bill is on the desk of Governor Mike DeWine, who is publicly in favor of legalizing Ohio sportsbooks.

Scientific Games Advances Original iGaming Content Offering and Production Capabilities with Acquisition of ELK Studios

On December 1, 2021, Scientific Games Corporation (NASDAQ: SGMS) strengthened its original iGaming content offering and production capabilities with the acquisition of ELK Studios, a leading and innovative European games developer. This highly synergistic acquisition of a talented digital content studio marks another important step as the Company rapidly executes its vision to become the leading cross-platform global game company.

ELK Studios is a Stockholm-based developer with a long history of producing carefully crafted games with ground-breaking mathematics, superb artwork and a mobile-first focus. The highly profitable digital studio’s hit releases include Wild Toro II, Katmandu and Cygnus, and its games also feature the innovative X-iter™ tool allowing players to jump into the action through a selection of special predefined modes.

The acquisition is the latest in a string of important, targeted content-focused deals as the Company moves quickly to invest in and grow its presence in digital markets. By adding ELK Studios to its in-house games portfolio, the Company has further bolstered its capacity for creating innovative, engaging iGaming content and will be looking to take ELK’s top-ranked content into the U.S. and Canadian markets while further enhancing its position as a leading content provider in the U.K. and Europe.

“Acquiring ELK Studios demonstrates once again our commitment to make targeted, value enhancing investments designed to advance our cross-platform content capabilities,” said Barry Cottle, President and CEO of Scientific Games. “The ELK Studios team is packed with talent and enhances our existing in-house teams and capabilities. The highly synergistic combination of their top-ranked games and our leading OpenGaming ecosystem offers exciting distribution opportunities in the U.S. and Canada. I am thrilled to welcome them to our team.”

ELK Studios is already live with a wide range of operators through the market leading OpenGaming™ ecosystem, with its titles proving highly popular with key operators across the U.K. and Europe. The studio will continue to work independently to create thrilling new titles, while also benefiting from Scientific Games’ comprehensive range of resources including commercial scale, market expansion, support in U.S. and Canada, game IP and data analytics tools.

Dylan Slaney, CEO iGaming at Scientific Games, said, “We have had a strategic partnership with ELK Studios for a number of years and its games have performed brilliantly across the OpenGaming platform. ELK is one of the most innovative, and top-ranked studios in iGaming. Their passion and enthusiasm for producing games of stand-out quality is infectious. They will play a pivotal role in helping us continue to provide players with even more immersive and engaging experiences.”

Filip Säfbeck at ELK Studios said, “This deal is the fruit of many years of hard work by a team that is fully committed to crafting high-quality online gaming experiences. We see it as the perfect time to join the Scientific Games team, given that our ambitions to grow through innovation and into the U.S. and Canada are in total alignment. We have experienced first-hand through our OpenGaming partnership that Scientific Games can take our games to the next level. This acquisition offers us a solid base to bring to market a wide range of exciting new slots more smoothly than ever to online casino partners across the globe.”

📺 VIDEO AToM

On December 7, 2021, Scientific Games published a video about their cashless betting AToM system:

AToM

📈 SGMS Stock Technical Analysis

The short-term trend is negative, as is the long-term trend. SGMS is currently trading in the middle of its 52-week range. The S&P500 Index however is currently trading near new highs, so SGMS is lagging the market. SGMS is part of the Hotels, Restaurants & Leisure industry. There are 139 other stocks in this industry, SGMS did better than 65% of them. There is a support zone ranging from 60.41 to 61.84. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames. There is a resistance zone ranging from 62.19 to 62.19. This zone is formed by a combination of multiple trend lines in multiple time frames. SGMS has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 61.84, a stop order could be placed below this zone. Click here to sign up for email alerts on technical setups in SGMS stock.

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