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Scientific Games Reports Second Quarter 2018 Results

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Scientific Games Corporation (PRNewsFoto/Scientific Games Corporation)
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Growth achieved across every business reflects continued momentum

LAS VEGAS, Aug. 1, 2018  – Scientific Games Corporation (NASDAQ: SGMS) (“Scientific Games” or the “Company”) today reported results for the second quarter ended June 30, 2018.

Second Quarter 2018 Financial Highlights:

  • Second quarter revenue rose 10 percent to $844.7 million, up from $766.3 million in the year ago period, reflecting $50.6 million in revenue from NYX, along with growth in all of our businesses. Gaming and Lottery revenue includes a $10.0 million negative impact from applying the new revenue recognition accounting.
  • Net loss decreased to $5.8 million compared to $39.1 million in the prior year period, primarily driven by higher revenue and more efficient business processes throughout the organization and reflective of $33.5 million in restructuring and other charges offset by a $34.5 million gain on remeasurement of Euro denominated debt.
  • Consolidated Attributable EBITDA (“Consolidated AEBITDA”), a non-GAAP financial measure defined below, increased 8 percent to $340.4 million from $314.8 million in the prior year period, primarily driven by higher revenue and more efficient business processes throughout the organization. Consolidated AEBITDA margin, a non-GAAP financial measure defined below, was 40.3 percent.
  • Net cash provided by operating activities decreased to $102.5 million from $168.5 million in the year ago period driven primarily by the timing of interest payments resulting from the February 2018 refinancing.

Barry Cottle, CEO and President of Scientific Games, said, “I’m very pleased with our accomplishments this quarter and particularly proud that all four businesses continued to experience growth this quarter and are accelerating our financial momentum. Our core businesses are strong and ready to capitalize on the significant opportunities in the marketplace to drive growth by delivering great games and robust platforms and systems that enable them. We remain focused on delivering results, maintaining our financial discipline and strategically investing in our future to maximize shareholder return.

Michael Quartieri, Chief Financial Officer of Scientific Games, added, “This quarter marks our eleventh consecutive quarter of year over year growth in revenue and AEBITDA. We have clear momentum across all of our global businesses. The improvement in our operating results, along with lower interest costs, provides us with a clear path of increasing cash flows, deleveraging, and strengthening our balance sheet.”

SUMMARY CONSOLIDATED RESULTS

($ in millions)

Three Months Ended June 30,

2018

2017

Revenue

$

844.7

$

766.3

Net loss

(5.8)

(39.1)

Net cash provided by operating activities

102.5

168.5

Capital expenditures

112.5

78.9

Non-GAAP Financial Measures(1)

Consolidated AEBITDA

$

340.4

$

314.8

Consolidated AEBITDA margin

40.3%

41.1%

Free cash flow 

$

(71.0)

$

101.0

Balance Sheet Measures

As of June 30, 2018

As of Dec 31, 2017

Cash and cash equivalents

$

118.6

$

788.8

Principal face value of debt outstanding

9,073.5

8,869.4

Available liquidity

558.6

1,009.4

 

(1)The financial measures ” Consolidated AEBITDA”, ” Consolidated AEBITDA margin”, and  “free cash flow” are non-GAAP financial measures defined below under “Non-GAAP Financial Measures” and are reconciled to the most directly comparable GAAP measures in the accompanying supplemental tables at the end of this release.

 

GAMING HIGHLIGHTS FOR THE THREE MONTHS ENDED JUNE 30, 2018

($ in millions)

Three Months Ended June 30,

Increase/(Decrease)

2018

2017

Amount

%

Revenue

   Gaming operations (1)

$

159.9

$

178.4

$    (18.5)

(10)

%

   Gaming machine sales

167.6

163.3

4.3

3

%

   Gaming systems

84.3

67.1

17.2

26

%

   Table products

58.9

48.4

10.5

22

%

$

470.7

$

457.2

$      13.5

3

%

AEBITDA

$

235.7

$

226.9

$        8.8

4

%

AEBITDA margin

50.1%

49.6%

 

(1) Gaming operations includes $6.5 million in WAP jackpots as a reduction to revenue in 2018, compared to the 2017 presentation in which $5.3 million of WAP jackpots was classified as cost of services. This change in classification has no impact on AEBITDA.

 

  • Total gaming revenue increased $13.5 million, despite an unfavorable $6.5 million impact on Gaming operations revenue from the new revenue recognition accounting effective in 2018, and AEBITDA increased 4 percent, or $8.8 million, to $235.7 million, primarily reflecting a 50 basis point improvement in the AEBITDA margin to 50.1 percent reflecting more efficient business processes.
  • Gaming operations revenue declined $18.5 million in the second quarter 2018, inclusive of the $6.5 million reduction from the new revenue recognition accounting. On a quarterly sequential basis, we experienced an 8-unit increase in the installed base of Wide-Area Progressive (“WAP”) and premium participation gaming machines and a $0.30 increase in average revenue per day, and our installed base of other leased and participation games increased by 80 units with average daily revenue down $0.29, which reflects the additional placements of lower yielding units in Greece.
  • Gaming machine sales revenue increased $4.3 million year over year, driven by strong replacement and new opening demand in the U.S. and Canada, which was offset by lower international sales. Replacement units in the U.S. and Canada increased 16 percent year over year to 4,388 units, due to ongoing demand for the TwinStar family of cabinets. The average sales price increased 1 percent to $17,699, reflecting a more favorable mix of gaming machines.
  • Gaming systems revenue increased $17.2 million to $84.3 million, primarily due to ongoing installations of a new system to casinos in the provinces of Alberta and Ontario, coupled with increased hardware sales, reflecting shipments of innovative iVIEW®player-interface display units. The deployment of the new system to additional casinos across Alberta and Ontario is expected to continue throughout 2018, and beyond.
  • Table products revenue increased $10.5 million to $58.9 million, reflecting increased sales of utility products.

 

LOTTERY HIGHLIGHTS FOR THE THREE MONTHS ENDED JUNE 30, 2018

($ in millions)

Three Months Ended June 30,

Increase/(Decrease)

Revenue

2018

2017

Amount

%

   Instant products

$

150.1

$

151.3

$

(1.2)

(1)

%

   Lottery systems  (1)

57.0

51.0

6.0

12

%

$

207.1

$

202.3

$

4.8

2

%

AEBITDA

$

99.4

$

95.6

$

3.8

4

%

AEBITDA margin

48.0%

47.3%

(1) Lottery systems revenue includes $8.3 million in product sales revenue, compared to $9.8 million in 2017.

  

  • Total lottery revenue increased $4.8 million, or 2 percent, to $207.1 million, and AEBITDA increased 4 percent to $99.4 million, compared to $95.6 million in the prior year, with AEBITDA margin improving to 48.0 percent, primarily reflecting the revenue increase and a more profitable revenue mix partially offset by higher selling, general and administrative expenses.
  • Instant products revenue of $150.1 million was driven by a 2 percent increase in U.S. revenue, partially offset by 8 percent decrease internationally.
  • Lottery systems revenue increased as a result of a $6.0 million, or 12 percent increase in services. The increase in services revenue was driven largely by organic growth domestically.

