One of the largest ongoing supply contracts for slot manufacturer AGS is with the Chickasaw Nation in Oklahoma, where the tribe’s massive WinStar World Casino has placed AGS games on 16 percent of its 8,200-machine slot floor, the largest in the U.S.
The WinStar World contract expires at the end of the year.
Gaming analyst Barry Jonas reported last week after a visit to the Oklahoma market that the Chickasaws are likely to renew the partnership with AGS. We left our meeting with the Chickasaw tribe more confident that AGS will renew their Chickasaw contract that expires this year with the same terms,” Jonas wrote in a Jan. 17 research note.
That jibes with what AGS CEO David Lopez said during his November quarterly earnings conference call. “I have no concerns about getting that deal renewed, no concerns about the terms on that deal or anything of the kind,” Lopez said at that time. “It’s a great relationship for us, not just obviously with the Chickasaw Nation but with all (the) tribes in Oklahoma and our tribal relationships across the country.”
When asked about the Jonas comment by Howard Stutz of CDC Gaming Reports, AGS Chief Marketing Officer Julia Boguslawski declined to discuss specifics of customer agreements, but added, “However, we greatly value and are proud of our long-term relationship with Chickasaw Nation and feel confident that we will renew our agreement with similar terms,” Boguslawski said. “We view our relationship with Chickasaw Nation as a true partnership and look forward to many more years working together.”
Jonas said in his comment that the contract at WinStar World, which serves the Dallas, Texas market, accounts for 11 percent of AGS revenues.
