Sector Snap: Gaming Equipment Companies

NEW YORK (AP) — Gaming equipment companies Bally Technologies Inc and International Game Technology are picking up share at an unnamed New York racino, a Goldman Sachs analyst said Tuesday.

Steven Kent of Goldman Sachs said he toured the racino, which is a racetrack that has a casino, on Monday and determined that Bally and IGT have the best-performing games and are gaining share on the casino floor.

Bally now has a 53 percent share of the racino's floor, up from 50 percent, while IGT has a 30 percent share, up from 25 percent. Both companies are taking share away from Lottomatica subsidiary Spielo, which dropped to a 17 percent share from a 25 percent share.

"The property expects to pull more Spielo units in the near future, given their underperformance, and replace them with Bally and IGT machines," Kent wrote in a note to clients.

Shares of Bally Technologies added 8 cents to $40.51 in morning trading Tuesday, while IGT added a 3 cents to $20.95.

The analyst said gaming equipment suppliers may also soon be able to capitalize on the introduction of electronic table games. The New York Lottery ruled that the games are legal and companies are currently working on making their electronic games compatible with the lottery system.