 

SOCIAL HIGHLIGHTS FOR THE THREE MONTHS ENDED JUNE 30, 2018

($ in millions)

Three Months Ended June 30,

Increase/(Decrease)

2018

2017

Amount

%

   Revenue

$

99.7

$

91.1

$

8.6

9

%

AEBITDA

$

25.2

$

21.9

$

3.3

15

%

AEBITDA margin

25.3%

24.0%

 

  • Social revenue grew 9 percent to $99.7 million, reflecting the ongoing popularity of Bingo Showdown™ and the success of more recent apps, such as the introduction of the MONOPOLYthemed casino app featuring a new innovative style of play, which was launched during the second quarter of 2018.
  • AEBITDA rose 15 percent to $25.2 million, and AEBITDA margin increased to 25.3 percent, primarily reflecting the continued rapid growth in revenue and improved operating leverage, partially offset by higher selling, general and administrative expenses primarily related to marketing.

 

DIGITAL HIGHLIGHTS FOR THE THREE MONTHS ENDED JUNE 30, 2018

($ in millions)

Three Months Ended June 30

Increase/(Decrease)

Revenue (1)

2018

2017

Amount

%

   Sports and platform

$

20.5

$

$

20.5

 nm

   Gaming and other

46.7

15.7

31.0

197

%

$

67.2

$

15.7

$

51.5

328

%

AEBITDA

$

13.2

$

2.7

$

10.5

389

%

AEBITDA margin

19.6%

17.2%

nm – not meaningful.

(1) Includes the results of NYX since the completion of its acquisition on January 5, 2018.

 

  • Total digital revenue increased to $67.2 million, primarily reflecting $50.6 million of revenue from NYX. During the second quarter of 2018, we successfully launched our gaming content across 7 new client sites and signed 8 new customers.
  • AEBITDA was $13.2 million and AEBITDA margin was 19.6 percent. The year-over-year increase primarily reflects the addition of NYX.

 

LIQUIDITY 

Three Months Ended June 30,

Increase/

($ in millions)

2018

2017

(Decrease)

Net loss

$         (5.8)

$       (39.1)

$       33.3

Non-cash adjustments included in net loss

149.2

179.0

(29.8)

Non-cash interest

6.6

5.1

1.5

Changes in deferred income taxes and other

(4.6)

1.7

(6.3)

Distributed earnings from equity investments

17.9

16.2

1.7

Changes in working capital accounts

(60.8)

5.6

(66.4)

Net cash provided by operating activities

$

102.5

$

168.5

$

(66.0)

 

  • Net cash provided by operating activities decreased $66.0 million to $102.5 million, principally related to the timing of interest payments resulting from the February 2018 refinancing, which resulted in a $66.2 million unfavorable change in accrued interest.
  • Capital expenditures totaled $112.5 million in the second quarter of 2018, compared with $78.9 million in the prior-year period. The increase from the prior year was related to the ongoing acceleration of our installed base of participation games and lottery systems installations in Maryland and Kansas, and the addition of keno in Pennsylvania. For 2018, the Company now expects capital expenditures will be within a range of $360$390 million, based on existing contractual obligations, planned investments and the inclusion of NYX.
  • The Company remains focused on growing cash flow and strengthening our balance sheet.

Earnings Conference Call
Scientific Games executive leadership will host a conference call on Thursday, August 2, 2018, at 8:00 a.m. EST to review the Company’s second quarter results. To access the call live via a listen-only webcast and presentation, please visit http://www.scientificgames.com/investors/events-presentations/and click on the webcast link under the Investor Information section. To access the call by telephone, please dial: +1 (412) 317-5420 (U.S. and International) and ask to join the Scientific Games Corporation call. A replay of the webcast will be archived in the Investors section on www.scientificgames.com.

About Scientific Games
Scientific Games Corporation (NASDAQ: SGMS) is the world leader in offering customers a fully integrated portfolio of technology platforms, robust systems, engaging content and services.  The Company is the global leader in technology-based gaming systems, digital real-money gaming and sports betting platforms, table games, table products and instant games, and a leader in products, services and content for gaming, lottery and social gaming markets. Scientific Games delivers what customers and players value most: trusted security, creative entertaining content, operating efficiencies and innovative technology. For more information, please visit www.scientificgames.com, which is updated regularly with financial and other information about the Company.

The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

COMPANY CONTACTS
Media Relations
Susan Cartwright +1 702-532-7981
Vice President, Corporate Communications
[email protected]

Investor Relations
Michael Quartieri +1 702-532-7658
Executive Vice President and Chief Financial Officer

All ® notices signify marks registered in the United States. © 2018 Scientific Games Corporation. All Rights Reserved.

Forward-Looking Statements
In this press release, Scientific Games makes “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements describe future expectations, plans, results or strategies and can often be identified by the use of terminology such as “may,” “will,” “estimate,” “intend,” “plan,” “continue,” “believe,” “expect,” “anticipate,” “target,” “should,” “could,” “potential,” “opportunity,” “goal,” or similar terminology. These statements are based upon management’s current expectations, assumptions and estimates and are not guarantees of timing, future results or performance. Therefore, you should not rely on any of these forward-looking statements as predictions of future events. Actual results may differ materially from those contemplated in these statements due to a variety of risks and uncertainties and other factors, including, among other things: competition; U.S. and international economic and industry conditions; slow growth of new gaming jurisdictions, slow addition of casinos in existing jurisdictions, and declines in the replacement cycle of gaming machines; ownership changes and consolidation in the gaming industry; opposition to legalized gaming or the expansion thereof; inability to adapt to, and offer products that keep pace with, evolving technology, including any failure of our investment of significant resources in our R&D efforts; inability to develop successful products and services and capitalize on trends and changes in our industries, including the expansion of internet and other forms of interactive gaming; laws and government regulations, including those relating to gaming, data privacy, and environmental laws; legislative interpretation and enforcement, regulatory perception and regulatory risks with respect to gaming and sports wagering; reliance on technological blocking systems; expectations of shift to regulated online gaming or sports wagering; dependence upon key providers in our Social gaming business; inability to win, retain or renew, or unfavorable revisions of, existing contracts, and the inability to enter into new contracts; protection of our intellectual property, inability to license third party intellectual property, and the intellectual property rights of  others; security and integrity of our products and systems; reliance on or failures in information technology and other systems; security breaches and cyber-attacks, challenges or disruptions relating to the implementation of a new global enterprise resource planning system; failure to maintain adequate internal control over financial reporting; natural events that disrupt our operations or those of our customers, suppliers or regulators; inability to benefit from, and risks associated with, strategic equity investments and relationships; failure to achieve the intended benefits of our acquisitions, including the NYX acquisition; the ability to successfully integrate our acquisitions, including the NYX acquisition; incurrence of restructuring costs; implementation of complex new accounting standards; changes in estimates or judgments related to our impairment analysis of goodwill or other intangible assets; fluctuations in our results due to seasonality and other factors; dependence on suppliers and manufacturers; risks relating to foreign operations, including anti-corruption laws and fluctuations in foreign exchange rates, possibility that the renewal of LNS’ concession to operate the Italian instant games lottery is not finalized (including as the result of a protest); restrictions on the payment of dividends from earnings, restrictions on the import of products and financial instability, including the potential impact to our business resulting from the affirmative vote in the U.K. to withdraw from the EU, and the potential impact to our instant lottery game concession or VLT lease arrangements resulting from the economic and political conditions in Greece; changes in tax laws or tax rulings (including the recent comprehensive U.S. tax reform) or the examination of our tax positions; dependence on key employees; difficulty predicting what impact, if any, new tariffs imposed by and other trade actions taken by the U.S. and foreign jurisdictions could have on our business; litigation and other liabilities relating to our business, including litigation and liabilities relating to our contracts and licenses, our products and systems, our employees (including labor disputes), intellectual property, environmental laws and our strategic relationships; level of our indebtedness, higher interest rates, availability or adequacy of cash flows and liquidity to satisfy indebtedness, other obligations or future cash needs; inability to reduce or refinance our indebtedness; restrictions and covenants in debt agreements, including those that could result in acceleration of the maturity of our indebtedness; influence of certain stockholders, including decisions that may conflict with the interests of other stockholders; and stock price volatility.

