Scientific Games reaches all-time high, expects 13.6% lottery sales growth

Scientific Games ( SGMS  +4.9%) will finish the day up Wednesday after  releasing strong guidance for the company's SG Lottery business.

The company estimates that revenue from its lottery segment will grow at a two-year CAGR of 13.6% to fiscal year 2022. Analysts expect total revenue for the company to grow by 8.8% from 2021 to 2022.

Potential growth possibilities that Scientific Games is focusing on include forming new enhanced partnerships, securing new iLottery contracts, expanding market share for systems and retail solutions, and pursuing accretive acquisitions to expand and diversify the company's portfolio.

19 additional states are expected to legalize iLottery by 2025 and Scientific Games expects revenue from that segment to double in FY2022.

The company holds 69% market share in the instant games retail segment and 13% US share in the iLottery market. Earlier this month, Scientific Games gained after its  earnings beat driven by strong results in its gaming division.

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