IGT Gets Insurance Settlement

International Game Technology was able to report higher second quarter profits because of an insurance settlement that they received, otherwise they would not have shown as successful a finish as they did. They ended up with a higher cents per share listing than they would have had the settlement not come through. However, they have had declining revenues and the settlement is just a band aid.

They ended up with an average selling price that was higher than what was forecasted, but only because of the settlement. They had less slot machines shipped than they had been counting on, and most of that is due to the fact that most machines have been replaced by now. With the casinos all replacing their coin slot machines with ticket in ticket out machines, IGT had a lot of orders for new slot machines.

However, now that the new slot machines are in place, orders have dropped off for the company. But the company should start to see an increase in their orders as they just got approval from the Nevada Gaming Commission for their new slot machines. The new slot machines are server based, and with the Commission’s approval, they are set to see an increase in revenue.

They tested twenty of their new slot machines at the Treasure Island hotel/casino in Vegas, and regulators saw the next generation of gambling. They proved that all of the slot machines could be easily manipulated remotely – using a computer. Used to be they had to replace the slot machines when a new game came out, however, now they just reprogram them.

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