International Gaming Technology
) recently secured a deal from the casino-entertainment company
Caesars Entertainment Corp.
). Per the deal, IGT will supply 7,000 AVP Video Poker terminals
to Caesars including 3,600 G20 Uprights, 2,400 Universal Slant
cabinets and 1,000 G20 Bar Tops.
The new machines would be installed at Caesars
Entertainment-operated resorts across the country and replace the
earlier ones. In fact, this is considered to be the biggest
gaming re-investment that the company has made in a decade.
This is a significant deal win for IGT. It not only
strengthens the long-standing relationship between the two
companies but also establishes IGT's credibility as a leader in
providing reliable, user friendly interface to casino
IGT has been a leader in the casino gaming segment. IGT's
DoubleDown Casino was the top grossing game on
). It replaced
) poker game to claim the top spot in the social casino game
Moreover, the company also shipped 13,400 machines during the
quarter compared with 11,600 units in the year-ago quarter.
Average machine sales price was $13,300 versus $13,700 in the
year-ago quarter primarily due to higher mix of low-priced VLT
Moreover, as per a market research report published in
"reportlinker.com", the global casinos & gaming sector
reported a total gross gaming win of $456.0 billion in 2012,
representing a compound annual growth rate (CAGR) of 5.8% between
2008 and 2012.
To be more specific, Lotteries was the most lucrative segment
in the sector in 2012, reporting gross gaming win of $142.2
billion, and contributing around 31.2% of the total value. The
sector is expected to grow at an anticipated CAGR of 7.0% for the
five-year period 2012 - 2017 and reach $641.0 billion by in the
end of 2017.
We believe that IGT will benefit from new contract wins along
with an improving domestic gaming environment, international
expansion opportunities, an impressive product portfolio, lower
dependence on the domestic machine replacement cycle and strong
growth from the interactive business, going forward.
However, increasing investment in product development will
increase operating costs, going forward. This will remain an
overhang on the stock in the near term. Moreover, increased
competition from its peers in its core as well as interactive
markets will keep the stock range bound in the near term.
IGT Currently has a Zacks Rank#3 (Hold).
CAESARS ENTERTN (CZR): Free Stock Analysis
FACEBOOK INC-A (FB): Free Stock Analysis
INTL GAME TECH (IGT): Free Stock Analysis
ZYNGA INC (ZNGA): Free Stock Analysis Report
To read this article on Zacks.com click here.