Fri, Aug 21, 2009

Resorts and the Hilton fail to keep pace in a fast-changing world of Atlantic City Gaming

What were first seen as wise purchases by real estate company Colony Capital could become disasters as first Resorts Atlantic City and now the Atlantic City Hilton have defaulted on their mortgages.

Eight months in arrears on a $360 million mortgage, Atlantic City’s first casino has asked state regulators if it can transfer ownership of the flagship property to its lenders.

Resorts Casino Hotel, which ushered in Atlantic City’s gaming era back in May 1978, last paid its rent in October 2008. In March, main lender Column Financial Inc. got approval from the New Jersey Casino Control Commission to begin foreclosure proceedings. The commission will consider the current petition for transfer at a hearing later this month.

“If approved, this would be the first time that ownership of a casino hotel would change hands in this fashion,” commission spokesman Daniel Heneghan told the Philadelphia Inquirer.

Resorts’ fortunes are in freefall due to a combination of recession, out-of-state competition, and newer competition in its own backyard. The aging Boardwalk casino is emblematic of the troubles plaguing Atlantic City. After almost three straight decades of financial invulnerability, the East Coast gaming mecca is now in its third straight year of sliding revenues.

The figures for second-quarter 2009 were not encouraging. Gross operating profit totaled $198.4 million for April to June, down 19.8 percent compared with the $247.3 million won by the casinos in the same period in 2008. Borgata Hotel Casino & Spa, which opened in 2003, was the only casino to report an increase with $49.8 million, up 7.8 percent from 2008.

Resorts, meanwhile, and its sister property, the Atlantic City Hilton Casino Resort, came up snake eyes with losses of $1.8 million and $603,000, respectively. Atlantic City's first casino is down 22 percent year-to-date in total gambling revenue from the same period a year ago.

Because of the “Severe impact of the current economic conditions,” the Hilton defaulted on its mortgage in July.  Casino officials said they are in negotiations with the lender to alter the terms of the mortgage. The company still owes $348 million on the Hilton in addition to nearly $1 million in deferred interests. In the meantime, it’s business as usual at the Hilton, according to the company.

Since January, Resorts has tried to fend off the takeover by Column Financial, a subsidiary of Credit Suisse. Though regulators ruled that Column could begin foreclosure, it also said the casino's owner—Resorts International Holdings LLC—could maintain control over its own bank accounts.

After the March ruling, Resorts International CEO Nick Ribis said a deal with the lenders might help the casino avoid bankruptcy. At the time, he told the Atlantic City Press, “We are trying to work this out so the operation will continue to move forward at a time when we are in terrible distress. Just because things get difficult doesn't mean you walk away.”

Under the present management agreement, Ribis would stay on to run the property. Resorts' current owner, L.A.-based real estate firm Colony Capital LLC and its corporate affiliates, would transfer their stake to the former Trump executive and leave. Reports that the Fine Point Group would be brought in to manage the casino could not be substantiated at press time.

Colony bought the casino in 2001 at the then-bargain-basement price of $140 million. Prior owner Sun International Hotels Ltd. paid $301 million five years earlier to buy it from entertainer Merv Griffin. Griffin's ownership, from 1988 to 1996, was marked by two bankruptcies.

Resorts’ decline is related in part to its image as a casino for older patrons, reports the Atlantic City Press, which quoted several senior patrons in its story on the takeover. One, 78-year-old gambler Marge Savoca, said, “Most of the senior citizens from our area in Long Island come here.” Another, 68-year- Mel Druin, compared Resorts (unfavorably) to Borgata, the city’s newest casino.

"Borgata is much more upscale,” Druin told the Press. “It leaves Resorts and everybody else behind.”

With approval from the Casino Control Commission, Resorts will be owned by be a coalition of lenders, including Wells Fargo on behalf of Credit Suisse First Boston Mortgage Securities Inc.  Still at issue is whether the commission will require those lenders to get a full-fledged casino license as part of the takeover, or approve their request for what the Press called “a less onerous non-gaming service industry license.”

