IGT to Close Electronic Table Games Division by 2027

International Game Technology (IGT) will officially close its electronic table games (ETG) division in 2027. This strategic decision follows substantial layoffs earlier this year. Phill O'Shaughnessy, spokesperson for IGT, stated that this step aligns with "core business priorities and long-term growth objectives," ensuring continued support for ETG clients throughout the transition.

Strategic Shift Post-Merger

Under Apollo Global Management, IGT merged with Everi Holdings in a $6.3 billion transaction in 2024. This merger led to significant restructuring, including a 10% reduction in the workforce. According to CEO Hector Fernandez, the changes intend to simplify structures and eliminate redundancies for clearer operational efficiency.

Divisional Restructuring

Post-merger, IGT spun off its lottery division into the publicly traded Brightstar Lottery. The ETG division now faces closure in Apollo's broader strategy, focusing on comprehensive supplier capabilities. Apollo partner Daniel Cohen highlighted the aim of "long-term value creation." Cohen assured Nevada regulators that IGT seeks to serve operators like The Venetian and Caesars comprehensively.

ETG's Limited Success and Competition

Although smaller than its slot offerings, IGT’s ETG segment included blackjack, baccarat, and roulette games. The company had expanded its Wheel of Fortune brand into ETGs, intending to rejuvenate the market. Luigi Cacciapuoti, vice president of specialty product and ETG at IGT, emphasized innovation in meeting player and customer needs.

Challenges in the ETG Market

ETGs face hurdles, particularly due to large space requirements on the casino floor compared to more lucrative slot machines. While ETGs are more prevalent in Europe and Asia, their popularity lags in the US. Leading ETG provider Interblock, also in private equity, was speculated as a possible acquisition by Aristocrat. However, a $200 million price gap stalled the deal.

Future Focus on Core Products

IGT's pivot away from ETGs suggests a stronger concentration on slots and comprehensive supply for casinos. The company aims to continue investing in products and innovation, shaping the future of casino technology.

Further developments in IGT's strategy can be found within sections dedicated to casino and b2b operations.

"Our goal long term is to become the operator’s supplier," stated Cohen, underlining IGT's ambition to meet all product needs of major casinos.