New slot machine games

Nevada slot machine route operator Century Gaming Technologies doesn’t own the bars, taverns, restaurants or convenience stores where it manages more than 3, 000 games.

That might seem a bit unusual for the state’s second-largest slot route company.

Most of Century’s main rivals provide slot machines to their own businesses, as well as distributing games and systems to the competition.

That commitment to tradition also has consequences. Century’s revenue stream is tied solely to gaming.

“We don’t have food or beverage revenue, ” Arntzen said. “We strictly depend on participation from gaming machines and systems or product fees.”

That’s one reason Arntzen is watching events unfold in the state Legislature.

Gov. Brian Sandoval’s $1.1 billion tax package to fund education and other services includes a new slot machine tax on restricted gaming license holders with more than 500 machines or revenue of $10 million or more. The governor hopes to raise $39 million through the tax.

Century could be facing a hit to its bottom line.

“I think the definition of slot route operator got a heck of a lot broader over the past 15 years, ” Arntzen said.

Golden Gaming, the state’s largest route operator with more than 7, 600 slot machines, is also the Nevada’s biggest tavern owner, with 48 locations under five brands. JETT Gaming, which is owned by the Herbst family, manages the slot machines for the Terrible Herbst convenience store chain. Nevada Restaurant Services owns the Dotty’s tavern franchise and serves as the route operator for the company’s nearly 100 locations.

“It used to be that you put the equipment in a location and split up the revenue according to a formula, ” Arntzen said. “It’s still pretty much done that way, but it seems to be getting bigger for the other side and smaller for us.”

The tax plan could slice into the slot machine revenue Century receives after dividing up the results with bar and tavern owners. Slot route operators now pay a flat fee per slot machine.

Arntzen hopes the idea is thoroughly vetted by state lawmakers.

“I’m not sure if we should all fall into the same circle, ” Arntzen said.

Meanwhile, Century, which also operates almost 4, 000 slot machines in Montana, continues to look for ways to grow its Nevada business, which comprises more than 400 locations.

Century is unveiling several dozen new products for its customers in a private showing at The Orleans today.