Brookfield and Apollo Eyeing Potential Acquisition of Scientific Games Lottery Division

Bloomberg states that private investment groups Brookfield Asset Management and Apollo Global Management are eyeing a purchase of the worldwide lottery operations belonging to gaming powerhouse Scientific Games.

Although no involved parties have issued statements, insiders informed Bloomberg that both Brookfield and Apollo have signaled their intent for a transaction. It seems Scientific Games has been engaged in discussions with various private equity groups regarding a possible sale of its lottery segment for some time. Recall the reports of the company contemplating an IPO in Australia for the business? That IPO was projected to generate approximately $3 billion, with a potential debut this week. However, Bloomberg stresses that no definitive choices have been reached, and Scientific Games might still retain the division. This entire situation originated earlier this year when Scientific Games revealed it was evaluating possibilities for its lottery and sports wagering units, encompassing a SPAC merger or a strategic partnership with another entity, as a means to decrease its debt load. Just last month, the conglomerate concluded an agreement to divest its sports betting arm, OpenBet, to Endeavor Group Holdings for $1.2 billion in a cash and equity transaction.