Business Overview: Table Trac, Inc. (OTCQX: TBTC)

---

Executive Summary

Table Trac, Inc. is a small, profitable gaming-technology company that designs, sells, leases, and supports casino management systems (CMS) — the back-office and floor software that casinos use to track table games, slot machines, player loyalty, cage/vault accounting, and regulatory reporting. Incorporated in Nevada in 1995 and headquartered in Minnetonka, Minnesota, Table Trac built its original business around a patented system for automating and monitoring table game operations, then expanded into a full CMS suite spanning slots, kiosks, and data analytics.

The company is a true micro-cap: roughly 32 full-time employees served 115 casino operators across more than 300 properties in 17 U.S. states plus Australia, the Caribbean, and Central and South America as of year-end 2025. It is not a market leader — larger, better-capitalized "total solution" CMS providers dominate the space — but it occupies a durable, recurring-revenue niche serving small and mid-sized tribal and commercial casinos that larger vendors often underserve. For fiscal 2025, Table Trac reported roughly $11.0 million in revenue, more than half of it recurring maintenance fees, and it carries almost no debt (a $500,000 line of credit renewed through February 2027).

---

1. Core Business Model & How They Work

Table Trac sells (or leases) its flagship CasinoTrac system to a casino, then earns a long tail of recurring revenue from monthly licensing, maintenance, and support contracts — a classic enterprise-software "land and expand" model applied to a physical, regulated industry.

[ Casino signs license/lease ] ➡️ [ System install + gaming-license approval ] ➡️ [ Monthly license & maintenance fees ] ➡️ [ Upsell: DataTrac / KioskTrac / SlotSUITE ] ➡️ [ Recurring support revenue for years ]

Key Operational Drivers

1. Recurring, contract-based revenue: systems are sold or leased with ongoing monthly license and maintenance agreements, which made up the majority (55.7%) of FY2025 revenue.
2. Regulatory gating: the company must hold gaming licenses (it held licenses in ten states as of 2025) and pass casino-level vendor approval before it can sell — a real, if modest, barrier to new entrants.
3. Niche focus on small/mid-size and tribal casinos that larger "total solution" vendors (Konami, Light & Wonder, Everi) often chase less aggressively than major commercial resorts.
4. Hardware + software bundling: Table Trac designs its own slot-machine interface boards (assembled by third parties), tying hardware sales to the software ecosystem.

---

2. Product Portfolio (Key Offerings)

---

3. Competitive Landscape

Table Trac competes in a casino-technology market dominated by much larger, better-capitalized "total solution" providers:

• Konami Gaming (SYNKROS) — a leading enterprise CMS platform used by many large commercial and tribal casinos; far greater R&D and sales resources.
• Light & Wonder (formerly Scientific Games/Bally Systems) — a diversified gaming-technology giant spanning slots, systems, and table products.
• Everi Holdings — strong in cashless payments, kiosks, and loyalty/player-tracking hardware that overlaps with Table Trac's kiosk line.
• Agilysys — competes on the hospitality/property-management side that increasingly intersects with casino resort operations.

Table Trac's position is that of a value, niche vendor: it wins business from smaller, budget-constrained, and tribal casinos that find the major platforms expensive or over-engineered, and it competes on price, service responsiveness, and a long operating history rather than platform breadth. Management itself describes the industry as "intense," with several competitors possessing materially greater financial and technical resources.

---

4. Strategic Strengths & Risks

Strengths

• Recurring revenue base: maintenance contracts (55.7% of FY2025 revenue, a record $6.15 million, up 14.4% year over year) give visibility and insulate the company from lumpy system-sale cycles.
• Patented core technology in table-game tracking, providing some intellectual-property protection for its original niche.
• Clean balance sheet: minimal debt (a single $500,000 line of credit) gives resilience despite its small scale.
• High switching friction once installed: CMS systems are deeply embedded in a casino's floor operations, accounting, and regulatory reporting, so operators rarely rip-and-replace once live.

Risks

• Scale disadvantage: Table Trac is dwarfed by Konami, Light & Wonder, and Everi in R&D budget, sales force, and platform breadth, limiting its ability to win larger commercial-casino accounts.
• No contractual minimum volume from existing customers — the 10-K explicitly notes the company depends on customers' discretionary decisions to upgrade or replace systems, with no guaranteed future orders.
• Customer concentration risk inherent in serving a base of only 115 operators.
• Regulatory/licensing burden: maintaining gaming licenses across multiple states is a recurring compliance cost.

---

5. Financial Overview

---

6. Summary Conclusion

Table Trac is a durable, profitable micro-cap that has carved out a defensible — if narrow — niche in casino management technology by serving smaller and tribal casino operators that larger platforms (Konami, Light & Wonder, Everi) tend to under-prioritize. Its moat rests on embedded switching costs and a growing recurring-maintenance revenue base rather than scale or network effects, and its clean balance sheet gives it staying power. The central risk is competitive: as a sub-scale player facing financially dominant rivals, Table Trac's growth is capped by its ability to keep winning and retaining small-operator accounts without the sales and R&D firepower of the industry's giants.