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					                                 ADAMS REPORT
                                    A Review of Current Gaming Literature
                                             Volume V, Issue 11
                                                November 2001

Editorial
Recessions, Reactions and Freedom. September 11 left its mark, on our psyche and by
consequence on our economy. The attacks made Americans afraid, or at least reluctant, to fly.
The anecdotal evidence indicates people are staying closer to home and traveling more by car.
        Majority of Nevada‟s Travelers Will Go by Car. More Nevadans will stay home for Thanksgiving
        this year than last and those who do travel will likely be going by car, officials said Tuesday. AAA
        Nevada estimates 87 percent of those who travel will go by car, a record for recent years, said Lisa
        Foster, association spokeswoman in Reno. Steve Timko, Reno Gazette-Journal, 11-21-01

The passing of time reduces the impact of the anxieties that the attacks created. Fear of travel is
easing, as is its impact on all of the businesses that are travel related. But there was a deeper
consequence of that day: Recession. There were signs that the economy was in a recession or
possibly headed toward a recession, but the attacks made the recession a firm (grim) reality.
        Recession is on (but you knew that). Washington – The United States fell into a recession last spring,
        ending a record-breaking economic expansion at exactly 10 years. The downturn should be mild
        and end by the middle of next year, analysts said, but with a big caveat: no further devastating
        terrorist attacks. The National Bureau of Economic Research, the recognized arbiter of when
        recessions begin and end in the United States, declared on Monday that the country entered a
        downturn last March, based on a range of statistics from employment to industrial production. The
        panel of six prominent academic economists stressed that even though they had picked March as
        the official start of the recession, the country might have been able to avoid a full-blown recession
        had it not been for the Sept. 11 attacks. Martin Crutsinger, The Associated Press, The Sun Herald, 11-27-01

The economy will recover, it always does; the economy is cyclical. It will take time and there
will be casualties. My concern is not for the businesses that will have to learn to operate
differently or fail. It is for the knee jerk reaction of politicians. Eager to “cure” the economy, fix
a budget deficit or protect constituents, legislators are rushing into passing new legislation that
will not go away when the economy has recovered.
        Indiana Governor Proposes Tax Increases on Casinos, Cigarettes. In an unprecedented televised
        speech Thursday night, Indiana Democratic Gov. Frank O’Bannon proposed additional agency
        spending cuts and tax increases on cigarettes and casinos to shore up a gaping budget deficit.
        Lottery, Pari-Mutuel & Casino Regulation, Vol. 12, No. 45, 11-19-01


        Union Seeks Ordinance on Casino Layoffs. Reno – A union proposal for mandatory severance
        pay for workers who lose their jobs in big layoffs at hotel-casinos man not be legal because it
        targets only one industry, Reno’s city attorney said Tuesday. …The Culinary Union has asked the
        City Council to pass an ordinance requiring employers who lay off a large number of casino-hotel
        workers at one time to provide one week of severance pay for each year the worker was employed
        by the company. Associated Press, Las Vegas Sun, 11-28-01

        N. Y. Gambling Expansion OKs Six Casinos. A. C., Connecticut may suffer from 12,000
        competing slots. In an effort to close a $9 billion budget gap created by the Sept. 11 terrorist
             attacks in New York, the state Legislature last week approved a gaming expansion bill that
             would permit six Indian casinos around the state. The Senate approved the bill, instigated by
             Gov. George Pataki. …The bill allows Pataki to negotiate gaming compacts that will let the
             Seneca tribe open three casinos in western New York, while other tribes would be allowed three in
             two Catskills counties, Sullivan and Ulster, just 90 miles from New York City. The bill permits no
             casinos in the city. Nation Gaming Summary, 10-29-01

But those proposals are not even the worse of it. Each of these proposals triggers a response.
The responses come from anyone who is negatively affected or from anyone who sees an
opportunity to work their agenda. And, (and this is just my jaded opinion based on a lifetime of
watching people act in their own self-interest), you can forget “national unity,” “patriotism,” or
“bi-partisanism.” Each new proposal illicits an even more self-serving response. The war
becomes one between political parties or political interest groups, not America against the
terrorists.
             Casino Industry: Regulation [Federal] of Gaming Suggested. Washington – The expansion of
             legalized gambling in states such as New York should make Congress take a closer look at federal
             regulation of the casino industry, former Health, Education and Welfare Secretary Joseph Califano
             Jr. said this week. But federal regulation will not be achievable, Califano said, until campaign
             finance reform reduces the influence of gambling lobbyists. Tony Batt, Donrey Washington Bureau, Las Vegas Review-
             Journal, 11-17-01


Now, particularly now, in the aftermath of September 11th and in the midst of a recession, we
need to slow down and be careful. Our liberties are important and should not be lightly given up.
Our economy is complex and takes more than simple one-dimensional solutions, and any forced
change produces some unintended consequences. There are no simple, quick or easy fixes to
terrorism, the economy or the issue of states’ rights versus federal control. Our country and our
economy are what they are because of our freedoms, not because of our restrictions.


But, that is just my opinion…



Quick-takes: The month’s trends in a glance.
Airline Revenues Fall 38% in October.          New York – Airline industry revenues were down 38

percent in October according to data released Tuesday that show major carriers cut fares 19
percent during the first full month of travel after the Sept. 11 terrorist attacks. …Southwest
Airlines does not report its fare data to the industry group. The decline in revenues per passenger
was magnified as 23 percent fewer people flew in October compared to last year. Systemwide,
planes were 63 percent full for the month, down 8 percentage points even after carriers reduced
the number of available seats by about 18 percent. Brad Foss, Associated Press, Reno Gazette-Journal, 11-21-01

Fed Pushes Rates to 40-Year Low.                   – The Federal Reserve dropped a key interest rate
                                                    Washington

to its lowest level in 40 years as it battled to prevent the “heightened uncertainty” following the
terrorist attacks from sending the country into a deep recession. Martin Crutsinger, Associated Press, Reno Gazette-
Journal, 11-7-01


GOP to Lean on Giuliani in 2002. Hoping to capitalize on Rudy Giuliani’s (R) popularity and
suddenly high national profile, House and Senate Republicans intend to recruit the New York
Mayor to campaign for them in the 2002 Congressional elections. National Republican
Congressional Committee Chairman Tom Davis (Va.) confirmed last week that he had spoken
with the mayor about the possibility of aiding House Republicans in the midterm elections. “He
is one of the hottest commodities in politics right now,” said Davis after an NRCC briefing last
week. Rachel Van Dongen, Roll Call, 11-12-01

