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Progressive Gaming (PGIC)
Progressive Gaming Rolls the Dice with Big Deal
The casino management systems giant announced a deal yesterday that will incorporate components of three major casino suppliers in next generation table games. The deal incorporates aspects of Shuffle Master, International Game Technology (IGT), and Progressive Gaming. Shares of all three companies rose in early morning trading today, with Progressive leading the charge and gaining more than 9 percent.
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In a press release Tuesday, Mark L. Yoseloff, Chairman and CEO summed up the goal of the deal by saying, “The development of a comprehensive table management system solution is a very large and complex undertaking. Rather than each company attempting to invent the technology independently of one another, we have decided to combine our collective efforts, with the goal being to bring this technology to market in a more timely and cost effective manner for the benefit of our casino customers.” Shuffle master will provide card shufflers and reading shoes, while IGT and Progressive will provide more of the technological content, including back-end management systems and automated gaming chip tracking.
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Another positive of the deal is the elimination of competition between Shuffle Master and Progressive. Both Shuffle Master and Progressive offer table management services, and the deal will allow Progressive to focus fully on this aspect. Analysts believe that this cooperation may lead to increased revenue in casinos and ultimately higher profit, by combining technologies of industry leaders.
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Progressive, which was just recently downgraded in May, was upgraded once again to a “buy” rating by Jefferies & Co early this morning. The major deal between the three casino suppliers may very well speed up the delivery of the next generation in table games. However, with nothing but the groundwork laid out for now, one can not be so sure of the future of this enterprise. The only thing we can be sure of, is that Progressive is definitely a stock to watch in the coming months.
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Profile |
Progressive Gaming International is a leading supplier of Integrated Casino Management Systems Software and Games for the gaming industry worldwide. The Company develops and distributes an expanding array of slot and table games, plus management and progressive jackpot software systems. The Company is unique in the industry in offering management, progressive systems and games as a modular yet integrated solution. There is a Progressive Gaming International product in virtually every casino in the world.
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