Scientific Games Corp., now doing business as Light & Wonder, Inc., announced the completion of its divestiture of the lottery business on which Scientific Games was founded in the 1970s. L&W completed the sale of its lottery business to Brookfield Business Partners LP, which will continue to use the Scientific Games brand for the well-known lottery supplier.
The sale, for $5.8 billion in gross cash proceeds and approximately $5 billion of net after-tax cash proceeds, fulfills the former Scientific Games’ stated objective of divesting all but its core omnichannel games business. Last year, the company announced the sale of its sports betting division, OpenBet, to Endeavor Group Holdings for $1.2 billion. That transaction will close soon.
“The lottery business sale closing is a significant step towards streamlining our portfolio and strengthening our balance sheet as we execute on our strategy to transform our business with a singular focus on building great games and franchises to entertain our players wherever and whenever they want to play,” said L&W CEO Barry Cottle.
“The convergence of land-based and digital continues to gain momentum, and we are strongly positioned to be a leader in the industry. With the completion of the lottery business sale and the upcoming sale of our sports betting business, we are moving rapidly as we execute on our vision to be a leading cross-platform global game provider and unlock the full potential of Light & Wonder. This also positions the lottery business for success as a stand-alone company completely focused on innovating for its global lottery customers.”