Earlier this week, Howard Stutz looked into the fascinating story of Multimedia Games, beloved of stock analysts but shunned by share buyers. What’s not to like? Multimedia widened its profit last quarter, to $10 million. Sales in FY13 rose 27%, to an installed base of 12,440 machines. Profit grew 19% during that same period. But, with typical Wall Street logic, share prices fell $2.30 after those rosy fiscal-year numbers were published. What’s wrong on Wall Street?
Multimedia has chosen an interesting time to have made a push into Nevada, New Jersey and Illinois (next stop: Pennsylvania). Slot inventory in Nevada has fallen to sub-1995 levels. This is attributable to many factors, the most plausible of which is that one machine can now support many more games — especially in the era of server-based gambling. As Dr. David G. Schwartz put it simply, “The casino floor is changing.”
Now there are three. Many potential players in the New York casino industry are still keeping their hands close to their corporate vest. However, the number of applicants is quickly proliferating. The would-be developers of Traditions Resort & Casino, in the vast Southern Tier, will probably have to put more than $150 million in investment on the table to get chosen. “We’re going to recreate Broome County as a destination once again,” co-owner Pete Walsh proclaimed. Not with that low-roller budget he’s not. Ironically, the Walsh family’s presentation had begun with, “It’s time to think big.” I agree. So when do you plan to start?
As reported earlier, Tioga Downs isn’t even waiting for a license but is expanding already, to the tune of Continue reading →
A recent buyback of $2 billion “likely” wiped out Caesars’ cash reserves, Woodfield opines. In the group’s view, Caesars mortgaged the future to pay for the present by Continue reading 
