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International Guild of Hospitality & Restaurant Managers
Game Technology (NYSE:IGT)
9295 Prototype Drive
Reno, NV 89511
Phone: (775) 448-7777
Fax: (775) 688-0777
Employees (last reported count): 6,200
International Game Technology (IGT), founded in December 1980, is engaged in the
development and production of computerized gaming products. The Company operates
in three lines of business: product sales, proprietary gaming and lottery
systems. Product sales encompass the development, manufacturing, marketing,
distribution and sales of computerized gaming products and systems. The
proprietary gaming segment is comprised of IGT's wholly owned gaming operations,
which include activities that the Company performs on behalf of its strategic
marketing alliances, as well as its unconsolidated joint venture activities.
Lottery systems consist of the development, manufacturing, operation and sale of
online lottery and pari-mutuel systems and related equipment.
Upon its inception, the Company principally served the casino gaming industry in the United States. In 1986, IGT began expanding its business internationally. In addition to its United States production, the Company manufactures its products in the United Kingdom and through third-party manufacturers in Japan, Canada and Germany. IGT also maintains sales offices in selected legalized gaming jurisdictions globally, including Australia, Europe, Japan, Latin America, New Zealand and South Africa.
IGT designs, manufactures and markets computerized casino gaming products and systems for both domestic and international markets. Domestically, the Company manufactures a broad range of gaming machines, consisting of traditional spinning-reel slot machines, video gaming machines, government-sponsored terminals and other video gaming devices. In the international markets, IGT targets the Amusement With Prize (AWP), casino style, private club, gaming hall and government-sponsored video gaming machine markets. For its domestic and certain international markets, the Company offers hundreds of game themes. IGT typically sells its machines directly or through distributors to its customers, and, in certain circumstances, finances the sale or lease of the equipment. In the domestic gaming market, the Company holds an estimated 67% share of the installed base of gaming machines.
The Company offers a variety of gaming systems products to its customers. These systems, products and services enhance the players' gaming experience and provide operational efficiencies for IGT's customers. The Company's casino management system software supports its comprehensive family of IGT Gaming Systems (IGS) products. This system software includes integrated or stand-alone modules providing casino operators with real-time information in the areas of slot machine performance, patron management, reporting and analysis for table games along with credit and banking data. The Company's EZ-Pay ticket-in/ticket-out (TITO) system provides slot machines with the capability of accepting tickets, enabling players to move from one machine to another without the inconvenience of handling coins. Casinos have the option to use both hoppers and tickets-in machines connected to the EZ-Pay system. This technology works with both IGT and competitors' slot systems and integrates into casinos' existing systems and internal controls, while meeting the regulatory requirements of each gaming jurisdiction.
IGT competes with Ardent Gaming, Aristocrat Leisure Limited, Bally Gaming Inc., Atronic Casino Technology, Ltd., Mikohn; Konami Co. Ltd., Shufflemaster, Sigma Game, Inc., Spielo, Universal Distributing, Inc., WMS Industries, Atronics, Aruze, Cirsa Group, Franco Gaming, Ltd., Novomatic Industries, Acres Gaming, Inc. and Casino Data Systems (CDS).
The Company's proprietary games are placed in both domestic casinos and government-sponsored gaming markets. In the domestic casino markets, games are placed under a broad spectrum of recurring revenue pricing arrangements, including wide area protocol (WAP) systems, stand-alone participation and flat fee and hybrid pricing or premium products that include a product sale and a recurring fee. In the government-sponsored public gaming markets of Delaware and Rhode Island, IGT has long-term lease arrangements to place games at racetracks.
WAP games differ from stand-alone and hybrid games in that they are electronically linked, inter-casino systems that connect gaming machines to a central computer, allowing the system to build a progressive jackpot with every wager until a player hits the top award-winning combination. The operation of linked progressive systems varies among jurisdictions, as a result of different gaming regulations. Funding of the jackpots also differs by jurisdiction but is generally administered by IGT.
The Company continually provides enhanced player appeal to its proprietary games consistent with product lines that are sold directly to the casinos. This is accomplished through the introduction of feature-rich games with second event bonusing and by incorporating themes such as Wheel of Fortune, Megabucks, Regis' Cash Club, The Price is Right and $1,000,000 Pyramid. New-themed product introductions planned for 2003 include, but are not limited to, Magic 8 Ball, Uno, I Love Lucy, American Graffiti, Beetle Bailey, Lifestyles of the Rich and Famous, Beverly Hillbillies, Sale of the Century and Family Feud. Extensions of the installed base include the Diamond Cinema Series, featuring James Dean, Marilyn Monroe, Frank Sinatra and Steve McQueen.
IGT's competitors include Bally, Aristocrat, Atronics, CDS, Mikohn and WMS.
The Company's lottery systems segment consists of online lottery and pari-mutuel wagering systems, operations and products. This segment was acquired with the Anchor Gaming acquisition on December 30, 2001. IGT Online Entertainment Systems (OES) (formerly Automated Wagering International (AWI)) designs, manufactures, installs and operates or sells online and instant lottery systems and terminals. The Company's subsidiary, United Tote, designs, manufactures, installs and operates or sells computerized pari-mutuel wagering systems and products.
Online lotteries are conducted through a computerized system in which lottery terminals are connected to a central computer. These systems include both the hardware and software needed to process lottery transactions. The hardware consists of terminals located in retail outlets, a telecommunications network and a central computer system. Software components include communication applications and the software that operates the system, processes sales and validates the lottery game tickets.
IGT generally installs and commences operations of a lottery network within six to 12 months from the award of a new lottery contract. Following the start-up, the Company is responsible for all aspects of the network's operations. The Company operates lottery systems in each jurisdiction with two or more central computer systems, employing a dedicated workforce consisting of a site manager, computer and hotline operators, customer service and terminal repair technicians. The equipment used must comply with the specifications established by the jurisdiction and new contracts typically require the installation of new equipment.
Pari-mutuel wagering is authorized in 40 states in the United States, all provinces in Canada and many foreign countries and is conducted at horse and greyhound racetracks, off-track betting facilities, bicycle velodromes and jai alai arenas. The Company provides pari-mutuel wagering services through its United Tote subsidiary to over 110 of the pari-mutuel facilities in North America, as well as to facilities in South America, Europe and Asia.
The Company competes with GTECH, Scientific Games, EssNet/Alcatel, International des Jeux (Lotto France), International Lottery, Totalizer Systems, Alliance Gaming, Spielo, WMS, AmTote and Autotote.
The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly advised to obtain professional advice with qualified individuals or corporations for any investments of funds.
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