Newsletter Signup
Stay informed with the NEW Casino City Times newsletter!
Recent Articles
Best of Ken Adams
|
Aristocrat Watch - June 2003
30 June 2003
By Ken Adams
On the great international stage, Australia and Aristocrat are
always interesting to watch. First, because Australia's local gaming market
is more mature than the American market, one can see trends that may come one
day to the United States. Problem gaming lobbyists have pushed for legislation
that calls for stricter controls on operating, increasing taxation, and a gradual
reduction in the number of gaming devices and venues.
The Australians have one of the highest per-capita gaming expenditures
in the world. That is bad news for the anti-gaming lobby, but good news for
operators and slot manufacturers. Because Australian slot players are very
frequent players, their reaction to a new game is a good indication of that
game's potential success. If a slot machine is successful in the Australian
club environment, it will most likely be successful in the United States. And
here begins the story of the success of Aristocrat, both in the U. S. and in
Australia. The multi-coin, multi-line video games that Aristocrat introduced
to America came from the clubs of Australia. In the beginning Aristocrat owned
that market in both countries. However,, they ran into some regulatory troubles
in America, and some increased competition in Australia and their own internal
culture.
This has been a difficult year for Aristocrat with a melt down
in stock price, a complete change in upper management and pressure from investors
and the founding family. The final outcome is anyone's guess. One thing does
seem certain, Len Ainsworth, regardless of what he says, is unlikely to take
over. It is a regulatory requirement in most American jurisdictions that he
not be allowed any operational control.
This week Geoffrey Ainsworth, son of Aristocrat founder Len
Ainsworth, said he (was) approached by parties claiming to represent American
gaming company WMS Gaming, known in the industry as Williams. …The troubled
poker machine maker, the second biggest in the world, has recently sacked
its chief executive and chief financial officer while the chairman John Ducker
resigned. UBS Warburg gaming analyst Anthony Aboud said further growth in
Australia for Aristocrat is limited. "The Australian market at the moment
is capped in every state except Queensland and there are measures in place
which mean revenue from the machines is not as much as it used to be." …Aristocrat
has issued three profit warnings this year with its share price falling from
$4.22 in February to a closing low of 89 cents. Ratings agency Standard &
Poor's has lowered its corporate credit rating on Aristocrat to the junk rating
of BB from BBB-minus, with the ratings outlook remaining negative. West Australian, 6-18-03
Days after stating his family would not sell their stake in
Aristocrat Leisure unless a "phenomenal figure" was offered in a takeover
bid, poker machine tsar Len Ainsworth appears to have found just such a figure,
himself. Mr. Ainsworth, who founded Aristocrat and whose family still owns
40 percent of the company, yesterday told Channel Seven's Sunday Sunrise program
he would consider launching a reverse takeover of Aristocrat through his new
company, Ainsworth Game Technology, because Aristocrat's management had "lost
sight of the ball." The news caps several weeks of speculation a takeover
bid was imminent for the embattled gaming group, which has lost $1.5 billion
of its market value so far this year. Colin
Kruger, West Australian, 6-23-03
The village was abuzz yesterday with rumors the white knight
-- or at least the white-haired knight, Len Ainsworth -- might come to rescue
his damsel in distress. …If Mr. Ainsworth issued script to Aristocrat,
the latter would most likely lose its Nevada Gaming license and all other
US licenses. That's because Aristocrat had to change the shareholding structure,
limiting the Ainsworths to 40 percent –"so they could get Nevada licenses
in the first place," he said. Stephen Downie, Daily Telegraph, 6-24-03
Recent Articles
Best of Ken Adams

Ken Adams is the principal in the gaming consulting firm, Ken Adams and Associates. Formed in 1990, Ken Adams and Associates specializes in information, analysis, and strategic planning for Indian tribes, casino operations and gaming manufacturers. Ken spent over 20 years in the hotel-casino industry, prior to founding Ken Adams and Associates. He held the positions of: Director of Casino Operations, Casino Manager, and Keno Department Manager. During this time, he developed numerous innovative marketing and customer development programs and systems for evaluating casino performance. Some of those programs, such as slot clubs and tournaments, have become industry standards. Ken is also actively involved in gathering and disseminating information that is important to the gaming industry. He is editor and publisher of and the Adams' Report, a monthly newsletter specializing in identifying trends in casino gaming, regulation and manufacturing, the Adams Daily Report, an electronic newsletter that provides electronic links to the key gaming stories of the day, and the Adams Review, a special report distributed by Compton Dancer Consulting that provides editorial commentary on gaming trends.
|
Ken Adams is the principal in the gaming consulting firm, Ken Adams and Associates. Formed in 1990, Ken Adams and Associates specializes in information, analysis, and strategic planning for Indian tribes, casino operations and gaming manufacturers.
Ken spent over 20 years in the hotel-casino industry, prior to founding Ken Adams and Associates. He held the positions of: Director of Casino Operations, Casino Manager, and Keno Department Manager. During this time, he developed numerous innovative marketing and customer development programs and systems for evaluating casino performance. Some of those programs, such as slot clubs and tournaments, have become industry standards.
Ken is also actively involved in gathering and disseminating information that is important to the gaming industry. He is editor and publisher of and the Adams' Report, a monthly newsletter specializing in identifying trends in casino gaming, regulation and manufacturing, the Adams Daily Report, an electronic newsletter that provides electronic links to the key gaming stories of the day, and the Adams Review, a special report distributed by Compton Dancer Consulting that provides editorial commentary on gaming trends.
|