Gavin Isaacs became CEO of Scientific Games in June following the company’s acquirement of WMS Industries for a cool .5 billion. Isaacs has spent the last 15 years heading up three gaming companies, including SHFL Entertainment where he edged the company’s .3 billion sale to Bally Technologies. Scientific Games recently announced it will take over Bally for .1 billion. The transaction could take up to a year before it’s complete.
Isaacs was Bally’s CEO for five years. He’s also held senior positions with Aristocrat Technologies, based in Australia with operations in Las Vegas. His three-year contract with Scientific Games stipulates a base salary of $1.5 million with yearly bonus incentives and stock options.
“Gavin Isaacs’ familiarity with the various platforms involved should enhance integration efforts, as he has a strong understanding of product lines and a good rapport with the professional involved,” Gaming Analyst Steven Wieczynski said. He is with Stifel Nicolaus Capital Markets.
Once the four businesses come together, Scientific Games will have a hand in every facet of the global gaming industry, which includes slot machines, lottery products, table games, interactive gaming and management systems for casinos.
“This is a very transformative bet on the future of the supplier business in our view, particularly as it now combines four companies that used to be separate not too long ago,” said Joel Simkins, a gaming analyst for Credit Suisse.
The irony, Simkins said, is Isaacs is finally in the role he wanted and will be tasked with integrating the four entities amidst their myriad of cultures.
Although his separation agreement called for a yearlong sabbatical, Isaacs returned to the gaming world earlier than expected as billionaire Ronald Perelman’s consultant. Many thought he would become the CEO of International Game Technology.
He faces several hurdles in his new position. Gaming equipment has taken a hit on casino floors because smaller manufacturers are taking their share of revenue.
“Given these soft trends, operational risk remains elevated,” Gaming Analyst for Wells Fargo Security, Cameron McKnight said. “Gavin Isaacs has faced these headwinds for many years and is well-equipped for the challenge.”
