Graham Weaver

We had a lot of deals that just didn't go well, but probably the worst deal we did was this slot machine business that we owned. It was the worst deal. It wasn't economically the worst deal, but it just was so consuming. So we put money in the slot machine business. Made them manufactured?

We had a lot of deals that just didn't go well, but probably the worst deal we did was this slot machine business that we owned. It was the worst deal. It wasn't economically the worst deal, but it just was so consuming. So we put money in the slot machine business. Made them manufactured?

They made basically software that went into slot machines, and then they assembled the slot machines somewhere else and put them in casinos. They put them in a rev share, so we'd give away the machine for quote free, and then we'd get 20% of the win. So it had a recurring revenue element to it. It was on paper a good business. We sold to Native American tribes, which was exploding at the time.

They made basically software that went into slot machines, and then they assembled the slot machines somewhere else and put them in casinos. They put them in a rev share, so we'd give away the machine for quote free, and then we'd get 20% of the win. So it had a recurring revenue element to it. It was on paper a good business. We sold to Native American tribes, which was exploding at the time.

This was probably the early 2000s. Native American tribes were just growing their gaming presence. So all those fundamentals... or the reason we did it. But there was just something, and I'm sorry, I'm going to probably offend a lot of people here, but there's just something about that industry where there was still an undercurrent of some people that weren't playing by the rules.

This was probably the early 2000s. Native American tribes were just growing their gaming presence. So all those fundamentals... or the reason we did it. But there was just something, and I'm sorry, I'm going to probably offend a lot of people here, but there's just something about that industry where there was still an undercurrent of some people that weren't playing by the rules.

A few things were tough about that. Number one is we just had way too much money in it. We had... co-invest in the deal. We were in a $68 million fund at the time, and we had $170 million in the business, including co-invest. So it was just like too big to fail. So we had to make it work. I became CEO of the business. One of my partners was basically the CFO.

A few things were tough about that. Number one is we just had way too much money in it. We had... co-invest in the deal. We were in a $68 million fund at the time, and we had $170 million in the business, including co-invest. So it was just like too big to fail. So we had to make it work. I became CEO of the business. One of my partners was basically the CFO.

We had technology, we had customer concentration, we had CapEx. We had product obsolescence. It was a very hard business to run. And then there was just, again, this element of like, you're competing with some people that don't follow the rules or the law. It was just this undercurrent. It just didn't feel right a lot of the time.

We had technology, we had customer concentration, we had CapEx. We had product obsolescence. It was a very hard business to run. And then there was just, again, this element of like, you're competing with some people that don't follow the rules or the law. It was just this undercurrent. It just didn't feel right a lot of the time.

And I still remember this one time, someone would ask me about it and I'd say, oh, you know, it's just entertainment and the median income of people who play slots is actually higher and they can afford it. And I'd have all those things I'd say. And then I remember this one time I walked, we had these like local casinos. I remember one time walking in and there was this,

And I still remember this one time, someone would ask me about it and I'd say, oh, you know, it's just entertainment and the median income of people who play slots is actually higher and they can afford it. And I'd have all those things I'd say. And then I remember this one time I walked, we had these like local casinos. I remember one time walking in and there was this,

five-year-old girl sitting outside with a coloring book and her mom was in there blowing her paycheck. I just was like, I don't want to be in this business. It consumed a lot of our time. That was probably the worst deal we ever did. It set us back quite a bit.

five-year-old girl sitting outside with a coloring book and her mom was in there blowing her paycheck. I just was like, I don't want to be in this business. It consumed a lot of our time. That was probably the worst deal we ever did. It set us back quite a bit.

How did you work it out? What was the end of the story?

How did you work it out? What was the end of the story?

We saved the deal because we read that Illinois was going to open up and put slot machines in bars. And Illinois is like the fifth or sixth most populous state in the US. We were like, oh my God, this is going to happen. It was going to happen in like a year, then it was two years and three years. But in the meantime, we went around Illinois and made deals with all the bars.

We saved the deal because we read that Illinois was going to open up and put slot machines in bars. And Illinois is like the fifth or sixth most populous state in the US. We were like, oh my God, this is going to happen. It was going to happen in like a year, then it was two years and three years. But in the meantime, we went around Illinois and made deals with all the bars.

They had no money coming in. These bars weren't making any money. So we'd pay them X dollars to have the rights to put slots in their bars. And we were like three years ahead of time, ahead of people. So then- When the, thankfully, the law finally passed and the games came out, we were the largest or second largest supplier in that market.

They had no money coming in. These bars weren't making any money. So we'd pay them X dollars to have the rights to put slots in their bars. And we were like three years ahead of time, ahead of people. So then- When the, thankfully, the law finally passed and the games came out, we were the largest or second largest supplier in that market.