Additional information regarding risks and uncertainties and other factors that could cause actual results to differ materially from those contemplated in forward-looking statements is included from time to time in our filings with the SEC, including the Company’s current reports on Form 8-K, quarterly reports on Form 10-Q and its latest annual report on Form 10-K filed with the SEC on March 1, 2018 (including under the headings “Forward Looking Statements” and “Risk Factors”). Forward-looking statements speak only as of the date they are made and, except for our ongoing obligations under the U.S. federal securities laws, we undertake and expressly disclaim any obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.

Segment Performance Measures
As a result of our Chief Executive Officer change, who is our chief operating decision maker (CODM), and starting with the second quarter of the 2018 reporting period, we changed our business segment performance measure of profit or loss from operating income (loss) to Attributable EBITDA. This change was made in order to align our external financial reporting with how our CODM evaluates the operating results and performance of our business segments. Attributable EBITDA as a business segment performance measure of profit or loss is consistent with the definition of Attributable EBITDA described below. Business segment information for the prior comparable periods has been recast to reflect this change.

Non-GAAP Financial Measures
The Company’s management uses the following non-GAAP financial measures in conjunction with GAAP financial measures: Consolidated AEBITDA, Consolidated AEBITDA margin, free cash flow, EBITDA from equity investments, net debt and net debt leverage ratio (each, as described more fully below). These non-GAAP financial measures are presented as supplemental disclosures. They should not be considered in isolation of, as a substitute for, or superior to, the financial information prepared in accordance with GAAP, and should be read in conjunction with the Company’s financial statements filed with the SEC. The non-GAAP financial measures used by the Company may differ from similarly titled measures presented by other companies.

Specifically, the Company’s management uses Consolidated AEBITDA to, among other things: (i) monitor and evaluate the performance of the consolidated Company’s business operations; (ii) facilitate management’s internal and external comparisons of the Company’s consolidated historical operating performance; and (iii) analyze and evaluate financial and strategic planning decisions regarding future operating investments and operating budgets. In addition, the Company’s management uses Consolidated AEBITDA and Consolidated AEBITDA margin to facilitate management’s external comparisons of the Company’s consolidated results to the historical operating performance of other companies that may have different capital structures and debt levels.

The Company’s management uses EBITDA from equity investments to monitor and evaluate the performance of the Company’s equity investments. The Company’s management uses net debt and net debt leverage ratio in monitoring and evaluating the Company’s overall liquidity, financial flexibility and leverage.

The Company’s management believes that each of these non-GAAP financial measures are useful as they provide management and investors with information regarding the Company’s financial condition and operating performance that is an integral part of management’s reporting and planning processes. In particular, the Company’s management believes that Consolidated AEBITDA is helpful because this non-GAAP financial measure eliminates the effects of restructuring, transaction, integration or other items that management believes is less indicative of the Company’s ongoing underlying operating performance and are better evaluated separately. Management believes Consolidated AEBITDA margin is useful for analysts and investors as this measure allows an evaluation of the performance of our ongoing business operations and provides insight into the cash operating income margins generated from our business, from which capital investments are made and debt is serviced. Moreover, management believes EBITDA from equity investments is useful to investors because the Company’s Lottery business is conducted through a number of equity investments, and this measure eliminates financial items from the equity investees’ earnings that management believes has less bearing on the equity investees’ performance. Management believes that free cash flow provides useful information regarding the Company’s liquidity and its ability to service debt and fund investments. Management also believes that free cash flow is useful for investors because it provides them with an important perspective on the cash available for debt repayment and other strategic measures, after making necessary capital investments in property and equipment and necessary license payments to support the Company’s ongoing business operations and taking into account cash flows relating to the Company’s equity investments. Management believes that net debt and net debt leverage ratio are useful for investors in evaluating the Company’s overall liquidity.

Consolidated AEBITDA
Consolidated AEBITDA, as used herein, is a non-GAAP financial measure that is presented as supplemental disclosure and is reconciled to net income (loss) as the most directly comparable GAAP measure, as set forth in the schedule titled “Reconciliation of Net Loss to Consolidated Attributable EBITDA” below. Consolidated AEBITDA should not be considered in isolation of, as a substitute for, or superior to, the consolidated financial information prepared in accordance with GAAP, and should be read in conjunction with the Company’s financial statements filed with the SEC.  Consolidated AEBITDA may differ from similarly titled measures presented by other companies.

Consolidated AEBITDA is reconciled to consolidated net income (loss) in the following table and includes net loss with the following adjustments: (1) restructuring and other, which includes charges or expenses attributable to: (i) employee severance; (ii) management changes; (iii) restructuring and integration; (iv) M&A and other, which includes: (a) M&A transaction costs, (b) purchase accounting, (c) unusual items (including certain litigation), and (d) other non-cash items; and (v) cost savings initiatives; (2) depreciation and amortization expense and impairment charges (including goodwill impairment charges); (3) change in fair value of investments and remeasurement of debt; (4) interest expense; (5) income taxes expense (benefit): (6) stock-based compensation; and (7) loss (gain) on debt financing transactions. In addition to the preceding adjustments, we exclude earnings from equity method investments and add (without duplication) our pro rata share of EBITDA of our equity investments, which represents our share of earnings (whether or not distributed to us) before income tax expense, depreciation and amortization expense, and interest (income) expense, net of our joint ventures and minority investees. Attributable EBITDA is presented exclusively as our segment measure of profit or loss.

Consolidated AEBITDA Margin
Consolidated AEBITDA margin, as used herein, represents our Consolidated AEBITDA (as defined above) for the three-month and six-month periods ended June 30, 2018 and 2017, each calculated as a percentage of revenue. Consolidated AEBITDA margin is a non-GAAP financial measure that is presented as supplemental disclosures for illustrative purposes only and is reconciled to net loss, the most directly comparable GAAP measure, in a schedule below.

