Inside Asian Gaming

42 INSIDE ASIAN GAMING | January 2013 INTERNATIONAL BRIEFS SHFL Reports Strong Fiscal Q4 Results SHFL Entertainment grew revenues andprofits over the fourth quarter and all of fiscal 2012 and the gaming equipment supplier awarded its chief executive with a contract extension. Las Vegas-based SHFL, formerly known as Shuffle Master, announced revenue grew 12% year on year in the quarter that ended 31st October to US$73.6 million. Net income for the quarter increased 11% to $10.8 million while earnings per share grew 6% to 19 cents per share, according to the company. For the full fiscal year, SHFL’s revenue increased 14% to $259 million, net income grew to $38.6 million, compared with $31.6 million a year ago, while earnings per share jumped to 68 cents per share, compared with 57 cents in fiscal 2011. “All but one of our product categories witnessed double digit revenue growth; that’s impressive in any environment, and especially in this one,” SHFL CEO Gavin Isaacs said in a statement. SHFL also recently extended Mr Isaacs’ employment agreement to April 2016 . According to a filing with the US Securities and Exchange Commission, Isaacs’ annual base salary was increased to $650,000 per year. In a separate announcement, SHFL announced it was selected to be the exclusive supplier of Amaya Gaming Group’s gaming platform and the Ongame poker platform in the US for a 10-year period. Frank Fahrenkopf to Step Down at AGA Frank Fahrenkopf Jr, president and chief executive of the American Gaming Association, who has headed the country’s main casino industry lobbying organization since its inception in 1995, announced that he’ll step down on 30th June. Mr Fahrenkopf issued a statement saying that he and the AGA board began planning for his departure two years ago, and he expects a smooth transition when he ends his tenure after 17½ years. A successor hasn’t been named. AGA Chairman Richard Haddrill, who also is chairman of Reno-based Bally Technologies, described Mr Fahrenkopf as a steady, thoughtful leader who has guided the casino industry through significant changes. Accomplishments included findings and recommendations from the National Gambling Impact Study Commission, promoting diversity in industry hiring and procurement, the establishment of a National Center for Responsible Gaming, and the growth of industry trade shows such as Global Gaming Expo in Las Vegas and G2E Asia in Macau. Meanwhile, Internet gambling has emerged as the “next frontier” and one of the biggest threats to the casino industry in the US, Mr Fahrenkopf said during the annual Global Gaming Expo in October. Jim Murren, chairman and chief executive of MGM Resorts International, called Mr Fahrenkopf’s political skills “instrumental in protecting and promoting our industry’s interests on Capitol Hill.” “It hasn’t always been easy to bring our disparate group together, but he did it,”Mr Murren said. Fahrenkopf, 73, was chairman of the Republication National Committee for six of Ronald Reagan’s eight years as president, and led the GOP through presidential elections in 1984 and 1988. He continues to serve as co-chairman of the Commission on Presidential Debates. He plans to serve as a consultant to the AGA after 1st July to assist with the executive transition through at least the end of 2013. IGT Facing Proxy Fight From Former Chairman The former chairman and chief executive of slot manufacturing giant International Game Technology is challenging the company’s current leadership and has launched a proxy fight to regain a seat on the company’s board of directors, reports Las Vegas Review-Journal . Charles Mathewson, IGT’s chairman from 1986 until retirement in 2003, is working with New York- based Ader Investment Management, which is headed by former gaming industry Wall Street analyst Jason Ader. Mr Mathewson, 83, was IGT’s “chairman emeritus” until his ties with the company were severed in 2010. He is credited with spearheading the slot maker’s rise to the top in the 1990s. IGT revealed the challenge in a proxy filing on 7th January with the Securities and Exchange Commission. According to IGT, the Ader group owns about 3%of the company, or roughly 8.05million shares. Ader said it informed IGT that it intends to nominate Mr Ader, Mr Mathewson, and two other individuals to the company’s board of directors. Mr Ader, 44, now sits on the board of directors for Las Vegas Sands Corp, and was a member of the Western Liberty Bancorp board before the company was bought out by Western Alliance Bancorporation in October. Previously, he was senior managing director at Bear Stearns from 1995 to 2003, where he followed the gaming industry. IGT told investors it was nominating eight board members, including current company CEO Patti Hart and current Chairman Phil Satre. No date has been set for the company’s 2013 annual meeting. Industry insiders said the dispute centers on the direction of IGT, the world’s largest slot manufacturer with corporate offices in Las SHFL Entertainment CEO Gavin Isaacs Frank Fahrenkopf IGT CEO Patti Hart