"The Company has a long history of providing gaming services in Nevada and we believe in the strength of the Terrible's brand; however, the recent impact from … the Nevada smoking ban, and general economic weakness has required us to explore our alternatives," said company chairman/president/chief executive Ed Herbst. "We are confident that our retention of a financial advisor will help us capitalize on the strength of our brand and position the company to maximize long-term value."

Herbst Gaming operates several casinos and some 7,000 slot machines in approximately 700 locations around Nevada, mostly inside restaurants, taverns, convenience stores and bars that can have up to 15 slot machines. In its latest quarterly report from November, the company reported a net loss of $28.9 million for the quarter ended Sept. 30.

"There is no question the smoking ban had a dramatic impact on our route operations and has fundamentally changed the slot route industry," Herbst Gaming President Ed Herbst said in a conference call with analysts after the results were announced.