WMS Gaming - History

History

WMS Gaming is a subsidiary of WMS Industries, whose roots date back to the 1943 founding of Williams Manufacturing Company. Over the last decades of the 20th century, Williams produced popular pinball machines and video arcade games. By 1996, WMS had transferred its video game library to its video game subsidiary, Midway Games, which it took public and finally spun off in the late 1990s. With the rapid decline of the arcade industry in the 1990s, the company's pinball business became unprofitable, and WMS sold off the pinball line in 2000.

Meanwhile, in 1991, WMS created a new division, Williams Gaming, to enter the gaming and state video lottery markets, developing and releasing its first video lottery terminals or the Oregon market in 1992. Williams Gaming entered the reel-spinning slot machine market in 1994, but the company's video gaming roots ultimately would prove to be its strength when, in 1996, it introduced its first hit casino slot machine, Reel ‘em In, a "multi-line, multi-coin secondary bonus" video slot machine. WMS followed this with a number of similar successful games like Jackpot Party, Boom and Filthy Rich. During the 1990s, the gaming industry grew as additional states permitted casino gambling and video lottery games, and as Native American tribes built gaming casinos. The division was incorporated as WMS Gaming in 1999 and has since focused exclusively on the manufacture, sale, leasing, licensing and management of gaming machines.

In 2001 after WMS Gaming had gained significant market share with video-based slot machines employing multiple reel combinations, a glitch was uncovered in the company's software that allowed players to earn credits without paying for them. The industry leader IGT also sued WMS for patent infringement related to its reel-spinning games, winning a judgment that required WMS to limit the flexibility of its line of reel-spinning games. WMS Gaming's new video operating platform, CPU-NXT, debuted in 2003. It employed a faster, more open architecture that took advantage of the economies of scale enjoyed by Intel and other PC component vendors. The slot machine platform is based on the Linux operating system, initially ran on an Intel Pentium III processor and was the first to use flash memory rather than erasable programmable read only memory.

By 2001, WMS introduced its very successful Monopoly-themed series of "participation" slots, which the company licenses or leases to casinos, instead of selling the games to the casinos. The company's participation games have included machines based on well-known entertainment-related brands as Men in Black, Hollywood Squares, The Wizard of Oz, Star Trek and The Lord of the Rings. Some of these games are networked within casinos and even between multiple casinos so that players have a chance to win large jackpots based on the number of machines in the network. These branded games proved popular with players and profitable for WMS, as the net licensing revenues and lease fees generated by each game have exceeded the profit margins of its games for sale.