In a week, Thomas McCormick will be out of work. Meanwhile, his job is to put AC Slots out of business.
Four months ago, the soon-to-be-defunct slot company, which once billed itself as the largest builder of such machines on the East Coast, announced it would close. But closing down isn’t that simple.
Every single employee — with the exception of McCormick, the company’s executive vice president and general counsel — was let go more than a month ago. But what remained were games, equipment and other sets that need to be sold for money to satisfy a loan default held by Wells Fargo Bank for an undisclosed amount.
The slot manufacturer could have filed for Chapter 7 liquidation but that would have resulted in a protracted process, McCormick said. In a Chapter 7, Wells Fargo and its agents would have had to seek a license from the Division of Gaming Enforcement before being allowed to sell the equipment.
Instead, AC Slots chose to “wind down” its operation, assigning the task of selling the equipment and other assets to McCormick and a few former employees kept on as contractors.
For the most part, the company has been able to convince casinos that leased the equipment, such as Revel, to buy the slots.
The downside to purchasing the equipment is the casinos must take on maintenance duties, which may be challenging in the future because there are no more replacement parts, McCor-mick said.
Other casinos have said they don’t want the slots, in which case, AC Slots must remove the equipment and try to sell it to licensed used-slot companies, McCormick said.
In Las Vegas, AC Slots found a buyer who will purchase the company’s Axcess platform, which formed the basis of its slot technology, and continue to produce the brand, likely under another name, McCor-mick said. That buyer, Next Gaming is licensed in Nevada and California and serves the tribal Indian casino market there.
The Division of Gaming Enforcement, which counseled AC Slots to pursue the wind-down of operations, said it is aware that the slot machines are being sold and will note the equipments’ new owners. No other regulatory approvals are needed if the new owners already are licensed by the division.
Based on division documents, AC Slots plans on being officially out of business by the end of April.
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