Scientific Games Chairman Digs in Deep

It seems that the Chairman of Scientific Games (SG) has been on a spending spree. He has dug in deep and spent millions on the purchase of company shares. As necessary, he has filed all of this spending with the US Securities as well as Exchange Commission, and it confirms that Ronald Perelman has spent in the region of £3.6 ($4.6) Million.

This sum has bought him a whopping 230,000 shares in his company. According to the records, he recently spent £1.71 ($2.17) Million on 110,000 shares. Consequently, we can see that the average share price worked out at £15.56 ($19.73). Then, he followed this up a couple of days later by purchasing another 120,000 shares at a price of £1.91 ($2.43) Million. As a result, we can see that the average share price had gone up to £15.99 ($20.29). He now has control of 39% of the company.Scientific Games Chairman Digs in Deep

Troubles in Nevada

Currently, Scientific Games has taken out a lawsuit against primary shareholders, Sylebra Holdings. They have accused the Hong Kong-based company of being unwilling to hand over necessary information about their suitability for an iGaming license in the state. Indeed, it has been implied that they haven’t released data in over two years. Therefore, if we look deeper into this, it could be one of the reasons that Perelman made the purchase. This, alongside question marks that have been raised over Sylebra’s suitability. According to a gaming analyst at Suntrust Bank, Perelman consistently adds to his “SG equity position” when there are “dislocations in stock price” such as these.

SciPlay Corp A Strong Model

However, it’s not all bad news. SG is the company behind SciPlay Corp. And this is the company they formed to manage their online casino and mobile games. SciPlay is in a very strong position right now. In fact, Deutsche Bank’s analyst Bryan Kraft described how it’s in a good position to continue its growth in mobile gaming as a result of its “attractive social-casino segment.”