This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Two 'Lottery Tickets' That Just Might Pay Off

Stocks in this article: SGMS FB

NEW YORK ( TheStreet) -- In Oregon, the state where I reside, if it weren't for the state-sponsored lotteries, there wouldn't be enough funds to take care of the services that the state provides. Every time someone participates in the Oregon State Lottery, the state government is a winner. That's because a healthy percentage of the money goes to create jobs, schools, parks and watersheds.

Perhaps most importantly of all, the money doesn't go anywhere else. It stays in, and is used for, the citizens of Oregon. More than half a billion dollars in profits moves through Oregon's economy every year, supporting projects big and small. So when people participate, they at least feel they're contributing to the well-being of the state in which they live their lives.

The business of supplementing state government income through lotteries has grown so large that there's even a non-profit organization, The Multi-State Lottery Association, that administers the games submitted by each member state. This is just a small part of the business of lottery games and electronic online gaming. There are billions of dollars to be made selling everything from lottery systems to online gaming to the casino gaming industry.

One of the publicly traded companies that is fully immersed as a global leader in providing customized, end-to-end gaming solutions to lottery and gaming organizations is Scientific Games (SGMS). SGMS' integrated array of products and services are like a menu of almost everything that any lottery, online gaming business and casino on the planet would need and want to buy. This "menu" includes instant lottery games, lottery gaming systems, terminals and services, and Internet applications, as well as server-based interactive gaming machines and associated gaming control systems.

The gaming and casino industry has been soft in the U.S., but it's booming in places like China (Macau) and many of the Asian nation's that allow gambling.

Year-over-year revenue grew by 19% at Scientific Games last quarter. Yet the company has a large debt load and its profit margin slipped into the negative, although their operating margin (trailing 12 months) is a positive 12%. Evidently the situation at SGMS may soon be improving.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs