Wednesday, Aug. 27, 2003 | 11:11 a.m.
Firm reports profit increase
Acres Gaming Inc. reported a 136 percent increase in profit to $7.1 million for its fiscal fourth quarter ended June 30.
The Las Vegas software development company makes bonusing and "cashless" systems for slot machines. Cashless machines can dispense paper tickets instead of coins.
On a per share basis, earnings rose to 64 cents from 29 cents.
Revenue during the quarter rose 115 percent to $20 million. Revenue included patent license fees of $8.6 million compared to only $36,000 in the same quarter of last year.
Separately, the company said that the federal antitrust waiting period applicable to International Game Technology's proposed acquisition of Acres expired Monday. Federal law requires entities seeking a significant stake in a public security to file a notification with the government, which then triggers a 30-day review period.
IGT and Acres entered into a merger agreement on June 29. Under the terms of the agreement, IGT will pay about $130 million in cash for Acres, or about $11.50 per share.
The merger remains subject to approval by Acres stockholders and gaming regulators. The parties expect to complete the merger in the fourth calendar quarter of this year. A special stockholder meeting to vote on the merger is scheduled for Sept. 12.
Terrible's casino chain to introduce weekly publication
Herbst Gaming Inc., which owns the Terrible's casino chain in Southern Nevada, is launching a free weekly magazine that will be distributed to local customers and will offer information on events and player reward programs.
Herbst has previously mailed coupon booklets to members of Terrible's slot player club and also stacked them in slot machine alcoves in grocery stores. The magazine, Terrible's Weekly, will replace the booklet and will be updated every week.
Avid Media, which publishes lake visitor guides including Lake Mead Magazine and Hoover Dam Magazine, will create the publication for Herbst.
Avid will print 100,000 copies of the magazine each week for distribution at Terrible's locations, while 1,000 copies a day will be mailed to slot club members. Hotel guests also will receive a copy, as will motorists receiving service at Terrible Herbst gas stations and residents living near Terrible's casinos. The publication will potentially reach about a million readers per month, the company said.
It also will accept paid advertising and feature a grand prize drawing for readers every month that will require players to appear at a Terrible's casino.
Casino changes radio ad
The Palms last week tweaked a radio spot after Nevada's top gaming regulator said it would run afoul of rules prohibiting false or misleading casino advertising.
The ad promoted the Palms $400,000 "Pigskin Payoff" football contest by saying the chances of winning "are better than anywhere else."
New ads with that phrase removed ran the day after the Gaming Control Board was tipped off about the spots, Palms Director of Marketing Sheri Long said.
Long said the phrase was intended to compare the Palms contest to football contests offered by Station Casinos Inc. and Coast Casinos Inc. that have more casinos and therefore more customers sharing in the potential prize pool.
But Gaming Control Board Chairman Dennis Neilander said the ads "weren't specific enough" in explaining the promotion to potential players.
Advertising that pushes the envelope isn't common but comes up from time to time as casinos fight for customers, Neilander said.
"It's so competitive. Licensees are watching each other closely," he said. "They know what the rules are," he added.
archive
