On June 3 BYI announced that it was awarded a contract with the Oneida Nation of Wisconsin to install Bally's SDS Version 11 system on a windows based platform. The system will be replacing an legacy IGT system across 8 locations, adding 2,375 slots to BYI's casino management install base.
The Oneida Nation contract represents the largest of 3 announced contract awards for BYI's Microsoft windows based system since it was released in January 2009. We estimate that BYI will recognize $8.5-9.5MM of revenues, or $0.07 cents per share, in 2Q2010 when the system is scheduled to go live. This contract should also add approximately $1MM in recurring annual revenues to BYI's current run-rate of $52MM from its system's business.
We believe that the stability and growth potential of BYI's system business continues to be under appreciated by the investment community since its difficult to forecast and understand for most investors. The new windows based platform presents a large opportunity for BYI to continue to grow its install footprint and we expect several additional large contract wins to be announced through the end of this calendar year. However, the larger opportunity of the systems business will be seen when and if networked gaming becomes a reality. Being a dominant player in systems will put BYI in an enviable position.