- International Game Technology PLC (IGT) has announced extensions and expansions of its lottery deals with Missouri, Virginia and Tennessee.
- IGT will also be rolling out an improved online sportsbook for Rhode Island.
- These developments could signal that IGT is primed for a surge in stock value in the coming weeks.
- Many gaming companies have seen their stock prices increase rapidly because of the prospect of a return to live sports and the reopening of businesses across America.
PROVIDENCE, R.I. – While the coronavirus pandemic has presented gaming companies with some challenging months, a slew of new deals from IGT could indicate that they are on the verge of a spike in value.
International Game Technology PLC (IGT) signed three contract extensions in April to continue offering lottery services in Missouri, Tennessee, and Virginia.
IGT Global Solutions, a subsidiary of the larger IGT corporation, inked a one-year deal to run instant ticket games and related services through June 2021. IGT has been the primary technology provider for the Missouri Lottery since 1991.
In Tennessee, IGT extended its contract with the Tennessee Education Lottery Corporation through June 2027. As part of this new deal, the company will deliver a suite of upgrades and convenience features to the Education Lottery’s website and mobile app.
IGT’s deal with Virginia cements their partnership through June 2026. Under the terms of the deal, they will print 90% of Virginia’s scratch tickets and provide a host of other support services.
Gaming Companies Rebounding From COVID-19 Decline
Many gaming companies’ stock prices have risen sharply after an initial crash in mid-March. Online gambling has remained relatively steady despite widespread economic turmoil, and with live sports set to resume in the near future, there could be a spike of betting activity in the near future.
Additionally, lottery participation is likely to increase drastically as businesses begin to reopen following several months of shelter-in-place orders. As a company with a broad gambling portfolio, IGT should benefit significantly from both of these developments.
IGT’s stock has already begun to rebound, but not to the degree of many other gaming companies.
Here’s a rundown of how a few top gaming stocks have been affected since the start of the pandemic:
- 3-month low price: $3.79 – March 18
- Current price: $9.25 (+144.1%)
Penn National Gaming Company (PENN)
- 3-month low price: $4.52 – March 18
- Current price: $31.24 (+591.2%)
Caesars Entertainment Corporation (CZR)
- 3-month low price: $3.52 – March 18
- Current price: $11.36 (+222.7%)
DraftKings Inc. (DKNG)
- 3-month low price: $11.17 – March 12
- Current price: $41.27 (+269.5%)
William Hill (WIMHY)
- 3-month low price: $1.73 – March 19
- Current price: $7.03 (+306.4%)
Many major gambling companies have experienced a surge in stock value since the initial crash, but those that offer legal sports betting have been the biggest beneficiaries.
Live sports appear to be just over the horizon, which should allow some degree of return to normalcy for companies.
Major League Soccer appears to be close to an agreement between the owners and the MLS Players Association.
The NBA and Major League Baseball have also ramped up discussions about a modified end of season schedule and could resume as early as July.
As with everything, these developments are subject to change on short notice, both because of COVID-19 and because of the nationwide protests against police brutality.
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News tags: Caesars | Caesars Entertainment Corporation | DraftKings | IGT | IGT Global Solutions | International Game Technology | Missouri | Missouri Lottery | MLB | MLS | NBA | Penn National Gaming Company | Tennessee | Tennessee Education Lottery Corporation | Tennessee Lottery | Virginia | William Hill
With a dual background in English and sports performance and business analytics, Carter aims to write stories that both engage and inform the reader. He prides himself on his ability to interweave empirical data and traditional narrative storytelling. When he isn’t keeping readers up to date on the latest sports betting legal news, he’s banging his head against a wall regretting his decision to be a Tampa Bay Buccaneers fan.