IGT Plans to Spin Off Digital and Betting Division Within 12 Months

Olufifun Adeleke

IGT recently announced its plans to maximize its business from its Digital and Betting operations. This was revealed during the company’s Virtual Investor Day, held on Tuesday, November 16, 2021. The meeting was convened with top officials present. The IGT Chief Executive Officer Macro Sala, Chief Financial Officer Max Chiara, among other executives, were present. The Virtual Investor Day event was organized to address the company’s business strategy and long-term growth plans.

What is IGT’s plan?

IGT's executive leaders discussed the company’s plans to set up its Digital and Betting Business unit as a distinct legal entity. This will be done in the course of the next 12 months, as revealed. IGT announced that its new structure is aimed at achieving high growth in the online gaming industry. The plans will include a specially appointed management team and a huge budget to ensure that the company pursues M&A opportunities.

IGT recently appointed Joe Asher for the position of the President of Sports Betting. They also appointed a former executive of Bet365, Gil Totem, as President of iGaming. This was revealed at the Investor Day event as part of IGT's plan for its Digital and Betting Business.

In the firm’s release, it indicated that part of the ongoing plans was to ensure the flexibility for Digital and Betting Business which will give it a separate legal entity. This plan will be established over the next 12 months while IGT pursues more organic and inorganic development opportunities. IGT's dedicated management team will manage the new entity. However, the firm will still maintain a controlling interest.

Although the company did not fully reveal how it intends to follow through with this plans of its newly intended Digital and Betting Business, it however revealed that more details would be announced when the final decision has been made or when it deems it appropriate. IGT disclosed that although no guarantee was made that it would follow through with the plan, it revealed that the listing would be determined by wider market developments and the growing rare of the United States sports betting operations.

What is IGT Digital and Betting Operations?

IGT, which is currently one of the leading developers in the online gambling industry, offers a wide variety of online casino games and even sports betting. The IGT’s PlaySports technology offers about 50 US sports betting operations both online and in land-based markets. Their products are widely known, especially among top market leaders like FanDuel.

In the Q3 2021 financial report, which was recently released, Digital and Betting Business operations experienced a 37% increase which amounted to $43 million. Many of the gambling firms which have received high rewards in the gambling space have decided to go public with their plans to pursue Digital and Betting Business operations. However, some firms eventually abandoned their plans to make it public.

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