A measure with future relevance?
Scientific Games intends to use the savings to create the opportunity to position the company after the corona pandemic.
The planned $100 million cut in costs, of which $50 million is in wages and $50 million in capital expenditures, is forward looking, as Scientific Games boss Barry Cottle said in yesterday’s press release:
“We continue to cut costs so that we can make our company an even stronger competitor as the industry slowly recovers. We continue to strive to provide our customers with premium lottery, iGaming, sports betting and land based casino products and services while developing innovations for the future. The diversity of our business, which supplies customers throughout the industry and around the world, gives us a unique strength in these challenging times. ”
The business of Sciplay, in which Scientific Gaming holds 82% of the shares, also contributes to economic stabilization in the crisis. SciPlay has $ 130 million in cash reserves and no outstanding debt.
The company manufactures gaming apps for mobile devices and is therefore less affected by nationwide casino closings.
In the United States, casino providers and bookmakers are suffering from the corona crisis. After the cancellation of all major US professional sports leagues, some US states have already allowed betting on e-sports competitions.
How the Scientific Games business will develop in the third and fourth quarters and whether the savings of $ 100 million will remain will depend on when the US casinos are allowed to continue operating.