Williams Interactive boosts WMS Q3 revenues

Posted on May 7, 2013 by r.weston

Online division brings in US$17m to drive 21.9% year-on-year gaming revenue growth

WMS Industries’ growing egaming division helped the company record a 21.9% year-on-year increase in gaming operations revenue for the quarter ended 31 March 2013.

Gaming revenues for WMS, acquired by Scientific Games in January, increased from US$65.4m in Q3 last year to $79.7m in this year’s third quarter. The online division Williams Interactive, launched in July last year, contributed $17.1m.

WMS’ saw overall revenues grow 1.1% to $177.9m in the period, a rise from $176m in the corresponding quarter last year. However, adjusted EBITDA for the third quarter decreased 25% year-on-year, dropping to $49.3m from $65.3m in Q3 last year, while net income was also down 64% from $22.1m in the same period in 2012 to $7.5m. Both declines were blamed on to “incremental costs related to the pending acquisition” by SciGames.

WMS chief executive Brian Gamache said he was encouraged by the “continued strong revenue growth for our interactive products and services”. “Strong player and customer interest in recently launched gaming machines and the growing availability and rising popularity of our interactive products and services are establishing a platform for long-term success,” he said.

Gamache added that WMS would look to increase investment in new product development and marketing efforts aimed at “expanding the distribution and availability of [its] interactive products, services and game content”.

Last week the Delaware Lottery selected a joint bid by Scientific Games, 888 and Williams Interactive to provide it with online gambling services, with an online gaming site in the state set to go live by the end of the year. The third quarter also saw Williams Interactive strike content distribution deals with SkyBet’s Sky Vegas casino brand and the Rank Group, as well as Scandinavian-facing operator Bonnier Gaming.

WMS and Stratosphere expected to receive Nevada licences today

Posted on September 20, 2012 by r.weston

Service provider and operator go before NGC after being among last to receive recommendation from outgoing Gaming Control Board chairman Mark Lipparelli

The owner of Las Vegas’ Stratosphere Casino is expected to become the third licensed online poker operator in the US later today, while WMS Gaming is set to become the fifth licensed service provider.

Online poker marketing affiliate PokerTrip Enterprises is also set to become the first licensed affiliate in the Silver State at the Nevada Gaming Commission (NGC) hearing, having become the last companies to receive recommendations from Nevada Gaming Control Board chairman Mark Lipparelli, whose impending departure was exclusively revealed by eGR North America on Tuesday.

American Casino & Entertainment Properties (ACEP), the holding company for the Stratosphere, Vegas-based PokerTrip Enterprises and Illinois-based WMS Gaming all received approval from Nevada’s Gaming Control Board earlier this month and are expected to meet little opposition from the NGC.

ACEP had originally applied for both operator and service provider licences in February, but has since requested to withdraw its service provider application. The Stratosphere owner would be the third licensed online poker operator following the licenses awarded to South Point Poker and Monarch last month.

WMS Gaming would become the fifth licensed service provider after Bally Technologies, IGT, Shuffle Master and payment processor Global Cash Access. WMS has provided slot machines, video terminals and game software for land-based and online casino operators since 1999.

Earlier this year it announced a strategic alliance with Dragonfish, the B2B arm of 888 Holdings, and acquired online gaming content developer Jadestone Group, as well as social and mobile game developer Phantom EFX.

WMS’ egaming division Williams Interactive, launched in July, launched two social casino games on Facebook and its UK-facing brand Jackpot Party has released several online slots this year.

Lipparelli, who spoke at eGR NA’s Power Summit in Laguna Beach last wekek, has overseen the awarding of all the online poker licenses so far. In a statement, Nevada Governor Brian Sandoval said: “Mark has dedicated himself every day for four years to working to maintain Nevada’s leadership in the gaming industry and I thank him for his loyal service to the state.”

Earlier this week, Vintage Vegas Gaming, the company that owns former World Series of Poker host Binion’s Gambling Hall & Hotel in Las Vegas, became the latest operator to file an application for licensure.

WMS and Stratosphere set for Nevada licence hearing

Posted on August 31, 2012 by r.weston

Licence applications on Gaming Control Board agenda for 6 September

WMS Gaming and the owner of Las Vegas’ Stratosphere Casino will have their applications for online poker licences in Nevada considered by the Gaming Control Board (GCB) on Thursday.