Palms Means to Pull L. V. Locals, Tourists. The $265 million Palms hotel-casino, just off
the Las Vegas Strip on Flamingo Road, opened Nov. 15 as the city’s first new, major casino
since last year’s opening of the Aladdin. …Compared to its on-Strip neighbors, the Palms is the
least expensive Strip-area casino resort to open in several years, yet its subtle throwback to the
casinos of old and its mix of amenities meant to appeal to tourists and locals have generated a lot
of interest in the property. “I want to bring back the spirit of Las Vegas, which is that Las Vegas
is the party town of the world,” Owner George Maloof told the Las Vegas Sun. “I wanted to
create the ultimate party hotel in the world. If you can’t have fun here, you can’t have fun.”
National Gaming Summary, 11-26-01


Huge Crowd Flocks to New Resort. Celebrities, sports stars and a crowd in the tens of
thousands welcomed the opening of the $265 million Palms hotel-casino Thursday night – the
first major casino resort to open in Las Vegas in 2001. …“This place goes where the Hard Rock
didn’t go,” Motley Crue lead singer Vince Neil exclaimed. “It’s like the next step. It’s rock and
roll with an edge. This is the edge, man.” David Strow, Las Vegas Sun, 11-16-01

Walt Disney World to Close Additional Buildings at Florida Resort. Only a day after the
nation was officially declared to be in a recession, Walt Disney World confirmed plans to shutter
more buildings at its midprice Port Orleans resort. Disney officials on Tuesday wouldn’t discuss
how many of the resort’s 3,056 rooms will remain open, saying it will depend on visitor demand.
The move comes a month after Disney closed all 1,000 rooms in Port Orleans’ French Quarter
section. Todd Pack and Tim Barker, The Orlando Sentinel, Fla., Knight Ridder/Tribune Business News, Hotel Online, 11-29-01



Update: Issues that you have seen before.
Group Seeks Vote on Legalizing Casino Games Anywhere in State.                   Sacramento – Gambling

proponents have submitted a new initiative that would open up California to the full range of
Nevada-style games in casino that could be anywhere, not just on Indian reservations. …George
Marlar, a spokesman for an organization known as “The DeVille Group,” said backers have
committed $2 million to collect more than 1 million signatures. Marlar said the effort is headed
by Samuel Hinds, a former Maine state senator. He referred questions about other backers to
Hinds, who could not be reached for comment. “It is serious. We will get it qualified,” Marlar
said. As a constitutional amendment, the initiative needs more than 670,000 valid signatures to
qualify. James P. Sweeney, Copley News Service, San Diego Union-Tribune, 11-9-01

Robert McMonigle, Former Vice President of International Game Technology, Appointed
to Interactive Solutions Corporation’s Board of Directors.                Press Release, PRNewswire, Yahoo Finance, 11-12-01


IGT has sued Millennium Gaming of Idaho Springs, Colorado, trying to stop them from
selling retrofit IGT machines to casinos. The lawsuit alleges trademark infringement but
Millennium seems to be talking very tough, saying the suit is a guise for IGT’s illegitimate anti-
competitive tactics to maintain its monopoly position in the supply of gaming machines to the
casino industry. We aren’t lawyers, but that certainly sounds like it is not legal to say things like
that about someone or a company, even if you are angry. Alan R. Woinski, The Gaming Industry Weekly Report, Vol. 9,
Issue 47, 11-19-01, p. 3
Judge Overturns Ban on Political Contributions.                   . – Louisiana casinos are pleased
                                                            Baton Rouge, La

that a judge has said they can contribute to political campaigns, but are not yet certain whether
they will be major contributors to politicians, an industry spokesman said. Associated Press, Las Vegas Sun,
11-19-01


Pokies‟ Float in Play for $50M. [He’s Back] Poker machine group Ainsworth Game
Technology (AGT) will open its long-awaited $50 million float today. Gaming machine pioneer
Len Ainsworth launched the float earlier this month and will retain a 56.5 per cent stake in the
company…. He said Ainsworth had already received strong forward orders for its flagship
Ambassador gaming machine. Theage.com, 11-19-01

Research Alert – Deutsche Banc Cuts WMS to “Market Perform.” New York (Reuters) –
Deutsche Banc Alex Brown on Monday said that it lowered its rating on slot maker WMS
Industries to a “market perform” from a “buy” saying that it has learned of software problems
related to its video slot product. Yahoo! Finance, 11-19-01

English Try Their Luck at Keno. Jupiters has begun trialling Keno in England – joining the
growing list of Australian gaming companies exploring growth opportunities in that market.
Cosima Marriner, smh.com, 11-26-01


Budweiser Slots Could Face Bitter Opposition. Shuffle Inc. signed a licensing agreement
with beer giant Anheuser-Busch Inc. to produce Budweiser-themed slot machines. Such a slot
might be hard to swallow for James Hurley, Chairman of the New Jersey Casino Control
Commission. In 1998, then regular commissioner, he cast the dissenting vote when colleagues
approved a $10 Bud Ice collectible gaming chip for Harrah’s Atlantic City. He said the chips
would promote alcohol consumption. “I think this sends a duplicitous message,” Hurley said at
the time. “I think it’s a mistake. Harrah’s does not need it. Anheuser-Busch has all the money
in the world to advertise their products. Shuffle Master, a Las Vegas-based supplier, announced
no timetable for the Budweiser slots. Joe Weinert, The Press of Atlantic city, 12-1-01



Harrah’s Watch
Riverboat Casinos Cut Workers.            Lake Charles, La. – Harrah’s Lake Charles, which operates two

riverboat casinos, has cut 90 workers and will let 85 vacant positions go unfilled. Harrah’s
general manger John Payne said the action was taken due to reduced tourism since the Sept. 11
terrorist attacks. Las Vega Sun, 11-13-01

Showboat Will Add 480-Room Tower.           Atlantic City – In a $90 million vote of confidence for a city

beset by lower gambling revenues, suspended casino projects and eventual New York casinos,
Harrah’s Entertainment Inc. said Thursday that it will build a 480-room hotel tower at the
Showboat Casino-Hotel. The Harrah’s board, meeting here this week, approved the long-
discussed project without argument, one official said. “It was a very easy decision because of the
demand for rooms here in Atlantic City,” said Timothy Wilmott, Harrah’s Eastern Division
president. “We’ve looked at how capital invested in added rooms has significantly added to the
bottom lines at properties in this market, including Harrah’s Atlantic City,” Wilmott said.
…From 1995 to 2000, the four local casinos that added new hotel rooms increased their gross
operating profit by a combined 38 percent… Joe Weinert, The Press of Atlantic city, 11-15-01

