This just came in the Fantini Daily Report I get, a very reliable source that tracks the casino business. I am looking forward to talking to executives at the Expo next week!
<<IGT AND SUPER SAS
<<International Game Technology, which dominates the old world of slot machine boxes, is setting out to do the same in the new era of central determination systems and downloadable games.
IGT has announced that it will unveil its new slot protocol at G2E next week. And the name is not modest. It is dubbed SuperSAS.
David Vas of Banc of America Securities expects IGT to install the system at two Southern California Indian casinos by the end of the year, then achieve a "rapid proliferation across Indian Country."
SAS 6.01 will, Vas said, justify the research and development investment IGT has made in systems, approximately half of its $120 million budget.
Downloadable games are fast becoming the buzzword to replace ticket-in ticket-out.
Downloadable games means that a casino can order up any game on a single slot machine, just like you can change video games on your personal computer.
The result is expected to be a switch from selling boxes to selling the games for them, again, similar to the model in the personal computer world. A big difference, however, is that downloadable games probably will be installed on a revenue sharing basis, meaning the potential for big and growing recurring revenue.
IGT is not alone in this business. Cyberview will be at G2E displaying the only downloadable game with GLI approval. Multimedia Games is about to install upwards of 600 downloadable game machines in Oklahoma.
But the betting will be on IGT to succeed. The slot giant has several advantages, such as that huge R&D budget, brand power, sales, distribution and maintenance networks.
But, as IGT executives are fond of saying, it all comes down to games and IGT has far more games than anyone in a vast library. That library, always an advantage, becomes even more important when a casino manager or slot manager wants to change out games immediately.
In addition to benefiting the supplier, such as IGT, downloadable games are expected to benefit casinos. For example, if a comic book convention is on the property, games featuring Spiderman and the Hulk can be put on the floor. Or games can be targeted to individual players based what they like.
A casino might need fewer games for peak hours in such an environment. And it will extend machine life.
How fast downloadable games spread will depend more on regulator comfort than technology. Thus, there is an expectation that it will be 2006 or 2007 before regulators in markets such as Nevada write rules that make them sufficiently comfortable that players will be getting a fair and honest game.>>
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Jean $�ott - Go to http://www.FrugalGambler.biz
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