Fall 2014 issue of Horizons

GAMING

A Post-Acquisition Integration Checklist for Gaming Operators by Brandon Loeschner, CPA, CISA

T he news is disappointing for the U.S. gaming market. Through June, gaming revenue decreased 1.4%, or approximately $269.9 million. Gaming revenue is being redistributed between the mature (such as Atlantic City) and new gaming markets (such as Pennsylvania) throughout the United States. Another trend is the continued consolidation among gaming companies. From 2012 through the first six months of 2014, there have been numerous high-profile acquisitions in the industry, which have included names such as IGT, Bally Technologies (Bally’s), Scientific Games, GTECH, Aristocrat, VGT, Poker Stars, The Cosmopolitan of Las Vegas, Ameristar, Pinnacle, Boyd, and WMS Industries.

the world being acquired by lottery companies GTECH and Scientific Games, respectively. GTECH acquired IGT in 2014 for $6.4 billion and Scientific Games is buying Bally’s for $5.1 billion. Speculation of more acquisition activity continues as Isle of Capri is rumored to be in talks with Gaming Leisure Properties (GLPI). Since 2013, GLPI, a Real Estate Investment Trust (REIT), has been active in acquiring casino and racetrack properties such as an Illinois riverboat casino and a Pittsburgh racetrack. Once these transactions reach their integration milestones, the impact will be felt across the gaming industry worldwide.

Planned Synergies With revenue in decline, gaming companies are making acquisitions to access new

The acquisitions in 2014 are headlined by the first and second largest slot game manufacturers in

page 52 | horizons Fall 2014