IGT Employees
Affected by Hurricane
International Game Technology's
100 Gulf Coast employees were affected more
by Hurricane Katrina than was the company's
equipment, Chairman TJ Matthews said.
The Reno-based company's gaming operations
monitoring sites in Gulfport, Miss., and New
Orleans were shut down due to storm and flood
damage. But less than half of the 2,300 gaming
machines the company owned and operated in the
region were directly affected by the disaster,
Matthews said late Wednesday.
The monitoring sites house the central computer
servers in the company's progressive jackpots
systems, such as Megabucks. IGT said it was
seeking emergency approval for alternative monitoring
sites that could operate by the end of September.
IGT Chairman TJ Matthews said the immediate
concern is with the company's staff members
in the area, many of whom suffered damage to
homes and personal property.
"We have now accounted for all 100 of
our Gulf Coast area employees and are thankful
that none of them was injured," Matthews
said. "Our focus is now on providing immediate
assistance to our employees and their families,
who are dealing with the aftermath of this disaster."
IGT is donating $1 million to assist the relief
efforts and has established an IGT Employee
Relief Program to assist affected employees.
IGT plans on matching dollars that company employees
contribute to the program or the American Red
Cross.
IGT said about 900 company slot machines were
knocked out of commission by the hurricane.
The balance were in casinos that were either
unaffected by the hurricane or have since reopened.
However, approximately 700 machines are still
inoperable due to the destroyed monitoring sites.
Another 700 slot machines are operating as stand-alone
or at American Indian casinos.
The company had expected in fiscal 2006 to
sell 1,000 to 2,000 slot machines to Gulf Coast
casinos affected by Katrina. The company said
the sales are now on "indefinite hold"
until those casinos reopen.
The company estimated book value of slot machines
and assets in the affected area at about $10
million.
Company shares closed Thursday down 45 cents,
or 1.64 percent, at $26.88.
IGT joined a growing list of gaming companies,
including Harrah's and Pinnacle Entertainment,
providing assistance for employees in the devastated
Gulf Coast. MGM Mirage has said it would pay
full salary and benefits to the 3,400 employees
of the Beau Rivage casino in Biloxi until Dec.
6.
The company has also created a fund to help
with the recovery efforts, seeding it with $1
million and saying it will match employee contributions
dollar for dollar.
Mirage Resorts President Bobby Baldwin said
the company has invested $800 million into Beau
Rivage and the rebuilding efforts will bring
that total to above $1 billion.
"Massive numbers of man-hours and labor
will be required to restore Beau Rivage and
the Biloxi area in general," Baldwin said.
"We plan to utilize Beau Rivage employees
wherever possible."
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