Summary - The dangers of "bankable income"
Usually income from gambling systems is about as safe as you can get. It continues during storms, recessions and the financial crisis. This confidence has allowed Scientific Games (SGMS) to accumulate $9.5 billion in debt. Last year this cost them $589 million in interest costs, which was more than cash flow from operations. But the virus imposed shutdown looks like it might bring it all tumbling down.
SGMS's interest costs have exceeded cash flows for many years, despite steadily increasing EBITDA. Just last year we wrote