He will also serve on the Las Vegas-based company's board of directors. Current CEO Gavin Isaacs will become vice chairman of the board.
Sheehan and Isaacs have assumed their new roles effective today following yesterday's approval by the company's board, according to a statement.
Before the opening bell, the lottery and gaming company also reported a loss of 59 cents per share, narrower than the loss of 81 cents per share predicted by analysts. Revenue was $729.2 million for the quarter, above Wall Street's estimates of $708.8 million.
Gaming revenue for the period was $441.9 million vs. $449.7 million last year.
Shares of Scientific Games are tumbling 15.66% to $8.56 on heavy trading volume late Friday morning.
About 3.23 million of the company's shares traded so far today, above its average volume of 806,635 shares per day.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: SGMS