Supplier News

US – Caledonia’s $1bn investment a ‘vote of confidence’ in Scientific

By Phil - 15 September 2020

Caledonia Investments purchase of 34.9 per cent of Scientific Games has been described as a ‘vote of confidence’ in the company, reaffirming that it is well-placed land-based and digital gaming.

Union Gaming’s John DeCree said: “While our confidence in the company’s long-term value and cash generating capabilities never wavered, this full refresh renews our confidence in the story and the company’s execution capabilities.”

“Caledonia has a strong track record in the industry. We have long been a supporter and believer in the Scientific Games portfolio of assets and the big swing by Caledonia is another vote of confidence in the company and affirmation of our long-term investment case.”

Mr. DeCree added: “While a 40 per cent single-day run might seem like a good time to take some chips off the table, digital gaming in the US is red hot and we suspect Caledonia and its co-investors are playing for much more. We continue to believe there is significant underappreciated value and opportunity in the social gaming and digital business as well as an impending recovery in the gaming business with the original Aristocrat brain trust now fully aligned from the board to management.”

Referring to Caledonia’s share in Flutter Entertainment and DraftKings, he added: “This creates a unique alignment (at Scientific Games) where shareholders, board members, and executive management all have experience together.”