Slot machine provider AGS announced today that it has renewed its long-term contract with Oklahoma’s Chickasaw Nation, which secured the Las Vegas-based company’s installed base of more the 3,200 games in the tribe’s 22 casinos.
In a statement released Friday morning, AGS said the deal represents a significantly larger installed base of games than AGS previously had with the tribe. The agreement covers recurring revenue games – slot machines where the company shares in the revenues with the casino.
AGS CEO David Lopez
Financial terms of the deal were not disclosed.
Chickasaw operates the massive WinStar World Casino, one of the country’s largest casinos, which has more than 8,200 slot machines and roughly 600,000 square feet of gaming space.
The status of the contract extension has frequently been a question brought up by analysts on AGS’s quarterly earnings conference calls.
The tribe operates roughly 20,000 slot machines in total at its multiple casinos across the state. Oklahoma is considered the second largest Indian gaming state in the nation in terms of revenue, behind only California.
“We are appreciative of our 14-year relationship with the Chickasaw Nation, this opportunity to renew our business with them, and their confidence in AGS,” AGS CEO David Lopez said in a statement.
SunTrust gaming analyst Barry Jonas said in a research note in January that 11 percent of AGS revenues come from WinStar World, which sits just 71 miles north of the populous Dallas-Fort Worth area and its 7 million residents. The DFW metroplex boasts the fourth highest gross domestic product among U.S. metropolitan markets.
“We are pleased to renew our long-standing relationship with AGS and look forward to furthering our partnership,” Chickasaw Nation Secretary of Commerce Bill Lance said in a statement.
Shares of AGS closed at $26.62 on the New York Stock Exchange Friday, up 33 cent or 1.26 percent.
Howard Stutz is the executive editor of CDC Gaming Reports. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter.