Free Cash Flow
Free cash flow, as used herein, represents net cash provided by operating activities less total capital expenditures (which includes lottery and gaming systems expenditures and other intangible assets and software expenditures), less payments on license obligations, less additions to equity method investments plus distributions of capital on equity investments. Free cash flow is a non-GAAP financial measure that is presented as supplemental disclosure for illustrative purposes only and is reconciled to net cash provided by operating activities in a schedule below.

EBITDA from Equity Investments
EBITDA from equity investments, as used herein, represents our share of the EBITDA (i.e., earnings (whether or not distributed to us) plus income tax expense, depreciation and amortization expense (inclusive of amortization of payments made to customers for LNS) and interest (income) expense, net of other of our joint ventures and minority investees. EBITDA from equity investments is a non-GAAP financial measure that is presented as supplemental disclosure for illustrative purposes only and is reconciled to earnings from equity investments in a schedule below.

Net Debt and Net Debt Leverage Ratio
Net debt is defined as total principal face value of debt outstanding less cash and cash equivalents. Net debt leverage ratio, as used herein, represents net debt divided by Consolidated AEBITDA (as defined above) for the trailing twelve-month period.

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

 (Unaudited, in millions, except per share amounts)

 Three Months Ended 

 Six Months Ended

 June 30,

 June 30,

2018

2017

2018

2017

Revenue:

Services

$    438.1

$   385.8

$   875.6

$   748.3

Product sales

256.5

231.1

480.6

453.8

Instant products

150.1

149.4

300.3

289.6

    Total revenue

844.7

766.3

1,656.5

1,491.7

Operating expenses:

Cost of services (1)

124.2

98.9

246.1

202.2

Cost of product sales (1)

120.4

108.7

225.5

215.3

Cost of instant products (1)

71.3

71.3

141.0

141.4

Selling, general and administrative

173.9

145.9

345.5

286.6

Research and development

49.2

48.1

103.0

90.5

Depreciation, amortization and impairments

172.7

175.0

360.8

340.1

Restructuring and other

33.5

1.1

85.7

10.3

  Total operating expenses

745.2

649.0

1,507.6

1,286.4

            Operating income

99.5

117.3

148.9

205.3

Other (expense) income:

Interest expense

(146.1)

(151.2)

(300.9)

(310.6)

Earnings from equity investments

4.6

3.1

11.9

12.6

Loss on debt financing transactions

(93.2)

(29.7)

Gain on remeasurement of debt

34.5

33.4

Other income (expense), net

1.7

(1.9)

(1.5)

5.6

  Total other expense, net

(105.3)

(150.0)

(350.3)

(322.1)

Net loss before income taxes

(5.8)

(32.7)

(201.4)

(116.8)

        Income tax expense

(6.4)

(6.2)

(23.1)

Net loss

$      (5.8)

$    (39.1)

$  (207.6)

$  (139.9)

Basic and diluted net loss per share:

      Basic

$    (0.06)

$    (0.44)

$    (2.29)

$    (1.58)

      Diluted

$    (0.06)

$    (0.44)

$    (2.29)

$    (1.58)

Weighted average number of shares used in per share calculations:

Basic shares

91.0

89.1

90.6

88.6

Diluted shares

91.0

89.1

90.6

88.6

(1) Exclusive of depreciation and amortization.

 

 

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

 (Unaudited, in millions)

June 30,

December 31,

2018

2017

Assets:

Cash and cash equivalents

$                       118.6

$                       788.8

Restricted cash

33.3

29.0

Accounts receivable, net

562.3

540.9

Notes receivable, net

123.5

143.5

Inventories

231.9

243.1

Prepaid expenses, deposits and other current assets

248.8

131.1

   Total current assets

1,318.4

1,876.4

Restricted cash

15.5

16.3

Notes receivable, net

48.0

52.8

Property and equipment, net

520.2

568.2

Goodwill

3,312.8

2,956.1

Intangible assets, net

1,797.4

1,604.6

Software, net

315.8

339.4

Equity investments

209.2

253.9

Other assets

75.6

57.6

   Total assets

$                     7,612.9

$                    7,725.3

Liabilities and Stockholders’ Deficit:

Current portion of long-term debt

$                         48.7

$                         40.3

Accounts payable

184.0

190.4

Accrued liabilities

454.8

509.1

   Total current liabilities

687.5

739.8

Deferred income taxes

137.5

73.1

Other long-term liabilities

211.1

203.1

Long-term debt, excluding current portion

8,845.2

8,736.3

Total stockholders’ deficit

(2,268.4)

(2,027.0)

   Total liabilities and stockholders’ deficit

$                     7,612.9

$                    7,725.3

 

 

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 (Unaudited, in millions)

 Three Months Ended

 Six Months Ended

 June 30,

 June 30,

2018

2017

2018

2017

Cash flows from operating activities:

 Net loss

$             (5.8)

$           (39.1)

$         (207.6)

$         (139.9)

 Adjustments to reconcile net loss to net cash provided by operating activities

173.7

200.3

482.2

402.1

 Changes in working capital accounts, net of effects of acquisitions

(60.8)

5.6

(138.3)

12.6

 Changes in deferred income taxes and other

(4.6)

1.7

(3.9)

4.7

 Net cash provided by operating activities

102.5

168.5

132.4

279.5

 Cash flows from investing activities:

 Capital expenditures

(112.5)

(78.9)

(200.5)

(140.2)

 Acquisitions of businesses, net of cash acquired

(30.6)

(274.1)

(52.1)

 Distributions of capital from equity investments

21.7

21.1

23.2

22.4

 Additions to equity method investments

(75.2)

(75.2)

 Other

8.0

10.0

 Net cash used in investing activities

(166.0)

(80.4)

(526.6)

(159.9)

 Cash flows from financing activities:

 Proceeds from issuance of long-term debt, net of payments

87.3

(9.9)

92.6

12.6

 Repayment of assumed NYX debt

(288.2)

 Payments of debt issuance and deferred financing costs

(0.5)

(38.5)

(27.7)

 Payments on license obligations

(7.5)

(9.7)

(14.0)

(19.5)

 Net redemptions of common stock under stock-based compensation plans and other

(3.8)

(3.3)

(21.5)

(3.9)

 Net cash provided by (used in) financing activities

76.0

(23.4)

(269.6)

(38.5)

 Effect of exchange rate changes on cash, cash equivalents and restricted cash

(4.8)

0.3

(2.9)

2.8

 Increase (decrease) in cash, cash equivalents and restricted cash

7.7

65.0

(666.7)

83.9

 Cash, cash equivalents and restricted cash, beginning of period

159.7

175.8

834.1

156.9

 Cash, cash equivalents and restricted cash, end of period

$           167.4

$           240.8

$           167.4

$           240.8

Supplemental cash flow information:

 Cash paid for interest

$           204.2

$           171.4

$           365.5

$           284.9

 Income taxes paid 

8.3

13.0

15.4

18.7

 Distributed earnings from equity investments

17.9

16.2

18.9

18.6

Supplemental non-cash transactions:

