Scientific Games moves corporate HQ from New York to Las Vegas27th January 2015 7:59 am GMT
US gaming and lottery supplier Scientific Games Corporation is relocating its global corporate headquarters from New York to Las Vegas, while also establishing the company’s primary US gaming manufacturing operation at its existing facilities in Nevada.
Scientific Games president and CEO Gavin Isaacs said that selecting Las Vegas as the supplier’s global headquarters was a natural step in the corporate evolution of the company.
“Las Vegas is a diverse, cosmopolitan city in business friendly Nevada where we have strong roots and an extensive and growing employee base,” he said. “This move will allow us to stay closely connected to our worldwide base of gaming, lottery and interactive customers.
“Equally important to our continued operating success is maintaining the continuity of our major operating divisions.”
Scientific Games’ Bally and Shuffle Master gaming development and support operations will continue to be based in Las Vegas, while the company’s significant WMS game development, engineering and other gaming support operations, as well as its Interactive division, will continue to be based at the Chicago Tech Campus. The operational headquarters of Scientific Games' Lottery division will remain in Alpharetta, Georgia.
Reflecting the Company's commitment to rapidly implement identified integration plans that are expected to drive increased efficiency and cost synergies,
Scientific Games said that it has begun to transition the WMS manufacturing operations from Waukegan, Illinois, to Las Vegas, as part of its integration plans that are expected to drive increased efficiency and cost synergies.
The supplier expects all production to be transferred to the Las Vegas facilities by the summer of 2015 and anticipates closing the Waukegan facility before the end of the year.
“It is great news for Nevada that Scientific Games, an industry leader in gaming, lottery and interactive entertainment and technology, has selected Las Vegas as its new global headquarters,” said Nevada Governor Brian Sandoval. “The relocation of the company's manufacturing operations and corporate office to Las Vegas means hundreds of good-paying jobs for the people of Clark County and our state in the years to come.
“As we work together to grow and diversify the Nevada economy, I am appreciative that Gavin Isaacs and his executive team recognized the advantage of doing business in our great state."
Thomas Skancke, CEO of economic development agency Las Vegas Global Economic Alliance (LVGEA), added: “Scientific Games' bold move to establish global headquarters in business friendly Las Vegas will help LVGEA realize our goal to make the region a global business destination, while positioning Nevada as the gaming capital of the world. We look forward to working with the company as it continues to grow and thrive in Las Vegas."
The cost synergies arising from the manufacturing consolidation and the associated costs of transferring production and corporate functions to Las Vegas are included in the company's previously disclosed estimate of $235m of expected annual cost synergies from the company's acquisition of Bally Technologies by the end of 2016 and associated one-time costs to achieve the synergies of $80m.
Shares in Scientific Games Corporation (Co. Data) (NASDAQ:SGMS) closed at $13.24 per share in New York Monday, up 3.92 per cent in trading during the day.