Harrah‟s New Orleans Casino Posts First Profit.     New Orleans – For the first time, Harrah’s New

Orleans Casino’s operations have made money, but the gambling hall continues to lose money
because of debt payments, the casino’s parent company reported. …“It is significant if on an
operating basis they are now making money,” said Dennis Forst, managing director of research at
McDonald & Co. in Los Angeles. “They have been trying to structure that type of environment
for five years.” Associated Press, Las Vegas Sun, 11-16-01

Harrah‟s Looking at Second Riverboat.       Baton Rouge, La. – The owner of a Shreveport riverboat

casino wants gambling regulators to decide if a second boat could be brought in to give the
operation the 30,000-square-feet of gambling space allowed for each license. …Harrah’s
Entertainment of Las Vegas says that because of the way gambling space is calculated, its
Shreveport riverboat effectively has only 15,000 square feet. Harrah’s is asking that the
Louisiana Gaming Control Board determine whether it can moor a second riverboat alongside its
current vessel, while have both casinos operate under one license. Las Vegas Sun, 11-19-01

Two Robbers Hit Harrah‟s Tunica Casino.              Tunica, Miss. (AP) – Two men, one armed, stole a cart

loaded with money from Harrah’s Tunica Casino & Hotel and escaped in a waited car that they
swapped minutes later for another vehicle. …One of the men attempted to take the car from the
cashier, but when she refused to release it, the second man pulled out a handgun, authorities said.
The robbers then rolled the cart out Harrah’s main entrance and emptied the money into a brown
Chevrolet Camaro. Associated Press, SFGate, 11-27-01

Casino Is Robbed Again.      Tunica, Miss. – Authorities are searching for a man who robbed Harrah’s

Casino, three days after two men stole an estimated $157,000 from the north Mississippi casino.
…The man demanded money, police said. The suspect took a handful of cash and exited the
casino. No weapon was displayed and no one was injured. Las Vegas Sun, 11-30-01



Bit and Pieces from Indian Country
Oneida Merchants Charge a Tax on Non-Native Sales.              Oneida – The Oneida Indian Nation

won’t collect state taxes. But it will collect its own. The nation began charging non-Oneidas a 5
percent sales tax on cigarettes, soda and other items at its stores Thursday, the Syracuse Post-
Standard reported Saturday. Gasoline is exempt. Friday, the Oneidas also started imposing a 3
percent tax on hotel rooms at its Turning Stone Casino in nearby Verona, 30 miles east of
Syracuse. The Oneidas can use the money however they choose. It will not go to local or state
governments. Associated Press, Buffalo News, 11-4-01

Navajos See Big Income from Gaming.          Farmington, N. M. – The Navajo Nation could collect

millions of dollars annually because of its new gaming ordinance. …The tribe also could collect
millions by leasing out its gaming interests to Arizona Indian tribes. Associated Press, The Arizona Republic, 11-5-
01


A $100 Million Indian Casino/Hotel Slated for West Sac. The Upper Lake Pomo Native
American Tribe plans to build a $100 million casino and a big hotel in West Sacramento that
would employ 2,000. …The 140-member tribe, based near Clear Lake, bought an option on 67
acres at Reed Avenue and Interstate 80 from landowners Frank Ramos and Buss Oates and plans
to start construction as soon as possible. One of the unique factors in the project is that the tribe
currently owns no land and is allowed to buy land in its old territory, including Sacramento. Mike
McCarthy, Sacramento Business Journal, 11-7-01


Rule that Helps Tribes Restore Trust Lands Killed.       Washington – The Bush administration has

rescinded a Clinton-era rule that would have made it easier for tribes to restore lost land to their
reservations. Neal McCaleb, assistant interior secretary for Indian affairs, said parts of the rule
were unclear and it lacked processing standards. Since it was impractical to rescind only part of
the rule, he said, the new administration will build a new rule from scratch. Robert Gehrke, Associated Press,
The Sokesman-Review.com, 11-10-01


Slots Could Pave Way for Casinos. If Nebraska voters decide to let bars or keno operations
have video gambling, that constitutional change will almost certainly open the door to casinos on
Native land, according to attorneys familiar with gaming issues. Nancy Hicks, Lincoln Journal Star, 11-10-01

Indian Casino Now No. 1 Tourist Attraction.                 – The Potawatomi Bingo Casino will
                                                                  Milwaukee

draw 3 million visitors in its first year of operation, becoming the largest attraction in the
Milwaukee area. Las Vegas Sun, 11-12-01

General Accounting Office Report Says Tribal Recognition Based More on Political and
Legal Resources – Less on Merits. The government system of recognizing American Indian
tribes – and paving the way for Indian gambling – is rife with delays and other shortcomings,
according to a year-long study by congressional investigators. The report characterizes the
recognition process as “A bureaucratic endurance contest,” Rep. Roy Blunt, R-Mo., said
Tuesday. Blunt noted that eight Missouri groups have unresolved requests to be recognized, one
dating to 1985, out of 250 petitions on file. Of the 250, only 13 are under active consideration.
…Without changes, investigators said, tribal recognition may be based more on a group’s
political and legal resources and less on its merits as an independent Indian tribe. Blunt said this
means that tribes could be “created more on the lure of big gambling profits, court orders and
political influence than on the legitimate heritage and documented ancestry of a tribe.” Lottery, Pari-
Mutuel & Casino Regulation, Vol. 12, No. 44, 11-12-01, p. 6-7


Arizona Indian Tribes Launch Mail, TV Campaign in Anticipation of Casino Fight.                         Phoenix

– Arizona Indian tribes began an extensive new television and direct-mail campaign in
preparation for either an initiative or legislative battle over the future of their casinos. The
Arizona Indian Gaming Association, a consortium of 17 tribes, also has hired at least half a
dozen political consultants. Associated Press, 11-16-01

Card Clubs Fight Tribal Gambling.        Sacramento – In a case that could threaten California’s

booming Indian gambling business, attorneys for four Bay Area card clubs urged a federal judge
Friday to overturn the ballot measure that granted tribes a monopoly on operating Nevada-style
casinos in California. If the card rooms are victorious, the proposition approved by voters last
year and compacts signed by Gov. Gray Davis authorizing gambling on tribal land could be
tossed out, raising serious questions about the legality of the roughly 40 casinos on reservations
from Humboldt to San Diego counties. Dan Morian, Los Angeles Times, 11-17-01

