Barcrest deal creates pub gaming "powerhouse"

Analysts suggest the deal has the potential to create a new games machine “powerhouse” in the pub market as it would bring together one of the biggest suppliers of traditional analogue machines with the biggest supplier of digital machines.

Scientific Games owns Games Media, the biggest provider of digital machines to the UK pub market, and The Global Draw, the biggest digital machine supplier to the licensed betting office sector. Between them they have more than 25,000 machines in the ground. In the pub market Games Media’s customers include Admiral Taverns, Enterprise Inns, Greene King, Marston’s, Punch Taverns, Stonegate and Orchid while Barcrest works with the likes of Mitchells & Butlers.

NASDAQ-listed Scientific Games – which has operations in more than 50 countries – has acquired the business from Barcrest’s parent company, International Game Technology. It will be integrated fully with Games Media and The Global Draw.

In addition, the combined business will also be a significant player in the supply of games software and machine content to the pub sector to third party machine operators.

The transaction, which was confirmed in the US late on Friday night, will also take Scientific into new UK markets such as bingo halls and arcade and gaming centres.

The completion of the deal comes after it was formally approved by UK competition authorities in August.

Ian Timmis, chief executive of The Global Draw and Games Media said: “Over the last 40 years, Barcrest has created an expansive library of game content for the leisure industry and we’re delighted that this acquisition will enhance the Scientific Games gaming group portfolio.

“By combining our content with Barcrest’s, delivering it through state-of-the-art networks and offering exceptional operational and service support, we expect to offer our customers significantly enhanced products and services.”