The Adams Daily Report
Compiled exclusively for Compton Dancer Consulting
Wednesday, August 14, 2002
Regulators float plan for online slot
metering.
Nevada (Regulation) – Jeff Simpson, Gaming Wire - Nevada
gaming regulators on Tuesday presented casino industry
executives with a groundbreaking plan that would require
the state's casinos to keep closer tabs on their slot
machines through the use of online metering systems.
The new regulations would, if enacted by the Nevada
Gaming Commission, require new slot machines to be
able to store a range of data that will enable casino and
state auditors to get a better handle on machines'
performance. Casino operators would also have to install
online metering systems. Gaming Control Board
Chairman Dennis Neilander admitted that the new
changes would be a major expense for Nevada casino
operators. "Sometimes the extra expense is justified by
the benefit," Neilander said. "These are significant
changes."
http://www.lvrj.com/lvrj_home/2002/Aug-14-Wed2002/business/19409932.html
Casino Windsor pulls ahead of Detroit's
gaming parlors.
Michigan/Canada (Competition-Results)- Becky
Yerak / The Detroit News –Windsor - Casino Windsor, whose
Metro Detroit market share eroded from first to a distant
third after the Sept. 11 terrorist attacks, has regained its
standing as the region's busiest gambling parlor thanks to
easier U.S.-Canadian border crossings and more generous
giveaways. Casino Windsor posted gambling revenues of
$104.5 million (U.S. dollars) during the quarter that
ended June 30. Meanwhile, patrons of MGM Grand
Detroit, MotorCity and Greektown casinos wagered away
$99.3 million, $100.6 million and $80.9 million
respectively during the same three-month period. Still,
the news wasn't all good for Casino Windsor. Revenues
still declined 13 percent from $120.7 million during the
same period a year ago. Likewise, the number of
gamblers visiting the casino on an average day plunged
17 percent to 14,831. It's taking more effort -- and
investment -- to get those 14,000 daily customers through
the door. "It's costing us a whole lot more money, and we
have to work harder to get less business than we had a
1
year ago at this time," said Jim Mundy, Casino Windsor
spokesman.
http://www.detnews.com/2002/business/0208/14/b01-561203.htm\
Gaming win suffers record decline.
Drop of 3.7 percent at Nevada casinos bodes ill for state budget.
Nevada (Results) - Jeff Simpson, Gaming Wire - Nevada
casinos' gaming win fell nearly 4 percent in the past fiscal
year, the worst decline on record for the state's 342
casinos, the Gaming Control Board reported Tuesday.
The $9.3 billion casinos won from gamblers in the fiscal
year ended June 30 was a 3.7 percent drop from the $9.7
billion won during the prior year, the worst year-overyear performance in the 17 years recorded by state
statisticians. Strip casinos reported an even bigger drop
in money won from bettors, falling 7 percent to $4.5
billion from $4.9 billion. The casinos' bad luck is bad
news for the state, too, because one-third of Nevada's
budget is funded by the taxes levied on casinos, said Greg
Bortolin, Gov. Kenny Guinn's spokesman. "We're not
getting the gaming revenue we projected, and it continues
to have an impact on our budget," Bortolin said. "The
governor has to make some really tough budget decisions
in the coming months, and the Governor's Task Force on
Tax Policy has a report due later this year."
http://www.lvrj.com/lvrj_home/2002/Aug-14-Wed-2002/news/19409669.html
Big LV firms certify numbers.
National – Liz Benston, Las Vegas Sun - Big Las Vegas-based
companies including MGM MIRAGE, Venetian owner
Las Vegas Sands and Harrah's Entertainment on Tuesday
filed certifications of their latest financial statements to
the Securities and Exchange Commission.MGM
MIRAGE's Chief Executive Officer Terry Lanni and
Chief Financial Officer James Murren each signed
documents attesting to the accuracy and completeness of
their financial reports. Harrah's Chief Executive Officer
Philip Satre and Chief Financial Officer Charles Atwood
also signed documents. Sheldon Adelson and Harry
Miltenberger signed for The Venetian.
http://www.lasvegassun.com/sunbin/stories/gaming/2002/aug/14/513850814.ht
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Insider deals investigated at Planet
Hollywood.