Foes United in Call for Reform. Two influential men who have sparred over the issue of
federal recognition of American Indian tribes agreed Saturday that the existing recognition
process is broken and should be fixed by creating a bi-partisan panel to decide which tribes are
legitimate. Connecticut Attorney General Richard Blumenthal proposed a federal recognition
commission and got a quick endorsement from Kevin Gover, who is an attorney, Pawnee tribe
member and former assistant secretary of the Department of Interior’s Bureaus of Indian Affairs.
Ann Baldelli, TheDay.com, 11-18-01


Senator Gives Up on Choctaw Casino Tax.                  . – An influential state lawmaker has
                                                                Jackson, Miss

changed his mind about trying to tax the Mississippi Choctaws’ prosperous casino after Chief
Phillip Martin showed no signs of budging. Martin told The Associated Press Monday that he
had met twice recently with Gov. Ronnie Musgrove and once with Sen. Jack Gordon, D-
Oklahoma, about an effort to impose a state tax on the tribe’s Silver Star Resort & Casino in
Neshoba County. …Gordon’s new perspective came after Martin gave him a tour of the
reservation, including areas where employees are trained for casino and hotel jobs. John Porretto, The
Associated Press, Sun Herald, 11-20-01


Oklahoma State Senator Becomes First Full-Blooded Indian to Vie for State‟s Governor.
              An award-winning artist whose ancestors followed the Trail of Tears to Oklahoma
Oklahoma City (AP)

seven generations ago has become the first full-blooded American Indian to vie for the state’s
highest office. State Sen. Enoch Kelly Haney, the nephew of the current chief of the Seminole
Nation of Oklahoma and the grandson of a former chief, announced Friday he is running for
governor. Jennifer L. Brown, AP, Boston Globe Online, 11-24-01

Interior Approves Gambling Compact. The U. S. Department of Interior today approved a
new gambling compact that ends a long-running dispute between the state of New Mexico and
most of its tribes and pueblos that operate casinos. The new compact means most New Mexico
gambling tribes and pueblos can continue to operate their casino operations for the next 14 years.
Interior’s decision, once it is published in the federal registry, will also spell the end of the state’s
lawsuit against 10 of 12 gambling tribes over state casino payments. Gilbert Gallegos, Albuquerque Tribune, 11-22-
01


Tiguas Get Stay. Speaking Rock Casino will stay open at least another six weeks after a federal
appeals court Tuesday blocked an earlier order that El Paso’s Tigua Indians cease gambling
operations by Friday. Jennifer Shubinski and Gary Scharrer, El Paso Times, 11-28-01

No Bonuses for Employees.                                             – Nearly 600 employees of
                                         Twenty-Nine Palms Band of Mission Indians Reservation

Spotlight 29 Casino near Coachella won’t be getting holiday bonuses this year, casino officials
acknowledged. A holiday bonus program that had been effect for “several” years has been
terminated for 2001 because, casino officials said, the organization is financially strained by a
major remodeling project. Benjamin Spillman, The Desert Sun, 11-30-01




News from the Net
House Passes Governor Engler‟s Cybercourt Proposal. In this year’s State of the State
address, Governor John Enlger [Michigan] outlined a proposal for a Cybercourt where business
would be able to resolve legal disputes. On Thursday, November 1, the House passed a bill
creating this e-court. Rep. Marc Shulman sponsored the bill and commented, “This is a bill
that’s going to allow greater access to the court, I think the potential is tremendous.” The e-court
is fashioned in a manner that would allow for faster resolutions to these disputes, as well as
efficient access to the courts for the businesses involved. …Those who agree to use the
Cybercourt would waive their right to a jury. Therefore, certain restriction on the type of disputes
allowed would be necessary. The Michigan Gaming Law Newsletter, Vol. 7, Issue 30, 11-2-01

British TV to Offer Real-Time Gambling. In September, two British TV companies
announced plans to launch real-time interactive TV betting services using software developed by
Interactive Systems Worldwide Inc., a US company…has developed…that the two betting
systems used…allows bets to be continually placed at key points in television programming, in
particular, during sporting events when, for example, a player is about to kick a field goal in
football. John Hansen, Casino Player, Vol. 14, Issue 3, November 2001, p.54
No Comment
Not Twinkies, But Anthrax, Made Him Do It. Michael D. Copeland, of Hampton, Ga.,
crashed through the front gate of boxer Evander Holyfield’s Fairburn, Ga., estate in his Chrysler
LHS. Copeland, a postal worker, told police that he was taking Cipro as a precaution against
anthrax and that he got disoriented when he felt a burning sensation on his skin. Copeland was
treated for minor injuries at an area hospital; Holyfield is pressing charges of criminal damage to
property. Sports Illustrated, 11-5-01, p. 30



Literature
Each of the following articles is a direct quote from the publication as cited. The articles in the original
publications vary in length and detail, but are always more detailed than as presented in this report. The
original article should be consulted any time the issue is of importance to you.


American Indian Report
The Green Way. Indian Country hopes golf courses are the next economic boom. As casinos
establish themselves as the primary source of revenue in Indian Country, many nations,
particularly those in the Southwest, are turning to golf courses as the next wave of economic
development. The New Mexico Pueblo tribes are leading the way, with several courses recently
opened and several more under construction. …These tribes have the land, they have the water
rights, they have the money, and golf analysts predict Native American golf courses will soon
take their places among the best in the country. “I see the Indian communities being a big player
in the golf resort business,” says Gary Panks, a golf course architect who has designed several
Indian-owned courses. “They’re going to make a big impact. These are going to be destination-
type resorts that also have a big impact on the business conference industry.” Ben Welch, Vol. XVII, No. 11,
November 2001, p. 24-25




Amusement Business
Graceland Cuts King‟s Staff. Fifty workers at Graceland, Elvis Presley’s home and museum
in Memphis, Tenn., are being laid off because of declining tourism since the Sept. 11 terrorist
attacks. “Since almost a third of our visitorship is from outside the country, we have seen
significant effects and have put into effect a number of reductions and cutbacks,” said CEO Jack
Sodden, the head of Elvis Presley Enterprises. “We’re losing tremendous amounts of revenue.
We have to cut our operating expenses.” Natasha Emmons, Vol. 113, No. 47, 11-26-01, p.21



