• 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 ‘under meaningful pressure’: analyst

Nov 25, 2014 Newsdesk Industry Talk, Latest News, Top of the deck  


Casino suppliers ‘under meaningful pressure’: analyst

The gaming equipment industry “remains under meaningful pressure”, warns Wells Fargo Securities LLC. Among the trends impacting the sector are negative replacement sales growth in the United States, market pressure from new entrants and casino operators shifting away from the participation game model – in which the casino and the manufacturer share the revenue the gaming machine generates – the brokerage said.

Casino operator consolidation and some closures, and a reduction in the size of slot floors is also adding to the challenges gaming suppliers are facing, especially in the U.S., a trio of analysts led by Cameron McKnight wrote in the handbook released on Friday for the upcoming 2014 Boston Gaming Forum. The annual conference, hosted by Wells Fargo, is to take place at the Langham Hotel in Boston on December 4.

“Given these challenging operational trends, operational risk remains elevated for gaming equipment manufacturers,” the analysts stated. But they pointed out that “industry risks are extremely well appreciated by investors and the industry could benefit from the recent wave of consolidation.”

U.S.-based specialist in lottery equipment and management Scientific Games Corp concluded last week the acquisition of slot maker Bally Technologies Inc in a deal valued at US$5.1 billion. The announcement was part of a raft of other merger and acquisition deals in recent months in the casino equipment supply sector marking a year of major realignment and consolidation in the industry.

This autumn however, a number of investment analysts expressed scepticism at the degree of leveraging involved in some of the merger and acquisition deals, versus the earnings prospects of the consolidated companies and the amount of cost savings that could reasonably achieved.

“With market-wide challenges at the top line, we see opportunities for manufacturers to derive savings from merger integration cost synergies, as well as more efficient operating/capital spend,” the Wells Fargo analysts said in Friday’s release.

They added: “We believe this industry consolidation will ultimately benefit the remaining players in the space.”


  • tweet
Related articles
  • IGT and Novomatic’s Greentube in patent licensing deal
    IGT and Novomatic’s Greentube in...

    Jan 19, 2023  

  • Gaming trade body AGEM elects new officers
    Gaming trade body AGEM elects new...

    Jan 13, 2023  

More news
  • Macau ops track earlier recovery after Jan GGR: analyst
    Macau ops track earlier recovery after...

    Feb 01, 2023  

  • Prominent locals speak in court for Tak Chun boss Levo Chan
    Prominent locals speak in court for Tak...

    Feb 01, 2023  


Latest News

Macau ops track earlier recovery after Jan GGR: analyst

Macau ops track earlier recovery after Jan GGR: analyst

Feb 01, 2023  

Most of Macau’s casino operators are likely to generate positive free cash flow in the first quarter, given the robust recovery level of mass-market gross gaming revenue (GGR) in January, relative...
Read More
Prominent locals speak in court for Tak Chun boss Levo Chan

Prominent locals speak in court for Tak Chun boss Levo Chan

Feb 01, 2023  

January travel lift, CNY sees Macau GGR up 233pct m-o-m

January travel lift, CNY sees Macau GGR up 233pct m-o-m

Feb 01, 2023  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day

”Momentum is expected to grow as mainland China recently reopened its borders, and this presents a substantial growth potential for us as historically a large portion of our clientele came from China”

Porntat Amatavivadhana

Non-executive chairman of Donaco International



Most Popular

  • Available Macau casino tables busy at tail of CNY holsAvailable Macau casino tables busy at tail of CNY hols January 27, 2023
  • Almost half million visitors to Macau for 7 days of CNY holsAlmost half million visitors to Macau for 7 days of CNY hols January 30, 2023
  • Macau visitor momentum kept for post CNY weekendMacau visitor momentum kept for post CNY weekend January 30, 2023
  • Macau CNY mass GGR maybe 60pct plus of CNY 2019: JPMMacau CNY mass GGR maybe 60pct plus of CNY 2019: JPM January 31, 2023
Copyright 2014-2023 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us