AWP COMPANY ACQUIRED BY SCIENTIFIC GAMES

US company entering UK pub game sector?

It appears from an announcement by Nasdaq-listed Scientific Games this week that the company may have ambitions in the UK "Amusement With Prizes" (AWP) and "Skill With Prizes" (SWP) game sector, producing games for the British public house (pub) market.

The announcement revealed that SG had completed the acquisition of Games Media Limited and related companies, an English group that develops, publishes and markets AWP and SWP games for the British pub sector. The acquisition is expected to be neutral to 2007 earnings.

The UK public house market comprises approximately 60 000 pubs which have an estimated total of 120 000 AWPs and 30 000 SWPs. It is anticipated that the industry will undergo a digital replacement cycle of the current analog machines starting in 2007.

AWP-style online games have been produced by leading Internet gaming providers like Microgaming and Cryptologic and have enjoyed some popularity with online gamblers due to their more complex nature and skill requirements.

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