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Issue Date: Vol. 51, No. 7, July 2011, Posted On: 7/10/2011

AGS To Supply Cherry Masters To Illinois VLT Industry

Marcus Webb
American Gaming Systems, video poker, International Gamco, Illinois video poker, Illinois video gaming action, Alpine Investors, Robert L. Miodunski

SAN FRANCISCO -- American Gaming Systems said it has entered into an exclusive licensing agreement with International Gamco Inc. under which AGS will reconfigure its Cherry Master to meet the requirements of the Video Gaming Act in Illinois.

The agreement covers all approved slot machines from AGS in Illinois and includes an option for AGS games in Oklahoma.

AGS said that up to 30,000 units of Cherry Master had been on location in Illinois in the past, but they were not configured for the planned state-regulated market. The company said it plans to take graphic elements and gameplay features already familiar to players in Illinois and recast the games for placement in bars, taverns and other authorized VLT locations. AGS chief executive Robert L. Miodunski said this approach was suggested by an Illinois amusement operator.

Implementation of the Video Gaming Act is on hold, pending a ruling by the Illinois Supreme Court on a technical matter. If the high court upholds the propriety of the act, the state's new operator-run VLT market could go online in late 2011. If it does, projections suggest it could comprise 40,000 to 50,000 networked poker games that would generate between $375 million and $500 million a year in taxes for the state. | SEE STORY

Privately held by California-based Alpine Investors, AGS provides video machines to tribal markets. It has sales, service, development and management offices in California, Florida, Illinois, Nevada and Oklahoma, as well as Canada, and maintains satellite offices in other jurisdictions. The company said its current list of market approvals includes California, Florida, Louisiana, Maryland, Michigan, New Mexico, New York, Oklahoma, South Dakota, Texas and Washington.

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