Scientific Games, Everi Holdings Announce IGaming Alliance

Scientific Games (NASDAQ:SGMS) recently entered into a partnership with Everi Holdings (NYSE:EVRI) , in order to boost the OpenGaming studio portfolio offerings of the former as well as make the latter’s interactive content library available to operators.

The latest move reflect Scientific Games’ continuing endeavor to enhance its iGaming solutions portfolio on the recently-launched end-to-end digital ecosystem, OpenGaming, which has more than 2500 games from a global network of in-house and third-party game studios.

OpenGaming runs on the OpenPlatform (OPS) and Open Gaming System (OGS) technologies. In the third quarter, the company reported a year-over-year increase of 400 million wagers placed on its OGS platform. During this period, 9 billion wagers were placed through the robust iGaming solutions service.

OGS already offers two-sided network scale and reliability with rich content at one end, and world-class operators and players at the other.

Partnership Details

Accessible through Scientific Games’ OpenGaming System content-aggregation platform, North America and Europe will become the first regions to be targeted through this partnership.

Everi’s content library, supported by the OpenGaming solutions, will be initially rolled out in North America, debuting for players in New Jersey and Pennsylvania.

Moreover, Scientific Games is expected to benefit from its expansion into newer markets with the launch of Everi’s extensive iGaming content portfolio. This portfolio includes high-performing video titles and best-in-class, award-winning mechanical games.

Scientific Games will further solidify this relationship with launches lined up in Europe and Canada for the next year.

The company has already witnessed the rising interest of Canadian players in its wide array of offerings. Notably, Scientific Games and Evolution Gaming recently entered into an agreement for the joint introduction of Evolution Live Casino perks in Canada.

Expanding iGaming Market

Scientific Games is expected to benefit from expanding opportunities in the emerging digital market worth $20 billion. The distribution network intends to become a preeminent player in the iGaming market in the long haul.

The company’s digital segment consists of iGaming, B2B interactive and sports betting. In third-quarter 2019, digital revenues and AEBITDA increased 7% and 42%, year over year, on growth in existing accounts and new deal wins.

Zacks Rank & Stocks to Consider

Scientific Games currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader technology sector include ManTech International Corporation (NASDAQ:MANT) and Perficient, Inc. (NASDAQ:PRFT) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate for ManTech and Perficient is 8% and 11.75%, respectively.

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