• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Professor Slots

Play slots smarter. Leave with your winnings!

Play slots smarter. Leave with your winnings!
Get your FREE Guide Revealing…

  • YOUR PLAN TO WIN
  • CONSULTING
  • SIGN IN

Scientific Games Corporation 2020

July 31, 2020 By Jon Friedl - Professor Slots

Introduction to SGC

Scientific Games Corporation (SGC) is a multi-national company that manufacturers slot machines. As a primary and world-leading gaming manufacturer, SGC also provides gaming technology for casino operators, the lottery, sports betting, online gaming, and more.

SGC filed their annual 10-K financial report with the SEC on February 18, 2020. Because of the legal requirements for SEC reports to be honest and easy-to-read, reviewing their report annually is a treasure trove for slots players. Together, we’ll learn about the state of the world’s gaming industry in early 2020.

Get Your FREE Guide Revealing…

Most people who read these reports are financial investors, not slots players looking for advantage plays which is the intent of this post. If you plan to invest in SGC, naturally you’ll want to perform your review of their annual and quarterly reports.

Keep Reading … Or Listen Instead!

Find my podcast wherever you listen to audio!

The Year 2020 [Scientific Games Corporation 2020]
The Year 2020 [Scientific Games Corporation 2020]

Overall Risk Factors

Form 10-K annual financial reports filed with the SEC begin with describing risk factors for the industry segments where SGC does business. Included in this section are forward-looking statements by company officers, both required to be honest assessments.

These statements are not meant to be a profit forecast.

These are the best thoughts of gaming experts regarding their overall corporate position within the gaming industry. As Scientific Games Corporation is a world-leader beside International Game Technology PLC, we’ll learn the state of the gaming industry wherever SGC does business

Get Your FREE Guide Revealing…

Risk factors are known issues which are having a negative impact on SGC. Factors include possible future risks and uncertainties in the portions of the world’s gaming industry where SGC does business. Even consolidated into general topics, there are 37 risk areas, far too many to fully mention here.

Forward-Looking Statements are how SGC lays out its expectations, plans, and strategies for the future. These company plans are dependent upon risks and uncertainties in the world’s gaming industry. I’ll focus on ten areas in which a slot enthusiast might be interested.

My selected Top 10 risk areas include:

  1. Unfavorable U.S. and international economic conditions
  2. Changes in the replacement cycle of gaming machines
  3. Ownership changes and consolidation in the gaming industry
  4. Gaming opponents attempting to curtail legalized gaming
  5. Failure to succeed in ongoing research and development activities
  6. Responsiveness to customer demand for creating appealing products
  7. Failing to maintain intellectual property protection efforts
  8. Obtaining and renewing lottery contracts
  9. Security and integrity of SGC systems, products, and data privacy
  10. The uncertainty of Brexit

For you and I as slots enthusiasts, what does all this mean? It means that being a slot machine manufacturer is a risky business. And, while SGC is working hard to keep us entertained, in some ways it’s possible they might fail.

Get Your FREE Guide Revealing…

These risk factors may turn into reality at a gaming jurisdiction where you play slots. If so, you may be disappointed. But perhaps you won’t be as disappointed if you know these risks exist.

Further, some of these risk factors apply to the entire gaming industry. If they occur, they’ll most likely affect all slot machine manufacturers. In turn, such risks to these companies are also risks to our general entertainment with playing slots. I suggest we wish SGC and its competitors well.

The World is Changing [Scientific Games Corporation 2020]
The World is Changing [Scientific Games Corporation 2020]

Overview

Scientific Games Corporation’s corporate headquarters are in Las Vegas, which makes sense given Nevada’s leadership role in the world’s gaming industry. Besides numerous smaller sites, SGC’s most extensive facilities supporting their business segments are in:

  • Las Vegas – Corporate, Digital, and Gaming
  • Chicago – Digital, Gaming, and Social
  • Georgia (the state, not the country) – Lottery
  • India – Digital, Gaming, Lottery, and Social

As of the end of December 2018, Scientific Games Corporation employed ~9,800 persons worldwide, including ~4,700 employees in the U.S. and ~5,100 employed internationally. Total SGC employees increased by 100 in the last year, with all added to SGC’s international facilities.

Get Your FREE Guide Revealing…

Total assets were $7.809 billion, slightly up from last year’s $7.718 billion. SGC’s total assets are 57%, somewhat more than half when compared to International Gaming Technology PLC, another global leader in the gaming industry.

