Breaking News: $5 Billion Merger as Scientific Absorbs Bally's

Scientific Games will buy Bally Technologies for $3.3 billion and assume Bally's $1.8 billion in debt as well, in a deal worth $5.1 billion. The resulting merger reshapes both companies into one unified large-scale lottery and gaming supplier company to compete with the new GTech-IGT merger.

The Race Continues

Last year, Bally's bought SHFL Entertainment (formerly ShuffleMaster) in keeping up with Scientific Games' purchase of land-based and online slot manufacturer WMS. Scientific Gaming CEO Gavin Isaacs shepherded the SHFL acquisition in his former capacity as CEO of SHFL.

The New Scientific Games

With the new acquisition, Scientific Games portfolio now includes SHFL, Bally's and WMS. Bally's is a particularly important acquisition, due to is appealing and unique jackpot system.

Bally's Growth

Bally has come a long way since its Chicago beginnings as a Depression-era pinball manufacturer.

Expanding to slots in 1936, Bally took shape as a gaming equipment provider, a niche which now expands Scientific Games' holdings from casino management and lotteries to a full range of video lottery systems and gaming equipment as well as table games.

Strategic Benefits

Scientific Games CEO Gavin Isaacs proudly proclaimed that “The acquisition of Bally provides us with a unique opportunity to combine two exceptional companies with long track records of creating leading-edge games and gaming technology products for players and delivering innovative solutions to our customers.” 

According to Isaacs, Scientific's new arsenal of content “uniquely” positions Scientific “as a strategic partner for gaming and lottery operators, offering a highly diversified suite of value-enhancing products and services across multiple worldwide distribution channels and platforms.”

Increased Cost Efficiency

As a result of the merger, Scientific and Bally expect to save $220 million in annual costs and another $25 million in annual capital-expenditure through consolidating general operations and increasing efficiency in manufacturing, engineering, field and customer service and administrative operations.