Bally Technologies helps keep the casinos buzzing. The firm is a leading manufacturer and supplier of casino gaming machines, gaming operations, and gaming information systems. Its gaming equipment segment includes both video and mechanical-reel slot machines used in gambling casinos in the US and abroad. Bally Technologies' gaming operations segment rents gaming devices and content, and provides systems for linking slot machines together so players can gamble for progressively increasing jackpots. In addition, the company's systems segment includes software and hardware that helps gaming operator customers with marketing, player bonusing, data management, accounting, player tracking, and security services.
Bally Technologies operates in North America, Africa, Mexico, Latin America, Europe, India, and the Asia-Pacific region.
Bally has game development centers in the Silicon Valley and southern California; Las Vegas and Reno, Nevada; and India.
Bally continues to invest in software development, delivery, and customer support services. It also works to improve its core products by creating innovative games to attract players.
One key method of drawing in customers through gaming content is via employing licensed brands such as Atari and Playboy; in addition, well-known Bally brands such as Cash Spin, Hot Shot, Quick Hit, and Blazing 7s can be found on most casino floors in North America and in several international markets.
The company is also focusing its efforts on mobile applications and interactive gaming platforms. In 2012 Bally signed agreement to provide its iGaming platform to Mohegan Sun's casinos in Uncasville, Connecticut and Wilkes-Barre, Pennsylvania, adding to the portfolio of online gaming sites the company develops for casino operators.
The company delivers its games to consumers by forging agreements with casinos, lotteries, and other related organizations. In 2011 Bally signed a contract with Sun International Limited to provide key systems and server-based solutions at 17 casinos worldwide, expanding its operations across six countries in Africa and South America. Also that year the company signed an agreement with British Columbia Lottery Corporation (BCLC) to replace its Gaming Management System. The deal connected Bally's system to more than 12,000 gaming devices at 34 sites. It also connected Bally's iVIEW Display Manager (DM) player-user-interface to approximately 80% of BCLC's slot machines.
Sales and Marketing
Bally builds brand awareness and generates demand through direct marketing, as well as co-marketing programs with casino customers. It direct markets through print, e-mail, and web-based advertising, as well as via media relations, industry trade shows, conferences and events, and gaming industry and player/consumer communications. The company primarily targets business audiences for its games and systems solutions.
Bally has about dedicated marketing team members, who conduct casino-operator and player research, and provide product launch support, as well as corporate marketing support in the areas of internal and external communications, community relations, marketing events, international marketing, and graphic design.
Over the past several years the company has significantly increased its use of focus groups to support product development. These focus groups are an important tool for acquiring feedback on new and not-yet-released products before they are broadly released to the market; Bally uses them to make customer-driven improvements to products before it invests in widespread product releases.
Mergers, Acquisitions and Divestitures
In 2011 the company acquired privately held MacroView Labs, a developer of mobile applications and platforms for the casino gaming industry. Also that year it purchased Las Vegas-based Sightline Payments, a provider of payment solutions.
In 2010 the company expanded its product development capabilities with the acquisition of Games4you. Bally purchased Games4you, an Arizona-based supplier of gaming and engineering solutions for the casino gaming industry, in order to augment its base of regional game development centers.
Bally was previously active in casino operations through Rainbow Casino, but it exited that market in 2010 when it sold the property to gaming operator Isle of Capri Casinos for about $80 million in cash. (The Rainbow Casino was launched in 1994 and includes an 89-room hotel and about 830 gaming machines.) Bally made the sale in order to focus on its core equipment manufacturing and gaming operations business. Along with the transfer of the casino, Isle of Capri also agreed to purchase casino management systems from Bally for 10 of its other gaming outposts.
The company's revenue increased by 16% and net income increased by 3% in 2012 compared to 2011. The company's cash flow increased by $44.9 million in 2012 over 2011.The increase in overall revenue was due to an increase in revenue from gaming equipment, gaming operations, and systems.
Gaming equipment revenues improved due to an increase in new gaming device sales and an increase in average selling price (ASP). Gaming operations revenue increased due to an increase in participation and rental revenue. Bally benefitted from the introduction of its new wide-area progressive link Cash Connection, which includes GREASE and Michael Jackson King of Pop; the continued placement of its Betty Boop Love Meter, Golden Pharaoh. and Money Vault games; and the performance of its lottery systems due to the opening of Resorts World Casino in New York. Systems revenue increased due to increased maintenance revenue from a larger install base of customers on its systems, as well as an increase in software and services revenue.
The increase in net income was due to increase in operating income from $151.5 million in 2011 to $179.4 million in 2012. The increase in cash flow was due to cash provided by operating activities. – less