Slot makers chosen to provide VLTs in New York

Tuesday, Oct. 22, 2002 | 11:12 a.m.

Nevada-based slot machine manufacturers International Game Technology and Alliance Gaming Corp.'s Bally Gaming and Systems unit were among four companies selected by the New York Lottery to provide about 14,000 video lottery terminals to eight racetracks in the state.

The other companies, Sierra Design Group and Spielo USA Inc., are privately held.

Each company will provide roughly the same amount of machines each, lottery spokeswoman Carolyn Hapeman said.

The state, which only received the four bids, awarded them based on cost as well as a technical analysis, she said. It is now negotiating separate contracts with the four companies that will be reviewed by the state controller and the state attorney general's office for a scheduled introduction by the end of the second quarter of next year.

Shares of Reno-based IGT rose more than 7 percent Monday, to $75.50, on news that casino giant MGM MIRAGE would introduce IGT's "cashless" slot machine technology across the company's major resort casinos. The technology allows customers to use paper tickets to play and redeem from machines instead of coins and bills.

Alliance shares rose also on Monday's New York deal, increasing $1.83 to $18.