In papers filed with the commission, the lenders say they need only a nongaming license because they will not have direct control over Resorts' operations. Ribis, who already holds a full casino license, would have control in his role as Resorts' operator under the proposed management structure.

Colony bought the Atlantic City Hilton in September 2004 from Caesars Entertainment, also known as Park Place Entertainment, as part of a four-casino acquisition.

By Staff   Mon, Aug 24, 2009

September 1 launch of sports wagering in Delaware in jeopardy

Plans for the state of Delaware to begin taking sports bets took a hit today when a federal appeals court in Philadelphia ruled that the plans would violate the 1992 federal ban on sports wagering. Delaware was one of four states specifically exempted by the law because it previously offered a state sports-based lottery, but the court apparently agreed with attorneys from the major sports leagues that the state’s plan to accept single-game wagers on games was more than the exemption permitted.

The leagues were challenging the denial of an injunction by a federal judge that would have halted the wagers before the September 1 starting date. It is unclear at this time whether the ruling would stop all sports betting or whether the parlay system used in the 1976 lottery game could go forward. A similar option is in place in Ontario, Canada, where bettors must place a wager on two separate events and win both to be paid.

When asked by a federal judge what would happen if the panel permitted sports betting to go forward, and then it is later overturned, putting millions of dollars in wagers at risk, an attorney for the state of Delaware said “Caveat emptor," or “buyer beware.”

A spokesman for Delaware Governor Jack Markell was stunned.

"We were counting on this revenue to help balance our budget,’’ he said. “We’ll have to see what measures we need to take.”

Delware could take the case to the full appeals court for reconsideration or go directly to the U.S. Supreme Court, which would be a lengthy process.

A full explanation of the ruling will be issued later today. Read the August 31 edition of GGB News for complete coverage of this issue.

Fri, Aug 21, 2009

The Isle of Capri Casinos board of directors last week elected James B. Perry as chairman of the board following the death of the company's founder and former chairman, Bernard Goldstein. In addition, the board nominated Richard A. Goldstein to stand for election to the board at the upcoming annual shareholders meeting in early October.
   
Perry, now chairman and CEO, said he was humbled by the appointment.
   
"It is an honor to fill the chairman's role and continue to build the company of Bernie's dreams,” he says. “His legacy will endure as the board of directors and management team are committed to shaping the company he envisioned."

Considered one of the most respected executives in the gaming industry, Perry joined Isle of Capri Casinos as vice chairman of the board in 2007; he was named chief executive officer and executive vice chairman in March 2008. Prior to joining Isle of Capri Casinos, Perry held leadership roles with Trump Entertainment Resorts and Argosy Gaming. Under his guidance, Argosy was transformed from a struggling operator of regional riverboat casinos to a company with one of the strongest balance sheets in gaming. The company was sold to Penn National Gaming under his leadership.

Originally from New Castle, Pennsylvania, Perry began his career in 1976 with Ramada, Inc., where he held various positions throughout a twenty year period.

Goldstein, son of the late Bernard Goldstein, serves as president of Alter Energy, LLC, and serves on the board of directors, and is executive vice president, of Alter Company. He has been an officer/director of several affiliated river transportation companies engaged in stevedoring and equipment leasing since 1983. Since November 2005, he has served on the co-products committee/transportation subcommittee of the Renewable Fuels Association.

Fri, Aug 21, 2009

‘Native son’ returns to Atlantic City

Don Marrandino didn’t look back when he left Harrah’s Atlantic City in 1989 to join the Rio in Las Vegas, where he was responsible for setting up the nightclub scene in that seminal property. And when he moved on to Station Casinos to take charge of one of its properties and later one of its divisions, it seemed that his past was a distant memory. And later, when he was COO of the Hard Rock Hotel and then president of the under-construction Wynn Las Vegas for a short time, Marrandino’s pedigree seemed to be built for the desert. But he really started to shine when taking several down-and-out properties and reviving them into hip (at least semi-hip) mid-Strip properties, leading the Flamingo, Harrah’s Las Vegas, O’Shea’s, the Imperial Palace and Bills Gambling Hall into the 21st century.