Cabazon Circle
NASA Chooses Indian for Endeavor. American Indians were the first inhabitants of the
Untied States. Next August, John Herrington will be the first American Indian in Space.
Herrington, a member of the Chickasaw Nation of Oklahoma, is part of the seven-member crew
assigned to the space shuttle Endeavor flight No. 19. …Herrington will participate in a series of
space walks to attach a new segment to the space station. Vol. X, Issue XI, November 2001, p. 8
Casino Journal
Hawaii and Utah Have Staved off Casinos – Will They Ever Join the Game? That
declaimer, “except Hawaii and Utah,” is so oft-repeated in gaming reports and news coverage
that it hardly needs saying anymore, except to inform cave dwellers and space aliens. Anyone’s
who’s paid the vaguest bit of attention to gaming expansion knows that those two states are the
lone holdouts against all types of gambling, from racetracks to roulette.
…Given the pervasiveness of gambling in the other 48 states and on the World Wide Web,
relaxing social attitudes and the lure of tax dollars for education and infrastructure, is it realistic
– or wise – for the Beehive State and the Aloha State to hold a hard line against legal gaming?
…The few attempts in recent memory to bring any sort of gaming to Utah have been nipped so
quickly that it’s clear any new movements would be suicidal. Even if a casino did fall out of the
sky into the middle of Salt Lake City, the ensuing controversy would probably run it out of town.
…In February, local media began reporting that Sun International wants to build an $800 million
hotel with limited casino gambling at Ko’Olina in west Oahu. Two months earlier, Hawaii Gov.
Ben Cayetano had visited Sun’s Atlantis resort in the Bahamas. Although he didn’t come back
waving the flag for full-fledged casino gambling, Cayetano has said it would be foolish to pass
up millions of tax dollars for the state’s schools.
…Although Hawaii’s state Legislature ended the 2001 session without approving any gaming
bills, some proponents and developers seem hopeful that legalization could happen soon. The
mere fact that pro- and anti-gambling groups are mobilized suggests that some sort of
consideration is likely. Nancy Todd Tyner, Vol. 14, No. 11, November 2001, p.14

Lanni Goes to Lunch. Now that the Las Vegas-based MGM mirage has won a license for an
offshore Internet casino from the Isle of Man, traditional and tribal casino operators are taking a
new perspective on a growing business, one expected to bring $5 billion worth of gambling
revenues worldwide next year.
…Net bets are illegal in the United States, according to many experts’ current interpretation of
federal and state law. That’s one reason MGM Mirage championed the idea of seeking out a
stable, sympathetic government offshore to provide a base for an Internet gambling operation –
under the impatient prodding of Lanni, long an advocate of Internet gambling. Said Internet-
gambling analyst Sebastian Sinclair, of Christiansen Capital Advisors, at the gaming expo,
“Terry Lanni’s going to eat everybody else’s lunch.” Maybe among potential U. S. competitors,
by getting there first. Operators who have been online a couple of years now can watch MGM
coming and build more market share during the wait. Still to be seen is whether traditional
casinos' brand names shoulder aside the stronger, established online sites. Lanni does hope to
scare off the supposed fly-by-nights, telling CBS MarketWatch in October, “I would love to see
us run them out of business.” Dave Ellingson, Vol. 14, No. 11, November 2001, p. 18-19



Gaming Newsletter: Atlantic City-Colorado-Mississippi
Atlantic City gaming revenues were off 6.5% in September, compared to a 9.2% increase the
year before.
Colorado revenues grew 9.9% in September. In 2000, revenues were 13.1% ahead of 1999’s
results.
Mississippi revenues grew 2.9% in September. Last year’s growth was 2.0% over 1999’s
results. Vol. 3, No. 8, November 2001



Gaming Industry Weekly Report
Indian Casinos Will Not Put „Big Hurt‟ on Atlantic City. We told you last week that we
were not buying the statements that the Catskill Indian casinos and slots at tracks would put a big
hurt on Atlantic City and urged the casinos there to continue their expansion plans so that AC
would turn into a resort destination. Not withstanding the comments by the Donald, it appears
that others feel the same way as most AC bonds have remained steady since the approval in NY.
Wise investors know that it will take a long time to get things up and running in NY. We have
always told you that a cluster of casinos is always better than stand alone properties and with the
right amenities, AC could actually increase gaming revenues even after these NY casinos open in
two to five years. Vol. 9, Issue 45, 11-5-01

Shorter Term Bonds, Shorter Term Jackpots? The Treasury Department’s decision to
suspend issuance of the 30-year bond may change the way progressive jackpots and lottery
jackpots are paid. State lotteries and companies like IGT used the 30-year bond to fund the
eventual payouts. In the short term, the decision caused a rush to buy these bonds, lowering the
yields and making it more expensive for lotteries and companies to fund these jackpots. In the
long term, this decision may lower the payout period on these jackpots to 10 years or force
riskier investments to fund the payments. Vol. 9, Issue 46, 11-12-01

Wall Street Realizes that LV Is Not the only Place Where Casinos Exist. Mike Happel of
Morgan Stanley put out a report on casino stocks this past week. He visited Las Vegas and said
he saw a tale of two cities. During the week, the LV Strip was very quiet but then it came alive
on the weekend and looked like the LV we all know and love. While the events of 9/11 finally
made Wall Street realize that LV is not the only place where casinos exist, it also caused the
regional operators to rise to levels which Happel feels are fair value. In the past, Wall Street
judged casino stocks by how LV was doing. If the media was predicting the demise of the LV
Strip for the 995th time, the riverboat casino stocks went down also. The difficult travel
environment caused by the terrorist attacks on 9/11 finally sent a wake up call to Wall Street.
They finally realized that regional operators do not cater to the same audience as Las Vegas
casinos. After all these years they finally woke up to the reality that regional operators do not
have the same billion dollar resorts as you see on the Strip and that once these regional operators
reach a level of revenue, each dollar after that becomes pure profit. Due to this realization, non-
LV Strip casino companies have received the premium that Strip operators usually are granted.
Vol. 9, Issue 47, 11-19-01


Park Place, Mohawks Ink N. Y. Casino Deal. Developers expect to start $500M project next
year. In a race to open the first of three Indian casinos slated for the New York economically
depressed Catskills region, the Saint Regis Mohawk tribe has signed its casino development and
management contract with Las Vegas-based Park Place Entertainment. …“The agreements
signed today put the Saint Regis Mohawk project well ahead of the pack in New York state,”
said Park Place Senior Vice President Kim Sinatra. “We’re ready to break ground as soon as the
tribe finalizes its compact with the state and receives the remaining government approvals. In
our view, the Saint Regis Mohawk casino is on the fast track.” 11-26-01
Gaming Update Colorado Division of Gaming
Gaming 10 Years Old. Gaming in Colorado celebrated its 10th anniversary October 1. Little
did people realize after 21 casinos filed tax returns the first month of gaming, October 1991, with
a total of $8,358,581 in AGP and $495,793 in gaming taxes paid how staggering the numbers
would be at the 10-year mark. During that period casinos simply earned $4.18 billion in AGP,
resulting in $539.9 million in tax revenues for the state, far exceeding even the wildest
estimations. No betting man at that time would wager that the industry would eventually employ
more than 6,000 people and that more than 14,000 devices would fill casinos in the state. In any
analysis, the industry has been anything but “limited” in its scope and impact. Vol. X, Issue 11, November
2001


