Las Vegas-based Progressive Gaming has faced some
rough times of late, and is now expressing their intent to become more focused
on casino gaming technology and systems by selling off their casino table games
division. In actuality, the decision to do so is somewhat of a necessity,
considering the recent $39 million judgment they were handed as part of an
anti-trust lawsuit. And with the company sucking up over $7 million in yearly
interest fees for their outstanding notes, a surplus of cash flow would
certainly help the big picture.
Casino gambling analysts at Jefferies & Co. say a
sale of Progressive's table division, of which several games are leased to
casinos throughout the world, would likely generate anywhere between $40 and $50
million. Based on Progressive's estimated cash flow from their table games
division ($4 to $5 million), the purchase price is estimated at the same ratio
for which table and gaming systems developer, Shuffle Master, paid to buy out a
leading Australian slot machine manufacturer.
Now all that remains is for Progressive to attract
a bidder. Roth Capital Partners will be trying to make this happen now that they
have been brought on board to assist in a sale. With things more established in
Macau and plans more clearly laid out for their bid to tap into the wireless and
mobile online casino gambling industry with Cantor Gaming, Progressive saw the
current times as being ideal to sell their table gaming division, pay off debt
and gear their focus and efforts toward casino systems, such as game
identification and jackpot betting systems.
Progressive says they plan to retain certain rights
in regards to wireless applications for their table and
card games, and will be
concentrating to further develop their innovative Rapid Bet Live sports betting
system that has been met with favorable feedback. Money from a successful sale
would be used to pay down either all or a vast majority of their current debt,
fueling current projects and initiating growth in the aforementioned casino
gaming sectors.