Last year, SGC’s total assets were 53% of IGT’s. That means they’ve undergone a 4% increase in market share, double last year’s increase in market share. For billion-dollar companies, that’s another significant growth!

Scientific Games Corporation has four business segments:

  • Gaming
  • Lottery
  • SciPlay (formerly Social)
  • Digital

Research and Development decreased by 7% in the last year, down $14 million to $188 million spent in 2019.

Looking at the Future with Binoculars [Scientific Games Corporation 2020]
Looking at the Future with Binoculars [Scientific Games Corporation 2020]

Gaming

Scientific Games Corporation rightly points out that the international gaming industry requires continuous and diverse development of new technologies, products, and game themes. To be successful, SGC needs to meet this need.

SGC’s gaming products are in all U.S. states, territories, and a federal district regulating Class III gaming which allow their gaming devices. Further, they do business in 181 international gaming jurisdictions.

Growth in the gaming business segment occurs when new casinos open and existing casinos expand. Further, the replacement rate of slot machines by casino operators also drives gaming industry growth. In turn, both growth drivers are themselves impacted by any changes in the availability of player disposable incomes.

A significant portion of SGC’s gaming business benefits is from a contract with a U.K.-based business. This contract represents a substantial portion of SGC’s server-based gaming business.

Get Your FREE Guide Revealing…

These are central servers, computers that remotely change the odds of winning for slot machines in a casino. Ladbrokes Coral Group, a subsidiary of GVC Holdings PLC, provides central servers for SGC.

Scientific Games Corporation states they have eight primary competitors within the gaming business segment. They are:

  1. Ainsworth Game Technology
  2. Aristocrat Leisure Ltd.
  3. Aruze Gaming America Inc.
  4. Multimedia Games Inc. (a subsidiary of EVERI Inc.)
  5. International Game Technology PLC
  6. Inspired Entertainment Inc. (SGC’s primary U.K. competitor)
  7. Konami Digital Entertainment, Inc.
  8. Novomatic Group of Companies

The casino management system market is also highly competitive. For this sub-market in the gaming industry, their primary competitors are:

  • Aristocrat
  • International Game Technology PLC
  • Konami Digital Entertainment, Inc.
Three Slot Machines in a Row [Scientific Games Corporation 2020]
Three Slot Machines in a Row [Scientific Games Corporation 2020]

Lottery

There are ~180 lotteries world-wide categorized as either draw or instant lottery games. Draw games involve picking a set of numbers which match those from a drawing held sometime later. Instant games involve scratching off a protective coating from a pre-printed ticket.

Forty-eight U.S. gaming jurisdictions offer SGC-provided instant-style lottery games or draw-style lottery games. Many international gaming jurisdictions have both styles but how many they have can vary widely.

Both the draw lottery and instant lottery markets are highly competitive including an ongoing price-based competition. Primary competitors for each lottery style include:

  • Draw lottery: IGT, Intralot S.A., and Tattersalls Group
  • Instant lottery: IGT and Pollard Banknote Limited

Get Your FREE Guide Revealing…

In the last year, Scientific Games Corporation began offering instant-style lottery games at an additional eleven U.S. gaming jurisdictions.

Only SGC’s lottery contracts with Pennsylvania expire in 2021 unless renewed this year. Three renewed state contracts extend through 2025, 2027, or 2028. SGC has a lottery contract with Italy to 2028 but failed to renew its contract with the U.K.

Many People Play Lotteries [Scientific Games Corporation 2020]
Many People Play Lotteries [Scientific Games Corporation 2020]

SciPlay (formerly Social)

Scientific Games Corporation’s SciPlay business segment, formerly called Social but remained SciPlay after the minority interest merger in 2018, includes online games as well as on mobile smart devices. Nearly all revenue is through the sale of virtual, in-game currency.

SciPlay is non-wagering gameplay where players can make purchases during gameplay, but any winnings are not real money. Instead, winnings are for in-game use only.

Get Your FREE Guide Revealing…

Competition in the social gaming business industry is fierce. SGC competes with:

  • Similar offerings from other slots companies
  • Social gaming options from entertainment companies
  • Other forms of online entertainment such as video gaming, social media, and reading
Traveling People Outdoor Gazing [Scientific Games Corporation 2020]
Traveling People Outdoor Gazing [Scientific Games Corporation 2020]

Digital

Scientific Games Corporation’s digital business segment provides technology solutions for software design, development, licensing, maintenance, and support services. Interactive casino solutions provide full gaming process solutions as well as player management services.

