Yesterday the agreement to acquire WagerWorks, a provider of Internet gaming technology, content and services, was completed by International Game Technology (IGT) by an all cash merger, and the Corporación Interamericana de Entretenimiento (CIE) in Mexico announced that it had entered into an association with IGT for the provision of bingo terminals. The CIE, established in 1991, operates 33 bingo locations in Mexico as well as organizing live shows, commercial events, concerts, radio stations and entertainment centres with a presence in Argentina, Brazil, Colombia, Spain and the US.

The strategic alliance between IGT and CIE involves neither investment of capital nor acquisition of shares. The new bingo terminals will be installed by IGT under a leasing arrangement and it is expected that 1,500 will be operational by the end of the year. The generation of an additional EBITDA of up to US$25 million is anticipated. By 2007 CIE is aiming to increase its gaming locations to 45, including sports wagering and the bingo parlours known as ‘Yaks’ with 5,000 video bingo terminals, with a subsequent rise in EBITDA of US$85 million.

In 2004 CIE recorded over 7 million visitors to its locations and has stated that it is in the process of refurbishing the sites for a cost of US$34 million prior to the installation of the machines. The company also has sole distribution rights for the IGT machines in Mexico. In May the Televisa group, the Hispanic media giant, was granted permission to operate 65 betting shops and 65 bingos in the country and is believed to be in negotiations to form associations with international companies. (E-08.26.05)

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