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Bally Technologies to supply VLTs to fifth Canada province

20 Dec 2012

By Howard Stutz
Slot machine maker Bally Technologies, Inc. signed an agreement Wednesday to provide the provincial lottery in Saskatchewan with 650 of the company's video lottery terminals.

Terms were not announced for the contract, which was awarded after a competitive procurement process.

Atlantic Lottery Corporation, which operates lottery games in New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island, this year picked Bally as a supplier of VLTs.

"Bally now supplies VLTs in five Canadian provinces, showing the company's continuing commitment to providing innovative technology for the Canadian gaming market," Robert Parente, Bally Technologies managing director of Canada, said in a statement.

Brean Capital gaming analyst Justin Sebastiano estimated the Saskatchewan contract could be worth 6 cents to 7 cents in earnings per share.

"We expect the selling price to come in lower than the average for the product sales segment but that gross margins will likely hit the average," he said.

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