Inside Asian Gaming

November 2010 | INSIDE ASIAN GAMING 47 Briefs predict Atlantic City’s gaming industry will recover soon, following new competition from the SugarHouse Casino, which opened in nearby Philadelphia in September, and New York’s Aqueduct Racetrack, where Genting recently won approval to build a casino stocked with more than 4,500 video lottery terminals, only 120 miles from Atlantic City. Last month, the troubled Resorts Atlantic City was sold to gaming veteran Dennis Gomes for US$35 million, the lowest price ever paid for a New Jersey casino. Mr Gomes plans to capitalize on HBO’s “Boardwalk Empire” and run the property with a Roaring ‘20s theme. JCM Global and Leap Forward Gaming form strategic alliance JCM Global, a leading provider of innovative currency solutions to the gaming industry, has formed a strategic alliance with Leap Forward Gaming of Reno, Nevada, to develop pioneering technology for the global gaming industry that will change the way cash is handled in casinos. The first innovative product of a multi-phase effort from their partnership is expected to be available to the gaming industry in spring 2011. Leap Forward Gaming was founded by highly-respected gaming technology leader Ali Saffari, who is the driving force behind the company. Mr Saffari is credited with leading the development of revolutionary products and some of the most widely accepted and profitabletechnologiesintheindustrytodate,includingMegabucks®, ticket-in/ticket-out (TITO) technology, and the integration of bill validators into gaming machines. WMS profit slides marginally The profit of slot machine manufacturer WMS Industries Inc slid 1.5% year on year in the quarter ended 30th September because of charges and lower margins, but revenue reached a new record high. WMS Chairman and Chief Executive Brian Gamache said strong demand for the company’s new Bluebird xD cabinet helped boost revenue and “contributed to our ability to overcome the challenging industry environment for replacement unit sales.” WMS has seen higher revenue in recent quarters as the gambling industry has stabilized from a steep drop during the recession. The company continues to increase its spending on research and development of new products, to US$22.9 million in the latest quarter. WMS has said it expects to grow with new casino openings, the expansion of legal gambling and an expected increase in the industry’s replacement cycle. In addition, cost controls and higher new-unit production and shipments are expected to boost margins. For the quarter ended 30th September, WMS reported a profit of US$19.5 million, down from $19.8 million in the year-ago quarter. Revenue grew 13% year on year to US$187.5 million in the quarter. Product sales, which provided 59% of total revenue, climbed 25%, and the average selling price increased 9.6%. New units sold grew 10%. Meanwhile, participation revenue, whereby the company places machines on a casino floor and shares the proceeds with the casino operator, ticked up 0.3%. The average installed base rose 1.1%. WMS names Jon Lancaster Executive Director of Sales, International WMS Gaming Inc, a subsidiary of WMS Industries Inc, announced that Jon Lancaster has been named Executive Director of Sales, International. Mr Lancaster will report directly to Sebastian Salat, President International of WMS. As Executive Director of Sales, International, Mr Lancaster will be responsible for leading WMS International’s sales team and for identifyinganddevelopingstrategies to grow WMS’ penetration of international markets. Mr Lancaster will also work closely with customers across WMS’ international markets to ensure the Company addresses their market-specific needs with appropriate products and gaming technology solutions. Jon Lancaster brings a distinguished 17-year track record of gaming industry success to his new role, including the last 13 years as Sales Director for Atronic International Group. At Atronic, Mr Lancaster established a sales team and distribution network across Europe, Asia and Africa that facilitated Atronic’s entry into over 40 countries. He was also instrumental in the successful introduction of several new products to various global gaming markets. Bally profit declines Gaming equipment maker Bally Technologies Inc’s net income in the quarter ended 30th September fell 32% as the company sold fewer units. Bally said net income in the quarter was US$21.2 million, compared with $31.4 million in the same quarter of 2009. Bally’s revenue fell 9% to US$170.8 million, missing Wall Street’s estimate of $184.1 million, as gaming operations revenue climbed but gaming equipment revenue dropped, due to fewer casino openings and expansions in the quarter. The company’s systems revenue fell as well. In other news, Bally announced its CEO, Gavin Isaacs, has been elected president of the International Association of Gaming Advisors (IAGA) for 2011. IAGA is a non-profit professional corporation dedicated to the study and development of gaming law. Formed in 1980, it has grown to more than 500 members worldwide. Jon Lancaster Bally Technologies CEO Gavin Isaacs