In an effort to strengthen its foothold in the gaming industry, Scientific Games (SGMS - Free Report) is banking on sports betting at various locations.
Recently, the company and Caesars Entertainment (Caesars) launched retail sportsbook solutions at the Indiana Grand Racing & Casino in Shelbyville, IN.
Per the contract, the company will provide its OpenSports product suite to power Indiana Grand Racing & Casino’s sports betting offering. Additionally, retail betting solutions, also part of the launch, are expected to enhance the sports betting experience.
Following the legalization of sports betting outside Nevada, Indiana is the 12th state to allow sports wagering. Notably, in May 2018, the Supreme Court overturned the Professional and Amateur Sports Protection Act (PASPA) that banned sports betting outside Nevada. The court supported the legality of a 2014 New Jersey law, which allows sports betting at casinos as well as racetracks in the state.
Notably, this launch marks the state of Indiana’s first venue to allow sports betting wagers. Also, Indiana is the fifth state after Iowa, Mississippi, New Jersey and Pennsylvania in which Scientific Games has expanded.
Partnership to Boost Sports Betting
The sports betting market has been gaining significant traction in recent times. Per Research and Markets reports, globally, this market is expected to witness compound annual growth rate (CAGR) of 10% during the period 2019-2023.
Scientific Games is expected to benefit from the growing momentum as sports betters anticipate the company’s offerings to get integrated with Caesars, which currently operates at 29 locations globally. Moreover, six other properties, scheduled to be launched in Indiana at the end of the month, are expected to boost their partnership in the state.
Per company announcement, to strengthen presence in the Indiana betting market, Scientific Games and Caesars will deploy OpenSports product suite at Horseshoe Hammond, Horseshoe Southern Indiana Hotel and Casino and Harrah's Hoosier Park Racing & Casino.
Further, expansion in new markets is lined up with OpenSports solutions coming up in Illinois and North Carolina.
Sports Betting Portfolio: A Key Catalyst
Scientific Games continues to bolster its sports betting portfolio supported by OpenBet technology. This technology is widely used in the betting and gaming industry and helps the company to secure new contracts.
In 2019, Scientific Games launched New Zealand Racing Board’s (NZRB) sportsbook powered by its OpenBet technology. Notably, NZRB will leverage the company’s technology to provide customers with a sportsbook, rich with betting opportunities.
Additionally, the company’s joint venture Sans Girisim (Sans Digital) secured a 10-year sports betting contract in Turkey. Per the contract, the company offers its sports betting solutions to Turkish bettors at retail shops and via mobile.
Further, Scientific Games also partnered with Wynn Resorts to support the launch of Wynn Resorts' unique digital sports betting and iGaming applications in the United States
Zacks Rank & Stocks to Consider
Currently, Scientific Games carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader technology sector are Paylocity Holding Corporation (PCTY - Free Report) , Ringcentral (RNG - Free Report) and Cirrus Logic (CRUS - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Paylocity, Ringcentral and Cirrus Logic is currently pegged at 20%, 16.32% and 15%, respectively.
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