LAS VEGAS- The manufacturing industry of slot machines still believes that it is relevant to the world of casino where the most important reason for its enhanced importance is the revenue generated.
The gambling equipments providers have great potential says a chief executive of one of the slot manufacturing company.
In a session at Global Gaming Expo 2014 state-of-the-industry on Wednesday, Patrick Ramsey who is the CEO of the Multimedia games said that it has never happened with him that he presented a product before Nevada regulators and experienced rejection, and he adds that anything like that is yet to happen for him. Since Nevada is an open market for different products, he shared his willingness to motivate his team.
There are also other gaming companies like Ramsey who believe that in order to provide a unique experience in the hotel casino the slot machines play a unique role. The slot machines are also the perfect tools to increase the revenue in the hotel rooms, nightclubs, restaurants, and entertainment places like that.
David Baazov, the CEO of the Amaya Gaming group believes that the young generation is more attracted towards the slots. He added that through innovation it is his desire to bring in more entertainment oriented products as per the demand of the customers.
There was a long discussion and several topics were covered in that, and the members of the panel consisted of five CEOs’ which was mediated by Bo Bernhard, executive director of the University of Nevada, International Gaming Institute of Las Vegas.
According to Jamie Odell the CEO of Aristocrat Leisure Limited, there is a healthy partnership that exists between the casino operators and the slot makers. After this he added that the change is surely important in the slot making industry but then it might be slow.
For any business the major challenge is to attract the younger generation towards them, and this phenomenon is a very old one.
Mr. Odell also worked as an executive for Fosters, which is a famous Australian brand. Then he joined the slot machine manufacturing company in Australia and he also said that it was always a challenge for them to make the 20 plus age group to drink the wine.
He goes on to say that the customers do it but it is not before they reach the age of 30.
After this the panel came to a conclusion and it was that there is a slow progress in the regulatory issues.
Patti Hart, the CEO of International Game Technology mentioned that they need to come up with stuff that is actually relevant and liked by the customers. He further adds that they are the only company who spend a good amount of their money on the research and development of the customer activities before they play that single game.
Surely, the slot machine companies want improvement in this field but they do not want to sacrifice their old customers.
During this session, Ramsey remembered an incident of losing a 65 year old female who was a regular customer and used to play for 45 to 60 days in a year.
He further added that the slot machines need to be developed by considering all the generations that are involved in this game. He adds that more of age is emphasized while developing the slots.
Then the focus of the discussion was to consolidate the slot machine sector.
Mr. Baazov who owns the Canada based company, and also the buyer of the parent company of stalwart PokerStars also said that the timing and the fundamentals is perfect for the consolidation.
Mr. Baazon further added that since the capital is abundant and the interest is on the lower side; this is the perfect timing.
A lot of other companies were sold apart from the deal of Multimedia games. GTECH Holdings, a lottery provider bought the IGT for 6.4 billion US dollars. The Bally Technologies has bought the scientific games for 5.1 billion US dollars. It was just last year when SHFL entertainment was taken over by Bally technologies for a sum of 1.3 billion US dollars, and the WMS industries were taken over by the scientific games for 1.5 billion US dollars.
Aristocrat is busy in fixing a deal of 1.3 billion US dollars to buy the slot maker gaming technologies. According to Mr. Odell, more than 600 million US dollars would be saved by these mergers.
The deal between IGT and GTECH was purely requirement matter of choice than the requirement as per Mr. Hart.
He further adds that they prefer to combine these companies and form a better company rather than selling a company.