Station Casinos selects Global Payments over Global Cash Aceess
Global Payments Gaming Services Inc. on Tuesday reached a deal with Station Casinos LLC to provide cash access services to a select number of the company's properties in Southern Nevada, replacing Las Vegas-based Global Cash Access Inc.
Terms and locations were not disclosed. Global Payments will provide traditional and electronic check cashing, ATM check cashing, and credit and debit cash advances.
Global Cash Access is "still one of several providers," said Station Casinos spokeswoman Lori Nelson.
"We are very excited to work with Station Casinos in various capacities and deliver cash access services to select Station's properties," Dean DeCristoforo, president of Atlanta-based Global Payments, said in a statement.
Global Payments' gaming division is based in Las Vegas. The company, which provides cash access services to the Golden Nugget, Monte Carlo, Tropicana Las Vegas and Aria casinos, posted fiscal year 2012 revenues of $2.2 million, compared with $1.8 million in 2011.
Global Payments is scheduled to report first-quarter earnings on Sept. 27. Analysts surveyed by Yahoo Finance expect earnings of 87 cents a share on revenue of $583.4 million.
A request for comment was left with Global Cash Access.
Todd Eilers, an analyst with Roth Capital Partners, described Station Casinos as one of Global Cash's top customers, and therefore, "is a meaningful loss for the company."
"We also believe this news is evidence that Global Payments continues to gain ground in the casino cash access space and increases the risk for upcoming contract renewals with other top customers including Caesars Entertainment," Eilers said.
In a note to clients, Eilers indicated that Caesars "is currently looking to award an exclusive cash access deal by next summer and we note that Global Payments is the other major provider along with Global Cash."
Global Cash lost its Caesars contract in December 2010 to Global Payments and MCA Processing. Global Cash "subsequently acquired MCA Processing, bringing half of the Caesars business back into the portfolio," Eilers said.
Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893.
