social distancing protocols,<\/a> whereby not all slots on a casino floor are available for use. Additionally, sluggish traffic trends are prompting some gaming companies to delay deliveries of new machines. Still, Scientific Games has avenues for contending with those scenarios.<\/p>\n<\/div>\n\u201cThe outlook change also reflects the company’s good cost discipline and more resilient lottery business,\u201d according to Moody’s. These factors, along with a pullback in capex, enabled the company to generate over $280 million of positive free cash flow in 2020, and Moody’s projects a similar free cash flow level can be achieved in 2021 despite an increase in capex.\u201d<\/strong><\/p>\nScientific Games’ revenue is mostly derived from play of its slots already on casino floors, sales of new machines, and its lottery business.<\/p>\n
Online Casino, Sports Betting Opportunity<\/h2>\n
While Scientific Games isn’t a consumer-facing operator, it does have leverage to the burgeoning and iGaming and sports wagering markets.<\/p>\n
\u201cThe company is also well-positioned to benefit from the growth of digital gaming products and sports betting, as these markets continue to expand and mature,\u201d notes Moody’s. \u201cSGI owns a large portfolio of complementary gaming products and services, both digital and non-digital, that it can utilize and cross-sell globally among its various distribution platforms.\u201d<\/strong><\/p>\nFor investors, that’s relevant because Goldman Sachs forecasts<\/a> US sports betting and online casinos will boom to $39 billion and $14 billion industries by 2033 from $900 million and $1.5 billion, respectively, today.<\/p>\n","protected":false},"excerpt":{"rendered":"Gaming equipment manufacturer Scientific Games (NASDAQ:SGMS) saw its credit rating outlook boosted to \u201cstable\u201d from \u201cnegative\u201d by Moody’s Investors Service. The research firm points to a strong post-coronavirus recovery for the slots maker. Las Vegas-based Scientific Games still carries a B3 credit rating — well into junk territory. The stock gained 10.63 percent last week […]<\/p>\n","protected":false},"author":46,"featured_media":170230,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,69293],"tags":[],"acf":[],"yoast_head":"\n
Scientific Games Credit Outlook Improving, Rating Still Junk<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n