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Venetian operator reportedly considering buying IGT gaming assets

Updated September 21, 2023 - 7:22 pm

The operator of the Venetian and Palazzo hotel-casinos may be considering a move back into the slot machine business.

Apollo Global Management, the private equity firm behind the two Strip properties, is considering a deal to acquire International Game Technology’s global gaming and digital gaming divisions for an estimated $4 billion to $5 billion, according to a Sept. 13 report from Bloomberg News.

The Italian slot and gaming equipment company said in June that it was considering “potential strategic alternatives” for the divisions. It said it would consider a sale, merger, spinoff or retaining the divisions.

“Over the last three years, IGT has sharpened its strategic focus by reorganizing around core product verticals, monetizing non-core assets, reducing structural costs and significantly improving its credit profile,” Marco Sala, IGT executive chair, said in a June 8 news release. “We believe the intrinsic value of IGT’s market-leading businesses and diversified cash flow profile is not currently reflected in our stock price and the timing is right to assess opportunities that may enhance value for IGT’s shareholders.”

The company’s global gaming division includes its gaming hardware, software and licensing, while its digital business consists of iGaming systems and digital platforms and its sports betting technology and services.

IGT declined to comment Wednesday. Apollo representatives did not respond to a request for comment by the time of publication.

Apollo has previously backed slot machine manufacturers. It sold its 22 percent stake in PlayAGS, a Las Vegas-based gaming manufacturer, in late 2022 after nearly a decade of ownership.

A Sept. 15 research note from Truist Securities analyst Barry Jonas said IGT’s management did not have specific updates on the strategic review but noted “they are running multiple processes concurrently.”

McKenna Ross is a corps member with Report for America, a national service program that places journalists into local newsrooms. Contact her at mross@reviewjournal.com. Follow @mckenna_ross_ on X.

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