International Game Technology
) DoubleDown Casino secured a land-based deal with Bonanza Casino
in Reno, Nevada. IGT will provide DoubleDown's portfolio of online
casino-style games to be played on the hotel's website.
The partnership with IGT is expected to enhance Bonanza Casino's
entertainment value, since players can stay attached to the casino
virtually. DoubleDown would be providing online games such as Da
Vinci Diamonds, Cleopatra slots, multi-player poker and the new
Bingo game. More exciting games will be added to its offerings over
the next few months.
This deal is similar to a recent one with Hard Rock Hotel and
Casino and with Jacobs Entertainment that was signed last month.
Other than these deals, IGT's DoubleDown Casino has secured revenue
sharing partnerships with other casinos as well. The popularity of
the DoubleDown platform is encouraging, enabling IGT to generate
incremental revenue in the long run.
Though IGT is a comparatively new entrant in the online social
gaming market, we believe that DoubleDown's strong product
portfolio and customer base will help it garner new partnerships
that would provide a competitive edge over other established
New contract wins along with an improving domestic gaming
environment, international expansion opportunities, an impressive
product portfolio, reduced dependence on the domestic machine
replacement cycle and strong growth from the interactive business
will drive growth going forward.
Moreover, IGT recently ventured into Pennsylvania by providing
40 server-based gaming slots to The Meadows Racetrack and Casino.
This would expand 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
Additionally, the company is keeping pace with technology
demands and has made headway with its IGT Cloud. We expect the IGT
Cloud services to gain traction in the casino gaming industry, as
it is expected to be well received by new casino properties,
thereby improving the company's top line.
However, we believe that the increasing investment in product
development will drive 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 in the near term.
We have a Neutral recommendation on the stock over the long term
(6-12 months). Currently, IGT carries a Zacks #3 Rank, which
implies a Hold 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
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