IGT announces video lottery terminal deal in Oregon

LAS VEGAS -- IGT - International Game Technology will deliver 1,500 video lottery terminals to the Oregon State Lottery in 2014, a deal one Las Vegas-based gaming analyst described Wednesday as “a modest positive.”

The Oregon Lottery has roughly 12,000 video lottery terminals, or VLTs, in bars and taverns, which the lottery is expected to look to upgrade in the coming years, Bill Lerner, an analyst with Union Gaming Research, said in a research report.

Financial terms of the deal announced Tuesday were not disclosed.

“We also expect other major manufacturers to benefit from replacement sales into Oregon,” Lerner said. “In general, VLTs carry a lower price point than games shipped into a typical commercial casino.”

Lerner expected the “macro environment for product sales” to continue to be challenging given few new major near-term property openings, an increasingly competitive landscape, and operators still hesitant to spend significant amounts on the gaming floor.