Ainsworth was affected by a tax adjustment in March. It is a happy moment for the company to say they have a rise in profits.
Churchill Downs reported strong business for the year.
The horse racing local continues to bring people to the races for gambling and entertainment.
Tying the News Together
Ainswroth Game Technology made a deal with Churchill Downs. The business arrangement was for Ainsworth to provide the US company, Churchill Downs with 600 slot machines.
The slot machines went to Derby City Gaming, which is a historical machine racing facility in Louisville, Kentucky. Ainsworth was able to file an update to their revenue forecast for the year of 2018, which shows the second half will increase to $14.7 million in profit. The forecast for the entire year is up to $26.5 million. Despite the increase in profit, the company is still saying the earnings will be below expectations.
CEO of Ainsworth, Danny Gladstone stated that they are disappointed that the profit expectations are not as high as one hoped. The competitive market and timing has not been the high standards of the company or what the shareholders deserve. However, moving forward they are showing a profit outlook and looking for new innovative ways to ensure progress is made towards better products and marketing, so there will be a stronger performance for 2019.
Ainsworth’s fulfilment of the Derby City contract was for historical racing games. Construction of Derby City Gaming started in December of 2017. It is a $60 million gambling facility. There will be 600 slot machines developed by Ainsworth. There are also simulcast betting areas, a 50-seat bar, and two full-service restaurants at the facility.
The President of the Derby City project, Kevin Flanery said he expects the slot machines to be engaging and eclectic. The machines have similar aspects to regular slot machines and have push-button game styles. There are number generators to keep the machines fair. The number generators are using historical horse races to calculate information.
The machines are contested in Kentucky. Flanery is involved in at least one court case to try and prove the machines are honest and not at all unfair to the paying client. The CDI, which is the company running the Derby City Gaming location says they are confident that the company has a future offering historical games. The facility should be in full operation by the fall of 2018.