Scientific Games has signed a two-year contract with the Lotteries Entertainment Innovation Alliance (LEIA). This group comprises the national lotteries of Denmark, France, Norway, Sweden, and Finland. Scientific Games’ partner studios Random State, BWLoto EHF, and Harman Connected Services GmbH are also involved in the project. The provider will work on digital gaming projects that are part of the European alliance’s strategic plans.
The LEIA alliance was established on 1 October 2018 and is run under Norwegian law. It is equally owned by the national lotteries FDJ United, Danske Lotteri Spil, Norsk Tipping, Veikkaus, and Svenska Spel. The organisation manages the Interactive Factory gaming platform and is designed to develop and implement digital solutions in the lottery industry.
The leading iLottery solutions developer will offer national operators localised SG Studios products. There are also plans to develop customised solutions for individual markets. LEIA will also be able to access over 100 licensed brands and a collection of digital instant games through the SG Content Hub platform.
The alliance said that it plans to start working with one or more professional partners in June 2025 to support game development. The terms of the tender state that the agreements are not exclusive and are valid for two years, with the option to extend for another year.
LEIA estimates that the total amount of iLottery services purchased during the entire contract period will be between €0.5 million and €5 million, with a maximum purchase price of €8 million.
This joint approach allows leading European operators to share their resources and expertise, speeding up innovation and expanding the digital market. The alliance’s management said the partnership aims to strengthen its position in the market and to attract new audiences, including younger people, in a responsible way. Scientific Games has said that the partnership will make the lottery more popular and help shape the future of the lottery sector.
The GameChoice personalised recommendation system is one of Scientific Games’ successfully implemented digital innovations. The system uses player data analysis and AI technologies. The tool is already in use on nearly 10,000 self-service terminals at one of the major US lotteries, offering players new game options such as instant tickets or draw games. The system is powered by the SG Analytics platform, which generates recommendations in real time.
The company reported GameChoice generated in excess of 9 million game offers in the first month of operation. That generated approximately $9.8 million in retail sales, with an average daily revenue of roughly $280,000 and a projected annual revenue of approximately $105 million. The implementation of the new solution has therefore been a significant step in the development of the lottery sector, driving sales growth and increasing player engagement.
According to analysts at Simply Wall St, LEIA’s new two-year contract with Scientific Games is good news for FDJ United investors, as it makes the group’s digital strategy stronger. If the agreement is successfully implemented, this could reduce worries about the group’s revenue growth and debt levels.
FDJ United remains a great investment because it has a regulated lottery franchise. But recent results show a drop in profit margins and profits, even though sales are still growing. The company’s shares have underperformed compared to the French market and the entertainment sector over the past year. Simply Wall St. estimates the fair value of the shares to be between €22 and €54, showing that people have very different opinions.
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