 Non-cash rollover and refinancing of Term loans

3,274.6

2,747.6

 Non-cash interest expense

6.6

5.1

12.2

13.3

 Non-cash net additions to intangible assets related to license agreements

28.1

 NYX non-cash consideration transferred (inclusive of 2017 acquisition of ordinary shares)

93.2

 

 

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

RECONCILIATION OF NET LOSS TO  CONSOLIDATED ATTRIBUTABLE EBITDA

AND SUPPLEMENTAL BUSINESS SEGMENT DATA

 (Unaudited, in millions)

Three Months Ended June 30

Six Months Ended June 30

2018

2017

2018

2017

Reconciliation of Net Loss to Consolidated Attributable EBITDA

Net loss

$                (5.8)

$                  (39.1)

$            (207.6)

$                (139.9)

Restructuring and other (1)

33.5

1.1

85.7

10.3

Depreciation, amortization and impairments

172.7

175.0

360.8

340.1

Other expense (income), net

0.9

3.1

6.9

(2.0)

Interest expense

146.1

151.2

300.9

310.6

Income tax expense

6.4

6.2

23.1

Stock-based compensation

15.6

7.1

24.4

13.0

Loss on debt financing transactions

93.2

29.7

Gain on remeasurement of debt

(34.5)

(33.4)

EBITDA from equity investments (2)

16.5

13.1

35.3

29.1

Earnings from equity investments

(4.6)

(3.1)

(11.9)

(12.6)

Consolidated Attributable EBITDA

$              340.4

$                  314.8

$              660.5

$                  601.4

Supplemental Business Segment Data

Business segments Attributable EBITDA

Gaming

$              235.7

$                  226.9

$              453.8

$                  436.6

Lottery

99.4

95.6

193.5

180.9

Social

25.2

21.9

51.4

39.8

Digital

13.2

2.7

30.4

7.8

Total business segments Attributable EBITDA

373.5

347.1

729.1

665.1

Corporate and other(3)

(33.1)

(32.3)

(68.6)

(63.7)

Consolidated Attributable EBITDA

$              340.4

$                  314.8

$              660.5

$                  601.4

Reconciliation to Consolidated Attributable EBITDA margin

Consolidated Attributable EBITDA

$              340.4

$                  314.8

$              660.5

$                  601.4

Revenue

844.7

766.3

1,656.5

1,491.7

   Consolidated Attributable EBITDA margin

40.3%

41.1%

39.9%

40.3%

 

(1) Refer to Consolidated AEBITDA definition for description of items included in restructuring and other.

(2) The Company received $39.6 million and $42.1 million in cash distributions and return of capital payments from its equity investees for the three and six months ended June 30, 2018, respectively, and $37.3 million and $41.0 million in cash distributions and return of capital payments from its equity investees for the three and six months ended June 30, 2017, respectively.

(3) Includes amounts not allocated to the business segments (including corporate costs) and other non-operating expenses (income).

 

 

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SELECTED SEGMENT DATA AND SUPPLEMENTAL FINANCIAL DATA

 (Unaudited, in millions)

Three Months Ended June 30, 2018

Gaming (5)

Lottery

Social

Digital

Corporate and
Other (3)

Total
Consolidated (4)

Total Revenue

$         470.7

$         207.1

$         99.7

$         67.2

$                 –

$                844.7

Operating expenses:

Cost of services (1)

31.6

30.4

36.9

25.3

124.2

Cost of product sales (1)

114.5

5.9

120.4

Cost of instant products (1)

71.3

71.3

Selling, general and administrative

60.6

14.4

30.8

21.5

46.6

173.9

Research and development

33.4

2.0

6.5

7.3

49.2

AEBITDA Adjustments:

EBITDA from equity investments (2)

1.4

15.1

16.5

Other expense, net

1.9

0.7

2.6

Stock-based compensation

1.8

1.2

(0.3)

0.1

12.8

15.6

AEBITDA

$         235.7

$           99.4

$         25.2

$         13.2

$           (33.1)

$                340.4

Selected financial data:

Depreciation, amortization and impairments

$         121.0

$           13.9

$          6.5

$         16.7

$            14.6

$                172.7

Restructuring and other

1.5

(3.2)

0.5

4.4

30.3

33.5

Earnings from equity investments

4.6

4.6

Six Months Ended June 30, 2018

Gaming (5)

Lottery

Social

Digital

Corporate and
Other (3)

Total
Consolidated (4)

Total Revenue

$         913.7

$         408.8

$       197.1

$       136.9

$                 –

$             1,656.5

Operating expenses:

Cost of services (1)

62.1

62.8

73.2

48.0

246.1

Cost of product sales (1)

215.5

10.0

225.5

Cost of instant products (1)

141.0

141.0

Selling, general and administrative

126.1

32.0

61.7

38.1

87.6

345.5

Research and development

66.5

3.8

12.2

20.5

103.0

AEBITDA Adjustments:

EBITDA from equity investments (2)

3.3

32.0

35.3

Other expense, net

3.6

1.8

5.4

Stock-based compensation

3.4

2.3

1.4

0.1

17.2

24.4

AEBITDA

$         453.8

$         193.5

$         51.4

$         30.4

$           (68.6)

$                660.5

Selected financial data:

Depreciation, amortization and impairments

$         260.4

$           28.1

$         13.1

$         32.7

$            26.5

$                360.8

Restructuring and other

2.9

(2.4)

18.6

10.1

56.5

85.7

Earnings from equity investments

1.1

10.8

11.9

 

(1) Exclusive of depreciation and amortization.

(2) The Company received $39.6 million and $42.1 million in cash distributions and return of capital payments from its equity investees in the three and six months ended June 30, 2018, respectively.

(3) Includes amounts not allocated to the business segments (including corporate costs) and other non-operating expenses (income).

(4) For reconciliation of Consolidated AEBITDA (a non-GAAP measure), see RECONCILIATION OF NET LOSS TO CONSOLIDATED AEBITDA AND SUPPLEMENTAL BUSINESS SEGMENT DATA” appearing on a preceding schedule.

(5) For disaggregation of gaming revenue by product vs. service, see “SUPPLEMENTAL INFORMATION- SEGMENT KEY PERFORMANCE INDICATORS AND SUPPLEMENTAL REVENUE METRICS” appearing on a subsequent schedule.

