International Game Technology (IGT) is creating a specialist division for betting and digital gambling to tap into the unfolding online market across the US and elsewhere.
Until now the firm’s igaming and sports units were encompassed in the global gaming segment. After the change the company will start reporting results separately for Global Lottery, Global Gaming, and Digital & Betting, beginning with the third quarter of 2021.
Enrico Drago, who previously oversaw IGT’s internet casino, iLottery, and sports wagering businesses, will be heading the new division as the chief executive reporting directly to IGT CEO Marco Sala.
“IGT has established strong leadership positions and driven dynamic growth across its iGaming and sports betting businesses. With significant growth expected to continue, we have decided to establish a dedicated Digital & Betting business segment,” Marco Sala, CEO of IGT, said.
“These businesses have become strategically important to IGT as they afford us the opportunity to leverage the global reach and strong customer relationships of our Global Gaming segment.”
Shares rose 3.3 percent with the news, reflecting the investor sentiment in the decision. The company has also been working to reduce its debt burden over recent financial periods, which could likely be enhanced by the streamlining of its iGaming and sports betting businesses.
Currently IGT along with nemesis SciGames both control 20 percent each of the online slots market in the US, which is widely expected to balloon in the coming months as more states come online.
Some analysts estimate the iGaming industry will hit $23bn in GGY by 2030, around 70 percent of which could be derived from slots.