Jump to content

Light & Wonder

From Wikipedia, the free encyclopedia
(Redirected from Light Wonder Inc)

Light & Wonder, Inc.
FormerlyScientific Games Corporation
Company typePublic
ISINUS80874P1093 Edit this on Wikidata
IndustryGambling
PredecessorAutotote Corporation
Founded1973; 51 years ago (1973)
Headquarters
Las Vegas, Nevada
Key people
Brands
  • Bally
  • WMS
  • Shuffle Master
RevenueUS$2.7 billion[3] (2020)
US$22 million[3] (2020)
–US$548 million[3] (2020)
Total assetsUS$8.0 billion[4] (2020)
Number of employees
9,000[5] (2020)
Websitelnw.com

Light & Wonder, Inc., formerly Scientific Games Corporation (SG), is an American corporation that provides gambling products and services. The company is headquartered in Las Vegas, Nevada.

Light & Wonder's gaming division provides products such as slot machines, table games, shuffling machines, and casino management systems. Its brands include Bally, WMS, and Shuffle Master.

History

[edit]

The company traces its history to Autotote,[6] a manufacturer of totalizator systems for parimutuel wagering at racetracks. The history of Autotote dates to 1917, when George Julius founded Automatic Totalisators Limited in Australia to build the totalizator system he had invented.[7][8]

Automatic Totalisators opened its U.S. office in New York City in 1953, and then moved it to Wilmington, Delaware in 1956.[9] It moved again to Newark, Delaware in 1972.[10] In 1978, the U.S. division was renamed as Autotote Ltd., to reflect its diversification into businesses other than totalizators, such as lottery systems, off-track betting, and slot machine accounting.[11]

In 1979, Autotote Ltd. was acquired for $17 million by a group led by Thomas H. Lee Co.[12]

In 1989, United Tote, another leading totalizator company, purchased Autotote for $85 million.[13] Before the companies' operations could be integrated, the merger was challenged by federal antitrust regulators.[14][15] A 1991 court ruling forced the company to split back up. The former United Tote assets were sold back to that company's founders, the Shelhamer family, and what remained of the company was renamed as Autotote Corporation, now a publicly traded company.[14][16]

In 2000, Autotote bought Scientific Games Holdings Corp., a maker of instant lottery equipment, for $308 million.[17][18] Scientific Games was founded in 1973, and introduced the first secure instant lottery ticket in 1974.[19] The combined company changed its name from Autotote to Scientific Games Corporation in 2001.[20]

By 2002, two-thirds of the $20 billion wagered annually on racing in North America was tracked by Autotote computers. Autotote supplied parimutuel wagering systems worldwide. These were automated, computerized off-track and on-track systems for betting on horse races and greyhound racing. It was an integrated system for off-track betting, keeping track of race results and winning tickets, and race simulcasting. The security of Autotote software for the racing industry garnered media attention in 2002 when one of their software developers attempted to steal $3 million through a hole in their software and processes described as "an example of a very simple exploitation of a rather stupid design flaw."[21]

The role of Autotote's software in the 2002 Breeders' Cup betting scandal caused the National Thoroughbred Racing Association to take swift action in the face of a growing outcry once the nature of the scam emerged. It required all tote companies to modify their software to transmit betting information immediately after the bet has closed. It also pressured its member tracks into not doing business with parlors that did not have the ability to record wagers taken over the phone.[22][23]

In 2007, the New York Times credited Scientific Games and Gtech for transforming what was known "historically [as] an underground operation run by mobsters" into "a lucrative, state-sponsored corporate enterprise."[19] The Autotote racing division was sold to Sportech in 2010.[24]

In March 2017, Scientific Games acquired rights to use the James Bond franchise through a deal with Eon Productions and MGM Interactive.[25][26][27]

SG launched its social gaming division, SciPlay, as a publicly traded company in 2019, selling a minority share in the business through an initial public offering.[28]

In 2020, SG began a strategic review with the aim of deleveraging its balance sheet, as it struggled under $9.2 billion of debt.[29] The company ultimately decided to sell its lottery and sports betting businesses, to focus on its casino gaming business.[29] In 2021, SG agreed to sell its sports betting division to Endeavor Group Holdings for $1.2 billion, and to sell its lottery division to Brookfield Business Partners for $6.1 billion.[30][31] As the divested lottery business took the Scientific Games name, the company announced in March 2022 that it would rebrand as Light & Wonder.[32]

In May 2022, Light & Wonder listed on the Australian Securities Exchange.[33]

Subsidiaries

[edit]

Wholly owned subsidiaries of Light & Wonder include The Global Draw,[34] Barcrest,[35] Bally Technologies,[36][37] WMS Industries,[38][39] MDI Entertainment, LLC, and NYX Gaming Group Limited.[40]