Revenues Unaffected by Attacks. Despite a noticeable decline in casino patronage the day of
and the day after the terrorist attacks of September 11,it had no measurable impact on Colorado
casino revenues during the month as a whole. Casinos generated $59.7 million in AGP in
September…9.9 percent higher than $54.3 million in September 2000. Vol. X, Issue 11, November 2001



Indian Country Today
Seneca Nation of New York, “To compact or not to compact, that is the question.” . The
nation might wait until next year to vote on a proposed casino deal with the state while sorting
through provisions referring to cigarette taxes and other issues, Seneca said. Some Senecas have
called troubling the inclusion of unionization for casino workers, liability for lawsuits and a
weakening of the nation’s tribal sovereignty in the new gambling law signed Oct. 31 by Gov.
George Pataki. …As a result, Seneca leaders are not sure when they might resume negotiations
with the state or schedule a vote for the nations’ members on the proposed compact. The deal
would allow the Senecas to build casinos in Buffalo, Niagara Falls and on one of their two
western New York reservations. 11-8-01



Indian Gaming
Designing Casinos for Bigger Profit. While it’s great to design beautiful casinos or casinos
with exciting themes, they are not really about winning design awards. Casinos are really about
making money. With that in mind, Thalden Boyd Architects’ goal has been to maximize their
clients’ return on investment. The obvious question is “What produces the most revenue?” For
answers, the company was immediately drawn to the recent book Designing Casinos to
Dominate the Competition, written by Bill Friedman and published by the University of Nevada
in Reno. The book professes to contain research about how design can dramatically increase or
decrease casino player counts and casino wins. Thalden Boyd was initially skeptical of the
validity of the theories presented in the book. To gain a greater comfort level, the firm
conducted its own review of dozens of casinos they have worked on over a period of 30 years.
…The results were overwhelmingly similar to the observations Friedman obtained in his 20-year
research of Nevada’s major casinos. …Thalden Boyd also found an undeniable correlation
between his principles and the degree of success of casinos designed by their firm. …Friedman’s
book is certainly not the last word on designing for the industry. However, it is a great start on
the road to respectable research, and at the moment, his book contains the only proven criteria for
designing casinos to create more play. While creativity should always play a strong role in the
overall character of every property, casino design must be driven by player preference and the
bottom line. Vol. 11, No. 11, November 2001, p.18-19



International Gaming & Wagering Business
Sun Rising. Expansion of the Mohegan resort enhances the Northeast gaming market. The
Connecticut gaming market is about to give Atlantic City a run for its money. With Mohegan
Sun and Foxwoods leading the charge, the region is also poised to become one of the more
popular destinations in the Northeast. Foxwoods, the world’s largest casino, already competes
for visitors with its Mohegan Sun neighbor, nine miles away. But competition is no longer the
hot topic of conversation at either casino. Now both properties are focusing on the New England
gaming market’s untapped potential.
…Mohegan Sun, located between New York City and Boston, serves a 150-mile radius with 23
million residents. The market, which is expected to generate $1 billion in revenues this year,
could generate annual revenues of $4.5 billion, according to analysts. Robyn Taylor Parets, Vol. 22, No. 11,
November 2001, p. 1, 38




Las Vegas Business Press
Nevada Loan Failures Soaring. The number of U. S. Small Business Administration loans
being liquidated in Nevada has tripled from last year, according to the SBA’s Nevada District
office. …The economy of the Silver State was hitting the skids even before terrorists struck on
American soil a month ago, and Art Ereckson, lead loan specialist for the Nevada District office,
said that more businesses may be forced to call it quits before the recession is over. “The
economy has been in a state of decline over a substantial period of time, and we anticipate that
additional businesses may fail,” he said. Valerie Miller, 10-22-01



Las Vegas Review-Journal
Operator Shut Down Hours after Opening in Mexico City. Mexican officials dealt a blow
Thursday to a Las Vegas company’s attempt to open slot machine casinos in Mexico, when gun-
toting federal policemen closed the company’s 45-machine Mexico City operation just hours
after it opened for business. Las Vegas-based Viva Gaming & Resorts opened the 10,000-
square-foot slot-only casino in a major Mexico City shopping center, the Gransur Parque
Comercial Mall. Viva executive Bruce McDonald said the police action was prompted by
complaints from the operator of a Gransur Parque bingo hall. …Casino gambling has been
illegal in Mexico since 1935, but lotteries, pari-mutuel wagering, bingo and sports betting are
allowed. Jeff Simpson, lasvegas.com Gaming Wire,, 11-6-01

Comdex Fall 2001. With attendance and floor space down 25 percent, Comdex Fall 2001 is not
the overwhelming technology trade show it grew to be in the mid-1990s.            Hubble Smith, 11-13-01


America West Files for Loan Guarantees.               – America West Airlines applied Tuesday
                                                   Washington

for $400 million in federal loan guarantees, becoming the first airline to seek the aid created in
the aftermath of September’s terrorist attacks. The government’s help in securing the $400
million loan could trigger nearly $1 billion in private financial assistance, according to airline
officials. Robert Gehrke, The Associated Press, 11-14-01

Judge OKs Aladdin Financing Plan. A federal judge has approved a $50 million financing
plan for the bankrupt Aladdin designed to keep the megaresort open through the end of 2002.            Jeff
Simpson, lasvegas.com Gaming Wire, 11-17-01




Las Vegas Sun
Casino Celebrates One Year Anniversary.        Detroit (AP) – Greentown Casino is celebrating its first

anniversary this Saturday with 29 percent of the city’s market share. 12-4-01

Second Firm Offering Slot-ATM Combo. A Las Vegas company led by the former chief
executive of Alliance Gaming Corp. is marketing what could be the next wave in “cashless”
gaming – a device that can transfer cash from a bank account into a waiting slot machine. The
system is called “QuickPlay,” and it’s being developed by Global Cash Access of Las Vegas.
Company officials hope to launch their first field trial in Southern California in early 2002. If all
goes well, the company hopes to follow with launches at tribal casinos in Connecticut and
Michigan. David Strow, 11-7-01

Mandalay Out with Multi-Casino Slot Card. Mandalay Resort Group became the second
casino operator to introduce a multi-property slot club card for its Las Vegas Strip-area casinos
this week, when it introduced its “one Club” card at its casinos in Las Vegas and Laughlin.
...Park Place spokeswoman Debbie Munch said the company’s five Las Vegas casinos will have
a unified card in “the coming weeks.” …MGM Mirage officials couldn’t be reached for
comment, but have said several times that they will begin rolling out the new card soon. David Strow,
11-9-01


