GGRAsia – Analysts upbeat on IGT, firm ties to Crown’s Chill Gaming

Analysts upbeat on IGT, firm ties to Crown’s Chill Gaming

Oct 04, 2017 Newsdesk Latest News, Top of the deck, World

Casino equipment supplier International Game Technology Plc (IGT) announced on Tuesday a multi-year distribution agreement with games provider Chill Gaming, the latter a joint venture between Australian casino operator Crown Resorts Ltd and New Gaming Pty Ltd.

Under the agreement, IGT will be the sole distributor of Chill Gaming products worldwide outside of Australia and New Zealand.

The move would allow IGT to offer “even more products that are designed to attract and entertain an expanded demographic of players,” said Walter Bugno, IGT’s chief executive of international, in a prepared statement contained in a press release announcing the move.

Two of Chill Gaming’s games are currently on display at IGT’s booth at the Global Gaming Expo (G2E) 2017 casino industry conference and trade show being held in Las Vegas this week.

Brokerage Deutsche Bank Securities Inc said in a note on Tuesday – after holding investor meetings in Las Vegas with IGT senior management and touring the IGT booth at G2E – that the institution was upbeat about the development of IGT’s business.

“We came away impressed with the depth of content, as focus has clearly shifted from hardware deployment to ongoing content support,” wrote analysts Carlo Santarelli and Danny Valoy.

The institution indicated IGT had 10 percent more product on the G2E show floor this year compared to 2016.

“We believe IGT’s hardware line-up will benefit from the introduction of new technologies such as air haptics (allows the player to control the screen using hand gestures) and PowerSight (allows the player to control the screen/make selections using eye motion), both of which should create greater player immersion,” the Deutsche Bank analysts stated.

David Katz, an analyst at brokerage Telsey Advisory Group LLC, said in a Tuesday memo that the product that IGT was showing at G2E would be “pivotal in turning around the slot business in North America and confirming its positive stance on the earnings acceleration for the remainder of financial year 2017”.

“The breadth of content in the for-sale category, which includes approximately the same number of 100 titles [as last year], but which are more refined and ready for sale, should be positioned to gain traction,” he added.

Mr Katz also gave some commentary on Everi Holdings Inc, a U.S.-based specialist in cash handling technology and electronic game content for the casino industry.

He stated: “Our strategic discussion with Everi suggests that the game offerings are expected to demonstrate progress in both the Class II and Class III categories.” That was a reference to classifications used in North American markets to distinguish product used in, respectively, tribal gaming venues and commercial casinos.

Mr Katz added regarding Everi, and referring latterly to revenue participation deals between machine manufacturers and casinos that are permitted in some jurisdictions: “New cabinets with new content should position the company to expand its for-sale Class III offerings and its participation offerings.”

In late October last year, IGT gave a subsidiary of Everi access to patented game features from the IGT portfolio, in exchange for licensing fees.