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LAS VEGAS-Bally Technologies has retained Credit Suisse Securities (USA) LLC to evaluate the potential sale Rainbow Casino in Vicksburg, MS, its only gaming property. The locally based public company is focusing on making slot machines, video gaming machines and related computer systems.

Gaming analyst Harry Curtis of JP Morgan Securities told clients in an email Thursday morning that comparable transactions suggest that Bally could sell the Rainbow Casino for seven times his 2008 fiscal year EBITDA estimate of $22 million, which equates to $154 million.

Bally says net proceeds from a sale would be used to reduce a portion of Bally’s long-term debt and would likely result in dilution of the company’s earnings per share. At $154 million, the dilution would be $0.08 per share, Curtis wrote.

Over the past four years, Bally has acquired a series of gaming technology assets and companies and sold off casinos and other operating units. They include Rail City Casino in Sparks, NV; the United Coin slot route operation in Nevada; the VSI slot route operation in Louisiana; and Bally Wulff in Germany. Rainbow is the last of the bunch.

Bally CEO Richard Handrill says that given the company’s new slot technology and growth in its Systems business over the past two years, “we believe it is appropriate to fully allocate our capital and management attention to the continued growth of these businesses.”

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