But Marrandino’s Las Vegas days are over. Last week, he was named president of Harrah’s eastern division, which includes the company’s all-important Atlantic City casinos and its Chester racino, following the announcement of the retirement of Carlos Tolosa, who had been with the company since its days as the Holiday Inns.

Marrandino was born in Atlantic City and grew up in Brigantine, a small town just north of the city. His family still calls the island home and Marrandino admits he always had “sand in my shoes”—but not desert sand.

The shakeup brings Rick Mazer, a longtime Harrah’s executive, to Las Vegas to take Marrandino’s position. Dan Nita, previously in charge of Harrah’s AC properties will assume Mazer’s old job as general manager of Harrah’s Hammond in northern Indiana, and will presumably also oversee the company’s Midwest riverboats in Indiana, Illinois, Missouri and Iowa.

Tolosa will stay on until the end of the year, assisting Marrandino with the transition and working with Harrah’s Chairman Gary Loveman with “strategic initiatives.”

Known for his unique feel for entertainment, Marrandino was questioned last year when he brought in Donnie and Marie Osmond to headline at the Flamingo, a move that has paid huge dividends for the property.

Loveman announced the changes in an email to employees and executives in which he called Marrandino an “engaging and creative leader.”

“Don is probably most well-known for his innovative entertainment strategies, but he is more than Mr. Entertainment,” Loveman wrote in the email. “Throughout his career, he has shown an unwavering dedication to service and a knack for cultivating innovation.”

Sun, Aug 23, 2009

Frank Fertitta Jr., the founder of Station Casinos, Inc., passed away on Friday, August 21, 2009 at the age of 70.
 
Born October 30, 1938, in Beaumont, Texas, Mr. Fertitta is largely credited with the creation of the Las Vegas locals’ casino market. At a time when most casinos were located on the Las Vegas Strip or in downtown Las Vegas, he believed that if you provided locals with a convenient location, value for their dollar, a friendly atmosphere, and great customer service you didn’t need to be on the Strip and in downtown Las Vegas to be successful. His vision became a reality on July 1, 1976 with the opening of “The Casino,” a 5,000 square casino attached to the Mini-Price Motor Inn on west Sahara Avenue. The Casino quickly became a popular locals’ hangout and the Las Vegas locals’ market was born.
 
Fertitta arrived in Las Vegas with his wife Victoria (Vicki) in 1960 from Galveston, Texas. His first job was as a bellman at the Tropicana Hotel & Casino while he was learning to be a dealer. From 1960-1976 he served as a dealer and held other gaming positions including pit boss, baccarat manager and general manager at properties including the Stardust, the Tropicana, Circus Circus, the Sahara and the Fremont.  
 
As the success of The Casino grew, Fertitta added bingo, a popular game with locals, and in 1977 changed the name of The Casino to the Bingo Palace. Fertitta’s knowledge of his customer, his instinct for marketing and his focus on customer service made the Bingo Palace an overwhelming success, which led to an almost continuous series of expansions, including the addition of hotel rooms, more restaurants and other entertainment amenities. In November 1983, Fertitta changed the name of the Bingo Palace to the Palace Station Hotel & Casino.   
 
Through more than a dozen expansions over the years, Palace Station continued to grow and  Fertitta’s sons, Frank III and Lorenzo, had the opportunity to learn the gaming business from their father. The Fertittas also studied how Las Vegas was developing and saw an opportunity to grow their business by replicating the experience guests enjoyed at Palace Station. Fertitta retired from Station Casinos in 1993 when his sons took the company public in what at that time was one of the largest initial public offerings in the gaming industry.
 
