Japanese Deal to be Formalized

International Game Technology is in the process of formalizing a contract with Japanese pachinko maker Sammy Corp. to jointly develop gambling devices in Japan and other countries.

The previously reported agreement calls for Sammy to help IGT with its pachinko business in Japan and to develop other machines if Japan legalizes casinos.

Sammy also will supply Sega games such as an online horse racing product to IGT for overseas markets, the Sankei Shimbun newspaper in Japan reported Sunday.

Sammy and IGT will jointly operate casinos in Japan if gambling laws are changed, the newspaper said.

IGT Vice President of Marketing Ed Rogich said the companies are expected to formalize the contract soon. Rogich could not immediately confirm the newspaper's information Monday.

Sammy recently acquired a 22 percent stake in Sega Corp., a Japanese video game maker, after merger talks with Sega failed.

Pachinko machines resemble pinball games and are played for prizes.