After ditching its lottery and sports betting arms, Scientific Games ($SGMS) announced it would rebrand as Light & Wonder Inc.
During the company’s Q4 earnings call, Scientific Games said the name change is expected to be complete by the second quarter of 2022.
Moving forward, the company will focus primarily on content for casinos and online gaming.
As of writing, shares of $SGMS were trading at $64.40 per share.
Scientific Games rebrands
During its Q4 call, Scientific Games reported total revenues were $580 million, up 20.8% year-over-year. The company also said by 2024 it hopes to increase its digital revenue share to 50%.
Scientific Games Chief Executive Barry Cottle told the Wall Street Journal that’s where the world is trending.
“iGaming, particularly in the United States, the land-based operators are getting digital licenses, and they want to provide their players 360-degree access to the games that they have.”
Although the spread of sports betting has been rapid, states have been hesitant to legalize online casino games. To date, only six states have legalized online gambling. On the other hand, sports betting (retail & mobile) is legal in 33 states and Washington, DC.
- New Jersey
- West Virginia
- Nevada (online poker only)
Currently, Illinois is the only state with an active online casino bill.
Earlier this year, iGaming bills materialized in Indiana and Iowa. However, both faced tremendous opposition resulting in lawmakers ending discussions.
Online casino market update
Gaming analysts estimate the iGaming and online casino market to reach upwards of $7 billion in the US within the next 3-4 years.
According to Cottle, Scientific Games’ current digital revenue share is 40%, and its total market for online gambling and social gaming is $50 billion.
Last year, Endeavor Group Holdings Inc. agreed to buy the company’s sports betting arm for $1.2 billion in cash and stock. Scientific Games’ lottery division was purchased for $6 billion by Brookfield Business Partners LP.
In addition, the company has made recent acquisitions to strengthen its content offerings. The first is ELK Studios, a European gaming developer in Stockholm. The second is Lighting Box, a slot-machine developer out of Sydney.
Lastly, the company said it plans to offer live-dealer offerings in the US by opening new studios. To achieve this, Scientific Games acquired Authentic Gaming, which specializes in broadcasting live-dealer content like roulette and blackjack from studios.
Cottle concluded by saying:
“It’s inevitable that iGaming is going to happen in states where gaming exists today…because players want to play on their phone. We see it in every medium, from games to music to movies and sports betting.”