Scientific Games Acquires Live Dealer Company Authentic Gaming
Scientific Games has bought Authentic Gaming. The company wants to enter the US live dealer casino market. Live dealer games make up 30% of the iGaming market in Europe. They've only been around for a few years in the U.S. but are increasing in popularity.
Scientific Games has acquired Authentic Gaming. The company's stock gained in value today, but by less than 1%.
Scientific Games has acquired Live Dealer Company Authentic Gaming. It will be uniquely positioned to capture both the growth opportunities that exist within Live Casino and the convergence of players globally across digital and land-based channels.
Authentic Gaming was a privately owned company. It was sold to Genting Online for €15 million in 2019. LeoVegas had acquired it three years earlier for less than half that price. Authentic focuses on live dealer products. Scientific Games already has a catalog of fully digital products and is interested in the live dealers niche.
Scientific Games bought Live Dealer Company Authentic Gaming and sold its lottery business to Brookfield Business Partners for $6 billion. iGaming is the more lucrative vertical in the US. Most US gaming companies are trying to become more vertically and horizontally integrated. Scientific Games is focusing on the long-term. iGambling revenues trail sports betting revenues for now. However, more states have legalized the latter.
Evolution is going to compete with Authentic Gaming and Aristocrat Gaming in the live dealer gaming market. The market is still very fragmented and there are few options for players. Authentica offers live roulette, which is a good option for the market as it focuses on blackjack. Aristocrats recently acquired Playtech, a company that has permission to open a live dealers studio in Michigan.
Scientific Games is planning to start a live dealer business in the US. It's not clear where it will start. The company is considering New Jersey, Michigan, Pennsylvania, West Virginia and Connecticut. Connecticut's regulations allow it to offer live dealers from out-of-state studios for now, but it's an emergency rule that will expire in March next year.