IGT Installs sbX in Barona – Analyst Blog

A leader in designing, manufacturing and marketing games, International Game Technology (IGT) signed a Tier one agreement with San Diego, California based Barona Resort and Casino, to install sbX Experience Management System in their casino floor.

 

sbX is the first server based gaming solution that allows its operators to run their own choice of games any time and facilitates better management of casino floor at a lower operational cost. sbX also provides same amount of comfort to players, allowing them to select their own choice of games instantly and experience a more real life feel of casino management.

 

sbX has multiple tools, which spice up the entire gaming experience. sbX Service Window provides unique player interaction experience at the slot machine. The window provides menu of information and services that the player and operator can optimize. sbX Floor Manager allows access to the IGT game library, enabling operators to efficiently mange their casino floor with the mere touch of a button.

 

The Tier one Package for Barona comprises sbX Floor Manager and is available on IGT’s AVP machine models. Floor Manager is live on 100 machines at Barona and the casino has more than 200 games to choose from the IGT Game Library, with full access to monthly releases of new games.

 

Barona has been a pilot site for sbX Tier one system and has served as a test site for the server-based gaming and management system technology.

 

sbX is currently installed at ARIA at CityCenter and Monte Carlo Resort and Casino and is expected to be installed at The Cosmopolitan of Las Vegas.

 

Barona’s management believes installing sbX will augment its competitive edge due to the flexibility and diversified management functionality that the system provides. We believe sbX will drive growth for IGT, as the company goes on installing the system both domestically and internationally. We anticipate that the broadening customer base will boost IGT’s top-line growth over the long term.

 

The casino sector has experienced a slowdown of late due to macroeconomic concerns about high unemployment levels and the prolonged housing downturn in the US. This has led many casino operators to reduce their costs, with some choosing to replace machines less frequently in an attempt to preserve their liquidity.

 

We believe this trend is hurting IGT’s growth outlook. Sluggish replacement sale will remain a primary headwind for IGT in the near term. However, a cost effective system like sbX can partially offset this weakness, in our opinion.

 

IGT remains focused on expanding its gaming services in a number of new markets, such as Ohio, Chicago, Kentucky, New Hampshire, Rome and Canada, which will drive its profitability over the long term.

 

However, a weak revenue outlook due to declining shipments, tough competition from Bally Technologies Inc. (BYI) and WMS industries Inc. (WMS) and continuing regulatory issues in Alabama compel us to maintain a Neutral rating over the long term (6-12 months).

 

Currently, IGT has a Zacks rank of # 3, which implies a short-term Hold rating (for the next 1-3 months).