In 2006, the company acquired the lottery operations of the Swedish firm EssNet,[41] as well as The Global Draw which provides server-based gambling machines to betting shops in the UK.[34] Another UK-based gaming company Barcrest was acquired from IGT in 2010.[35] Barcrest is the owner of Deal Games and a producer of betting and gambling terminals.[42]

In October 2013, the company bought WMS Industries, the third largest manufacturer of slot machines, for $1.5 billion.[38][39] Scientific Games later acquired another slot machine maker, Bally Technologies, in November 2014, for $3.3 billion plus $1.8 billion in assumed debt.[43]

In 2016, the company acquired DEQ Systems, a Canadian table-game maker.[44] The mobile bingo app maker Spicerack Media Inc. was acquired in April 2017 to expand the Scientific Games social gaming division.[45] Scientific Games also announced the $631 million acquisition of NYX Gaming Group Limited in September 2017.[46] When NYX acquisition was completed, the company gained the sports-betting platform OpenBet which handles about 80% of all sports betting in the UK as of 2018.[47] In November 2021, SG acquired Authentic Gaming, a provider of live streaming casino games.[48][49]

In May 2022, after previously reaching an exclusive distribution agreement with the company in Europe and North America, Light and Wonder acquired Playzido.[50]

References

[edit]
  1. ^ "Light & Wonder Names Matt Wilson Chief Executive Officer". October 10, 2022.
  2. ^ "Jamie Ronald Odell, Scientific Games Corp: Profile and Biography". Bloomberg.com. Retrieved March 11, 2021.
  3. ^ a b c Form 10-K: Annual Report (Report). Scientific Games Corp. March 1, 2021. p. 84 – via EDGAR.
  4. ^ Form 10-K: Annual Report (Report). Scientific Games Corp. March 1, 2021. p. 86 – via EDGAR.
  5. ^ Form 10-K: Annual Report (Report). Scientific Games Corp. March 1, 2021. p. 13 – via EDGAR.
  6. ^ "Our History of Innovation". Scientific Games. Retrieved March 14, 2019.
  7. ^ Lindsay Barrett; Matthew Connell (2006). "An Unlikely History of Australian Computing: the Reign of the Totalisator". The Rutherford Journal. Retrieved March 14, 2019.
  8. ^ Daniel F. Cuff (October 4, 1982). "Holder of most stock will head Autotote". New York Times. Retrieved March 14, 2019.
  9. ^ Izzy Katzman (December 22, 1966). "Wilmington is U.S. home for Aussie tote company". The News Journal. Wilmington, DE – via Newspapers.com.
  10. ^ "'Visionary' Weil at helm of Autotote". The News Journal. Wilmington, DE. June 2, 1995 – via Newspapers.com.
  11. ^ "Business briefs". The Morning News. Wilmington, DE. September 22, 1978 – via Newspapers.com.
  12. ^ "Boston group buys Autotote". The Morning News. Wilmington, DE. August 28, 1979 – via Newspapers.com.
  13. ^ "United Tote buys rival company". The Billings Gazette. December 12, 1989 – via Newspapers.com.
  14. ^ a b Phyllis Berman (November 9, 1992). "Home on the range". Forbes. Archived from the original on April 2, 2015.
  15. ^ "Company News; United Tote Sees Significant Loss". The New York Times. Reuters. December 28, 1990. Retrieved September 28, 2018.
  16. ^ Form 10-K: Annual Report (Report). Autotote Corporation. January 26, 1996. Retrieved March 11, 2015 – via EDGAR.
  17. ^ "Autotote completes acquisition of Scientific Games" (Press release). Autotote Corp. September 6, 2000. Retrieved June 1, 2012.
  18. ^ "Autotote purchase of Scientific Games is set for $310 million". Wall Street Journal. May 19, 2000. Retrieved June 1, 2012 – via ProQuest. (subscription required)
  19. ^ a b Stodghill, Ron; Nixon, Ron (October 21, 2007). "Divide and Conquer: Meet the Lottery Titans". The New York Times. Retrieved October 21, 2007.
  20. ^ Form 8-K: Current Report (Report). Scientific Games Corp. April 30, 2001. Retrieved March 11, 2015 – via EDGAR.
  21. ^ "How Autotote Insider Rigged the System". Baseline Magazine. Ziff-Davis Media. December 1, 2002. Retrieved February 18, 2012.
  22. ^ "Betting Inquiry Will Include F.B.I." New York Times. November 9, 2002. Retrieved February 18, 2012.
