In the most recent fiscal year, Multimedia Games continued diversifying its revenue stream through research and development investment and new market placements. The Company has been broadening its customer base by developing and introducing new games and gaming systems expressly designed for the video lottery, charitable gaming, sweepstakes and amusement with prize, and international lottery markets.
Native American Gaming
Native American gaming is still one of the fastest-growing segments of the broad U.S. gaming market, according to International Gaming & Wagering Business magazine. Its double-digit growth is fueled in part by the technologies offered by Multimedia Games. Today, Multimedia has more than 10,000 games installed at Native American gaming centers nationwide.
Video Lottery Systems
The growth in U.S. lottery sales has been driven by the burgeoning video lottery industry. According to International Gaming & Wagering Business magazine, in 2004, video lotteries nationwide posted a 22% increase in gross revenues. In 2005, roughly $1.6 billion of the industry's gross revenues went directly to the states for use in education, economic development, the environment, senior citizens, and local and state general funds. Market growth, along with broader public acceptance of video lotteries as a revenue source for cash-strapped jurisdictions, has caused a number of states to join the video gaming market. Multimedia Games' gaming systems are ideally suited for this growing market.
Charitable Gaming
The charitable gaming market is one of Multimedia Games' newest markets. The National Association of Fundraising Ticket Manufacturers reports that in 2004, the charitable gaming market in the United States and Canada exceeded $10 billion in gross revenues. Multimedia Games currently has terminals installed in halls in several new jurisdictions, including Alabama, Louisiana and Minnesota. In addition to allowing operators expanded control of their gaming floor, our systems and games offer regulatory authorities state-of-the-art security and audit features over a wide variety of communications channels.
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