A reshuffling of three big companies that operate slot machines at Nevada grocery and convenience stores and bars was announced Monday in deals worth $163 million.
Alliance Gaming is selling its Nevada slot route operation, United Coin Machine Co., for $118 million to Iowa riverboat operators Michael Luzich and Daniel Kehl.
E-T-T Inc. is buying Jackpot Enterprise's slot route operations for $45 million. E-T-T is owned by individuals who operate the Terrible Herbst chain of gasoline stations and convenience stores.
Both deals must be approved by Nevada gambling regulators.
The Alliance deal is valued at $112 million in cash and $6 million in preferred stock. It would give Kehl and Luzich Nevada's largest slot route operation with 8,200 machines at 790 locations.
United Coin has slots in the majority of the state's 7-Eleven stores.
Alliance Gaming has been seeking a buyer for United Coin to decrease its long-term corporate debt.
Jackpot Enterprises is shedding its gambling holdings to become a venture capital fund for Internet start-ups.
Jackpot's slot route network has long-term contracts with such major retailers as Albertson's, Kmart and Rite Aid.
The Jackpot-E-T-T agreement potentially forms a company with 6,500 slot machines at 400 Nevada locations. Jackpot and E-T-T are the second and third largest slot route operators in the state, trailing United Coin.
