IGT stock rises on big Harrah’s order

Monday, Oct. 13, 2003 | 10:44 a.m.

SUN STAFF AND WIRE REPORTS

International Game Technology Inc. of Reno, the world's largest slot-machine maker, today said Harrah's Entertainment Inc. of Las Vegas agreed to purchase at least 11,000 slot machines that let gamblers wager with tickets instead of coins.

The order may be the biggest ever for IGT, the company said in a statement. Terms weren't disclosed.

Harrah's will install Harrah's Fast Cash system, developed by Alliance Gaming Corp. of Las Vegas, into the machines to track the play of gamblers, the companies said.

IGT shares rose 7.2 percent, or $2.01, to $30.10 in morning trading. Harrah's shares rose 39 cents to $42.23 this morning.

IGT's sales have been boosted by the coinless slots, which reduce labor costs for casinos and allow them to pay jackpots more quickly. The order will represent about three-quarters of Harrah's slot machine purchases next year, the companies said.

Harrah's spokesman Gary Thompson said today that it hasn't been determined from what vendors the company would buy the rest of the slots next year.

"We haven't announced any additional orders and will be looking at a variety of different vendors, including IGT," he said. "We'll be looking for the best deals to provide the best games for our customers."

IGT said it will sell 60,000 to 65,000 replacement slot machines to U.S. casinos in fiscal 2004, which starts this month.

MGM MIRAGE ordered 7,000 of the slots last year, and Park Place Entertainment Corp. said in 2001 it would install 15,000 of the slot machines.