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Bally Technologies to sell casino


Rueters,  Monday, April 5, 2010 at 9:54:26 PM

Slot machine maker Bally Technologies Inc (BYI.N) cut its full-year profit outlook, partly due to slower-than-expected capital spending by its casino customers, sending its shares down 6 percent.

Separately, the company agreed to sell its Rainbow Casino in Vicksburg, Mississippi, for $80 million in cash to casino operator Isle of Capri Casinos Inc (ISLE.O) to focus on its core business.

"The (price) they received for it was average. But it will allow the company's price/earnings ratio to go higher given that Bally is now a pure-play technology company in the gaming space," Sterne, Agee and Leach analyst David Bain said.


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