Although Fertitta retired from Station Casinos in 1993, he remained very active in other Fertitta family businesses as well as community and philanthropic affairs. Fertitta and his wife Vicki were deeply involved in and prided themselves on giving back to the Southern Nevada community.  Although their personal and financial contributions were wide-ranging and many, their focus was on improving education and the quality of life in Southern Nevada—especially for children.  They had significant involvement in the University of Nevada Las Vegas (UNLV), Bishop Gorman High School, Catholic Charities of Southern Nevada, Nevada Cancer Institute, Opportunity Village and St. Judes Ranch to name just a few.  

Fri, Aug 21, 2009

This could be the year for a gaming expansion in Massachusetts

This year could be the year that Massachusetts adopts some form of legalized gaming, brought about by the state’s need for a new revenue source, and the fortuitous change in state leadership.

The most important change was the fall from grace over corruption charges of former Assembly Speaker Salvatore DiMasi and some of his allies, who opposed any form of gaming and his replacement by Robert DeLeo, who is a supporter of slot machines for racetracks (he has two in his district), and maybe a little more.

Clyde W. Barrow, who heads the University of Massachusetts at Dartmouth’s Center for Policy Analysis, commented last week to the Standard Times, "I think we'll see a real nasty debate but it's pretty clear something is going to pass…There's too much support in the House. They know the public support is there and the bidders are still lined up." He adds, "The fact that they're already working with the attorney general on a crime bill, with money laundering and like, to get that legislation out of the way tells me they want to work quickly."

Even opponents like Rep. Michael Rodrigues, concedes, "I think there's the greater possibility that it will be different this time…We have a speaker now who is a proponent." But they also have a Senate president, Therese Murray, and governor, Deval Patrick, who support expanded gaming in some form.

Patrick has been quietly supporting some form of gaming after being humiliated by DiMasi last year. The speaker buried the governor’s proposal for three regional casinos with almost no time for debate. Most political observers at the time thought that the lopsided vote against casinos was more a reflection of DiMasi’s ability to call in political markers than a reflection of the House’s true sentiments.

But the question remains, will the gaming bill take up Patrick’s three regional casinos, or slot machines at racetracks, or a combination of the two? The latter is what Speaker DeLeo is pushing and some combination deal is what Barrow predicts will result.

Republican gubernatorial candidate Christy Mihos, who wants to get the chance to unseat Patrick, says he favors legalizing wagers on professional and college sports. He says this change could be done quickly and would, he claims, raise $1 billion a year for the state.

Meantime the town of Upton got notice from its state senator that Penn National Gaming Inc. might be interested in building a casino there, if a gaming law is passed. Selectmen of the town, while not without concerns, told their senator that they were interested. However, everyone admits that any interest shown by the town or the company is very preliminary at the moment.

One potential player whose prospects have dimmed considerably in the last few months is the Mashpee Wampanoag tribe, which has petitioned the Bureau of Indian Affairs to put more than 500 acres into federal trust in order to build a casino in Middleboro. That looked like a pretty good bet before February, when the U.S. Supreme Court issued a ruling that many interpret makes it extremely difficult for any tribes recognized after 1934 to put land into trust.

The tribe had a chance to be given the inside track to operating one of the three commercial casinos last spring, but it chose to go on its own to take advantage of not having to pay state taxes. It is sticking with that game plan even now and as a result has not been included in any discussions that are taking place in the state capitol.

To make things worse, the investors who had made a deal with the tribe are not sending the tribe its annual payments. But that’s partially the tribe’s doing since it recently told the investors, Sol Kerzner and Len Wolman, that it wanted to renegotiate the deal. So far negotiations are up in the air.

Fri, Aug 21, 2009

New York’s Turning Stone Resort and Casino recently announced its pick of William Johnson for the post of vice president of gaming.

