| Sodak Gaming | |
| Foundation: | 1989 |
Sodak Gaming, Inc. was a gaming company based in Rapid City, South Dakota that distributed slot machines to Indian casinos and financed casino projects. It was acquired by International Game Technology (IGT) in 1999 for $230 million.
Sodak was formed in 1989 to supply equipment to gambling halls in Deadwood, South Dakota,[1] and soon became the exclusive distributor of IGT machines to tribal casinos.[2] The Promus Companies acquired a 20 percent stake in Sodak in November 1992. Sodak made its initial public offering in June 1993.[3]
Sodak purchased and refitted a riverboat and leased it to Gaming Supply Co., who opened it in December 1994 as the Miss Marquette casino, in Marquette, Iowa.[4] After Gaming Supply defaulted on lease payments, Sodak bought out the company for less than $5.5 million,[5] taking over operation of the casino in July 1996.[6]
The company moved into the South American market in an effort to diversify its revenue base.[7] In May 1995, it began establishing gaming halls and slot route operations in Peru, reaching a total of 1,300 machines by the end of 1996.[8] It opened a casino at the Crowne Plaza Hotel in Quito, Ecuador in March 1996, followed by a gaming hall in Rio de Janeiro, Brazil in June 1996. In June 1998, Sodak announced its decision to divest its South American operations, citing a lack of profitability and an unstable regulatory environment.[9] [10] The ventures in Ecuador, Peru, and Brazil were sold off by the end of the year.[11]
Sodak agreed in March 1999 to be acquired by IGT for $230 million.[12] As IGT executives did not want to operate casinos, the deal called for Sodak to sell the Miss Marquette casino and its interest in a Louisiana casino project.[13] The Miss Marquette was sold to Lady Luck Gaming for $42 million.[14] [15] Sodak's partner in the Louisiana project, Hollywood Casino Corp., purchased Sodak's stake for $2.5 million.[16] [17] The acquisition of Sodak by IGT was completed in September 1999.[18]
Following the acquisition, Sodak continued to operate out of Rapid City as a division of IGT, focused on distributing products to Indian casinos.[19] IGT began a reorganization of its North American businesses in 2005, which included dispersing Sodak's operations around the country, and phasing out the Sodak name.