IGT Considers Selling or Spinning Off Its PlayDigital and Global Gaming Segments

International Gaming Technology PLC (IGT) revealed that it is conducting a strategic review of its PlayDigital and Global Gaming divisions. It says all options are on the table, including a potential sale or spin-off of one or both parts of the company. Conversely, it could decide to invest more heavily in them.

The board of directors stated that the move is an attempt to “unlock the full value of IGT’s portfolio.” PlayDigital and Global Gaming divisions represent around 40% of IGT’s revenue. The company’s structure includes a third segment, Global Lottery, which represents 60% of the company’s revenue.

IGT stated that no decision had been made and gave no timeline for the review process. The company added that the results of its review do not guarantee a transaction.

The announcement is surprising, given that both divisions have been outperforming the Global Lottery segment. For Q1:

  • PlayDigital: Revenue up 17%, operating income up 9%.
  • Global Gaming: Revenue up 17%, operating income up 34%.
  • Global Lottery: Revenue down 8%, operating income down 5%.

PlayDigital also won multiple awards for both sports betting and casino.

What Are the PlayDigital and Global Gaming Divisions?

IGT’s PlayDigital segment provides products and services for online casinos and retail and online sports betting operators. PlayDigital’s services include iGaming content, tools for player engagement, loyalty programs, sports betting solutions, and advanced technology solutions. Many online casino players are familiar with IGT’s slot titles. These include the popular Wheel of Fortune series, for which IGT has an exclusive deal for another 10 years. The MegaJackpots progressive jackpot network is also popular.

The Global Gaming segment supports land-based casinos across the world. That includes sales, operation, technology, manufacturing, and product management.

Could IGT Follow Scientific Games’ Approach?

IGT’s announcement echoes similar moves by competitors, primarily Scientific Games, which rebranded to Light & Wonder in 2022. With the rebranding, Scientific Games decided to focus on iGaming and sell its sports betting and lottery divisions. The move seems to be paying off, as Light & Wonder has made a series of acquisitions and posted positive results in recent quarters.

Would IGT follow that path, or could it decide to invest further in the segments?

IGT Could Sell PlayDigital and Global Gaming and Focus on Lottery

Following Scientific Games’ move could mean focusing on Global Lottery. The segment is a primary revenue source with about 60% of IGT’s revenue. But Global Lottery has underperformed and shown negative trends in the past year. That led to IGT selling its Italian proximity payment business to PostePay for €700 million ($754.3 million) last September. However, if IGT focuses on Global Lottery, it could grow the business.

That is especially true in the US Interest in the lottery has been increasing across most states. Many state agencies have looked at how to expand their games and portfolios, including online lottery games. The latest such state is Connecticut, which recently announced a deal with IGT to launch an online lottery in the fall.

IGT is a major player in the lottery business. The company supplies technology for 56 lotteries across the globe, including eight of the largest ten. IGT has partnerships with 25 retail lotteries in the US, representing 75% of sales nationwide. It also supports the online lotteries of Georgia, Michigan, and Kentucky. As iLotteries have seen an enormous increase in interest, more states like Massachusetts are exploring whether to add online lottery games.

IGT Could Invest Further Into PlayDigital and Focus on US Expansion

IGT is also considering whether to invest further in PlayDigital and Global Gaming. Both segments show solid increases in revenue and operating income. PlayDigital has a lot of room for growth with the expansion of online sports betting and gaming in the US.

IGT has made several moves to grow the division. Last year, IGT acquired iSoftBet, which increased the games portfolio to about 225 titles. IGT has also focused on its successful Wheel of Fortune series, including a partnership with BetMGM to launch Wheel of Fortune Casino in New Jersey.

In addition to a branded online casino, IGT launched the Wheel of Fortune progressive jackpot in New Jersey. The jackpot is connected to Atlantic City retail casinos and online casinos in the state. That marked the first network connecting retail and online casinos.

There are also opportunities for growth around sports betting. Kentucky legalized sports betting in March and expects to launch before the end of the year. North Carolina could follow at the beginning of 2024. Maine is another candidate for an early 2024 launch.

About the Author

Chav Vasilev

Chav Vasilev

After years of managing fast-casual restaurants, Chav turned his passion for sports and occasional slot wins into a career as an iGaming writer. Sharing his time between Europe and the US, he has been exposed to betting and gambling for years and has closely followed the growth in the US. Chav is a proponent of playing responsibly and playing only at legal online sites. When not writing, you will find him watching and betting on sports, especially soccer, or trying to land the next big bonus on a slot.
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