New jackpot system bodes well for Progressive Gaming

Jul 17, 2007 5:36 AM

Approval of its proprietary CasinoLink Jackpot system by Nevada regulators will go a long way toward improving the company’s financial condition in 2008, according to Progressive Gaming Corporation (PGIC) executives.

The local and wide-area progressive/mystery jackpot system has been approved by the Nevada Gaming Control Board’s technology division to proceed with field trials at Las Vegas casinos.

Plans call for the installation of 40 slot machines at two casinos for the 60-day trial. The company noted that the technology has been successfully deployed in casinos throughout the world but that the largest usage of slot machines is in Nevada.

With CasinoLink Jackpot system, casino operators can centralize control of progressive and mystery jackpots for their own slot machines and generate related media displays.

"CasinoLink Jackpot puts customers in control with a platform-agnostic system solution through which they can link multiple slot machines and self-manage their own progressive jackpot offerings and promotions," explained Russell McMeekin, president and CEO of Progressive Gaming Corporation.

"As a system solution," he added, "CJS has an attractive revenue model for Progressive Gaming as for every placement we generate both a one-time installation fee and a recurring daily revenue stream related to hardware and software maintenance.

"We expect that commercialization of CJS in the second half of this year in Nevada, the largest slot machine market in the world, will be an important driver in our 2008 sales growth."

The announcement came on the heels of another that identified an arrangement for the sale of the company’s table game division to Shuffle Master Inc.

The transaction is expected to close before Aug. 31. No financial details were given.

Involved are all of Progressive’s proprietary table game titles including Caribbean Stud and Texas Hold ”˜Em Bonus Poker.

Also discussions are being held regarding a technology license whereby Shuffle Master could integrate Progressive’s CasinoLink Jackpot system for use with certain versions of Shuffle Master’s progressive table games.

Different view

When it comes to gambling, U.K. Prime Minister Gordon Brown has a different view from that of his predecessor Tony Blair.

Under Blair, England was moving toward liberalizing its gaming laws that would have permitted one or two supercasinos and a number of smaller gambling facilities. One of the supercasinos was designated for the city of Manchester.

That is not happening.

In a speech to parliament last week, Brown said he was looking for ways to encourage economic growth in Manchester rather than going the gaming route.

"What we are moving into now is a period of reflection and review," a Brown spokesman told reporters.

Still, Brown is believed to favor licensing the 16 small casinos the previous study had recommended.

Also guilty

A second Canadian citizen has pleaded guilty to a U.S. federal conspiracy charge stemming from the operation of Neteller PLC, a company that processed Internet gambling transactions.

John Lefebvre, a Neteller co-founder, entered the guilty plea in New York City after agreeing to a plea deal that calls for him to cooperate with prosecutors and testify if necessary. He also agreed to pay his share of the $100 million that the government is seeking in restitution.

Stephen Lawrence, also a co-founder of the company, previously pleaded guilty to criminal conspiracy and agreed to a plea arrangement.

The two Neteller officials were arrested in January.

THE INSIDER: Officials of Turning Stone Resort and casino in Verona, N.Y., have advised customers to stop bringing alcoholic beverages with them when they go gambling. The Indian casino has been trying for six years to get an alcoholic beverage license without success.

Ivanka Trump, daughter of real estate mogul Donald Trump, has been appointed to the board of directors of Trump Entertainment Resorts Inc. (TRMP). She holds a degree from the famed Wharton School of Finance at the University of Pennsylvania.

Boyd Gaming Corp. (BYD) has scheduled an earnings conference for the second fiscal quarter for Wednesday, Aug. 1 at 9 a.m. PDT.

Riviera Holdings Corporation (RIV) has set its second quarter financial report for Friday, Aug. 3 at 11 a.m. PDT.

Nevada Gold & Casinos Inc. (UWN) says it will delay its filing of Form 10-K for the period that ended on April 29 because it is awaiting certain documents dealing with a partnership.

California casinos operated by four Indian tribes will be able to add 17,000 slot machines to their gaming floors as a result of legislation signed last week by Gov. Arnold Schwarzenegger.

Multimedia Games Inc. (MGAM) said the final results of its "Dutch Auction" will have the company purchase up to $25 million of common stock for a price between $13.50 and $12.25 each.

Mohegan Sun said it plans to team up with Capital Play, the Australian company, in its bid for the New York racing franchise. In addition to its Connecticut casino, the Indian tribe operates a harness track in Pennsylvania.

Bally Technologies Inc. (BYI) has appointed Brian Pierce as vice president of North American Game Sales. He previously held a similar position with Paltronics.

Analysts at KeyBanc Capital Markets have initiated coverage of shares of Dover Downs Gaming & Entertainment Inc. (DDE) with a "hold" rating.

The United Auto Workers Union has targeted Tropicana Casino and Resort in Atlantic City as its next unionizing effort. The property, now owned by Columbia Sussex Corp. has dropped 720 employees since it was purchased in January.

Hilton Hotels Corporation (HLT), which recently announced it was being acquired by another company, has cancelled its conference call scheduled for July 31 at 9 a.m. PDT.

Landry’s Restaurants Inc. (LNY) says it has repurchased $87 million in stock through the first half of fiscal 2007. It still has $93 million available for further buybacks.