In his new position, Johnson will oversee each of the resort’s game departments, which include table games, gaming machines, poker, bingo and keno.

Johnson is an industry veteran, having worked for MGM Mirage and other properties for more than 20 years.

Fri, Aug 21, 2009

Jackie Pinner will join American Racing and Entertainment as the senior director of marketing for the company’s two racinos, Vernon Downs Casino and Hotel and Tioga Downs Casino.

Pinner has a wealth of experience in the gaming industry, having worked for resorts across the country.

In her new role as director of marketing, Pinner will manage the marketing of both properties.

Fri, Aug 21, 2009

The COO for Seminole Gaming has been selected: Howard Dreitzer, formerly the company’s senior vice president of table games, has been promoted.

Dreitzer supervised table game operations for more than a year before rising through the ranks to become the COO of the Seminole Tribe’s Florida casinos.

“Since joining the Seminole Tribe’s gaming operation in early 2008, Howard Dreitzer has been invaluable in the launch of blackjack, baccarat and other table games at both Seminole Hard Rocks and the Seminole Casino Immokalee,” said Seminole Gaming CEO James Allen. “I am confident that his future contributions to the tribe’s gaming operations will be even more significant.”

Fri, Aug 21, 2009

Las Vegas-based specialty table game supplier Galaxy Gaming announced that it recently added two gaming industry professionals to its sales department. Deborah LaGrey-Steeno and  Dean Barnett accepted the positions of sales administrator and regional sales manager, respectively.

LaGrey-Steeno formerly worked at WMS Gaming, and has extensive experience in gaming support operations. Barnett was previously sales VP for Vending Data, formerly known as Casinovations. Prior to that, he was national sales manager for Shuffle Master Gaming.

"Great companies are run by great people, and accordingly we are honored to have added two top contributors such as Deborah and Dean to our exceptional sales team,” said Galaxy Gaming CEO Robert B. Saucier.

Fri, Aug 21, 2009

Slot and system manufacturer Bally Technologies announced that L’Arc Macau and RGB Macau, operators of the new L’Arc Macau casino resort, have purchased an array of Bally Systems products for the casino’s fall opening.

The new casino will use a complete suite of Bally system products, including the SDS slot accounting and player tracking system along with 420 iVIEW LCD displays embedded in slot machines. The casino also purchased a Bally CMP casino management system, complete with a new junket module adapted and configurable to Asia’s requirements; and the TableView Real-Time table game rating and player tracking system.

In addition, L’Arc chose Bally Power Promotions, a solution that allows casinos to convert player’s club points and promotional dollars into playable credits at the table and gaming machine without having to visit the club booth.

“When selecting a systems vendor for the opening of our new resort, it was important that we choose one with a vast array of solutions to accommodate us now and as we grow,” said Paul Tso, CEO of L’Arc Macau. “Bally met all of our needs on both the table games and slots side of our business and gave us the most confidence that they will be a solid long-term partner with the most flexible solutions as we develop our business in the Macau market.”

“It is exciting and a great honor to continue our momentum in Macau with L’Arc as a partner,” said Cath Burns, Bally’s vice president and managing director, Asia-Pacific. “The Bally Systems products they selected will deliver operating efficiencies and highly effective marketing and promotional tools to help make their new casino a grand success.”

Fri, Aug 21, 2009

Table game supplier Galaxy Gaming, Inc announced that the Washington State Gambling Commission unanimously approved its petition to amend a state rule to allow full implementation of all features of Galaxy’s “Emperor’s Challenge Pai Gow Poker” casino table game.

Emperor's Challenge is the first table game available with Galaxy's Bonus Jackpot System, or BJS, which allows players to place an optional fourth wager to qualify for a progressive jackpot prize. The previous rule restricted players to place no more than three of the four available wagers. The new rule will allow the side bet to be activated on games at 78 casinos in Washington, according to the manufacturer.

