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Scientific Games Bad Quarter, Caesars Bankruptcy And Other Gaming News

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AP Photo/Jae C. Hong, File

In this June 6, 2007 file photo, Bally Technologies slot machines are showcased at the Palms hotel-casino in Las Vegas. Scientific Games bought Bally Technologies for about $5 billion.

Scientific Games boss Gavin Isaacs believes his company is better off today than it was just a year ago, despite a substantial third-quarter loss.

The slot machine and lottery business posted a third-quarter loss of $678 million, compared to a loss of $69 million for the same period last year, according top the Las Vegas Review Journal.

Within the last year, Scientific Games spent $5.1 billion to acquire rival Bally Technologies. It was just one of several mergers between slot machine makers that has seen the industry consolidate.

Gaming reporter for the Review-Journal Howard Stutz told KNPR's State of Nevada that the merger is behind the losses. 

"There is all these costs associated with that in putting these two huge companies together," he said.

Stutz said it takes a year after a big merger for those costs to shake out. Although, he does admit that slot machine sales have been down for all companies.

Meanwhile, Caesars Entertainment is still slowly making its way through bankruptcy. Stutz said a report on the property is not going to be finished by December when it was supposed to be done, which will delay the bankruptcy even more. 

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"The casino is moving forward," Stutz said. "Everything is moving forward, but it's just this bankruptcy kind of over hangs everything."

Caesars Palace announced a plan to refurbish its oldest tower, which is something the bankruptcy court has allowed it to do. 

Meanwhile, Caesars Entertainment also reported a loss for the third-quarter of $756 million, down from $980 million a year ago. The gaming company said overall revenue increased last quarter.

Caesars Palace's neighbor is not changing hands, according to Stutz.

Stutz talked to Treasure Island owner Phil Ruffin about his bid to buy the Mirage from MGM Resorts International. He offered $1.3 billion for the property but MGM turned him down.

"He's always had a desire for the Mirage," Stutz explained "They're connected by an above ground tram. Plus, the Mirage has about 300,000 square feet of convention space that he would like to be able to access."

Stutz said the MGM continues to say that the Mirage is not for sale. 

 

 

Guests

Howard Stutz, gaming reporter and columnist, Las Vegas Review-Journal

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