IGT Acquire Cyberview Technology

Takeover to change the way slots work

Cyberview IGT Merger

IGT, the biggest manufacturer of Vegas casino slots, has made a move to acquire Cyberview - the company that provide Ladbrokes with their gaming machines

The deal was announced yesterday on the London Stock exchange with Cyberview revealing that IGT had approached them to buy the entire company.

The Cyberview share price immediately rose over 30% on the news up from 135p to 180p. However, despite this rise, at 180p, the shares still remain at a 30% discount to the suggested bid price of 230p per share, illustrating that the acquisition is far from being a done deal as of yet.

So, what do IGT want with Cyberview?

The first thought to any onlookers based in the UK may be that IGT are interested in making a move into the UK. As Cyberview provide the machines for Ladbrokes, IGT would have an immediate and significant stake in the UK slot market.

The real reason for the move, though, appears to be the technology that Cyberview have developed and the patents they have based on this technology

Server Based Gaming Technology

Cyberview have developed technology for what is known as Server-Based Gaming (SBG), also referred to as Networked Gaming. The company are said to be one of the market leaders in this field. This technology allows all slots on the casinos floor to be linked not only to each-other, but to a central server running behind the machines.

The benefits of this new technology are many and are expected to be good for both player and casinos.

Firstly, many malfunctions will be detected instantly and will either be fixed immediately behind the scenes or a member of staff will be sent to the machine even before the player has noticed something is wrong

Also, machines with games that players do not enjoy can be switched over to games that are more popular, so players will not have to stand in line, waiting to play the game they really want to play. It will also allow new games to be tested on the floor far more easily - just a switch from the control room can put the new slot onto a few slot machines to be tested in an instant

The end result will mean more efficiencies for the casinos which, they say, should result not only in better profit for the casino, but the potential for casinos to increase the slot payback for player. This means better value for money for Vegas slot players - something that most of us would welcome.

Time Gaming

In addition to the Server Based Gaming technology and the contract to supply British Ladbrokes with their gaming machines, Cyberview have one further trick up their sleeves - an innovation called Time Play

Time Play is a patented, innovative new way of playing slots. In a Time Play scenario, a player pays for a certain amount of time at a slot, so they know how long they will get at the machine. The technology also allows slot play to take on new scenarios - for example, a pinball machine could be converted into a slot machine or an arcade game could be converted into a slot machine. Sounds weird, but true. The innovations that will be seen on the slot floor over the next decade will be incredible as the casinos attempt to attract today’s Play-station generation.

What Does the Deal Mean for UK slot Players?

If the deal were to proceed, it could be great news for UK slot players. Players in the UK may finally be able to play great slot games like Wheel of Fortune Slots, Lucky Larry’s Lobstermania and Money Storm in Ladbrokes

Another possibility is that IGT could introduce some other aspects of their slots that UK players may relish. One of those is a high ‘payback’ percentage - the amount that a slot pays back to a player, on average, over a long period of time. IGT generally pay back over 95% of the stake to players, whereas UK slots are known for having a poor pay-back as low as 70%. Potentially, UK slot players may be able to play for longer and enjoy slots for entertainment, rather than outright gambling.

This certainly looks to be a fascinating development in the slot market with implications on both sides of the pond. We wait with baited breath to see what develops from here…