 

 

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SELECTED SEGMENT DATA AND SUPPLEMENTAL FINANCIAL DATA

 (Unaudited, in millions)

Three Months Ended June 30, 2017

Gaming (6)

Lottery

Social (1)

Digital (1)

Corporate
and Other (4)

Total
Consolidated (5)

Total Revenue

$         457.2

$         202.3

$         91.1

$         15.7

$                –

$               766.3

Operating expenses:

Cost of services (2)

33.7

24.9

33.8

6.5

98.9

Cost of product sales (2)

100.7

8.0

108.7

Cost of instant products (2)

71.3

71.3

Selling, general and administrative

65.2

13.7

27.2

5.6

34.2

145.9

Research and development

35.4

1.9

9.3

0.9

0.6

48.1

AEBITDA Adjustments:

EBITDA from equity investments (3)

1.5

11.6

13.1

Other income (expense), net

1.6

(0.4)

1.2

Stock-based compensation

1.6

1.5

1.1

2.9

7.1

AEBITDA

$         226.9

$           95.6

$         21.9

$          2.7

$          (32.3)

$               314.8

Selected financial data:

Depreciation, amortization and impairments

$         136.0

$           13.3

$          3.1

$          1.3

$            21.3

$               175.0

Restructuring and other

0.3

(1.1)

0.2

0.1

1.6

1.1

Earnings from equity investments

1.1

2.0

3.1

Six Months Ended June 30, 2017

Gaming (6)

Lottery

Social (1)

Digital (1)

Corporate
and Other (4)

Total
Consolidated (5)

Total Revenue

$         897.2

$         391.4

$       171.3

$         31.8

$                –

$             1,491.7

Operating expenses:

Cost of services (2)

72.9

51.4

64.1

13.8

202.2

Cost of product sales (2)

200.3

15.0

215.3

Cost of instant products (2)

141.4

141.4

Selling, general and administrative

124.2

28.0

57.7

8.3

68.4

286.6

Research and development

72.6

2.8

11.8

1.9

1.4

90.5

AEBITDA Adjustments:

EBITDA from equity investments (3)

3.3

25.8

29.1

Other income, net

2.8

0.8

3.6

Stock-based compensation

3.3

2.3

2.1

5.3

13.0

AEBITDA

$         436.6

$         180.9

$         39.8

$          7.8

$          (63.7)

$               601.4

Selected financial data:

Depreciation, amortization and impairments

$         259.3

$           27.2

$          5.7

$          2.7

$            45.2

$               340.1

Restructuring and other

4.5

(0.8)

1.0

0.1

5.5

10.3

Earnings from equity investments

3.6

9.0

12.6

 

(1) Business segment information for the three and six months ended June 30, 2017 has been recast to reflect the new separate Social and Digital business segments, previously included in our Interactive business segment.

(2) Exclusive of depreciation and amortization.

(3) The Company received $37.3 million and $41.0 million in cash distributions and return of capital payments from its equity investees in the three and six months ended June 30, 2017, respectively.

(4) Includes amounts not allocated to the business segments (including corporate costs) and other non-operating expenses (income).

(5) For reconciliation of Consolidated AEBITDA (a non-GAAP measure), see “RECONCILIATION OF NET LOSS TO CONSOLIDATED AEBITDA AND SUPPLEMENTAL BUSINESS SEGMENT DATA” appearing on a preceding schedule.

(6) For disaggregation of gaming revenue by product vs. service, see “SUPPLEMENTAL INFORMATION- SEGMENT KEY PERFORMANCE INDICATORS AND SUPPLEMENTAL REVENUE METRICS” appearing on a subsequent schedule.

 

 

 

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

 (Unaudited, in millions, except for ratio)

CALCULATION OF NET DEBT LEVERAGE RATIO

Twelve Months Ended

Twelve Months Ended

June 30, 2018

March 31, 2018

Net loss

$                    (310.0)

$             (343.3)

Restructuring and other

121.3

88.9

Depreciation, amortization and impairments

703.5

705.8

Other expense, net

17.5

19.7

Interest expense

600.0

605.1

Income tax (benefit) expense

(2.4)

4.0

Stock-based compensation

38.6

30.1

Loss on debt financing transactions

101.6

101.6

(Gain) loss on remeasurement of debt

(33.4)

1.1

EBITDA from equity investments

73.3

69.9

Earnings from equity investments

(26.0)

(24.5)

  Consolidated Attributable EBITDA

$                   1,284.0

$            1,258.4

Principal face value of debt outstanding(1)

$                   9,073.5

$            8,988.6

   Less: cash and cash equivalents

118.6

109.9

Net debt(2)

$                   8,954.9

$            8,878.7

Net debt leverage ratio

7.0

7.1

 

 

(1) Principal face value of outstanding 2026 Secured Euro Notes and 2026 Unsecured Euro Notes are translated at the constant foreign exchange rate at issuance of these notes. Euro to USD exchange rates at issuance and as of June 30, 2018 were 1.24 and 1.17, respectively.

(2) June 30, 2018 net debt balance is inclusive of incremental debt associated with the NYX acquisition.

 

CALCULATION OF FREE CASH FLOW

Three Months Ended June 30,

Six Months Ended June 30,

2018

2017

2018

2017

Net cash provided by operating activities(1)

$                      102.5

$              168.5

$            132.4

$         279.5

Less: Capital expenditures

(112.5)

(78.9)

(200.5)

(140.2)

Add:  Distributions of capital from equity investments

21.7

21.1

23.2

22.4

Less: Additions to equity method investments(2)

(75.2)

(75.2)

Less: Payments on license obligations

(7.5)

(9.7)

(14.0)

(19.5)

Free cash flow(3)

$                      (71.0)

$              101.0

$          (134.1)

$         142.2

 

(1) The 2018 six months ended June 30, 2018 quarter includes approximately $34.7 million of payments related to NYX transaction costs (inclusive of NYX assumed liabilities), $66.3 million unfavorable change in accrued interest due to February 2018 refinancing as compared to 2017. The 2018 three months ended June 30, 2018 quarter includes approximately $66.2 million unfavorable change in accrued interest due to February 2018 refinancing and timing of interest payments.

(2) The three and six months ended June 30, 2018 includes $74.3 million (€60 million) in LNS contributions representing our second pro-rata concession funding payment.

(3) The 2018 six months ended June 30, 2018 cash flows includes $262.5 million related to acquisition of NYX and $38.5 million in costs related to the refinancing transactions reflected in investing and financing activities, respectively.

 

RECONCILIATION OF EARNINGS FROM EQUITY INVESTMENTS TO
EBITDA FROM EQUITY INVESTMENTS 

Three Months Ended June 30,

Six Months Ended June 30,

2018

2017

2018

2017

EBITDA from equity investments(1):

Earnings from equity investments

$                         4.6

$                  3.1

$             11.9

$           12.6

Add: Income tax expense

1.5

1.4

3.5

3.7

Add: Depreciation and amortization

9.7

8.6

19.0

17.1

Add: Interest income (expense), net

0.7

0.9

(4.3)

EBITDA from equity investments

$                       16.5

$                13.1

$             35.3

$           29.1

 

(1) EBITDA from equity investments includes results from the Company’s participation in LNS, RCN, ITL, CSG, Beijing Guard Libang Technology Co., Ltd., Northstar Illinois, Northstar New Jersey Lottery Group, LLC and Hellenic Lotteries.

 

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION – SEGMENT KEY PERFORMANCE INDICATORS AND SUPPLEMENTAL REVENUE METRICS

 (Unaudited, in millions, except unit, per unit data and ARPDAU) 

The table below presents certain key performance indicators and supplemental revenue metrics.  The information set forth in the table below should be read in conjunction with the historical financial statements of the Company that are included in the Company’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q filed with the SEC.

