Home

Things continue to be rough for the brick and mortar side of gambling.  Not even slot machine manufacturers seem to be making what they once did.  The sluggish economy is taking affect.  International Game Technology, based in Reno and the world’s largest maker of slot machines, reported dismal earnings for the first quarter.  Net first quarter earnings plunged 42 percent.  The poor earnings have been, of course attributed to the poor economy.

According to the financial report from International Game Technology, net income totaled $65.7 million on revenue of $313.3 million for the first quarter ending on December 31, 2008.  Earnings totaled $113.7 million last year during the same quarter.  Falling earnings is not unique toe International Game Technology or slot machines, but all industries attached to brick and mortar casinos seem to be suffering in recent months. 

However, International Game Technology was expected to do much better, perhaps due to its leading reputation.  Some analysts projected earnings per share of 26 cents on revenue of $591 million.  International Game Technology expected earnings to plummet, but not even their prediction of 30 cents to 35 cents per share was accurate. 

TJ Matthews was sure to address the falling earnings in a written statement.  He was sure to clarify that the company’s numbers are not a reflection of its product or its slot machines, but it in fact reflects an ongoing worldwide economic crisis.  Things are not looking as bad for online casinos as for the struggling brick and mortar industry.

 

Casino News