Scientific Games to Buy ACS PlayOn, Enhance Cashless Solutions

Scientific Games Corporation (SGMS) signed a deal to buy ACS PlayOn, a cashless table game solution that provides players with easy debit solutions at live table games. The ACS product line will be named AToM™ – Access to On Demand Money. Financial details of the deal have not been disclosed. Shares slipped 5%, closing at $78.42 on October 5.

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SGMS is a global provider of gambling products and services for casinos, lotteries, social gaming, online gaming, and sports betting. With a market cap of $7.56 billion, shares have gained 125.2% over the past year. (See Scientific Games stock charts on TipRanks)

The new AToM solution will make SGMS a leader in cashless applications for table games by providing a swift payment gateway for players to access funds at live table games. Players need simply swipe their debit cards, without bearing any extra or hidden charges by their financial institutions.

The AToM solution is currently available at over 20 properties in North America, with 600 table games across California, Nevada, and New Mexico. SGMS has an existing cashless solution called Unified Wallet, which enables players to digitally access funds to play electronic gaming machines (EGMs) and tables through a mobile app, including loyalty club registration. Adding AToM enhances the company’s existing suite of cashless offerings, allowing players to enjoy seamless access to funds at live table games.

Additionally, the AToM system is certified, secure, and PCI Compliant. Also, casino operators receive financial data from all gaming transactions made through the AToM solution in real-time by using easy-to-implement internal management and accounting systems.

Commenting on the deal, Rob Bone, Senior Vice President of Global Systems and Tables at Scientific Games said, “This addition will allow us to provide operators and their players with a seamless, safe, and secure way to instantly access money right at the gaming position. We look forward to being able to offer this invaluable product to our customers across the globe.”

Recently, Jefferies analyst David Katz maintained a Buy rating on the stock with a price target of $96, implying 15.7% upside potential to current levels.

Commenting on SGMS’s sale of OpenBet to Endeavor Group, Katz said, “We believe the sale reflects a solid valuation at 10.6X our last twelve months (LTM) estimate for the business. The inclusion of stock from the acquirer adds some variability to the outcome, we believe this could drive further upside for SGMS. Ultimately, the execution of sale proceeds for deleveraging is positive.”

Overall, the stock has a Moderate Buy consensus rating based on 3 Buys, 2 Holds, and 1 Sell. The average Scientific Games price target of $77 implies 1.8% downside potential to current levels.