International Game Tech restates fiscal 2Q, cites tussle over electronic bingo in Alabama

Thursday, May 13, 2010

IGT restates fiscal 2Q, cites Alabama bingo issues

LAS VEGAS — International Game Technology, a maker of slot machines and casino management systems, said Thursday it is lowering its reported fiscal second-quarter results because operations related to electronic bingo are under fire in the state of Alabama.

IGT said it will go back and write down a $53.1 million charge to account for the sinking value of its assets in Alabama.

As a result, the company said net income in the three months ended March 31 were $700,000, or break-even on a per-share basis. IGT had reported net income of 12 cents per share before the charges.

It also said it would reduce reported revenue by $3.3 million. That means quarterly revenue was $494.4 million, not $497.7 million.

Most casino gambling is illegal in Alabama, but some counties make exceptions for bingo. Initially, those exceptions were to allow for the kind of bingo played in churches and other community centers, but the gaming industry has built electronic bingo casinos crammed with bingo machines that resemble slot machines. The issue was raised but not resolved during the state legislative session this year.

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