National - Mike Schneider, Associated Press - Orlando, Fla. -- Planet
Hollywood International Inc. wrote off $5 million in
loans to celebrities and created a "tangled web" of insider
deals that benefited top executives and other insiders, an
independent review of the bankrupt company shows. The
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once high-flying restaurant company, which counted
Arnold Schwarzenegger, Bruce Willis, Demi Moore and
Sylvester Stallone as celebrity backers, is now struggling
to emerge from bankruptcy for a second time in two
years.
http://www.lasvegassun.com/sunbin/stories/gaming/2002/aug/14/513850503.ht
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Tic-tac-toe winner gets more than chicken
feed.
Nevada (Las Vegas) – Las Vegas Sun - A Las Vegas
woman beat a chicken at a game of tic-tac-toe Tuesday
night and ended up with more than a little scratch.
Barbara Howell of Las Vegas beat Ginger, a chicken
specially trained to play the game, Tuesday night at the
Tropicana hotel in the "$10,000 Chicken Challenge."
Howell, who lined up three Xs diagonally to walk off
with $10,000, is the first person to beat a chicken at the
game since it started at the Tropicana in May. About 500
people play the game a day, said Tropicana
spokeswoman Lisa Keim, and all but Howell have lost. It
is possible to beat the chicken, she said. It's all in the
timing.
http://www.lasvegassun.com/sunbin/stories/gaming/2002/aug/14/513850521.ht
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PDS 2002 Second Quarter Earnings.
National (Results) - Las Vegas - (Business Wire - PDS
Gaming Corporation, a diversified gaming company that
finances, leases and sells gaming equipment for the
casino industry and operates Rocky's Sports Pub and Grill
in Reno, Nevada, today reported its operating results for
the second quarter and first half of 2002. For the three
month period ended June 30, 2002 ("the second quarter
2002"), the Company reported a loss from continuing
operations of $29,000, or $0.01 per diluted share,
compared with income of $1,238,000, or $0.32 per
diluted share, for the three months ended June 30, 2001
("the second quarter 2001"). Revenues from continuing
operations were $8.8 million and $13.4 million in the
second quarters 2002 and 2001, respectively. The
Company completed $20.4 million in originations during
the second quarter 2002, compared with $14.9 million in
the year-earlier quarter (the year-earlier quarter also
included the purchase of a lease transaction from a third
party for $17 million).
http://biz.yahoo.com/bw/020814/140033_1.html
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Pinnacle Reports Operating Results.
National (Results) - Glendale, Calif. /PRNewswire-FirstCall/ -Pinnacle Entertainment, Inc. today announced fiscal
second quarter results that showed strong operating
improvement, both sequentially and compared to the
prior year period. For the three months ended June 30,
2002, earnings before interest, taxes, depreciation and
amortization ("EBITDA"), exclusive of sold operations,
rose 15.7% to $14.3 million from $12.4 million for the
second quarter of 2001. There were non-recurring and
unusual items in the second quarters of both years.
Exclusive of such items and sold operations, EBITDA in
the quarter nearly doubled from the prior year period, to
$22.1 million versus $12.3 million. Revenues (again,
exclusive of sold operations), were $130.3 million as
compared to $129.8 million in the second quarter of
2001. Operating income (inclusive of sold operations and
non-recurring and unusual items) rose 15.8%. The net
loss for the quarter excluding non-recurring and unusual
items was $656,000, or $0.03 per diluted share, compared
to a net loss on a comparable basis of $5.7 million, or
$0.21 per diluted share, for the same period in 2001.
Inclusive of non-recurring and unusual items, the net loss
for the quarter was $6.4 million, or $0.25 per diluted
share, compared with a net loss of $5.3 million, or $0.20
per diluted share. The Company's depreciation and
amortization charges in the quarter on a pre-tax basis
were approximately $0.48 per share. As of June 30,
2002, the Company had cash and equivalents of $153.7
million. Total indebtedness was $495.0 million.
http://biz.yahoo.com/prnews/020814/law047_1.html
WMS Reports Fourth Quarter Profit.
