UPDATE 1-Bally Technologies Q1 profit up; raises FY EPS view

* Q1 EPS $0.53 in line with est

* Q1 rev falls 17 pct to $196.5 mln

* Ups FY EPS range by 5 cents

Oct 29 (Reuters) - Slot machine maker Bally Technologies Inc (BYI.N) posted a slightly higher first-quarter profit that was in line with market expectations, but raised its full-year earnings outlook as it sees improved spending by casinos in 2010.

The company, whose rivals include International Game Technology (IGT.N) and WMS Industries Inc (WMS.N), said it now sees earnings of $2.30 to $2.55 a share in fiscal 2010, up from its prior view of $2.25 to $2.50 a share.

For the first quarter Sept 30, net income attributable to the company was $30.6 million, or 53 cents a share, compared with $30.3 million, or 52 cents a share, a year ago.

Revenue fell 17 percent to $196.5 million.

Analysts on average were expecting earnings of 53 cents a share, before special items, on revenue of $208.8 million, according to Thomson Reuters I/B/E/S.

Shares of the company closed at $38.76 Thursday on the New York Stock Exchange. (Reporting by Mihir Dalal in Bangalore; Editing by Anthony Kurian)