The same day the rule change was announced, the Gambling Commission released a report showing that Emperor's Challenge is the No. 1 proprietary casino poker game in the state, dropping Shuffle Master’s Fortune Pai Gow Poker to second place.

“This rule change is huge for us,” commented Robert Pietrosanto, Galaxy Gaming's sales manager. “Although Emperor's Challenge became No. 1, a large number of casino operators told us they were waiting for this rule change before placing their order for the BJS version. Since Friday’s ruling, orders are pouring in. I anticipate at least another 50 units over and above our current backlog.”

Fri, Aug 21, 2009

A federal appeals court judge reinstated a lawsuit filed by two former employees of slot manufacturer International Game Technology that claims the two were fired for leaking information detrimental to IGT concerning a merger agreement.

The two employees, Shawn and Lena Van Asdale, allegedly questioned company officials about information that may have been withheld from shareholders concerning its acquisition of Anchor Gaming in 2001. The couple, both IGT lawyers, claim the company fired them after they raised questions about the value of Anchor patents when merger discussions were ongoing. IGT claims they were fired for poor performance.

The lawsuit was dismissed by summary judgment by a U.S. District Court. Last week’s decision by the 9th U.S. Circuit Court of Appeals overturns that decision.

“We conclude that the Van Asdales raised a genuine issue of material fact regarding the cause of their termination and that summary judgment should not have been granted, Circuit Court Judge Jay Bybee wrote in the decision. “We conclude that the Van Asdales’ theory of fraud approximates a securities fraud claim.” The judge added that the decision is by no means to be considered support of the plaintiffs’ original claim.

“It has always been and remains IGT’s position that the Van Asdale's claims are without merit and IGT intends to vigorously defend itself against these claims,” IGT Marketing VP Ed Rogich said last week in an interview with the Reno Gazette-Journal.

Fri, Aug 21, 2009

Aristocrat Technologies Europe announced that it has secured an order for slot machines to cover more than half the floor at the new Casino Fortuna in Nova Gorica, Slovenia. The order includes a10-bank Money Train Hyperlink link and scores of slots in all of the manufacturer’s major formats.


Casino Fortuna is a new, larger version of a casino in the Italian border town operated by Mako, which had been located in a smaller building nearby.

“Our first quarter’s performance has been extremely pleasing after the grand reopening, said Casino Fortuna Manager Mojca Merkun. “A number of promotions have been running with big cash prizes paid out weekly, Piaggio mopeds awarded monthly and a grand ‘Summer Splash’ reward of a Sea-Ray 175 Bowrider speed boat.”

“We already owned a number of XCite games, which continue to perform well, and were eager to give the floor a boost with some of Aristocrat’s new Viridian and slant games and a centerpiece attraction, the Money Train linked progressive,” Merkun added.

Aristocrat Regional Sales Manager Damien Greig commented, “Mako runs a very professional operation and has implemented the move of Casino Fortuna with utmost precision, supported by high-profile customer marketing. The location benefits from a large international hinterland with a significant influx of visitors from Italy, and we are naturally delighted that the company has chosen Aristocrat as the vast majority slot solutions provider.”

In other Aristocrat Europe news, the company reports good  feedback from customers taking advantage of the utilities offered on its recently launched microsite. In the first month after going live, the site welcomed over 500 visitors from across Europe and beyond, generating more than 2,000 page views.

Fri, Aug 21, 2009

JCM Global, a world leader in currency validation systems, has signed an agreement with product development company ADI to provide innovative ideas and to research and develop customer-friendly add-ons to existing JCM Global products.
 
ADI was formed by Randy Hedrick, known globally throughout the gaming industry for innovative engineering concepts in gaming. Under the agreement, ADI will work with JCM Global’s clients to develop products and features to add to and complement JCM products to tailor them to meet the client’s specific needs.
 
