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Scientific Games (SGMS) Banks on Partnerships to Win Deals

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Scientific Games (SGMS - Free Report) is benefiting from an expanding partner base to win deals across SciPlay, lottery, iGaming and international businesses.

The company recently partnered with Pennsylvania’s online casino operator Rush Street Interactive to bring its slot games on the latter’s and sites.

The newly-launched games include 88 Fortunes, Spartacus, Starmania and Mad Mad Monkey. The availability of these games on Rush Street Interactive’s gaming sites is expected to further boost their popularity, thereby adding an impetus to Scientific Games’ SciPlay business.

Notably, SciPlay revenues in 2019 increased 12% year over year to $466 million, driven by the popularity of Jackpot Party Casino, MONOPOLY Slots, Bingo Showdown, 88 Fortunes and Quick Hit Slots.

Scientific Games and Golden Nugget also expanded their iGaming partnerships in a new multi-state, multi-product, multi-channel agreement through 2024.

Moreover, Scientific Games partnered Churchill Downs (CHDN - Free Report) and Ainsworth Game Technology to launch a newly-developed Historical Horse Racing (HHR) machine, approved by Kentucky Horse Racing Commission (KHRC).


The company also teamed up with Abacus Solutions International Group on a secure solution for shoppers to purchase lottery draw and instant games in retail checkout lanes.

Abacus provides a solution that safely connects lottery systems technology directly through a retailer's point-of-sale technology. The company’s significant footprint in supermarkets and big-box stores and a healthy presence across Europe (30K lanes) bode well for its international growth.

International Deal Wins to Aid Growth in 2020

In fact, international expansion is expected to remain a driving factor for Scientific Games in 2020.

The company recently inked a new four-year systems technology deal with long-time partner Staatliche Lotterieverwaltung (LOTTO Bayern), the state lottery of Bavaria in Munich, Germany.

Per the latest agreement, LOTTO Bayern’s existing central gaming system will shift to Scientific Games’ advanced, new SYMPHONY technology over the next year.

In February, Scientific Games enhanced BoyleSports, Ireland’s largest bookmaker’s screen solution from legacy technology, to the Promote platform of the former. BoyleSports now plans to roll out upgrades across its property in Ireland and the UK.

Further, Scientific Games along with its joint-venture partner provided support to Lotterie Nazionali, S.r.l., the operator of Gratta e Vinci in Italy, the world’s largest instant game lottery.

The company also extended its partnership with William Hill for an additional four years through 2024. Scientific Games will continue to provide its industry-leading OpenSports solutions to William Hill in the U.K. and Europe.

Notably, in 2019, it unveiled New Zealand Racing Board’s (NZRB) sportsbook, powered by the OpenBet technology. Additionally, Scientific Games’ joint venture with Sans Girisim (Sans Digital) secured a 10-year sports betting contract in Turkey.

Further, the company stretched its relationship 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.

Additionally, Scientific Games reached an agreement with Norsk Tipping, Norway’s only Video Lottery Terminal (VLT) operator, to supply 3,000 to 4,500 VLTs in approximately 1,000 venues, beginning late 2020.

Zacks Rank & Other Stocks to Consider

Scientific Games currently has a Zacks Rank #2 (Buy). A few other top-ranked stocks in the broader technology sector are Avid Technology (AVID - Free Report) and OSI Systems (OSIS - Free Report) , both 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 Avid Technology and OSI Systems is currently pegged at 15% and 12.5%, respectively.

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