Virtual Racing Adds Value To Bally, Goldman Sachs Reports

Goldman Sachs reports that, during an event with Bally Technologies Inc. (NYSE: BYI), the company touted one of its value-added enterprises: a virtual racing application.

“The software is currently installed at the Barona casino and company management indicated that there was an increase in win after the installation,” Goldman Sachs writes. “While this installation was successful and could attract more customers, casinos need to have iView installed, Ethernet cable, and a dedicated sales/marketing staff to get a full return.

“Bally management believes there is a systems revenue opportunity of ~$1.8bn for new products and $10 mn-$20 mn for maintenance/sales revenues over the next 5-7 years.”

Bally currently trades at $35.86.