There’s a new competitor on the horizon in slot machine manufacturing as the Nevada Gaming Commission on Thursday unanimously approved a registration order and an initial public offering for Las Vegas-based AGS.
In a special meeting, commissioners approved a recommendation made Wednesday by the state Gaming Control Board for the company, the second-largest Class II slot machine manufacturer in the country.
Commissioners voted 3-0 in favor of the order with Commissioner Philip Pro abstaining. Pro and Commissioner Randolph Townsend did not attend the meeting.
“There’s nothing here that regulatory matters should hold back, so I’m happy to see this go forward,” said Commission Chairman Tony Alamo.
“I like the proposition that the company has skin in the game in Nevada,” Commissioner John Moran added.
Approvals were made quickly so that AGS could start a scheduled investor road trip beginning Friday.
When listed, shares would be traded under the AGS ticker symbol on the New York Stock Exchange. The company is expected to price the initial public offering and estimate proceeds by the end of January.
AGS will use proceeds from the offering to pay down debt and deleverage the company.
Licensed in Nevada since 2014, AGS plans to compete in the development of machines traditionally used in Las Vegas casinos. The company has been a dominant player in Class II gaming devices used in tribal casinos.
Class II machines are similar in look and design to Class III machines used in Las Vegas, but the outcome of a spin is produced through a fast-paced bingo game instead of with a random number generator.
AGS has filed with the Securities and Exchange Commission to go public with an as-yet unscheduled initial public offering. The company hasn’t said how much it hopes to raise in the offering, but said proceeds would be used to deleverage the company. Company officials say they are prohibited from providing some details of the IPO because of SEC regulations.
It’s believed to be the first IPO by a gaming manufacturing company since Las Vegas-based Everi Holdings conducted one in 2005.
AGS has about 550 employees worldwide and 120 in Nevada. The company develops slot machines, table games and equipment and social online casino products. Among its products are a variety of side-bet and derivative table games, slot titles that include “Olympus Strikes,” “Ripley’s Believe It or Not” and “Are You Smarter than a 5th Grader?” and Orion, Icon and Big Red slot cabinets.