Intangible Assets

9 Months Ended

Jun. 30, 2011

INTANGIBLE ASSETS [Abstract]

Intangible Assets Disclosure [Text Block]

INTANGIBLE ASSETS

The Company’s intangible assets consisted of the following:

	June 30, 2011			September 30, 2010			Estimated Useful Lives
	(In thousands)
Contract rights	$	48,361		$	51,777		4-7 years
Internally-developed gaming software	34,561			31,355			1-5 years
Patents and trademarks	6,858			6,776			1-5 years
Other	250			250			3-5 years
Total intangible assets	90,030			90,158
Less accumulated amortization	(62,251		)	(58,648		)
Total intangible assets, net	$	27,779		$	31,510

Contract rights are amounts allocated to intangible assets for dedicated floor space resulting from development agreements or placement fees. The related amortization expense, or accretion of contract rights, is netted against its respective revenue category in the accompanying condensed consolidated statements of operations.

Internally developed gaming software is accounted for under the provisions of ASC Topic 985 “Software” and is stated at cost, which is amortized over the estimated useful life of the software, generally using the straight-line method. The Company amortizes internally-developed games over a twelve month period, gaming engines over an eighteen month period, gaming systems over a three-year period and its central management systems over a five-year period. Software development costs are capitalized once technological feasibility has been established, and are amortized when the software is placed into service. Any subsequent software maintenance costs, such as bug fixes and subsequent testing, are expensed as incurred. Discontinued software development costs are expensed when the determination to discontinue is made. For the three and nine month periods ended June 30, 2011, amortization expense related to internally-developed gaming software was $763,000 and $2.4 million, respectively; $739,000 and $1.9 million, respectively, for the three and nine month periods ended June 30, 2010. During the three and nine month periods ended June 30, 2011, the Company had write-offs related to internally-developed gaming software and patents and trademarks of $56,000 and $86,000, compared to write-offs of $43,000 and $234,000, respectively, for the three and nine month periods ended June 30, 2010.

Management reviews intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.