Agreement signed with GTECH for new slots

Wednesday, May 11, 2005 | 10:42 a.m.

Harrah's Entertainment Inc. and GTECH Corp. have signed a strategic alliance that will result in GTECH placing 200 leased video slot machines in Harrah's properties nationwide over the next two years.

The companies also agreed to work together on development projects at race tracks considering legalized casino gambling, including Suffolk Downs in Massachusetts and Turfway Park in Kentucky.

Over the next two years, West Greenwich, R.I.-based GTECH expects to generate $5.8 million in revenue from the placement of the 200 machines.

Analysts said the agreement could be expanded in future years, as GTECH looks toward acquiring Atronic Systems, Lubbecke, Germany, by the end of 2006. Marc Falcone of Deutsche Bank Securities said the relationship could also help Harrah's bid to manage a tribal casino with the Narragansett Tribe in West Warwick, R.I.

"The gaming-machine segment of the commercial casino industry will benefit from a successful entry by GTECH, whose commitment to growth is evidenced by its purchase of Spielo (Manufacturing Inc., a video gaming equipment manufacturer) and planned acquisition of Atronic," said Gary Loveman, chief executive of Harrah's, in a statement announcing the agreement.