Undoubtedly, International Game Technology will have a competitive advantage over other new competitors. That means the company owns business contacts in the industry, in addition to the accumulated know-how. Notice that it is a licensee for the operation of retail and internet-based sports betting in Italy. In our view, International Game Technology is well-prepared to compete in the sports betting market in the United States. Market participants will most likely be aware that some states in the United States recently permitted sports betting: The company sells products and provides services to almost all gaming markets, including sports betting and interactive gaming, among others.Īmong the different industries served, we are very interested in the company’s sports betting segment. International Game Technology offers technology for the gaming industry. It has reduced its debt, so the financial risk is under control now. Finally, the company has made a lot of efforts, which the market ignores. It is trading at 8.1x EBITDA, while peers trade at 10x-18x.
Also, International Game appears, in our opinion, to be undervalued. Some market analysts believe that the sports betting industry could represent a $150 billion market. With some states currently regulating the sports betting industry, International Game Technology PLC ( NYSE: IGT) will gain a lot of attention.