“We are very excited to be working with Randy and the experienced ADI team,” said JCM Global CEO Akiyoshi Isoi. “Randy’s creative vision fits perfectly with JCM’s engineering strengths, and the prospects have already proven to be very exciting.”
 
“This is a very exciting relationship,” added ADI President Randy Hedrick. “I have worked closely with JCM for years during my tenure at IGT, and I know their products and capabilities. I look forward to the synergy we can create, between my direct work with operators, the creativity and experience of the ADI team, and the knowledgeable JCM Global engineers.”

Fri, Aug 21, 2009

Weike Gaming Technology, which is the only slot and system manufacturer located in Singapore, announced that a new Macau gaming club has ordered Weike slots, electronic table games and the supplier’s slot management system.

The Club by Tornado, slated to open this fall in Macau’s downtown district, selected Weike Systems to provide a full slot monitoring, jackpot and player loyalty system for 400 machines initially, increasing to more than 1,000 machines in later stages of the project. It has also selected Weike’s Infinity gaming machines, both in stand-alone and linked progressive versions.

The casino also will install table games in Weike’s METG series (for Multi-player Electronic Table Games), plus the Pal X Poker Table for an electronic poker room operation.

“We are absolutely delighted that The Club by Tornado Slots has chosen Weike to be its system supplier and major machine provider for this new operation,” said Weike CEO David Kinsman. “Weike systems have an established track record in Asia, with 73 systems live across Philippines, Malaysia, Vietnam, Singapore, Laos and Cambodia. We are Asia’s leading system supplier to slot-based operations, and the latest version of Weike systems is currently undergoing approvals to GLI 12 and GLI 13 standards. As with regards to machines, The Club management has worked with Weike in other Asian markets and has extensive experience with our products.”

Fri, Aug 21, 2009

Slot manufacturer International Game Technology has entered into an agreement with Magellan Technology of Sydney, Australia, under which IGT will license the use of Magellan’s Phase Jitter Modulation technology (PJM) in gaming applications worldwide.

IGT will use the technology for gaming chips with embedded radio-frequency identification in its Table ID table game tracking system.

“Magellan is very pleased to have its technology exclusively licensed by IGT for gaming applications,” said Magellan CEO Tim Frost. “As a company already active in tracking medical implants, diamonds and other valuable items, we welcome the new opportunities that IGT’s license will bring to PJM technology and the gaming market worldwide.”

“IGT’s exclusive license to the PJM technology demonstrates our continued commitment to bring the latest technology to our customers,” said Rich Schneider, IGT executive VP of product management. “Magellan’s PJM product furthers the RFID technology that we use with our Table iD and Chip Inventory Systems. IGT looks forward to working with our partner Magellan as we jointly bring new products and systems to the global gaming markets.”

Fri, Aug 21, 2009

North Carolina-based PokerTek, Inc. announced that ICP Electronics of Taiwan is investing in the company, which produces the PokerPro automated poker table.

PokerTek will issue 565,000 shares of common stock to ICP valued at price of 85 cents per share.

The parties signed a stock purchase agreement and agreed to two-year extended payment terms for additional Heads-Up Challenge products to be produced by ICP. Heads-Up Challenge is a two-player version of the PokerPro table produced in collaboration with ICP, which supplied electronic components and engineering for the product.

“We are pleased to further solidify our partnership with PokerTek,” said Jordan Jiang, general manager of ICP Electronics. “We have worked closely with PokerTek for several years and this investment allows us to participate in PokerTek’s up-side potential as we continue to collaborate on development and production projects in the future.”

Mark Roberson, PokerTek’s acting CEO, added, “ICP has been a valuable partner, providing state-of-the-art electronic design and engineering services for our PokerPro product line and manufacturing our Heads-Up Challenge product. We have been in discussions with ICP for quite some time about the potential to strengthen the bond between our two companies and I am pleased to have them as a shareholder. This transaction further aligns our common interests with ICP and significantly enhances our ability to expand the new Heads-Up Challenge operator-direct program.”