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Analyst: Atlantic City Loser, Slots Makers Winner with New York Gaming Bill

25 October 2001

LAS VEGAS, Nevada – Oct. 25, 2001 –As reported by the Las Vegas Review-Journal: "Slot machine manufacturers are seen as likely winners while Atlantic City casino operators stand to lose the most with the passage of a bill expanding gambling in New York.

"The New York Assembly and Senate late Wednesday overwhelmingly passed a bill authorizing as many as six new tribal casinos in a move designed to boost the state's economy after the devastation caused by the Sept. 11 terrorist attacks on the World Trade Center.

"…Before the bill's passage, an executive with Las Vegas-based Park Place Entertainment, which has a deal in place to manage a Catskills casino for the St. Regis Mohawk tribe, said his company would be a net winner.

"…Park Place is the biggest operator in the nearby Atlantic City casino market, earning about one-third of the city's $4.3 billion in 2000 gambling revenues.

"The Atlantic City casino market and Connecticut tribal casinos stand to lose the most, said Bear, Stearns & Co. casino industry analyst Jason Ader.

"…About 30 percent of Park Place profits come from Atlantic City, a number that probably would be hurt by new New York casinos, he said.

"`Park Place is trying to play both sides,' Ader said. `With what they have to lose in Atlantic City, I'm not sure how much of a trade-off they're getting in exchange for a five- to seven-year casino management contract in the Catskills.'

"…Merrill Lynch's David Anders said Reno-based International Game Technology stands to benefit the most from the likely new gaming venues.

"IGT makes about two of every three slot machines in U.S. casinos. Anders, a casino industry analyst, said that if the casinos are built, IGT would have a substantial market to tap.

"…Ader said MGM Mirage has a big decision to make.

"The company has no casino in Atlantic City but is a partner with Boyd Gaming Corp. in the $1 billion Borgata, now under construction.

"Also, MGM Mirage is in the planning stages for another, wholly owned Atlantic City property…"

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