Three Months Ended

June 30,

June 30,

March 31,

Gaming Revenue – Supplemental Revenue Metrics

2018

2017

2018

Revenue by Statement of Operations line item:

  Services

$                 222.5

$                237.8

$               224.1

  Product sales

248.2

219.4

218.9

Gaming revenue

$                 470.7

$                457.2

$               443.0

Gaming operations:

  Wide-area progressive, premium and daily-fee participation revenue

$                   88.1

$                100.2

$                88.4

  Other leased, participation and services revenue

71.8

78.2

72.9

Gaming operations revenue

$                 159.9

$                178.4

$               161.3

Gaming systems:

  Hardware, software and services revenue

$                   57.3

$                  40.3

$                47.7

  Maintenance revenue

27.0

26.8

27.3

Gaming systems revenue

$                   84.3

$                  67.1

$                75.0

Table products:

  Table products sales revenue

$                   21.3

$                  12.1

$                20.6

  Supplied table products revenue

37.6

36.3

41.3

Table products revenue

$                   58.9

$                  48.4

$                61.9

Gaming Revenue  – Key Performance Indicators

Gaming Operations

Wide-area progressive, premium and daily-fee participation units:

Installed base at period end

20,671

20,956

20,663

Average daily revenue per unit (exclusive of WAP jackpot expense)

$                 50.31

$                52.30

$               50.01

Other participation and leased units:

Installed base at period end

47,991

48,645

47,911

Average daily revenue per unit

$                 14.16

$                14.94

$               14.45

Gaming Machine Sales

  U.S. and Canadian new unit shipments

5,749

4,367

4,667

  International new unit shipments

2,492

3,411

2,201

New unit shipments

8,241

7,778

6,868

Average sales price per new unit

$                17,699

$              17,550

$             17,722

Gaming Machine Unit Sales Components:

U.S. and Canadian unit shipments:

  Illinois VGT

448

594

775

  Replacement units

4,388

3,773

3,743

  Casino opening and expansion units

913

149

Total unit shipments

5,749

4,367

4,667

International unit shipments:

  Replacement units

2,492

3,357

1,940

  Casino opening and expansion units

54

261

Total unit shipments

2,492

3,411

2,201

Lottery Revenue – Supplemental Revenue Metrics

Instant products revenue by geography:

  United States

$                 107.7

$                105.4

$               105.3

  International

42.4

45.9

44.9

Instant products revenue

$                 150.1

$                151.3

$               150.2

Services revenue by geography:

  United States

$                   35.4

$                  30.1

$                32.2

  International

13.3

11.1

14.1

Services revenue

$                   48.7

$                  41.2

$                46.3

Lottery Revenue – Key Performance Indicators

Change in retail sales of U.S. lottery instant games customers (1)(2)

5.1%

5.3%

4.4%

Change in retail sales of U.S. lottery systems contract customers (1)(3)

3.0%

-1.0%

6.2%

Change in Italy retail sales of instant games (1)

2.4%

-0.8%

2.9%

Social Revenue – Key Performance Indicators

Social gaming:

  Average monthly active users (4)

8.2

7.5

8.1

  Average daily active users (5)

2.5

2.5

2.4

  Average daily revenue per daily active user (6)

$                   0.44

$                  0.40

$                0.45

  Mobile penetration (7)

77%

72%

75%

(1) Information provided by third-party lottery operators.

(2) U.S. instant games customers’ retail sales include only sales of instant games.

(3) U.S. lottery systems customers’ retail sales primarily include sales of draw games, keno and instant games validated by the relevant system.

(4) Monthly Active Users (MAU) and is a count of unique visitors to our site during a month.

(5) Daily Active Users (DAU) and is a count of unique visitors to our site during a day.

(6) Average daily revenue per DAU is calculated by dividing revenue by the DAU by the number of days in the period.

(7) Mobile penetration = percentage of B2C social gaming revenue derived from mobile platforms.

 

SOURCE Scientific Games Corporation

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Gambling in the USA

Gaming Americas Weekly Roundup – July 8-14

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Welcome to our weekly roundup of American gambling news again! Here, we are going through the weekly highlights of the American gambling industry which include the latest news and new partnerships. Read on and get updated.

Latest News

The CT Lottery has launched its iLottery platform. Players can participate in the fun of online lottery and their favourite draw games by visiting ctilottery.org or by downloading the CT Lottery mobile app on the iOS platform (Android app to follow next month). The app comes with exciting new features that allow players to personalise their lottery experience, such as saving favorite numbers and wagers, grouping preferred games for easy purchasing and setting limits for wagering and time spent on the app.

Talking Stick Resort, an enterprise of the Salt River Pima-Maricopa Indian Community (SRPMIC), announced that it was named “Best Casino” in azcentral.com’s 2024 Community Choice Awards. The casino-resort was nominated along with three other casino properties in the Valley by the public as part of the East Valley, Best of the Desert portion of the awards programme.

International Game Technology PLC announced that IGT PlayDigital recently added the highly anticipated Prosperity Link game to its iGaming content library in the US. This development makes the widely recognised casino game available for commercial iGaming operators in Pennsylvania, Michigan, New Jersey, Connecticut and West Virginia.

Raketech has announced that the Company has reached an agreement to divest its non-core US advisory business. The total sale proceeds amount to USD 2.25 million settled partially on closing and via an ongoing revenue share agreement.

Partnerships

NetBet Mexico and popular online gaming provider Octoplay have announced an agreement that will make Octoplay’s games available for NetBet Mexico customers to enjoy. Despite only being founded in 2022, Octoplay has rapidly established itself as an influential member of the iGaming industry, developing multiple entertaining and popular slots such as Lollicat, Eternal Clash and Shaolin Panda Chaos Reels – which are among the flagship new Octoplay titles being made available to NetBet Mexico customers.

SCCG Management, a leading global advisory firm in the gaming industry, has announced a sponsorship partnership with Blurify, an award-winning expert in software development with a niche focus on the iGaming sector. This collaboration aims to leverage SCCG’s extensive client partner ecosystem and deep market insights with Blurify’s technological expertise to explore new opportunities and drive innovation in the gaming industry.

International Game Technology PLC has announced that its subsidiary, IGT Global Solutions Corporation, has signed a seven-year contract with the Colorado Lottery to install all-new world-class products and solutions. The contract is expected to run through July 12, 2032, and includes seven, one-year extension options. As part of the new contract, the Colorado Lottery will receive IGT’s Aurora central system, replacing the current lottery central system.

JCM Global (JCM) has installed its award-winning iVIZION bill validator and ICB Intelligent Cash Box system at the historic Fair Grounds Race Course & Slots in New Orleans. JCM upgraded its UBA bill validator to iVIZION and installed ICB on each of the 620 slots at Fair Grounds. Previously, JCM installed its GEN5 Thermal Printer at Fair Grounds, and now with iVIZION and ICB, the path is open for the property to take full advantage of JCM’s FUZION technology in the future.

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Gambling in the USA

Innovative Technology Americas welcomes Jeff Tash, Business Development Manager

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Innovative Technology Americas, Inc. welcomes Jeff Tash, Business Development Manager for North America. Jeff will focus on the amusement and vending industries, identifying and generating new sales opportunities. Innovative Technology specializes in note handling equipment and age and identity verification technology.

