International Game Technology (
recently entered into an agreement with Uruguay-based Rivera
Casino Group to install IGT cloud at two casino sites. The
partnership will allow Rivera to offer IGT's cloud-based gaming
solutions to its Manteo S.A. Rivera Casino & Resort as well
as Sarandi Slots customers.
Deploying IGT Cloud in casino properties will not only give
Rivera 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 Rivera contract is
IGT's second win in Uruguay in consecutive months. Earlier in
January, IGT agreed to install sbX casino management system at
SALTO Hotel and Casino.
IGT Cloud has been selected by a number of International
casino providers such as the Rank Group and Olympic Entertainment
over the last 12 months. The popularity of the Cloud in the
casino gaming industry is encouraging as it is expected to
improve IGT's top line going forward.
IGT's gaming operations continue to suffer from sluggish
macro-economic conditions in the domestic market. IGT is
therefore looking for expansion opportunities in the
International market. We believe that these customer wins will
expand IGT's international penetration over the long term.
The company is also gaining traction through its DoubleDown
Casino, which has garnered significant attention from different
land-based casino operators in the recent times. In January this
year, IGT agreed to provide its entire online gaming portfolio to
Belgian land-based casino operator Groupe Circus.
IGT already has relationships with operators in the United
Kingdom, Italy and Denmark and this partnership further extends
IGT's presence in the European regulated online casino market.
Moreover, in the domestic market, DoubleDown has secured deals
from Bonanza Casino, Hard Rock Hotel and Casino and Jacobs
These partnerships have helped DoubleDown to achieve
significant customer base in the recent past. As per IGT,
DoubleDown Casino continues to remain the #3 top-grossing app on
, and also became the #6 top-grossing app on
iPad in the first quarter of 2013. Moreover, average revenue per
daily active user also improved from 28 cents to 30 cents in the
We believe that increasing international expansion
opportunities, an impressive product portfolio, cost-cutting
initiatives, lesser dependence on the domestic machine
replacement cycle, new contract wins, and a strong performance
from the interactive business will drive growth in the near term.
Moreover, the legal settlement with
Bally Technologies (
is a major positive in our view.
Currently, IGT has a Zacks Rank #2 (Buy).
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