RENO, Nev., Dec 26, 2002 /PRNewswire-FirstCall via COMTEX/ --
International Game Technology (NYSE: IGT) announced today it has entered into an agreement to sell its Colorado casino operations to Isle of Capri Black Hawk L.L.C. ("Isle Black Hawk"), a joint venture between Isle of Capri Casinos, Inc. and Nevada Gold & Casinos, Inc. The cash purchase price is $84.0 million. The agreement is subject to the satisfaction of several conditions including financing and the approval of the Colorado Gaming Commission.
IGT has previously announced its plans to sell its Colorado casino operations, which were acquired as part of the acquisition of Anchor Gaming in December 2001. The Colorado casino operations consist of the Colorado Central Station Casino, located in Black Hawk, and the Colorado Grande Casino, located in Cripple Creek. It is anticipated that the transaction will close in the spring of 2003.
This press release contains or incorporates by reference "forward-looking" statements, as that term is used in federal securities laws. These statements relate to analyses and other information based on forecasts of future results and estimates of amounts not yet determinable. These forward-looking statements are identified by their use of terms and phrases such as "anticipate," "expect," "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will," "continue," and other similar terms and phrases, including references to assumptions. Although the Company believes that the expectations reflected in any of its forward-looking statements are reasonable, actual results could differ materially from those projected or assumed. IGT's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent known and unknown risks and uncertainties. IGT does not intend, and undertakes no obligation, to update our forward-looking statements to reflect future events or circumstances.
Specific risks and uncertainties of which you should be aware include, but are not limited to, the following: The completion of the transaction announced hereby is subject to numerous closing conditions, including the buyer successful obtaining the financing required to fund the transaction and the parties obtaining all required regulatory approvals. In addition, our business is dependent on the gaming industry and would be adversely affected by adverse changes in the gaming industry including: a decline in demand for our gaming products or reduction in the growth rate of new and existing markets; reduced levels of gaming play on our gaming systems or customer demand for our gaming machines as a result of declines in travel activity or customer capital expenditures after the terrorist attacks of September 11, 2001; competitive pressures relating to our proprietary games; and a decline in public acceptance of gaming. Our business is vulnerable to changing economic conditions, including: unfavorable changes in economic conditions; political or economic instability in international markets; changes in interest rates causing a reduction of investment income or in the value of market interest rate sensitive investments; and fluctuations in foreign exchange rates, tariffs and other trade barriers. Our business is subject to regulatory risks, including: unfavorable public referendums or anti-gaming legislation; unfavorable legislation affecting or directed at manufacturers or operators of gaming products and systems; adverse changes in or findings of non-compliance with applicable governmental gaming regulations; delays in approvals from regulatory agencies; a limitation, conditioning, suspension or revocation of any of our gaming licenses; and unfavorable determinations or challenges of suitability by gaming regulatory authorities with respect to our officers, directors or key employees. Our intellectual property rights are subject to risks, including: the potential for there to be an inability to obtain and maintain patents and copyrights to protect our newly developed games and technology; competitors' infringement upon IGT's existing trademarks, patents and copyrights; and approval of competitors' patent applications that may restrict our ability to compete effectively. Our business operations are subject to other risks, including: reduced lottery sales in lottery jurisdictions where Automatic Wagering International, an on-line lottery subsidiary of Anchor, has lottery contracts; our ability to renew existing lottery contracts; competition in Colorado that could adversely affect our Colorado casinos; the loss or retirement of our key executives or other key employees; the loss of lessees on sublet properties no longer used in our operations; discovery of facts with respect to legal actions pending against IGT not presently known to IGT or determinations by judges, juries or other finders of fact which do not accord with IGT's evaluation of the possible liability or outcome of existing litigation; an inability to generate sufficient cash flow to service debt obligations; our inability to meet implementation and performance schedules per our lottery contracts; the lottery business of Anchor could subject us to significant liquidated damages claims, which would adversely effect our operating results; and increased costs due to reliance on third-party suppliers and contract manufacturers.
IGT is a world leader in the design, development and manufacture of microprocessor based gaming and lottery products and software systems in all jurisdictions where gaming and lotteries are legal. For more information on International Game Technology, visit our web site at www.igt.com .
MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X40553611
SOURCE International Game Technology
Media, Ed Rogich, +1-702-896-8690, or Investors, Bob McIver, +1-775-448-0110, both of International Game Technology
Copyright (C) 2002 PR Newswire. All rights reserved.
News Provided by COMTEX