If recommended by the GCB, the Nevada Gaming Commission will decide whether to award the licences at its next meeting on 20 September.

Illinois-based WMS has applied for manufacturer and service provider licences, while American Casino & Entertainment Properties (ACEP), the holding company for Stratosphere, had applied for operator and service provider licences in February but has since requested to withdraw its service provider application.

If successful, ACEP will become the third operator in the Silver State allowed to offer online poker, following the licences awarded to South Point Poker and Monarch last month.

WMS Gaming has been providing slot machines, video terminals and game software for casino operators – both land-based and online – since 1999. This year it announced a strategic alliance with Dragonfish, the B2B arm of 888 Holdings, and acquired online gaming content developer Jadestone Group as well as social and mobile game developer Phantom EFX.

WMS’ egaming division Williams Interactive, launched in July, has released two social casino games on Facebook and its UK-facing brand Jackpot Party has launched several online slots this year.

More than 30 companies have applied for Nevada licences, including twelve operators, with Golden Gaming becoming the latest to submit an application last week.

NRT Technology and Sartini Synergy Online are the most recent applicants, with both companies applying for service provider licences.

WMS growth continues as online arm plots success

Posted on August 7, 2012 by t.washington

Casino game supplier “sharpens its focus” of online opportunities with $30m of acquisitions

WMS Industries has recorded its third consecutive quarter of revenue growth as it looks to broaden its services with investments in online gaming, the company announced last night during a Q2 presentation.

The US casino game supplier posted an uplift in revenues of $19.9m to $195.5m, or 11%, for Q2 compared to the previous quarter. Net income for the second quarter was $22.1m compared to $10.3m during the same period last year.

The June 2012 quarter earnings also reflect acquisition-related expenses, the company said in a statement. This was attributed to its purchase of two online gaming business for US$16.4m. WMS said it had “sharpened its focus” of online, social, casual and mobile gaming products and services. Q2 saw WMS complete the acquisitions of online gaming content developer Jadestone Group and social casino games developer Phantom EFX.

However Orrin J. Edidin, president of WMS Industries and CEO of the company’s newly created egaming arm, Williams Interactive, said the total cost of the Jadestone and Phantom EFX entities including potential additional considerations amounts to nearer $32m.

“We believe that increasing our focus on this rapidly evolving growth area in facilitating investment, expansion and extension of our interactive products and services will allow us to provide what our customers need to be successful in these channels,” he said in Monday’s earnings call.

Brian R. Gamache, chairman and CEO, added: “We have enhanced our focus and accelerated spending in a measured manner to build a comprehensive suite of interactive products and services that provide our customers with solutions that enable them to benefit from interactive gaming opportunities.
“While this spending impacts near-term financial results, we believe it favourably positions WMS to participate in the tremendous high-margin growth potential of these opportunities that will create longer-term shareholder value.”

Last month WMS announced it was forming a new division, Williams Interactive, to focus on egaming opportunities. The new entity will be headed up by Orrin J. Edidin, president of WMS Industries, and will concentrate on its online wagering, social, casual and mobile gaming offerings in order to “capitalise on the emerging industry’s significant potential growth opportunities by supporting casinos’ participation in these new distribution channels”.

July also saw company announce a strategic alliance with Dragonfish, the B2B arm of 888 Holdings, to pursue both social and real-money online poker in the US, when legally permitted.

WMS opens new technology development centre

Posted on July 26, 2012 by r.weston

Game development hub in Chicago is designed to “inspire employee creativity and productivity”

WMS has opened a state-of-the-art technology development centre in Chicago, Illinois, to house its game development studios.

WMS CEO Brian Gamache and Orrin Edidin, president and CEO of newly formed Williams Interactive, which last week launched its second social casino on Facebook, attended yesterday’s grand opening.

Gamache said of the new centre: “This state-of-the-art addition to our Chicago Technology Campus is a very visible part of WMS’ ongoing commitment as an ‘Employer of Choice’ to provide a stimulating, desirable and sustainable workplace environment. We expect the building’s design will further inspire employee creativity and productivity, deepen our legendary ‘Culture of Innovation,’ while preserving environmental resources.”

The 120,000sq ft building includes four game development studios, two game laboratories and two product testing showrooms. Designed to be environmentally sustainable, it includes a living roof designed to absorb sunlight and improve insulation, and a computer-controlled, advanced building system linking sunlight and temperature to automatic window shades and lighting. The rooftop area includes a river-side courtyard with benches, new trees and plantings, decorative lighting and bicycle racks.

