US Supreme Court Favors Indian CasinosPublished March 21, 2004 by OCR Editor
Electronic gaming equipment makers can expect rising revenues after the Supreme Court decision last Monday to allow American Indian tribal casinos install electronic gaming devices. It provides new opportunity to sell games to previously reluctant buyers
J.P. Morgan also said that IGT could be one of the biggest benefactors of this decision. The company could gain half of the market share for Class II games which would net between $550 and $730 million in marginal revenues. This would add almost .50 cents earnings per share to the company's stock.
Harrah's Entertainment and Station Casinos operate a few American Indian casinos and Caesars Entertainment intends to open up some in the market as well. Therefore this decision will affect large operators as well as gaming unit makers.
Previously, the uncertain legal and regulatory outlook discouraged operators from targeting the American Indian casino market. Now that legality is not an issue it's time to start moving forward.