Welcoming Jeff to the US team, Lauren Fabbri, Business Development Manager for the gaming side of the business, said, “Jeff joined us back in March and hit the ground running spending his first day in the Innovative booth at the Amusement Expo show in Las Vegas!  Jeff has settled into life at Innovative Technology and is already connecting with our amusement and vending customers across America and Canada.”

Commenting on his role, Tash said, “I am really enjoying working for Innovative! The overwhelming support and enthusiasm from both the team and our customers on my first day at Amusement Expo validated my choice to join ITL. I’m up to speed with all our products and really enthusiastic to share them with the many contacts I have in the industry.”

Fabbri continued, “Jeff has 15+ years in the amusement industry, primarily with OEMs in a sales and business development role, so has an extensive book of contacts including manufacturers, distributors, route operators and parts providers. He will be responsible for monitoring industry trends, identifying growth opportunities and emerging markets, conducting product demonstrations and facilitating strong client relationships.  Jeff has phenomenal relationships and has already demonstrated his ability to motivate decision makers when representing us at trade shows, meetings and events.”

Concluding Tash said, “I am eager to provide reliable and innovative product solutions to the amusement industry and customers, and continue to ensure note handling remains at the forefront of the amusement and vending industries. I am excited to collaborate with Lauren and the rest of the North American team in the growth of the GAV (Gaming, Amusement, Vending) markets. Innovative is an organization with a strong sense of purpose and a passion to support its employees, and I am privileged to be a part of this.”

 

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AGA Announces Gaming Hall of Fame Class of 2024

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Allen, Feldman, Nutton to be Inducted

Today, the American Gaming Association (AGA) announced the Gaming Hall of Fame Class of 2024, honoring three leaders who have made significant contributions to the industry:

  • Jim Allen, Chairman, Hard Rock International; Chief Executive Officer, Seminole Gaming; Former Chairman, American Gaming Association
  • Alan Feldman, Director of Strategic Initiatives and Distinguished Fellow in Responsible Gaming, UNLV International Gaming Institute; Former Executive, MGM Resorts International
  • Debi Nutton, Board Member, Everi Holdings; Executive Coach-Consultant; Former Casino Operations Executive, MGM Resorts, Wynn Resorts

“From helping transform tribal gaming and pioneering responsible gaming research to blazing new paths in casino operations, Jim, Alan and Debi have been integral to shaping the modern gaming industry,” said AGA President and CEO Bill Miller.

Since 1989, the Gaming Hall of Fame has recognized gaming icons and leaders for their enduring influence on the industry. The Class of 2024 will receive recognition at an invitation-only induction ceremony held during G2E 2024 in Las Vegas this October.

“The Gaming Hall of Fame honors leaders that have had a distinct impact on our industry’s success,” added AGA Chairman of the Board and Everi Executive Chairman Mike Rumbolz (Gaming Hall of Fame Class of 2022). “This year’s inductees have met and exceeded this threshold throughout their careers and continue to do so in their current work. We look forward to celebrating their achievements at G2E 2024.”

Hall of Fame honorees are selected by an independent panel of gaming executives. This year’s selection committee members include:

  • Maureen Adams, EVP, Gaming, Churchill Downs Inc.
  • Jay Dorris, President and CEO, Wind Creek Hospitality
  • Siobhan Lane, EVP and CEO, Gaming, Light & Wonder
  • Alex Dixon, CEO, DRA and Co-Founder and Co-Chair, African Americans in Gaming
  • Mark Lipparelli, Chairman, International Center for Responsible Gaming
  • Kirsten Clark, Executive Director, International Association of Gaming Advisors
  • Lauren Bates, Chair, Global Gaming Women
  • Dr. Brett Abarbanel, Executive Director, UNLV International Gaming Institute
  • Mike Rumbolz, Executive Chairman, Everi and Chairman of the Board, AGA

Jim Allen, Chairman, Hard Rock International; Chief Executive Officer, Seminole Gaming; Former Chairman, American Gaming Association

A gaming and hospitality industry veteran with more than 44 years of experience, Allen currently serves as Chief Executive Officer of Seminole Gaming and Chairman of Hard Rock International and Hard Rock Digital. He also recently served as Chairman of the Board of Directors of the AGA. Since 2001, Allen has overseen all gaming, hospitality and entertainment operations for the Seminole Tribe of Florida, including leading the tribe’s 2007 acquisition of Hard Rock International, the first acquisition of a major international company by a North American Indian tribe. Under his leadership, Seminole Gaming and Hard Rock International have grown their global business footprint and their leadership in U.S. casino gaming, winning numerous awards for excellence in operations, hospitality and employment. Allen has also led the expansion of the company’s entertainment offerings to sports and sports betting, including the 2020 launch of Hard Rock Digital—an online and retail sportsbook and internet gaming platform—and partnerships with Formula One Racing in both Miami and Las Vegas, Red Bull Racing, Lionel Messi, and Hard Rock Stadium which hosts the NFL’s Miami Dolphins. Allen also lectures at many professional conferences, governmental programs and college campuses and makes frequent appearances on CNN, CNBC, Bloomberg, Fox Business and other financial news networks.

Alan Feldman, Director of Strategic Initiatives and Distinguished Fellow in Responsible Gaming, UNLV International Gaming Institute; Former Executive, MGM Resorts International

Alan Feldman currently serves as Director of Strategic Initiatives and Distinguished Fellow in Responsible Gaming at UNLV’s International Gaming Institute, where he is at the forefront of developing programs and policies that enhance industry knowledge and regulatory practices around responsible gaming. During his 30-year tenure at MGM Resorts, Feldman was instrumental in launching GameSense, a pioneering initiative that now promotes healthy gambling behaviors across all MGM U.S. properties. Feldman is also a globally sought-after speaker on responsible gaming and holds key advisory roles in the industry, including serving as Chair Emeritus of the International Center for Responsible Gaming, where he formerly served as Chair of the Board. Feldman’s significant contributions have been recognized with awards such as the Gaming Professional of the Year by the Casino Management Association in 2002 and a Lifetime Achievement Award in Gaming Communications from the American Gaming Association in 2009.

Debi Nutton, Board Member, Everi Holdings; Executive Coach-Consultant; Former Casino Operations Executive, MGM Resorts, Wynn Resorts

Nutton currently serves as a Board Member at Everi Holdings while also helming her business as a gaming consultant and executive coach. Her career in the gaming industry began in 1980 as one of the few female dice dealers on the Las Vegas Strip. She notably contributed to the opening team of The Mirage in 1989, where she distinguished herself as the sole female dice pit manager at the time. Over her 24-year tenure with MGM and Mirage, Debi rose to Senior Vice President of Casino Operations and Marketing for MGM and Bellagio before assuming the role of Executive Vice President of Casino Operations at Wynn Resorts in 2013. Today, she is shaping the next generation of gaming as an executive coach-consultant, advising the industry on leadership practices and casino operations. A founding board member of Global Gaming Women, Debi has received numerous accolades, including the 2018 Great Women of Gaming Lifetime Achievement Award, the 2009 Casino Enterprise Management Great Women of Gaming Proven Leader Award, and being named a “Woman of Distinction” by the National Association of Women Business Owners in 2007.

 

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