Las Vegas Review-Journal – Lottery systems provider Scientific Games received tentative approval Wednesday from the Gaming Control Board to purchase slot machine manufacturer WMS Industries for $1.5 billion.
The Nevada Gaming Commission will have a final say on the matter on Sept. 26.
Scientific Games is headquartered in New York. It’s largest shareholder is financier Ronald Perelman, who is ranked 26th on the Forbes 400 list of billionaires with a net worth of $12.2 billion. Perelman owns 38 percent of Scientific Games.
Perelman, 70, attended the Gaming Control Board meeting but did not take part in the formal presentation.
Gaming Control Board Chairman A.G. Burnett asked Perelman about his interest in the merger.
“It’s a fabulous deal,” Perelman said. “It will allow us to become a stronger player in the marketplace.”
Perelman, who also owns a large stake in cosmetics giant Revlon, said his investment fund had looked at acquiring “a destination resort” a few years ago, but decided it was more a real estate investment. He explored other ways to enter the casino industry.
“We like gaming and it’s a great industry,” Perelman said.
In addition to his business holdings, Perelman is known for his somewhat colorful personal life. He’s been married five times.
He drew laughs in the hearing room when he told Burnett, “I expected you to ask me about my divorces. I’m glad you didn’t. I’m a specialist (on prenuptial agreements).”
Scientific Games CEO Lorne Weil told the control board the company, post merger, will separately operate two divisions, gaming and lottery.
Weil said the combined companies would have $600 million in pretax earnings on a pro forma basis in 2013.
