IGT is spinning out its online gambling business and could list part of it next year.<\/p>\n
The technology provider revealed the plan at an investor day Tuesday in a bid to maximize value from its Digital & Betting business unit.<\/p>\n
IGT will establish that division as a separate legal and operating entity over the next 12 months. From there, it will decide whether to list it.<\/p>\n
IGT said the new structure would help it attack the high growth online gambling industry.<\/p>\n
That structure includes:<\/p>\n
The IGT brand might not be well-known by bettors and casino-goers, but its products are.<\/p>\n
Its PlaySports technology is behind about 50 US sports betting operations, both retail and online. Current customers include US market leader FanDuel Sportsbook. IGT also provides online casino content.<\/p>\n
In Q3 2021, the Digital & Betting business grew 37% year-on-year to $43 million. Adjusted EBITDA was up 66% to $15 million.<\/p>\n
The unit is on track for $160 million in revenue this year.<\/p>\n
Of course, there is no guarantee the listing will go ahead.<\/p>\n
IGT said it would evaluate that decision next year. It will also retain a majority stake in the business regardless.<\/p>\n
A lot could depend on the wider market and its appetite for US sports betting companies.<\/p>\n
US sports betting stocks are struggling with DraftKings and Penn down more than 40% from their highs.<\/p>\n
Similarly, Wynn just cancelled its plans to list part of Wynn Interactive. Wynn Interactive is of course a B2C asset, but the US industry has not been kind to B2B companies either.<\/p>\n
Operators are keen to control their own technology and even market leaders like Scientific Games have chosen to focus elsewhere.<\/p>\n
That said, IGT was quick to point out it had opportunities in retail sports betting and online casino content, not just online sports betting.<\/p>\n
The companys share price was last up around 1% on the New York Stock Exchange following the investor event.<\/p>\n
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See original here:<\/p>\n
Why IGT Plans To Spin Out Its Sports Betting Business - Legal Sports Report<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" IGT is spinning out its online gambling business and could list part of it next year. The technology provider revealed the plan at an investor day Tuesday in a bid to maximize value from its Digital & Betting business unit. Continue reading