International Game Technology
) will provide IGT Cloud solutions to Olympic Entertainment Group's
properties, namely Olympic Jarve and Olympic Ulemiste. Olympic
Entertainment had already deployed IGT Cloud in a casino at Estonia
in March this year. Olympic Entertainment will leverage IGT's
innovative and cost-efficient cloud-based gaming solutions to
provide its customers an enriching casino experience.
Deploying IGT Cloud in casino properties will not only give
Olympic Entertainment access to IGT's vast gaming library, but also
help to optimize its casino operations by using IGT's different
casino management solutions and sbX Analytics.
The popularity of the IGT Cloud in the casino gaming industry is
encouraging, as it is expected to improve IGT's top line.
Separately, IGT's DoubleDown Casino has met with enthusiasm from
different casino operators. In recent months, the company has
secured deals from Bonanza Casino, Hard Rock Hotel and Casino and
Moreover, IGT recently ventured into Pennsylvania by providing
40 server-based gaming slots to The Meadows Racetrack and Casino.
This expands IGT's reach in a relatively new market. IGT's business
is also likely to benefit as more casinos in Pennsylvania start
installing IGT's popular server-based games to attract clients.
However, we believe that the increasing investment in product
development will drive up operating costs, which will remain an
overhang on the stock in the near term. Moreover, fewer new
openings and increased competition from
Bally Technologies Inc.
WMS Industries Inc.
) will keep the stock range bound. Sluggish replacement sales is
another headwind in the near term.
We have a Neutral recommendation on the stock over the long term
(6-12 months). Currently, IGT carries a Zacks #4 Rank, which
implies a Sell rating in the short term.
BALLY TECH INC (BYI): Free Stock Analysis
INTL GAME TECH (IGT): Free Stock Analysis
WMS INDS INC (WMS): Free Stock Analysis Report
To read this article on Zacks.com click here.