Would-Be Pennsylvania Slot Machine Distributors Court Manufacturer IGT

PENNSYLVANIA -- As reported by the Post-Gazette: "International Game Technologies is the largest slot machine manufacturer in the United States, controlling about two-thirds of the market. It's reasonable to assume, based on discussions with those in the industry, that IGT will supply at least 60 percent of the slot machines that soon will populate casinos across Pennsylvania.

"Normally, IGT would sell its devices directly to the casinos. But because of Pennsylvania's peculiar requirement that slot machines pass through in-state distributors, the company or companies that win the right to supply IGT machines stand to score the largest distribution contracts, worth millions over the coming years.

"...There will be up to 61,000 slot machines in operation once Pennsylvania's casinos are fully developed. In the first year of business, 30,000 or more might be in place.

"...Officially, the jockeying began last month, when the Pennsylvania Gaming Control Board announced that it would begin accepting applications from potential distributors. Unofficially, the jockeying has been under way for more than a year, and many of the top slot machine manufacturers already have handshake deals -- contingent on would-be distributors winning licenses from the state

"...The board has said it will license all qualified distributors, then "let the market decide" which distributors win contracts with slot machine manufacturers..."