It’s a feeding frenzy for International Game Technology. Among
those who were quick to pounce on rumors of a sale were lottery king Gtech, Caesars Entertainment co-owner Apollo Management, Ron 
Perelman-controlled MacAndrews & Forbes Inc. and Carlyle Group, with the former going so far as to say it was actually in negotiations. A MacAndrews purchase would tie together IGT, Scientific Games and the former WMS Industries, giving Perelman a formidable hold on the manufacturing sector. Since Gtech’s specialty is lotteries, IGT would greatly diversify its portfolio. Spendthrift Apollo probably wouldn’t know what to do with IGT except cripple it with debt.
IGT, for its part, said little more than that it was evaluating its options. It tried to play down all the excitement as just business as usual. Some, however, interpreted the “broad range of strategic options” explorations as tantamount to hanging a “for sale” sign on the company. Noting management’s recent struggles, Credit Suisse analyst Joel Simkins wrote, “With that in mind, we understand why a fatigued management team and board may look for an exit in light of a more arduous turnaround.”
Fourteen Golden Nugget patrons will wish they’d taken Tilman Fertitta up on a compromise settlement. They won $1.5 million off the 
Nugget when they realized that the Gemaco-made, mini-baccarat cards coming out of the shoe were unshuffled. The casino begged off of its obligation to pay and the players wanted the Nugget sanctioned for illegal detention. Fertitta unilaterally offered to make the Nugget Fourteen whole, but they weren’t having it.
“Remarkably, and despite this generous proposal, the gamblers and their lawyers steadfastly refused, and selfishly wanted more damages than just the gambling winnings,” reads a Nugget legal filing. Now a New Jersey court has cleared the Nugget of liability for the payouts (the fault logically lies with Gemaco). This means it can proceed in prosecuting the Nugget Fourteen for return of their winnings. Like the song says, you’ve got to know when to fold them and the Nugget Fourteen didn’t.
It’s not just the casinos in Atlantic City that are worth less than the city thought. So’s the air.
Grand Sierra Resort in Reno could be in a mess of trouble, judging by a newly filed lawsuit. It is rife with accusations that one rarely sees in the casino industry. For instance, Grand Sierra is charged with forcing employees to cover credit card rejections and cash shortages out of their own pockets. If the full slate of charges proves true, Grand Sierra was being run like a Wal-Mart, with workers being required to work off the clock and subjected to indignities like “shift jamming’ (two shifts in less than 16 hours). If any of this sounds familiar, The Cosmopolitan of Las Vegas is fighting similar accusations.
“What we’re learning with these off-the-clock cases is that employers are trying to nickel and dime employees to get them to do a little extra on the front and back end. In reality, it saves the company a lot of money,” said plaintiffs’ lawyer Joshua Buck. The case was granted class-action status last week, so it’s time for Grand Sierra to wake up and smell the coffee.
Block that metaphor! “So the merger was truly a move by PokerStars of the calibre ‘ace up the sleeves.’ It now places the ball squarely in the tribes’ court.” — Aaron Stanley on California tribes’ opposition to PokerStars.
