Major financial news outlet, Bloomberg, is buzzing about a potential shakeup in the lottery sector! Rumors are swirling that Scientific Games, a prominent lottery company, has attracted the attention of significant investors. These aren’t just any investors, we’re talking about Brookfield Asset Management and Apollo Global Management, two private equity powerhouses known for their deep pockets.
The whispers suggest they’re eyeing Scientific Games’ worldwide lottery operations for a possible acquisition. Although no official statements have been made by the parties involved, sources indicate the interest is genuine. This development isn’t entirely unexpected, as Scientific Games has been exploring options for its lottery business for some time. They’ve engaged in discussions with various private equity groups and even contemplated an initial public offering in Australia earlier this week. That proposed IPO was estimated to be valued around $3 billion, but it appears a private transaction might be the more probable outcome.
Naturally, nothing is finalized at this stage, and Scientific Games could ultimately choose to retain its lottery arm. Earlier this year, they expressed a desire to simplify their operations and decrease debt, even contemplating a merger to achieve those goals. They’ve already divested their sports wagering division, OpenBet, to Endeavor Group Holdings for a tidy sum of $1.2 billion. Therefore, it seems Scientific Games is prepared to make substantial changes! Only time will tell how this latest situation unfolds.