International Game Technology (IGT) has announced plans to close its electronic table games (ETG) division by 2027, following significant layoffs earlier this year. Phill O’Shaughnessy, an IGT spokesperson, stated that this decision aligns with the company’s focus on key business priorities and long-term growth goals. He assured that IGT would continue to support its ETG customers throughout the transition.
The company, known for its slot machines, underwent a significant change in 2024 when it merged with Everi Holdings in a deal valued at $6.3 billion, orchestrated by Apollo Global Management. Earlier in March, IGT cut approximately 10% of its global workforce. At that time, Hector Fernandez, the newly appointed CEO, communicated in an internal memo that these layoffs aimed to simplify the company’s structure and enhance operational efficiency.
The merger also led to the spinoff of IGT's former lottery division, which is now publicly traded as Brightstar Lottery. As the company shifts direction under Apollo's management, the ETG division appears to be the next area facing significant downsizing. Daniel Cohen, a partner at Apollo, expressed concerns earlier this year about IGT lagging behind competitors like Aristocrat and Light & Wonder, stating that the focus of their acquisition was entirely on creating long-term value. Cohen emphasized his desire for IGT to become a comprehensive supplier for major operators, providing a wide array of products to enhance casino technology.
Despite being a smaller part of IGT’s overall business, the ETG segment had shown growth, featuring offerings such as blackjack, baccarat, and roulette. IGT even attempted to expand its Wheel of Fortune brand into the ETG space, aiming to invigorate interest in the market. Luigi Cacciapuoti, IGT’s vice president of specialty product and ETG, highlighted the efforts made to develop a new ETG offering, reflecting on a complete overhaul of the previous systems to better meet customer and player demands.
The ETG market, however, has struggled with growth challenges, primarily due to the significant physical space required for games on casino floors. Slots typically yield higher revenues and occupy considerably less space, presenting a tough choice for casino floor managers. In addition, ETGs tend to be more successful in European and Asian markets compared to the U.S.
Interblock, the leader in the ETG market and also backed by private equity, was speculated to be a potential acquisition target for Aristocrat, but discussions reportedly fell through over a valuation discrepancy of $200 million.
