Multi-game opens new Fleetwood era
Pub Date: 12/1/2006
The big news at Fleetwood Gaming, Inc., these days is the recent approval of their upgraded Casino King multi-game suite.
But there is really a bigger underlying story to be told about this company that has seen a 180 degree about-face.
The company was on a roll in the early 1990s operating gaming and amusement machine routes. It was also the franchised representative for the old Dynamo gaming machines.
But then things began to go south, as they often can in a free enterprise system.
The company made some regulatory missteps which got it crosswise with enforcement authorities. It took a couple of years and large lawyer bills to sort the mess out, while distracting the company's focus.
During that trying time, Dynamo pulled the franchise and launched its own manufacturing/game development/sales operation in Montana under the Summit flag, leaving Fleetwood without a machine to sell.
The company then embarked on several attempted partnerships with other machine manufacturers, frustratingly none of which bore fruit. The numbers of vended machines out on the routes began a decline that approached the 400 mark from a previous high of double that.
Finally, Fleetwood decided to develop and build its own games, but to save time and money opted to lease rights to the Shuffle Master operating system which drives game software.
One can imagine the angst at Fleetwood headquarters when, shortly after the games were approved by authorities, Shuffle Master sold its operating system to IGT and the ongoing development relationship with Shuffle Master disappeared, meaning limited, to no, new game offerings for the Keno King product line.
One step forward, two steps back. Meanwhile the clock was running.
Fleetwood owner Jon Dehler, an admitted "big-picture" operator, decided in 1998 the company needed closer, more hands-on day-to-day management, so brought aboard Thom Propp who, with a committed staff, set about refocusing the company on rebuilding its route operations and financials while Dehler worked on game development and a proprietary operating system built from the ground up.
Today, Propp admits the first four years at Fleetwood were "quite challenging," but by 2002 the company was vending 600 machines and had readied the Keno King game platform.
At that point the company resolved to zero in on "partnering" with its location operators, Propp says. The Keno King machine allowed Fleetwood-vended customers an exclusive offering that gave them a competitive edge over competing locations...
But not for long in the rapidly evolving Montana gaming scene.
While the machine has played reliably and initially produced far better than average earnings, it was barely deployed when the state finally authorized multi-game software in late 2004, once again placing Fleetwood in a catch-up mode.
In September of this year the company finally won approval for the new Casino King multi-game platform that began showing up in Fleetwood vended establishments in October and is now being deployed at the rate of about 20 per week.
The machines, Propp says, are "completely rebuilt including hardware, software, glass, redesigned cabinets and new wiring harnesses." The printers, monitors and so on are state-of-the-art industry standard bits.
Propp says the original Keno Kings are being pulled in from the routes for retro-fitting while, in parallel, 300-400 additional brand new machines are scheduled for production. Â He adds that a slant-top cabinet is also on its way.
Naturally, Propp and the rest of the Fleetwood crew are confident the new platform, with several new keno games, eight new poker games and even a bingo game, all created in-house, will be a new stimulus for the company and the industry.
During Propp's tenure, the route location operator-partners have remained at the forefront. The company now vends over 1,800 machines and had become the state's largest vendor for a brief period prior to Century Gaming acquiring two other routes in the state back in September (Century now vends approximately 2,900 machines).
Propp sees the Casino King once again yielding a competitive advantage for Fleetwood locations, but also says configuring the right mix of machines is even more crucial. Fleetwood locations host similar numbers of Fleetwood, Summit and IGT games, with a smaller number of Spielo and VLC boxes.
But successful vending requires more than equipment, so Propp says Fleetwood is concentrating on enhancing its menu of client business services including customized business planning, marketing programs, employee training, business performance reviews and even location/casino design.
"What's most important is location operation," Propp says. "You can get good play out of lower quality machines in a very well run location, but it can be difficult to get good play out of high quality machines in a poorly operated location. Â We look to match the best machine mix with high quality services and great location operators.
"We choose gaming partners who are interested in growing their business by working smarter and trying new things to be competitive. Â Those operators that desire to provide the best of the best for their patrons are those that we choose to partner with.
"We're trying to do the common things uncommonly well," Propp recites. "We think we're the best and were getting better."
The company now employs 15 full-time personnel in its research and development department, 11 in Billings and four in a Colorado office. The manufacturing division employs 15 and 46 work on the route side of the company. Fleetwood maintains sales/service offices in Missoula, Kalispell, Great Falls, Butte, Bozeman, Livingston and Helena.
Propp says the Fleetwood transition has been "great fun, extremely challenging and very rewarding, especially to see our gaming partners enjoy more success."
But that doesn't mean Fleetwood plans to sit on its laurels. Rather, work on a new "player development system" is underway, Propp says, "and a lot of it is already completed. We like to think of the system as a 'virtual promoter' that will allow promotions customized to the location and increase the customer s entertainment value."
In the meantime, Fleetwood owner Jon Dehler continues to operate more behind the scenes, where he can see that big picture, and where he can direct game concept development as well as exploit other opportunities that may present themselves, such as the Big Splash Water Park in Billings, and a new company called "Light It Up" that provides amusement games, lighting and other interior enhancements including the palm trees seen sprouting in locations across the state.
And what element is Propp most proud of when it comes to the company's success?
"It's our personnel. That's what this company is, is excellent, dedicated, successful people. Because of our crew, we've tripled the size of the company in four years and we are offering more services than any other route operator in the marketplace."
Propp summarizes frankly, "We've made a lot of mistakes, but we've also learned a lot. Our know-how has greatly improved and we are committed to learning everything we can from our customers and our employees. We have a good plan, great people and our execution is improving all the time. Â There is so much more to come from our company.
"The market place needs to be watching for the 'Brilliant Bet' line in 2007. It has a whole different look and feel. It's not a conversion. It's like It's from a whole different company.
"There are a lot of opportunities. The future will be interesting. We will continue to focus on what we are doing, rather than what others are doing. We're focused on profitable growth for our customers and our company, not simply market share, and we're getting better all the time."
Source: The Montana Tavern Times, Dec., 2006, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.