Sportech Buys US Online Gambling Company Scientific Games

Soccer betting operator Sportech became the latest European online gambling company to consolidate with an eye on the US market.

European online gambling operators are hustling to establish position to enter the US gaming market if and when it opens, and Sportech is the latest to make a move. The sports betting company purchsed the racing division of Scientific Games this week, giving it control over a US-based operator of pari-mutuels around the world.

Scientific Games had already made recent news, having agreed to a partnership to develop onloine casino games and Internet gambling ventures with Playtech. In divesting itself of Scientific Games Racing, the umbrella company not only receives a cash payment of $32.9 million, but stock equivalent of about 20 percent of Sportech.

Playtech will control almost 10 percent of Sportech, plus provide the racing division with Internet gaming products and services.

“The acquisition creates a significant international business with strong growth prospects," said Sportech CEO Ian Penrose. "It combines two strong businesses to create a unique and integrated platform for the global distribution of pool-based gaming products focused on two of the world's most popular betting sports: football and horseracing."

Scientific Games Racing had revenue of $110 million last year, a drop of 9 percent from the previous year, which left it in the red for $2.6 million.