Scientific Games (SGMS - Free Report) is banking on sports betting at various locations in an effort to strengthen its foothold in the gaming industry.
Recently, the company expanded partnership with Nederlandse Loterij (NLO) to power new digital sports betting solutions in the Netherlands, ahead of the country’s liberalized online gambling market launch in 2021.
Per the contract, the company will build a virtual betting offering for the lottery operator based on its OpenSports end-to-end sports betting technology. The betting mode will be available to Dutch players on both mobile and desktop.
Additionally, Scientific Games will also provide NLO with its OpenTrade managed trading services for non-Dutch sports activities.
Notably, the company currently supplies its Dutch lottery partner its OpenPlatform participant account technology in addition to a range of instant lottery games.
Sports Betting Spells Solid Opportunities
Scientific Games is expected to benefit from the growing momentum in Netherlands’ gambling market.
Per Centraal Bureau voor de Statistiek (CBS) data, the Dutch gambling market generated €2.05 billion revenues in 2018, up 11% since 2015.
Moreover, total consumer spending on gambling in the Netherlands in 2018 was €2.5 billion, up 12% since 2015.
Per a Bloomberg report, Scientific Games provides game technology and sports betting solutions to more than 150 lotteries in 50 countries globally. It also includes 30 lotteries across the United States, Canada, Europe and Asia.
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’ complete end-to-end sportsbook partnership is also expected to benefit from NLO’s sports gambling monopoly in the country. However, entry of other operators with the launch of new online gambling market is expected to intensify competition.
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 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, which is one of the world's largest sports markets. Per the contract, the company offers its sports betting solutions to Turkish bettors at retail shops and via mobile.
Moreover, Scientific Games also expanded global lottery instant game manufacturing technology in North America and Europe.
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 & Other Stocks to Consider
Scientific Games currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are Alteryx (AYX - Free Report) , Synopsys (SNPS - Free Report) and Keysight Technologies (KEYS - Free Report) , each sporting 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 Alteryx, Synopsys and Keysight is currently pegged at 17.62%, 12% and 10%, respectively.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>