IGT's Board Seats Still Cause Conflicts

IGT's Board Seats Still Cause Conflicts Online and land games and machine supplier International Game Technology was criticised this week by Jason Ader, a board member of the Las Vegas Sands land gambling group which controls about 3 percent of IGT's stock, who seeks to nominate three directors to the company's board, including former chief executive Charles Mathewson - a move opposed by the current management.

Questioning IGT's business policy and its recent decisions , Ader said that IGT should be looking at strategic alternatives for the social gaming unit Double Down Casino it bought for $500 million a year ago and focus instead on growing Asian markets.

He remarked that the company has lost focus in entering the online gambling arena: "IGT needs to get back to basics in developing games for its casino customers in the U.S. and Asia,” said Ader pointing to Macau, the world's largest land casino market, which generated $38 billion in annual gambling revenue in 2012, up 13.5 percent from a year earlier.

According to Ader, the DoubleDown acquisition puts IGT in competition with some of its key physical slot machine and systems customers, such as Caesars Entertainment Corp, MGM Resorts International and Station Casinos Inc., as well as with social gaming giant Zynga whose enterprise value had declined by more than 80 percent in the 12 months since IGT acquired DoubleDown.

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