The American gambling corporation Scientific Games revealed that it is taking over Sideplay Entertainment as part of its efforts to expand its online lottery offerings.
For the time being, the financial terms of the deal were not unveiled. Also, the companies have not issued a statement to announce the official date when the transaction is set to be finalised. The acquisition is expected to be beneficial for Scientific Games because Sideplay Entertainment brings to the table a contract as the primary eInstant games’ supplier of one of the largest lottery groups worldwide, the UK National Lottery.
As revealed by a statement, through the acquisition deal, Scientific Games Lottery Group is seeking to expand its share in digital lottery markets. The takeover will also provide the American gambling group with access to digital game server content distribution technology that will also help it accelerate the expansion of the already existing digital offering of the company.
This is not the first-ever interaction between Scientific Games and Sideplay Entertainment. The two companies previously had a collaboration under which Scientific Games distributes Sideplay’s content for iLottery programs in North America.
Scientific Games Seeking Growth in the Online Lottery Products Sector
Las Vegas-based Scientific Games has been one of the first operators in the online lottery industry that officially presented the first digital instant lottery game in the US in 2014. Currently, the operator also offers a variety of mobile applications, interactive lottery games, player loyalty programs and other digital gaming products and services.
Although online lottery products and services are not generating an equally big interest as online casinos and sports betting services, the segment is enjoying certain growth. According to some analysts, online lotteries provide an extremely good opportunity for further expansion, noting that the sector could eventually compete with online sports betting.
On the other hand, as mentioned above, the acquisition of Sideplay Entertainment is expected to help Scientific Games enlarge its online offering products. Since 2003, the acquisition target of the American gambling giant has rolled out over 270 instant win games for some of the biggest gambling and lottery operators on a global scale. According to reports, those games have been played more than 100 million times.
The takeover deal is expected to be beneficial for Scientific Games at a time when internet lottery services are getting more popular, just like online gambling and sports betting products. Online lottery games are already legal in states including Virginia, Michigan, North Carolina and New Hampshire.
Back in June 2021, Scientific Games announced its decision to divest its lottery operations and sportsbook services in an effort to minimise debt and become more focused on its digital gambling offering. According to some experts, the traditional lottery business of the company, which also includes instant games development, can be more successful as a standalone entity.
- Author
Olivia Cole
