• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Casino suppliers tussle for less floor post virus: note

May 20, 2020 Newsdesk Latest News, Top of the deck, World  


Casino suppliers tussle for less floor post virus: note

Possible reduction in the amount of space available for casino operations in the aftermath of the Covid-19 crisis might put fresh revenue pressure on casino technology suppliers, says a Tuesday note from Union Gaming Securities LLC.

Referring to those markets that had a lengthy period of shutdown, analysts John DeCree and Sam Ghafir wrote: “We fear that less floor space post reopening will lead to incrementally more competition for said floor space and hurt supplier pricing power even further.”

They added: “While the market largely expects reduced product sales, the risk to leased fees and participation rates is still unclear.”

The commentary on the general outlook for suppliers was mentioned in a note more specifically about casino slot machine and lottery services supplier International Game Technology Plc (IGT), following its first-quarter earnings announcement on Monday.

IGT posted a net loss of nearly US$248.3 million for the first quarter of 2020, compared with a US$40.3-million profit in the corresponding period a year earlier. The firm said the result for the period included a non-cash goodwill impairment charge of US$296 million.

Union Gaming noted on the prospects for the supplier: “With casino operator budgets now constrained, IGT’s management has taken on multiple initiatives to preserve cash and weather the storm.”

The analysts noted IGT had reduced its average monthly fixed costs and discretionary capital expenditure by “20 percent-plus” to US$185 million from US$235 million prior to the Covid-19, resulting in approximately US$500-million of total savings in 2020.

They added they were “confident” the measures announced by IGT in combination with the group’s US$2.2-billion of liquidity “should provide ample resources to weather the storm and cover its modest near-term debt maturities.”

On May 13, IGT had announced amendments to its revolving credit facilities agreement and term loan facility agreement, including provisions relating to the Covid-19 pandemic. The firm is currently barred from distributing dividends and carrying out share repurchases through to June 30, 2021.

Sector-wide for the gaming suppliers, Union Gaming observed: “With capital budgets of casino operators strained due to the combination of rising leverage and the prospect of prolonged capacity restrictions imposed by governments/regulators, the current gaming supplier outlook is about as clear as mud.”

Casino jurisdictions and operators in Asia Pacific have already flagged so-called social distancing measures coinciding with either resumption of paused business or ramping up of what has been much-curtailed business.

Bloomberry Resorts Corp, operator of the Solaire Resort and Casino in the Philippine capital Manila, “aims to restart with approximately 20 percent of its gaming capacity once the lockdown is lifted” in Metro Manila.

Macau adopted social-distancing steps on its casino floors after a 15-day shutdown in February to stop the spread locally of the novel coronavirus and its associated Covid-19 infection. Such steps have also been proposed for bricks and mortar casinos in the United States.


  • tweet
Related articles
  • GEN Singapore posts US$29mln 1Q profit, up sequentially
    GEN Singapore posts US$29mln 1Q...

    May 12, 2022  

  • Casino firm Paradise Co slips to negative EBITDA in 1Q
    Casino firm Paradise Co slips to...

    May 12, 2022  

More news
  • Pragmatic Play to offer its slots via online platform bet365
    Pragmatic Play to offer its slots via...

    May 17, 2022  

  • PH Resorts widens 1Q loss, affirms going concern risk
    PH Resorts widens 1Q loss, affirms...

    May 17, 2022  


Latest News

Pragmatic Play to offer its slots via online platform bet365

Pragmatic Play to offer its slots via online platform bet365

May 17, 2022  

The Pragmatic Play brand, a leading content provider to the iGaming industry, says it has signed a deal to launch its complete slot portfolio on the bet365 online wagering platform. As a result,...
Read More
PH Resorts widens 1Q loss, affirms going concern risk

PH Resorts widens 1Q loss, affirms going concern risk

May 17, 2022  

AAEC side files appeal notice on failed lawsuit against LVS

AAEC side files appeal notice on failed lawsuit against LVS

May 17, 2022  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day


US$14.5 million

First-quarter gaming revenue recorded by the casino at the Jeju Dream Tower resort in South Korea



Most Popular

  • Macau repeat visitors denied visa by China says BernsteinMacau repeat visitors denied visa by China says Bernstein May 16, 2022
  • Wynn CEO, Macau execs in base pay cut in return for sharesWynn CEO, Macau execs in base pay cut in return for shares May 17, 2022
  • Macau GGR tax cut may spur 15pct EBITDA hike: JP MorganMacau GGR tax cut may spur 15pct EBITDA hike: JP Morgan May 16, 2022
  • Macau mulls GGR tax cut if casinos attract foreign playersMacau mulls GGR tax cut if casinos attract foreign players May 13, 2022
Copyright 2014-2022 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us