AMOA SUPPORTS AMUSEMENT SHOWCASE INTERNATIONAL: KELLEHER
CHICAGO - Rumors of an AMOA-led boycott of the upcoming Amusement Showcase International have been officially declared false by officials of the Amusement and Music Operators Association. ASI, which takes place March 3-5 at the downtown Hyatt Regency Hotel, is sponsored by the American Amusement Machine Association. Jack Kelleher, executive vice-president of AMOA, said AMOA "fully supports ASI" and that most of its board members will attend. Widely circulated rumors claimed some leading operators were urging a boycott of ASI in retaliation for manufacturer participation in the upcoming Nightclub and Bar Show (Feb. 27-Mar. 2, Las Vegas). However, AAMA is not taking a booth at that show.
AAMA TRACKS VIOLENT VIDEO BAN LEGISLATION IN SEVEN STATES
CHICAGO , AAMA's Government Relations team is reporting that, in addition to two previously reported Illinois measures, new legislation has been introduced in the state legislatures of Connecticut, Florida, Georgia, Mississippi, North Carolina and Pennsylvania. Mississippi's SB 2131 targets the home video market but the others "either explicitly target the coin-op industry or are drafted in a manner that would cover coin-op games," said AAMA officials. More information is available at http://www.coin-op.org/Top%20News.htm.
SEGA SAMMY HOLDINGS REPORTS $444 MILLION PROFIT OVER THREE QUARTERS
TOKYO , Sega Sammy Holdings Inc. toted up $444.46 million in group net profits for the nine months ending Dec. 31, boosted by revenues from its computer game software and pachinko machines. The Sega division said arcade closures triggered its 54.9% drop in operating profits during the period. This represented the first combined fiscal report by the companies, which merged Oct. 1, 2004. The company expects to achieve $514.42 million in net profit for the fiscal year ending March 31. Sega recently announced integration of its U.S. and European home video game divisions; any reorganization of Sega and Sammy's coin-op divisions is not expected until after Japan's new fiscal year begins.
DAVE & BUSTER'S, CHUCK E. CHEESE'S ANNOUNCE EARNINGS
DALLAS and IRVING, TX , Dave & Buster's has announced that January's severe winter storms in the northeastern U.S. hurt its fourth-quarter revenues. Earnings dropped by almost $2 million as more than 40% of the company's stores suffered reduced traffic' Meanwhile, Chuck E. Cheese's parent company, CEC Entertainment, will restate certain of its prior period financial statements as a result of a review of its accounting for certain store leases and leasehold improvements. This review is still in process and includes consultations with CEC's independent auditors and the audit committee. Officials said the restatement, as in the case of many restaurant businesses that have acted likewise, result from "a change in our prior interpretation of generally accepted accounting principles applicable to certain leases or leasehold improvements." Prior policies "were consistent with generally accepted accounting principles," said Richard Frank, chairman and CEO. The adjustments will have no impact on historical or future sales, comparable store sales or cash balances, he added.
KENTUCKY GOVERNOR VOWS CRACKDOWN ON ILLEGAL VIDEO GAMBLING
FRANKFORT, KY , Governor Ernie Fletcher said last week that he will lead a new campaign to eliminate illegal video gambling machines in the state, including VLTs, slot games and video poker in truck stops and other street locations. Citing the belief that illegal machines take millions in illicit profits each year, Fletcher ordered state police and liquor control agencies to find and seize the devices. According to TV station WKYT, Fletcher has also stated his intent to introduce new legislation designed to remove the machines.
TX POLICE SEIZE 70-PLUS EIGHT LINERS; LEGALIZATION ISSUE RETURNS
AUSTIN, TX , Tarrant County sheriff's deputies in mid-January seized 70 eight liners, a video blackjack machine and several slot machines in a raid on an amusement arcade in Haslet. Later that month, a San Antonio man was found guilty of state felony charges in connection with eight liner operations. But in the state capitol this month, state representative Sylvester Turner (D-Houston) proposed legalizing video lottery terminals, saying the move could yield $1.5 billion in new tax revenues for state education. Gov. Rick Perry's pro-education VLT bill was defeated last year.
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