  23. ^ "Handlers of Pick-Six Bets to Face a Lawsuit". The New York Times. December 3, 2002. Retrieved September 29, 2018.
  24. ^ "Sports Haven/Autotote has new owner". New Haven Register. October 7, 2010. Retrieved February 18, 2012.
  25. ^ "Scientific Games strikes deal to showcase slots featuring James Bond". Las Vegas Review-Journal. March 8, 2017. Retrieved September 28, 2018.
  26. ^ "Ron Perelman's Scientific Games Inks James Bond Licensing Deal". The Hollywood Reporter. Retrieved September 28, 2018.
  27. ^ "Scientific Games Corp. to start producing James Bond slot machines". Las Vegas Business Press. March 29, 2017. Retrieved September 28, 2018.
  28. ^ Matthew Crowley (May 8, 2019). "SciPlay IPO, loss reductions buoy spirits for Scientific Games". CDC Gaming Reports. Retrieved October 31, 2021.
  29. ^ a b Howard Stutz (June 29, 2021). "Sales of sports betting and lottery divisions on the horizon for Scientific Games". The Nevada Independent. Retrieved October 31, 2021.
  30. ^ Krystal Hu; Niket Nishant (September 27, 2021). "Endeavor to buy sports betting unit from Scientific Games for $1.2 bln". Reuters. Retrieved October 31, 2021.
  31. ^ Richard N. Velotta (October 29, 2021). "Scientific Games selling lottery division for $6.05B". Las Vegas Review-Journal. Retrieved October 31, 2021.
  32. ^ Richard N. Velotta (March 2, 2022). "Scientific Games rebranding wth [sic] new name, identity". Las Vegas Review-Journal. Retrieved April 30, 2022.
  33. ^ "Light & Wonder Receives Conditional Approval to List Equity on the Australian Securities Exchange". Business Wire. Retrieved June 26, 2024.
  34. ^ a b Davies, Rob (October 10, 2017). "The multimillionaires making a packet out of Britain's gamblers". The Guardian. Retrieved September 29, 2018.
  35. ^ a b "IGT sells British-based slot machine developer". Las Vegas Review-Journal. April 27, 2011. Retrieved April 27, 2011.
  36. ^ "Scientific Games Buys Bally in $3.3 Billion Gaming Deal". Bloomberg.com. August 1, 2014. Retrieved September 29, 2018.
  37. ^ "Scientific Games to Buy Bally Technologies". Wall Street Journal. August 1, 2014. ISSN 0099-9660. Retrieved September 29, 2018.
  38. ^ a b "Scientific Games Agrees to Buy WMS for $1.5 Billion". Bloomberg.com. Retrieved September 29, 2018.
  39. ^ a b Velotta, Richard N. (July 24, 2017). "Scientific Gaming reports revenue gain in 2nd quarter". Las Vegas Review-Journal. Retrieved September 29, 2018.
  40. ^ "Form 10-K". Retrieved December 31, 2011.
  41. ^ "Scientific Games köper Essnet". Dagens Nyheter (in Swedish). January 21, 2006. Retrieved December 20, 2018.
  42. ^ "Barcrest Group faces job losses after Scientific Games Corporation review". Manchester Evening News. January 24, 2012. Retrieved September 29, 2018.
  43. ^ Howard Stutz (November 21, 2014). "Scientific Games completes $5.1 billion acquisition of Bally". Las Vegas Review-Journal. Retrieved March 9, 2015.
  44. ^ "Scientific Games to acquire Canadian table-game provider". Las Vegas Review-Journal. September 1, 2016. Retrieved September 29, 2018.
  45. ^ "Las Vegas-based Scientific Games acquires bingo app maker". Las Vegas Review-Journal. April 11, 2017. Retrieved September 29, 2018.
  46. ^ Richard N., Velotta (December 20, 2017). "NYX Gaming Group shareholders approve acquisition by Scientific Games". Las Vegas Review-Journal. Retrieved September 29, 2018.
  47. ^ Velotta, Richard N. (May 3, 2018). "Scientific Games posts $201.8 M net loss in first quarter". Las Vegas Review-Journal. Retrieved September 29, 2018.
  48. ^ "Scientific Games Acquires Authentic Gaming to Enter Live Casino Market". GamblingNews. November 3, 2021. Retrieved September 9, 2022.
  49. ^ Insider, Gambling. "Scientific Games enters live casino market with acquisition of Authentic Gaming". www.gamblinginsider.com. Retrieved September 9, 2022.
  50. ^ "Light & Wonder acquires Playzido". Gaming Intelligence. May 11, 2022. Retrieved September 9, 2022.
[edit]
  • Official website
  • Business data for Light & Wonder, Inc.:
Retrieved from "https://en.wikipedia.org/w/index.php?title=Light_%26_Wonder&oldid=1239012266"