Brightstar Lottery: A Bright Future with $3 Dividend, $500M Buyback and Renamed Company

Brightstar Lottery, formerly IGT, has undergone a name change and several significant developments. The company has introduced a $3 dividend and a $500 million buyback program. Despite initial confusion, the name change has been implemented.

Brightstar Lottery PLC (BRSL), formerly known as IGT, has recently undergone several significant developments following its rebranding and strategic moves. The company has introduced a $250 million accelerated share repurchase program and declared a quarterly cash dividend of $0.20 per share. These announcements come amidst a period of transformation for the company, which has seen a name change and the sale of its IGT Gaming business.

On Tuesday, Brightstar Lottery announced plans to launch a $250 million accelerated share repurchase program, which is part of its broader $500 million share repurchase authorization [1]. This move is intended to boost shareholder value by reducing the number of outstanding shares. Additionally, the company has declared a quarterly cash dividend of $0.20 per share, payable on August 26, 2025, to shareholders of record as of August 12, 2025 [1].

The company's strategic decisions come on the heels of the completion of its IGT Gaming business sale to a holding company owned by funds managed by Apollo Global Management. The all-cash transaction, valued at approximately $4.1 billion, closed on July 1, 2025, and resulted in significant proceeds for Brightstar Lottery. Of the proceeds, $2.0 billion was allocated to contractual debt reductions, $1.1 billion to shareholder returns, $500 million for upcoming Italy Lotto license payments, and $400 million for general corporate purposes [2].

The shareholder returns included a special cash dividend of $3.00 per share, totaling about $609 million, paid on July 29, 2025, and a new $500 million two-year share repurchase program. The company also declared a quarterly cash dividend of $0.20 per share, payable on August 26, 2025 [2]. These dividends are expected to be treated as a nontaxable return of capital for U.S. shareholders, based on current estimates [2].

Brightstar Lottery's financial performance for the quarter ended June 30, 2025, showed total revenue from continuing operations of $631 million, up from $613 million in the prior year period. However, the company reported a net loss of $58 million from continuing operations, compared to net income of $42 million a year ago [2].

The company's liquidity position remains strong, with $2.9 billion in liquidity as of June 30, 2025, including $1.3 billion in cash and cash equivalents and $1.6 billion in undrawn credit facilities [2]. On July 16, 2025, Brightstar Lottery was awarded the Italy Lotto License, effective December 1, 2025, for a nine-year term, with the first €500 million installment paid on July 17, 2025 [2].

Brightstar Lottery's strategic moves, including the accelerated share repurchase program and quarterly dividend, aim to strengthen its financial position and boost shareholder value. The company's recent developments highlight its commitment to shareholder returns and strategic transformation.

References:
[1] https://www.rttnews.com/3558632/brightstar-lottery-intends-to-launch-250-mln-accelerated-share-repurchase-declares-dividend.aspx
[2] https://www.investing.com/news/sec-filings/brightstar-lottery-completes-igt-gaming-sale-declares-special-dividend-and-buyback-93CH-4157243