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Cash Systems Winning in Cashless Society

MINNESOTA – As reported by the Pioneer-Press: "The cashless society has come to the gaming table.

"Card sharks who run out of money don't even have to walk to an automatic teller machine anymore. They can simply summon a casino employee to deliver a 'Stay N Play' terminal to the table, pop a bit of data into the gizmo, swipe their credit or debit card and voila! In just 60 seconds, they're back in action.

"This innovation, which fits so perfectly into our "use plastic" culture, comes to us courtesy of Cash Systems in Burnsville.

"…It has been growing dramatically, its stock has become much more liquid, and a new, Las Vegas-savvy CEO has just climbed aboard.

"All of this has suddenly attracted four securities analysts, up from zero last year. Locally, Christopher Krueger at Miller Johnson Steichen Kinnard initiated coverage on Jan. 25 with a target price of $13. Cash Systems closed Tuesday up 11 cents to $7.66. Until 16 months ago, it barely cracked $4.

"…In December, Cash Systems co-founder Craig Potts and spouse Kristen Potts sold off their huge stake in the company, roughly 50 percent, to mostly institutional investors. The result: The stock is significantly more liquid.

"In a related move, Potts stood down as chairman and CEO. His successor is Michael Rumbolz, a former chairman and executive director of the Nevada Gaming Control Board and a 20-year veteran of the casino industry.

"…So far, the Stay N Play device is in only 10 of the 150 casinos where Cash Systems services are offered. It hasn't been approved yet in Nevada and still accounts for minimal sales, but Krueger says the product has much promise. It was ranked as one of the 20 most innovative gaming products of 2002 by an industry trade group…"

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