The plans of slot machine producers in Nevada concerning Illinois as a chance to gain millions of dollars in sales were recently destroyed by a state appellate court. Gaming analysts announced International Game Technology, Bally Technologies, WMS Industries and other slot companies will probably have to re-reckon up their quarterly and yearly incomes guidance reports in connection with the potential market loss of at the rate of about 35,000 video slot machines. An Illinois appellate court enacted that a $31 billion capital construction bill, which was endorsed in 2009, is avowed as prohibited and unconstitutional in view of the fact that it infringes the state’s single-subject rule.
The bill composed by several parts, would have legitimated slot machine-like video lottery terminals at the country’s bars, taverns, restaurants, truck stops, fraternal organizations and veterans halls. The plan of gambling providers to involve Chicago to the network of the slot machines promised to become quite profitable for them. According to Janney Montgomery Scott gaming analyst Brian McGill, these news are only bad for the equipment producers.
“The video gaming act stands as the single biggest potential driver for growth in new markets going forward”, – he said. Analysts believe Illinois Gov. Pat Quinn will appeal and protest against this ruling. The process of court examination may keep off shipments by slot machine producers till the next year.
Morgan Joseph gambling analyst Justin Sebastiano informed that if the ruling is accepted and confirmed, the incomes per share of WMS – which has incorporated headquarters beyond Chicago – could decrease by 5 cents per share, IGT can observe a reduction of 2 cents per share and Bally may lose 3 cents per share. Other gaming analysts suppose that probably there will be larger diminutions. Union Gaming Group principal Bill Lerner considered that Illinois will compose at the rate of about 40 percent of all North American slot machine shipments from the second half of 2011 till the end of 2012.
Lerner said, that this chance of expansion had been such significant for the gambling equipment providers. Stifel Nicolaus Capital Markets gaming analyst Steven Wieczynski announced that producers would be better to rely on other slot machine expansion occasions will appear in the nearest future year, but it was too difficult for him to call any possible new jurisdictions.
The news will bring the stagnant North American substitution industry into focus. Manufacturers will probably depend upon a slight pickup within this sector to justify interior suppositions of increment. Majority of analysts said the appellate court took issue with lots of unrelated objects of the bill, not the VLT legalization. Also the fact that Illinois was the origin of bad news for the gambling business didn’t become a shocking piece of news for each of them. A great number of participants and members of online gaming industry consider that the state of Illinois is one of the most mysterious and the most hard-predictable markets of the country. Actually the law that was enacted to permit video playing devices was even unexpectedness at that period of time.