Dockside Gambling a Disappointment so far in Louisiana.                          – An expected casino
                                                                       Baton Rouge, La.

boom because of dockside gambling has not come about and most of the revenue gain for the
riverboats has been eaten up by an increase in taxes. Associated Press, 11-13-01

Pentagon Finds No Harm from Slots at Bases.        Washington – The Defense Department has

concluded that the thousands [8,000] of slot machines on overseas U. S. military bases pose no
significant harm to the morale or finances of American troops. The Pentagon spent more than six
months studying slot machines for a report ordered by Congress. Laurence Arnold, Associated Press, 11-14-01

Riverboat Cuts Workers‟ Hours.                  – Another Shreveport-Bossier City casino has
                                              Shreveport, La.

trimmed work schedules to accommodate an economic dip that it said has reduced the number of
players and the amount of money they’re willing to risk. Hollywood Casinos has cut the work
schedule of about 30 percent of its staff of approximately 1,800 employees. 11-15-01

Nevada Court OKs Policy on Cash Shortages.        Carson City – A casino had the right to withhold

money from the wages of a cashier if there were shortages in the cash drawer, the Nevada
Supreme Court ruled Thursday. Cy Ryan, 11-16-01

Researchers Seeking More Casino Dealers for Smoke Study. More than 40 casino dealers
have agreed to take part in a landmark study on the effects of second-hand smoke, but
researchers say the drive to recruit 375 volunteers has been hampered by the post-Sept. 11
layoffs. …To qualify for the study, participants must be at least 25, non-smokers and work 20
hours or more per week as casino dealers. Emily Richmond, 11-16-01

Mandalay Resort Group Earnings Fall 21 Percent. Mandalay Resort Group reported net
income fell 21 percent for the quarter ending Oct. 31 – the least severe decline reported by the
Las Vegas Strip’s largest casino operators in the post-Sept. 11 earnings season. David Strow, 11-21-01

Aladdin Bankers Plan to Auction Property. By the time 2002 comes to an end, the bankrupt
Aladdin hotel-casino will likely be put on the sales block. That, at least, is the intention of the
Aladdin’s bankers, who are by far the largest lenders to the $1.2 billion Las Vegas Strip resort.
David Strow, 11-28-01




Lottery, Pari-Mutuel & Casino Regulation
First West Virginia Video Lottery Licenses Issued. The West Virginia Lottery has awarded
283 retailer licenses to bars, taverns, and lodges to operate video poker machines. …The agency
expects to award between 50 and 70 retail licenses daily until it has completed the applications
from 900 clubs and organizations that reserved 2,568 machines this summer. …On Nov. 14, the
commission will open bids from retailers and operators who have not reserved video poker
machines this summer. The minimum bid for a permit for one of the remaining 6,432 machines
is $2,000. Vol. 12, No. 43, 11-5-01

Casino dealer Wins Hotly Contested Atlantic City, New Jersey Mayoral Race. Former
casino dealer Lorenzo Langford has defeated incumbent mayor James Whelan, to become mayor
of Atlantic City… Vol. 12, No. 44, 11-12-01



Michigan Gaming Law Newsletter
Michigan Gaming Board Denies First Supplier License Applications. On Tuesday,
November 13, 2001, the Michigan Gaming Control Board voted to deny supplier licenses to
Diamond Dismantling, Inc. and North Shore Products, Inc. Since the Board’s inception in 1997
it has spent the last four years developing licensing standards. It has also created a very thorough
process for reviewing applications. During the last four years, the Board has licensed three
casino operators, seven casino suppliers and 1,542 employees. The Board has denied a large
number of employees’ licenses because of suitability concerns. However, Tuesday night was the
first time that the Board denied a supplier license. Vol. 7, Issue 31, 11-15-01



National Gaming Summary
L. V. Foreign Visitation Down 40 Percent. September figures released by McCarran
International Airport in Las Vegas revealed what many casino operators there already know all
too well – international visitors just aren’t coming. The number of passengers arriving in Las
Vegas from foreign countries fell 40 percent in September, and so far, has not significantly
rebounded. The largest drop-offs occurred with visitors from Japan and Mexico. 11-5-01
A. C. Operators Wary of New York Casinos. The New York Legislature’s approval of
expanded gaming opportunities in that state has sent a shock wave of concern through casino
operators in nearby Atlantic City. …Atlantic City casinos pull as many as half their visitors from
New York State. …“We still have to get our act together. We as a region still have to give
people a reason to come to Atlantic City and complete its destination-resort status,” Park Place
Chief Operating Officer Wally Barr told the Press of Atlantic city. 11-5-01

Louisiana Boats tighten Belts. Casinos downsize plans as market plateaus. Louisiana’s 15
casinos were mildly troubled by a nationwide soft economy earlier this year, but now they are
doing some serious belt-tightening in the wake of the Sept. 11 terrorist attacks. Many casino
operators are downsizing short-term business plans as long-term statistics indicate the market
may have reached a plateau. Several casino riverboats in the Shreveport-Bossier market, for
example, posted double-digit declines in September compared to a year ago. …Most casino
operators in the Bayou State agree the gaming economy won’t be returning to its previous
income levels anytime soon. Admissions and win-per-slot revenues are down across the board.
11-12-01


MGM Mirage majority shareholder Kirk Kerkorian has sold 10 million common shares of
the company for $210 million, a regulatory filing revealed last week. The move reduces his stake
in MGM Mirage to 51.6 percent from 57.3. 11-12-01