Otherwise, SGC’s digital segment provides sports betting services to operate sports books including pari-mutuel betting and more. These betting services also include player management services.

Also, this digital segment is where software technology solutions exist within SGC for online gaming for real-money gambling.

SGC believes itself to be well-positioned with supporting these states as well as to support its growth as more and more states approve sports wagering.

Get Your FREE Guide Revealing…

Specifically, they feel they are ready for further deployment, as they call it, because of their:

  • Game content
  • Platform technology
  • Distribution capabilities
Stack of U.S. Currency [Scientific Games Corporation 2020]
Stack of U.S. Currency [Scientific Games Corporation 2020]

Summary of SGC

Scientific Games Corporation is in the business of providing slot machines, casino management software, lottery tickets, social games, and real-money online gambling solutions for casino operators.

Book Your Consultation…

Related Articles from Professor Slots

  • Who Builds Slots Machines Throughout the World?
  • International Game Technology PLC 2020

Other Articles from Professor Slots

  • Previous: 5 Ways to Make a Living Playing Slots
  • Next: International Game Technology PLC 2020

Register Now!

Register Now!

Primary Sidebar

Sign up for your free 15-minute chat!

Book Now!

Basics of Slots Online Course (Self-Paced)

Register Now!

Advanced Slots Course (Group Coaching)

Registration Open for Slots Labs Now!

Gambling Tools (Commissions Earned)

As featured on:

ABC27 Evening News Report ABC9  News Report
  • YOUR PLAN TO WIN
  • CONSULTING
  • SIGN IN

Policies

  • Privacy Policy
  • Terms of Service
  • Responsible Gambling
  • Customer Service Pledge

About

  • Professor Slots
  • Jon H. Friedl, Jr., Ph.D.
  • Podcast Episodes
  • Merchandise

Contact Info

Jon Friedl, LLC
4790 Caughlin Pkwy #218
Reno, NV 89519-0907 USA

Voicemail/Text:
702-90-SLOTS (702-907-5687)
Email: jon@professorslots.com

As an Amazon Associate, I earn from qualifying purchases. Copyright 2016-2023, Jon Friedl, LLC

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie Settings Accept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
_wpfuuid11 yearsThis cookie is used by the WPForms WordPress plugin. The cookie is used to allows the paid version of the plugin to connect entries by the same user and is used for some additional features like the Form Abandonment addon.
cookielawinfo-checkbox-advertisement1 yearSet by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category .
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
CookieDurationDescription
__atuvc1 year 1 monthAddThis sets this cookie to ensure that the updated count is seen when one shares a page and returns to it, before the share count cache is updated.
__atuvs30 minutesAddThis sets this cookie to ensure that the updated count is seen when one shares a page and returns to it, before the share count cache is updated.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
CookieDurationDescription
__gads1 year 24 daysThe __gads cookie, set by Google, is stored under DoubleClick domain and tracks the number of times users see an advert, measures the success of the campaign and calculates its revenue. This cookie can only be read from the domain they are set on and will not track any data while browsing through other sites.
_ga2 yearsThe _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors.
_gat_gtag_UA_76764367_11 minuteSet by Google to distinguish users.
_gid1 dayInstalled by Google Analytics, _gid cookie stores information on how visitors use a website, while also creating an analytics report of the website's performance. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously.
at-randneverAddThis sets this cookie to track page visits, sources of traffic and share counts.
CONSENT2 yearsYouTube sets this cookie via embedded youtube-videos and registers anonymous statistical data.
uvc1 year 1 monthSet by addthis.com to determine the usage of addthis.com service.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
CookieDurationDescription
loc1 year 1 monthAddThis sets this geolocation cookie to help understand the location of users who share the information.
test_cookie15 minutesThe test_cookie is set by doubleclick.net and is used to determine if the user's browser supports cookies.
VISITOR_INFO1_LIVE5 months 27 daysA cookie set by YouTube to measure bandwidth that determines whether the user gets the new or old player interface.
YSCsessionYSC cookie is set by Youtube and is used to track the views of embedded videos on Youtube pages.
yt-remote-connected-devicesneverYouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
yt-remote-device-idneverYouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
CookieDurationDescription
_drip_client_25001682 yearsNo description
_drip_visitor_25001682 yearsNo description
GoogleAdServingTestsessionNo description
xtc1 year 1 monthNo description
Save & Accept
Powered by CookieYes Logo