It’s a coming together of two titans from the gambling industry. Italian company GTECH, a world leader in lottery systems has taken over Nevada-based International Game Technology (IGT), the world’s largest slot machine maker in a £2.7 billion deal. The new company will be based out of London on Chancery Lane and traded on the New York Stock Exchange.

Reasons behind GTECH’s strategy

GTECH has customers in 114 countries and employs over 8,000 people. It maintains offices in Australia, Belgium and Poland. In 2006, it was merged with Italian gaming company Lottomatica. In recent times, GTECH has struggled to maintain the rate of growth achieved in previous years. Part of its woes stem from Italy’s weak economic climate; the country is responsible for almost 60 percent of GTECH’s revenue.

A shot in the arm for IGTIGT

 

International Game Technology slots enjoy immense popularity at online and land-based casinos. Some of its most played games include Da Vinci Diamonds, Cleopatra, Wolf Run, Noah’s Ark, Battleship, Elvis, Rainbow Riches, Grand Monarch and the perennial favourite Wheel of Fortune. IGT has made no bones about the fact that it was putting its business up for sale this year. Profits have fallen by 66 per cent in the first quarter of 2014 and the company has slashed global workforce by 7 percent in an effort to cut costs. The highly competitive US market and financial problems prompted the merger, which IGT CEO Patti Hart says will allow the new holding company to innovate and deliver more value to the burgeoning casino market.

United Kingdom was chosen as the new company’s headquarters for tax benefits. UK’s corporate taxes are lower than Italy’s. GTECH has previously backed Camelot, the current operators of the UK National Lottery.