Saturday, December 07, 2002
Copyright © Las Vegas Review-Journal
Herbst Gaming reaches deal to acquire IGT's 1,100-machine slot route
By JEFF SIMPSON
GAMING WIRE
Herbst Gaming has agreed to buy International Game Technology's Anchor Coin slot route, the companies announced.
The 1,100-machine, 50-location purchase would vault Herbst into a virtual tie with Alliance Gaming's United Coin Machine Co. as the country's biggest slot route operations.
The parties announced Thursday that they have entered into a definitive agreement but did not disclose the price for the sale, expected to take place before March 31.
The sale is subject to Herbst obtaining financing, Nevada gaming regulatory approval and an OK from federal antitrust officials.
"This purchase fits right into what we want to do," Herbst President Ed Herbst said. "We really don't care about how many machines or how big we are. We don't want to be the biggest. We want to be the best, the most profitable."
Herbst predicted a smooth sales process, with the Anchor Coin slot locations, including Las Vegas-area Smith's grocery stores, switching to Herbst's operation by the end of the first quarter.
"All of the games will be replaced with IGT's newest and best video poker machines," Herbst said. "We'll be aggressive with payouts, with really good payouts."
IGT spokesman Ed Rogich said the company knew when it purchased former Anchor Coin parent Anchor Gaming early last year that it intended to sell the slot route.
"It's always been our intention to sell the gaming operations," Rogich said, noting that IGT still plans to sell two Anchor-owned Colorado casinos.
Rogich declined to disclose the strategic rationale behind the sale of Anchor Coin's slot route, but Herbst said the reason is simple.
"We're probably one of IGT's best customers," he said. "They don't want to compete against their customers."
With the sale, Herbst would operate about 8,100 machines at about 550 Nevada grocery stores, gas stations, bars and convenience stores.
United Coin Machine, Alliance Gaming's Nevada slot route operator, now operates more than 8,100 slots, making it the largest route operator in the country, the company's Web site notes.