Participation Game Installed Base Increases From March 31 by
9% to 6,162 Units While Net Win Per Day Increases 11%
Sequentially to $42.64.
National (Results) - Waukegan, Ill.--(Business Wire)-- WMS
Industries Inc. today reported net income of $0.7 million,
or $0.02 per diluted share, for the quarter ended June 30,
2002, compared to net income of $3.2 million, or $0.10
per diluted share, in the comparable prior year quarter.
The 2001 fourth quarter included net nonrecurring
charges of $10.3 million after-tax, or $0.32 per diluted
share. Revenues were $43.2 million for the June 2002
quarter compared with $65.8 million in the prior year
period.
http://biz.yahoo.com/bw/020813/132494_1.html
John M. Garner Named CFO of Mikohn.
National (Personnel) - Las Vegas--(Business Wire) - Mikohn
Gaming Corporation today announced that effective
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immediately John M. Garner, 43, has been named
Executive Vice President, Chief Financial Officer and
Treasurer, replacing Don W. Stevens, who has served in
that capacity since 1996 and is retiring. Mr. Garner brings
to Mikohn Gaming extensive gaming industry
experience. In his new capacity, Mr. Garner, a Certified
Public Accountant, will be responsible for managing all
financial and treasury functions, bank and financial
community relationships and internal and industry
analysis to support the Company's goals for growth and
profitability. Prior to joining Mikohn, Mr. Garner held
senior level financial positions with Paul-Son Gaming
Corporation, Alliance Gaming Corporation and Bally
Gaming, Inc., following 6 years in public accounting
http://biz.yahoo.com/bw/020813/132632_1.html
Smaller loss for Ainsworth.
International (Australia-Results) - Delays in
obtaining licence approvals prevented gaming machine
group Ainsworth Game Technology (AGT) making any
sales in Victoria and Queensland during 2001-02 and
pushed it to a loss of $5.94 million. The company had
forecast a profit of $952,000 in its prospectus before
listing on the ASX in December last year. Nevertheless,
the result was better than the $9.87 million loss the
company suffered in the previous year, and the loss of up
to $8 million it forecast for 2001-02 three months ago.
Managing director Peter James said AGT's earnings were
hit by delays in getting regulatory licences and approvals
to sell its Ambassador gaming machine in Queensland
and Victoria. Queensland approval was granted five days
before the end of the financial year, leaving little time to
sell machines. Sales in other jurisdictions went from $1.1
million to $22.7 million. "AGT expects the Victorian
licence, which was delayed due to probity examinations
on new director appointments, to be finalised within the
first half of the 2003 fiscal year," he said. "There are a
number of developments currently taking place which
will provide opportunities for long-term growth, in
domestic as well as export markets." AGT's Ambassador
gaming machine was approved for sale in New South
Wales and the Australian Capital Territory in July last
year. The company has been trying since then to secure
more gaming licences in jurisdictions in Australia and
elsewhere.
http://www.theage.com.au/articles/2002/08/13/1029113928759.html
President blocks plan for more slots.
International (Philippines) - Associated Press - Manila President Gloria Macapagal Arroyo today scrapped a
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plan by the state gambling agency to open more slotmachine arcades in the country amid mounting protests.
Arroyo said the plan by the Philippine Amusement and
Gaming Corp. was legal but did not live up to her
administration's moral standards. "It is not a question of
what is legal," Arroyo said in a statement. "It's a question
of what is morally upright." The agency's plan to expand
its current three slot-machine arcades with additional
branches nationwide was strongly opposed by many
groups, including the powerful Roman Catholic Church.
Archbishop Oscar Cruz said gambling corrupts public
officials, promotes drugs and prostitution, destroys
families and hurts the poor. Gambling, legal or illegal, is
extremely popular in the Philippines.
http://www.lasvegassun.com/sunbin/stories/gaming/2002/aug/14/513850505.ht
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