Archive for September, 2008
Casino Slots Manufacturer, IGT, Faces Tougher Times
If there’s one thing that’s been a constant in the casino gambling world, it’s that International Gaming Technology has been a solid performer for not only the casinos and the gamblers who love to play their unique slot machines, but just as important, for the company’s shareholders. Even with the onset of a sluggish economy and a forewarning of hard times to come, not to mention a downturn in the slot machine market itself, IGT has been a pillar in the eyes of the casino gambling market.
So, when IGT’s Chief Operation Officer, Steve Morro, announced his resignation last week, some gaming analysts are beginning to wonder just how “well” IGT is actually doing. The Las Vegas Gaming Wire was the latest to reiterate such speculation, which IGT is apparently taking more serious. I mean, considering stock prices are down nearly 60% from their fifty-two week high of $49.41 (you do the math), IGT certainly has good reason to reexamine company structure.
A spokesperson for IGT strongly denied any rumors that companywide layoffs were on the horizon. IGT’s Chief, TJ Matthews said the company is in a “restructuring mode” that will ultimately help to reduce expenses. Indeed, the notion of reducing expenses is commonly undertaken with employee layoffs, but apparently, things haven’t gotten that bad off. Matthews himself will be covering the duties of Morro (not to mention Chairman and President), which some analysts worry could spread the company out too thin.
However, Matthews is considered one of the best in his field, and certainly knows a thing or two about the casino gambling industry. In the short run, things will likely remain the same or even get worse. But with some mindful budgeting and prospects of a rebounding economy, Matthews hopes to keep IGT at the top of the pack. One thing is certain: IGT’s subsidiary online gambling software developer, Wager Works, isn’t struggling one bit. Licensing one of the top UK facing online casinos in business – Virgin Casino – as well as an increasing roster of high profile companies, Wager Works will be making a great contribution to keeping IGT afloat.