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Investor Business Update September 2006

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Business Update

September 2006

safe harbor statement
Safe Harbor Statement

Certain statements that may be made today will be considered “forward looking” as that term is defined under the rules of the Securities and Exchange Commission. Such forward looking information and statements involve risks and uncertainties that could lead to the actual results differing from those contained in today’s presentation and discussion. The general factors impacting future results are discussed in detail in our SEC filings. The presentation is only valid for today’s date and Bally undertakes no obligation to update the information contained in this report.

presentation outline
Presentation Outline
  • Overview of Bally Technologies, Inc.
  • Gaming Review
  • Systems Review
  • Company and Investment Highlights
corporate overview
Corporate Overview
  • Worldwide technology company engaged in the design, assembly, distribution and operation of diversified gaming devices and casino systems for traditional and non-traditional markets
  • 75 year history in gaming
  • Headquarters: Las Vegas, NV
  • Worldwide Employees: 1,640
  • Own and operate the Rainbow Casino in Vicksburg, Mississippi
status of financial filings
Status of Financial Filings

Step One: Restatements

Step Two: Quarterly Statements FY 06

Step Three: Form 10-K FY 06

Step Four: Q1 for FY 07

focused technology company
Focused Technology Company
  • January 2003 -- Announced strategy to sell non-core assets to focus on our Bally Gaming and Systems “core” technology assets
    • Disposed of four businesses with proceeds of $156.5 million
    • Repaid $100M of term debt
  • Acquisition strategy (2003-2006) targeted technology-based companies in order to expand product offerings to cover the full scope of the gaming floor
    • ACSC
    • Casino MarketPlace
    • Sierra Design Group
    • Micro Clever Consulting
    • MindPlay LLC
focus change bally technologies inc
Focus Change - Bally Technologies, Inc.
  • Reflects our business focus on technology and innovation and building the Bally brand
  • Provides clarity to our stakeholders
  • Finalizes the company identity subsequent to the completion of non-core asset sales and strategic acquisitions
  • Longstanding value of the Bally name in the gaming industry
bally today
Bally Today
  • Full service technology provider to the broad gaming industry. Three main business drivers:
      • Domestic, International, Class II
      • Wide Area, Daily Fee
    • 3. SYSTEMS
      • Software, Hardware, Services
Strong Management Team

Richard Haddrill — President, Chief Executive Officer

10+ years experience in gaming and technology industry

Gavin Issacs – Chief Operating Officer

15+ years experience in gaming and technology industry

Robert Luciano — Chief Technology Officer

15+ years research and development experience in the gaming industry

Ramesh Srinivasan — EVP, Systems

20+ years experience in technology and systems

Mark Lipparelli — EVP, Operations

17+ years experience in gaming and technology industry

Robert Caller — EVP, Chief Financial Officer

30+ years finance and accounting experience

Paul Lofgren — EVP, New Business Development

13+ years experience in gaming and technology industry

Markets: Class III, Class II, Public, and International
  • Sold over 100,000 devices in the last 5 years
  • 29,000 games on wide-area and daily fee arrangements
  • Largest systems provider - 240 casino customers
  • Worldwide licensing in over 260 gaming jurisdictions
  • Owner of Rainbow Casino - Vicksburg, Mississippi
Recent Company Announcements
  • Initial placement of Hot Shots March, 2006 (1,000 + Order Backlog)
  • Lincoln Park System Win
  • Mexico initial order for 2,000 games – 2,000 online
  • 18% share of games at Wynn Las Vegas
  • System win at SouthCoast, 100% iVIEWs, Power Rewards
  • System displacement of competitor system at SunCoast
  • Borgata upgrade to iVIEW’s (4,100 units), Power Progressive (branded as Power Winner)
  • Initial placement of CineVision - January, 2006
  • Initial placement of S9000 five reel spinner – March, 2006
  • Strong share of games sold to reopened Mississippi casinos
  • Table Technology in Macau + TableView
gaming product line
Gaming Product Line
  • Stepper / Mechanical
  • Video
    • Standard + Cinevision + High Profile
  • Participation & Fee Based Games
  • Class II and Central Determination
  • Poker



