Gaming briefs for Nov. 5, 2003

Wednesday, Nov. 5, 2003 | 11:25 a.m.

Firm looks at Internet strategy

Harrah's Entertainment Inc. has received approval from the Mississippi Gaming Commission to pursue an Internet casino in Alderney, one of the British Channel Islands.

A Harrah's spokesman declined to comment further on the decision or say whether an Internet gambling site was under development.

Mississippi regulators require state gaming license holders to receive prior approval for Internet gambling activities regardless of where the activities are based.

Alderney is one of a few jurisdictions that has developed regulations governing Internet gambling.

A sister company of the Venetian casino resort in Las Vegas was already awarded an Internet gambling license in Alderney but has not yet said when it will open an Internet casino.

Several other companies, including MGM MIRAGE and Station Casinos Inc., have pulled the plug on Internet gambling plans elsewhere.

Company's loss narrows

Mikohn Gaming Corp. of Las Vegas today reported a third-quarter loss of $4.2 million or 32 cents per share, an improvement from the $30.2 million or $2.35 per share lost in the year-ago quarter.

The 2002 quarter included some $16.7 million of charges for restructuring expenses, severance expenses, impairment losses and write-offs of assets; $2.5 million of discontinued operations losses and charges of $7.6 million for inventory obsolescence and bad debt.

Revenue for the 2003 quarter of $20.6 million was down from $29.6 million.

LV firm's earnings improve

Herbst Gaming Inc. of Las Vegas reported increases in profit, revenue and cash flow for the third quarter ended Sept. 30 compared to the same quarter a year ago.

The company reported a 30 percent increase in revenue to $79.6 million for the quarter. Profit increased $340,000 to $352,000 during the period. Cash flow jumped 46 percent to $12.7 million.

During the first quarter of 2003 Herbst completed its acquisition of the slot route assets of Anchor Coin, a subsidiary of slot maker International Game Technology. In conjunction with that acquisition, the company completed a $49.1 million debt offering in February 2003.

Revenue from route operations rose 38 percent to $62.3 million in the third quarter. Revenue from casino operations rose less than 1 percent to $19.3 million.