Scientific Games Adds to Cashless Gaming Suite With PlayOn Buy
Posted on: October 5, 2021, 09:24h.
Last updated on: October 5, 2021, 04:14h.
Scientific Games (NASDAQ:SGMS) is adding to its roster of cashless gaming solutions, announcing the acquisition of ACS’s cashless table game product known as PlayOn.
Financial terms of the transaction weren’t disclosed. The PlayOn series of cashless gaming products allow gamblers to use debit cards to access cash at live table games. When it’s added to the Scientific Games suite, the ACS PlayOn product line will be called AToM — Access To On Demand Money.
The AToM solution lets players access funds at live table games without having to leave their seats. In addition, there are no back-end or out-of-network transaction fees charged by the player’s financial institution. To access funds, players simply swipe their debit card and enter their PIN,” according to a statement issued by Las Vegas-based Scientific Games.
Hastened by the coronavirus pandemic, the move to cashless gaming is taking off across the country and financial markets are increasingly receptive to companies that provide those capabilities.
Scientific Games Growing Fintech Footprint
Fresh off the sale of its OpenBet sports wagering business to Endeavor Group Holdings, Inc. (NYSE:EDR), Scientific Games is viewed by many investors primarily as a slot machine manufacturer.
That has been the case. But with the OpenBet sale and the pending divestment of its SG Lottery unit, the company is increasingly focused on digital gaming and technology.
The ACS PlayOn deal jibes with Scientific Games’ efforts to bolster its tech stack, and the investment community could reward the firm’s efforts to boost its fintech offerings and capture a larger slice of a fast-growing segment.
Investors’ enthusiasm comes as more brick-and-mortar casinos are embracing cashless gaming in the wake of the coronavirus pandemic. Reducing the use of cash in casinos is an efficient avenue for operators’ improving health and safety protocols, and some executives are going so far as to call cash “antiquated.”
AToM Acquisition Practical for Scientific Games
Scientific Games has long been involved with table content, production of shufflers, and related digital concepts, indicating the AToM deal makes sense for the buyer.
“AToM helps amplify the power of these games and utility products — like Ultimate Texas Hold’em and the i-Deal Plus — by creating a player experience that’s fast and fun and friction-free,” according to Scientific Games.
The AToM offering is currently live at 20 gaming venues in California, Nevada, and New Mexico, covering 600 table games.
The acquisition is the second by Scientific Games in less than two months. In late August, the company said it’s buying Sideplay Entertainment to expand its internet lottery portfolio. Scientific Games didn’t say if the AToM purchase will be accretive to earnings.
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