Don’t Expect a Nevada Lottery Any Time Soon
Let’s halt one rumor before it gains traction.
Scientific Games Corp.’s $1.5 billion acquisition of slot machine manufacturer WMS Industries doesn’t mean a statewide lottery is headed to Nevada.
New York-based Scientific Games provides lottery systems and equipment to U.S. states, Canadian provinces and foreign governments. The company was actively seeking to acquire a traditional slot machine vendor when the buyout was announced in February.
It wasn’t about bringing a lottery to Nevada.
That said, Wall Street, which was skeptical about the deal, is starting to find some comfort with the transaction.
Scientific Games is paying $26 per share for WMS, roughly 59 percent above the slot maker’s closing stock price on Jan. 31.
When the buyout was announced, both WMS and Scientific Games officials said the transaction would provide $100 million of synergistic cost-savings between the merged companies.
