One gaming consultant says contract with Las Vegas company secures at least 60 percent of the market.
By By Chad Umble
Published Aug 03, 2006 14:13
Las Vegas-based International Games Technology Inc. on Wednesday picked PAP Security Printing Inc. of Lancaster to be its exclusive marketer of slot machines in Pennsylvania.
The deal is a potential windfall for the local firm since IGT is the largest slot machine maker in the U.S., and would likely supply many of Pennsylvania’s 61,000 new slot machines, one gaming consultant said.
“I would look at 60 percent and go from there,” said Joseph Weinert, vice president of Spectrum Gaming Group, a consulting firm based in Atlantic City.
“IGT is a very big, smart, aggressive and innovative company,” he said.
Pennsylvania’s gambling law forbids slot makers from selling directly to casinos. Instead, they must sell to a Pennsylvania distributor that can then resell the slot machines to Pennsylvania casinos.
Globally, IGT controls roughly two-thirds of slot machine sales, Weinert said, adding that PAP’s alliance with the Las Vegas company would make the local firm the biggest slot machine player in the state.
“They’re going to be the king of the slot machines in Pennsylvania, by far,” Weinert said.
PAP Security Printing, founded in 1988, produces security-sensitive paper stock for blank lottery tickets, casino coin wrappers and automated teller receipts. It also services printing equipment.
PAP operates in a 23,000-square-foot facility in Greenfield Corporate Center, 1813 Colonial Village Lane.
In announcing the deal, IGT cited PAP’s minority ownership, which has been an emphasis of the Pennsylvania Gaming Control Board. Michael Robinson, PAP’s founder and owner, is black.
It is unknown how many jobs the new contract would create or whether operations would be centralized in Lancaster. Robinson was traveling and unavailable for comment.
Terms of the deal were not released and calls to IGT were not immediately returned.
Weinert said that while PAP likely has little experience marketing slot machines, it does have some history with the gaming industry. The company makes lottery ticket paper for state-run lotteries in Pennsylvania, Delaware, Maryland, Indiana, Virginia and West Virginia.
However distributing thousands of slot machines would force a major shift in business for PAP, Weinert said.
“They’re going to have to get a big warehouse,” he said.
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