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Deutsche Banc Alex. Brown Releases Report On Political Outlook for Gaming Industry in 200214 December 2001NEW YORK –(Press Release) --Dec. 14, 2001-- Deutsche Banc Alex. Brown Gaming and Lodging analyst Mark Mutkoski released a new research report on the gaming industry entitled, ``2002 Political Outlook: Will Legislators Place Their Bets on Gaming?'' The report focuses on 9 key states and the UK, markets that he believes will see meaningful political debate that could ultimately lead to new or expanded gaming operations within the next three years in several of them. States analyzed include Florida, Hawaii, Kansas, Kentucky, Maryland, New Hampshire, New York, Ohio, and Pennsylvania, as well as the United Kingdom. ``Next year may unfold as one of the most intriguing political seasons for the gaming industry since the early 1990s,'' said Mutkoski. ``Budget deficits caused by the rapid economic deceleration have forced many states to tighten their belts and take a closer look at the gaming business as a source for tax revenues and jobs.'' Joel Simkins, Associate Gaming Analyst, Deutsche Banc Alex. Brown and co-author of the report, echoed these views. ``The chances of one or two states emerging as new gaming jurisdictions over the next several years would appear quite high based on the information we have gathered.'' ``In our opinion, the lowest risk way to play the potential expansion of gaming is by investing in the gaming equipment suppliers,'' said Mutkoski. He highlights International Game Technology (NYSE: IGT), BUY rated, as best positioned to benefit from the industry's potential expansion. ``In the past, IGT stock has responded very favorably to gaming expansion initiatives,'' he added, citing the emergence of six new jurisdictions in the early 1990s and the proliferation of slot machines at California's Indian casinos over the last two years. While this next wave of gaming expansion may take time to develop since any beneficial reforms approved in the near term may be tied up in red tape for several years, the analysts recommend that investors pay close attention to the political process. ``Individual gaming stocks could become increasingly sensitive to news flow as progress is made and/or as setbacks are experienced,'' said Simkins. ``The emergence of new competitive gaming jurisdictions could also be a catalyst for favorable regulatory change in established jurisdictions,'' added Mutkoski. ``Looking at gaming operators, the benefits of favorable regulatory change in established markets could potentially outweigh the competitive impact of new gaming facilities in neighboring states.'' |