This month saw the Nevada licence applicant sign a strategic alliance with Dragonfish, the B2B arm of 888 Holdings, aimed at allowing WMS to offer 888’s online poker product to US casinos.

It also strengthened its egaming potential last month by acquiring social and mobile game developer Phantom EFX. The deal followed WMS’ acquisition of online gaming content developer Jadestone Group in May.
The opening was also attended by Illinois Senate President John Cullerton, who introduced an intrastate egaming bill in May and plans to reintroduce it in the fall veto session.

WMS launches second social casino on Facebook

Posted on July 19, 2012 by r.weston

Newly-created subsidiary Williams Interactive releases Jackpot Party-branded offering in follow up to Lucky Cruise

WMS’ newly created egaming division Williams Interactive has released a Jackpot Party-branded social casino on Facebook.

Jackpot Party social casino includes six of WMS’ slot themes including Zeus II and Invaders from the Planet Moolah, while the company explained in a statement that more of its games are scheduled to be added to the casino in the future. The casino allows its users to play one game initially, with the chance to take part in bonus rounds, win credits and unlock the remaining games upon completion.

The beta launch represents the second social casino product WMS has added to Facebook after Lucky Cruise casino was released in February, and follows Tuesday’s announcement of the formation of Williams Interactive, WMS’ wholly owned egaming subsidiary based in Chicago.

Newly appointed Williams Interactive CEO and president, Orrin J. Edidin, said of the launch: “Online social casinos are among the most popular games on Facebook and we are extremely pleased to follow the success of our initial Facebook social casino, Lucky Cruise, with the launch of a unique, new social casino that exclusively features content from player-popular, classic WMS slot games.”

This month saw the Nevada licence applicant sign a strategic alliance with Dragonfish, the B2B arm of 888 Holdings, aimed at allowing WMS to offer 888’s online poker product to US casinos.

It also strengthened its egaming potential last month by acquiring Phantom EFX, a leader in social and mobile game development which was responsible for the development of Jackpot Party social casino’s slot games for the Facebook platform. The deal followed WMS’ acquisition of online gaming content developer Jadestone Group in May.

Aaron Schurman, CEO of Phantom EFX, said: “Our team was totally enthused as we transformed the authenticity of WMS’ great casino slot mechanics and content into a similarly energetic, fun-filled online social gaming experience.”

WMS forms new egaming division

Posted on July 17, 2012 by t.washington

Chicago-based Williams Interactive will be headed up by WMS president Orrin J. Edidin

WMS has announced the formation of Williams Interactive, a wholly owned subsidiary that will focus on expanding and developing its egaming services.

The new entity will be headed up by Orrin J. Edidin, president of WMS Industries, who has been promoted to the position of president and chief executive officer of Williams Interactive.

Williams Interactive will concentrate on its online wagering, social, casual and mobile gaming offerings in order to “capitalise on the emerging industry’s significant potential growth opportunities by supporting casinos’ participation in these new distribution channels”, WMS said in a statement.

Brian R. Gamache, chairman and CEO of WMS Industries, added: “Establishing Williams Interactive is an important step forward in concentrating our efforts and increasing our collective ability to leverage our operational and development initiatives to propel growth and returns to the next level.”

In the last few years WMS has built a suite of egaming services aimed at supporting the online efforts of its land-based customers. Its operations include B2C online casino JackpotParty.com and a B2B online casino site in Belgium in collaboration with Groupe Partouche.

More recently WMS strengthened its egaming credentials by acquiring online gaming content developer Jadestone Group and Phantom EFX, a leader in social and mobile game development with a suite of more than 35 casino and slot products developed for desktop, Facebook, and mobile.

Earlier this month the company also announced a strategic alliance with Dragonfish, the B2B arm of 888 Holdings, to pursue both social and real-money online poker in the US, when legally permitted.

WMS is one of more than 30 companies to have applied for an interactive poker licence in the state of Nevada, although its application has yet to be given a place on the state’s Gaming Control Board agenda.

Newly appointed Williams Interactive president and CEO Orrin J. Edidin added: “Creating a single organisation to unify the company’s efforts in online wagering and interactive gaming distribution channels, while drawing upon our extensive existing library of great gaming content, will better enable WMS to participate in the many high-margin opportunities this content convergence offers.