Scientific Games has grand plans for its social gaming business as it files an initial public offering (IPO) application with the U.S. Securities and Exchange commission (SEC).
Scientific Games (SG) have stated that it has filed an IPO for what it will call “SciPlay” and will be traded on the NASDAQ Global Select Market Exchange under the symbol “SCPL.”
SGs social gaming arm revolves around free to play games, the company earns revenue by offering in-game items that can be purchased by players. SGs gross revenue from social gaming was over $400 million in 2018, a growth of 15% from a year earlier.
SG is behind many of the most popular casino games including Rainbow Riches, Monopoly Slots and Action Bank. The company has reportedly almost 2000 social casino games available, many of these games can be found at a variety of slot sites and casino sites online.
The IPO announcement does not come as a surprise given that SG CEO Barry Cottle addressed the possibility of an IPO during a recent meeting with investors. It is reported that Cottle would use the proceeds from the IPO primarily to repay debt.
In 2018, SG had to pay $315 million to competitors. This stemmed from a case that was associated with “sham patents” and “frivolous lawsuits”. As a result of this, the stock price of SG is currently trading at around 50% lower of what it was a year ago.
The lawsuit meant that the company had to report a loss of $351.6 million in the third quarter of 2018. The amount was appealed and cut to $151.5 million, however.
All this withstanding, SG remain one of the best producers of casino content. The investors and directors at SG will certainly be hoping for 2019 to be an improvement on the previous year.