Apollo Global Management can now finalize its $6.3 billion purchase of gaming powerhouses IGT and Everi, a move sanctioned by the Nevada Gaming Commission on June 26. After a decade-long absence from the city, IGT’s gaming operations will once again call Las Vegas home. This significant green light came after a one-hour hearing, enabling Apollo to merge IGT’s gaming and digital units with Everi Holdings into an entirely new entity. This new company, retaining the iconic IGT name, aims to focus on digital gaming, casino systems, and financial tech, positioning itself at the cutting edge of gaming innovation.
The culmination of nearly a year of meticulous planning and seeking regulatory approvals in 36 jurisdictions, this transaction not only reunites various divisions of IGT but also aligns them with Everi’s expertise. The framework involves Apollo acquiring IGT’s gaming and digital sectors, while the lottery business spins off to become Brightstar Lottery, an entity that will operate independently. This strategic move reflects Apollo’s long-term vision and their robust commitment to Nevada’s gaming scene. Already owning the prestigious Venetian and Palazzo resorts, Apollo emphasizes its embedded roots in the state’s gaming industry.
Daniel Cohen, a partner at Apollo, elaborated on this deep-seated
Daniel Cohen, a partner at Apollo, elaborated on this deep-seated connection to Nevada during the regulatory hearing. His insights, as reported by the Las Vegas Review-Journal, shed light on how Apollo maneuvered through the rigorous vetting process with relative ease. The unified efforts are expected to create around 11,000 jobs in Nevada and generate over $2.5 billion in local revenue. Nicholas Khin, the current president of global gaming at IGT, was approved to play a pivotal role in the transition, stepping in as the interim CEO. This leadership change anticipates Hector Fernandez taking over, following the conclusion of his non-compete agreement later this year. Khin will then return to his global operations role at IGT, ensuring continuity and expertise in the company’s gaming endeavors.
Apollo’s acquisition strategy is not about slashing expenses but about fortifying IGT into a more competitive gaming technology behemoth. Cohen emphasized this point by outlining future plans to invest heavily in product development and expand recurring revenue streams. This foresight aims to bridge the performance gap with leading competitors like Light & Wonder and Aristocrat. The prospect of potentially taking the company public within five years adds an intriguing element to Apollo’s roadmap for IGT.
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