Scientific Games carves out interactive unit to boost channel growth

Shares of casino equipment and lottery services provider Scientific Games Corp jumped on Wednesday after the company announced that its wholly owned interactive social gaming subsidiaries have been designated as “unrestricted subsidiaries under its debt agreements.”

By designating the subsidiaries, which include Dragonplay Ltd. and Phantom EFX, LLC, Scientific Games will be able to gain profit for the interactive division without using the company’s earnings to pay off its debt agreements. The move was part of Scientific Games’ plan of “maximizing growth” for the company.

“The company will consider a range of options to solidify its leadership in this fast growing segment, including potential new joint ventures, acquisitions, IPO (initial public offering) and other growth options,” the company said in a statement.

Scientific Games’ social gaming business posted double-digit growth in each of the most recent three quarters, as well as a 68 percent increase in year-on-year revenue for the second quarter of 2016.