From G2E 2005


Hot Shots

V20 E

Post G2E 2005

Gaming Technology
  • Consolidation of Multiple Platforms to Alpha
      • Fully featured
      • Linux-based operating system
      • Download capable
  • Launched in April 2005 in all markets
      • Platform approvals in all jurisdictions
      • Target titles for each market on plan
Domestic and International Expansion
  • Domestic game replacement market likely will remain slow in for the remainder of CY 2006
  • New market / expansion opportunities:


    • Gulf, FLA, PA

NY Lottery

  • Diversified portfolio of technology assets allows for faster reaction time for new market opportunities (e.g. Mexico)
  • Downloadable Gaming Strategy bolstered by C2/CD experiences
  • New Opportunities in Video for Bally
  • Much Tighter Focus on International Initiatives
  • March 2004 acquisition of Sierra Design Group provided a strong presence in the Class II and central determination gaming markets (Key Markets – WA, OK, Fla)
  • International
  • Mexico, Europe, Asia

South America

Systems Technology
  • A market share leader
    • 35-40%+ domestic market share
    • Multiple Platform Options
  • Strong recurring revenue base
    • 22% of revenues in fiscal 2005
  • Systems more critical to success
    • Enhance the player experience, and increase the yield per player
  • Large client list for upgrades and product expansions
Systems Technology
  • Selected Customer Portfolio
    • CORPORATE LEVEL: Harrahs, Boyd/Borgata, Coast Casinos, Sands/Venetian, Trump, Pinnacle, Penn, Isle of Capri, Colony Capital (Resorts), Tropicana, Alladin, Fitzgeralds, Eldorado
    • NATIVE AMERICA: Foxwoods, Mohegan Sun, Mystic Lake, Pearl River, Seneca, Barona, Seminole Tribe, Morongo
    • INTERNATIONAL: 80+ clients worldwide
Systems Product Migration




  • First deployment of player tracking
  • All bonuses are generally manually or hand-keyed into systems
  • Player tracking becomes standard throughout the industry
  • Bally SDS introduces bar-coded marketing coupons as player incentive rewards
  • ACSC introduces first cashless downloads to the slot machine
  • Automated cashless rewards based on slot play
  • Elimination of manual drawing tickets and carnival like prizes
  • Targeted bonusing based on player demographics
  • Interactive Touch Screen

AS400, UNIX, Windows, Tables, and System Gaming



Systems Technology -- Downloadable Games
  • Evolving Technology
    • iVIEW used to interact with players
    • Peripheral and configuration management
    • Game personality downloads
  • Deployments in non-traditional markets
  • Game outcomes are already centrally determined
  • Strong systems presence likely to be an advantage
Table Technology
  • Automated Tools - Integrated
    • Bet Detection
    • Card Dectection
    • Surveillance
    • Player Ratings
    • Card Handling
  • Patented Technology
  • MoneyPieces™ gaming chips
  • Market Potential – 30,000 Table Games
R & D and Patent Focus
  • Deep historical and current intellectual patent portfolio in multiple product areas.
  • Market leading development centers in the US, UK, France, and India.
  • R&D spending as a percentage of revenues:
    • 9.0% (2005), 7.6% (2004), 5.2% (2003)
investment highlights1
Investment Highlights

Leading developer of gaming technology

  • Strong Product Portfolio Hitting Market
  • Cabinet, Platform and Content
  • Focused Corporate Strategy

Industry leader in systems

  • Strong Support History
  • iVIEW gaining traction
  • Bonusing and promotions software

Strong presence in Class II markets

  • Washington, Florida, and Oklahoma

Domestic and International expansion

  • Video Markets
  • Florida, Pennsylvania and NY Lottery
  • Mexico, South America, Asia and Europe