Observer: Michael Pollock’s Gaming Industry Observer
Slot trends… The floor of the Global Gaming Expo in Las Vegas showed the subtle, yet
significant ways in which the casino industry is evolving. Some changes were obvious. Reel
slots were like bellbottom pants in the 1990s, a form of retro-chic that is becoming fashionable.
…One important – potentially tectonic – shift is the blurring of the lines between tables and
slots. This trend offers challenges in two areas: marketing and regulation.
…Slot managers across North America have clamored, individually and collectively, for a return
to reels. They feel, with much justification, that the growth in video has alienated a number of
core customers who never warmed up to the graphic images on the screens, who could never
quite figure out the winning combinations and who missed the simplicity of reels clicking into
place. Also, many quarter players – the mainstay of North America gaming – chose not to
migrate toward multi-line games in which they could play 45 or 90 nickels at a time.
…Offering a menu of slots available for sale or lease is in response to demands from casino
managers who must confront monthly statements that detail how much money is being
transferred to the bank accounts of slot manufacturers. Increasingly, slot managers are being
pressured to increase the ratio of machines on their floors that have been purchased.
…Major manufacturers will also be contending for bigger slices of the lucrative wide-area
progressive market in coming months. IGT is not ceding any ground, and is both developing new
games while trying to revive some of its older, tired brands. For example, Kaminkow’s team has
come up with “Diablo Diamonds,” a new version of Quartermania. Still, most of the action in
WAPS will come from new games that offer better graphics, splashier bonus games and strong
brands.
…One sleeping giant that could rock the slot world, from progressives to slot-monitoring
systems, is Aristocrat. The Australia-based company appears to have easily digested its
acquisition of Casino Data Systems, appointing many CDS people to key positions and using the
company’s growing marketing clout to promote CDS’ Oasis system for slots.
…Mikohn Gaming has quietly locked up what could be one of the most significant developments
in the evolution of the slot machine: knowledge-based gaming. That might sound a bit
hyperbolic, but Mikohn has come up with some new offerings that include trivia questions in the
bonus round. These games…offer a twist that does not come with the trivia questions that
accompany your Quaker Oatmeal box: Answer these questions correctly, and it affects the
payout.
…Since Mikohn has indicated that it holds all the necessary patents to such play in its own
lockbox, this new style of slot could lead to a new round of strategic partnerships, acquisitions or
shifts in market share. Vol. 6, No. 17, 10-29-01, p. 1-3, 7



Press of Atlantic City
IRS Presses on Tips, and A. C. Union Cries Foul       Atlantic City – Union officials representing

casino workers both here and in Las Vegas say the taxman is leaning hard on their members at
the same time economic conditions are making it difficult for the workers to earn a living.
Recently, the Internal Revenue Service has been meeting with employees at Atlantic City’s 12
casino hotels. The meetings are part of a national campaign by the IRS to encourage workers
who receive income from tips to report and pay the appropriate taxes on that money. Joseph Swavy, 11-
5-01


Unpaid Trump Bondholders Weighing Options.                  Atlantic City – With 20 days left for Trump

Atlantic City Associates to avoid default, bondholders are far from united on how to deal with
the man withholding their $73.1 million in interest, Donald Trump. One wants to buy the whole
company…one wants to foreclose…another wants bondholders to agree to concessions…another
predicts both sides will give ground. Joe Weinert, 11-13-01

Commissioners Approve One-Coin-Fits-Most Slots...           Atlantic City – One coin could fit most slot

machines under a measure passed Wednesday by the Casino Control commission.
Commissioners, by a 4-0 vote, temporarily approved “tokenization,” which allows a $1 token to
be used in penny, two-cent, nickel, dime, quarter, half-dollar and dollar slots. 11-15-01

Trump „Blinks,‟ Will Pay Interest.             – Forty-eight hours before what could have been
                                         Atlantic City

the first of several defaults, Donald Trump’s casino company changed its mind and said it will
pay bondholders their overdue interest. The decision was “based on the establishment of a
bondholders committee for the purpose of good-faith negotiations between the bondholders and
representatives of Trump Hotels & Casino Resorts,” the company said Wednesday afternoon.
Trump Hotels was overdue in paying $90.8 million in interest on three bond issues totaling $1.6
billion. …Donald Trump said debt restructuring is necessary to free up more cash due to the
economic downturn after Sept. 11 and ensuing legalization of casinos n New York. Joe Weinert, 11-29-
01


New Glitch at Williams. Another software glitch prompted a major Wall Street brokerage firm
to downgrade its recommendation of slot maker WMS Industries Inc. to “market perform” from
“buy.” Deutsche Bank analysts Mark Mutkoski and Joel Simkins said slot managers in
Mississippi and Nevada told them that some new WMS slots can lock up and reward gamblers
with extra credits, such as a 1,000-coin jackpot reading 100,000 coins. WMS said it “has
identified the extremely small number of occurrences of this issue.” The Waukegan, Ill.,
company said it will provide a software fix for the games pending regulatory approvals. Joe Weinert,
21-1-01
Ray Koon’s Gaming/Gram
A Diamond Progressive. The Board and Commission granted licensure, without condition or
limitation, as a manufacturer and distributor to Sierra Design Group, Reno. The company and its
principal, Robert Anthony Luciano, Jr., had received initial limited licensing two years ago. The
company’s attorney told the Board that the entity started with six employees, and now has 106 on
staff; that company sales had gown 789 percent; and, that the company has placed gaming
devices in Nevada, Washington, and with fourteen Native American tribes. Luciano spoke about
his new “Diamond System” where diamond merchandise is distributed through slot machines in
a unique marketing effort. …Sierra Design Group also was granted licensure to be the operator
of an inter-casino linked system. The company’s principal told the Commission, “It was my
conception to award merchandise through a linked system…” Vol. 16, No. 10, October 31, 2001, p. 3, 4



Reno Gazette-Journal
IGT Posts 11% Profit Gain in 4th Quarter. Reno slot machine giant International Game
Technology rolled to an 11-percent gain in fourth-quarter earnings and set a new record in net
income for its fiscal year that ended Sept. 29, the company said Tuesday. IGT chief executive G.
Thomas Baker said the foundation is in place for Reno-Sparks’ largest manufacturer to post
record results again in fiscal 2002. “This is going to be a (game) replacement year…led by
technology and the popularity of new games,” Baker told investors, analysts and media in an
upbeat conference call. IGT’s new EZ Pay, or ticket-in/ticket-out “cashless” technology, will
drive much of the demand by casinos to replace their older games with IGT’s new units, he said.
…For the year, IGT shipped 119,000 machines, up from 107,000 a year ago. Of that total,
domestic sales increased from 44,700 to 64,000 units. For the year, the company’s domestic
replacement sales totaled 38,000 units, double last year. Baker estimated that the domestic
replacement total could hit 50,000 in 2002, including those in Indian casinos. John Stearns, 11-7-01

Vegas Job Cuts Put State Jobless Rate at 10-Year High. More than 11,000 layoffs at Las
Vegas resorts after the September 11 terrorist attacks propelled unemployment in Nevada last
month to its highest level in a decade, the state reported Monday. The surge in Clark County,
home to two-thirds of all Nevadans, lifted the statewide seasonally adjusted rate by 1.5 points, to
6.3 percent. Bill O’Driscoll, 11-20-01


                                              Ken Adams

                                 210 Marsh Avenue, Suite 103
                                      Reno, NV 89509
                                  (775) 322-7722 Fax (775) 322-7806
                                        kenadams@softcom.net

				
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