Private Equity Firm Acquires Rhode Island Lottery Supplier in $4.1 Billion Deal
Rhode Island’s exclusive gambling company, International Game Technology PLC (IGT), is set to be acquired by private equity firm Apollo Global Management Inc. in a $4.1 billion, all-cash deal. This acquisition includes IGT’s gaming and digital business arm, as well as financial services subsidiary Everi Holdings Inc.
The deal, expected to close in the third quarter of 2025 pending regulatory approval, will see IGT receive $4.05 billion, which will be used to pay off debt and provide returns to shareholders. Everi shareholders will receive $14.25 per share in cash, a 56% increase over its share price as of Thursday’s close. The combined acquisition of IGT and Everi is valued at $6.3 billion.
Despite the acquisition, IGT’s contracts with the Rhode Island Lottery will remain unaffected. This includes a 20-year agreement to supply the state’s lottery and scratch tickets, video lottery and slot machine technology, as well as a three-year contract for its sports betting app.
IGT’s long-term state contract also requires the company to maintain a minimum 1,100-person workforce in Rhode Island and invest in new lottery technology. In February, IGT and Everi entered into a $6.2 billion deal, resulting in a new Las Vegas-based company under the IGT name. The acquisition by Apollo will transfer the merged company to private ownership, with IGT changing its name and stock ticker symbol to focus on its lottery business.
IGT’s CEO Vince Sadusky expressed excitement about the transaction, stating that it will allow IGT Gaming to continue investing in its core segments and provide customers with a more comprehensive portfolio of offerings. The acquisition comes shortly after Bally’s Corp. was bought out for $4.6 billion by Standard General, its largest shareholder and board chairman Soo Kim. Bally’s also has a 20-year deal with the state to operate legal gambling in partnership with IGT.
Overall, the acquisition by Apollo marks a significant development in the gambling industry, with IGT poised to strengthen its position as a premier pure play lottery business.