IGT Initiates Strategic Review Amid Online Gambling Maturation
International Game Technology (IGT), one of the world’s leading providers of gaming products and services, announced on Monday that it has initiated a strategic review of its online gambling business. The company said that it is exploring a range of options, including a potential sale or spin-off of its online gambling segment, which includes its iGaming and sports betting platforms.
Evolving Landscape of the Online Gambling Market
The announcement comes as the online gambling market is undergoing significant changes, with increased competition, regulation, and consolidation. IGT said that it believes that its online gambling business has strong growth prospects and attractive financial performance, but that it may benefit from operating as a standalone entity or with a different partner.
Impressive Performance of IGT’s Online Gambling Segment
IGT’s online gambling business generated $370 million in revenue in 2022, representing 14% of the company’s total revenue and 25% of its adjusted EBITDA. The segment has been growing at a compound annual growth rate (CAGR) of 23% since 2019, driven by its presence in key regulated markets such as the US, Italy, and Sweden.
A Diverse and Innovative Portfolio
IGT’s online gambling portfolio includes some of the most popular and innovative games and platforms in the industry, such as PlayDigital, PlayCasino, PlayPoker, PlayBingo, PlayRGS, and PlaySports. The company also has strategic partnerships with leading operators such as FanDuel, BetMGM, Lottomatica, and Svenska Spel.
Expert Advisors Engaged for the Strategic Review
IGT said that it has engaged Morgan Stanley as its financial advisor and as its legal advisor, Skadden, Arps, Slate, Meagher & Flom LLP to assist with the strategic review process. The company added that there is no assurance that the review will result in any transaction or other outcome and that it does not intend to disclose any further developments unless and until a definitive decision is reached.