INSIGHT SCIENTIFIC GAMES EMEA SUMMIT
experienced leadership team. We are uniquely well-positioned to help customers through this period of uncertainty.
Jon – I think we’re possibly looking at a fundamental shift in the business model in the short-term. If operators don’t have the CapEx to spend then the obvious alternative is rental and participation models. Te players are not concerned with the financial constraints of the operators. For players, it’s a simple exercise – they walk into a property looking for something new and fresh. If they can’t find what they’re looking for they either play less or they’ll leave. Just as when you visit the cinema – if they’re always showing the same movie – you’ll stop going to the cinema. Operators know they have to refresh their products.
Several years ago, Holland Casino changed tack, taking the decision to switch their business model completely from purchase to rental, putting several thousand new machines on their floors on long-term rentals. Te result was phenomenal due to the fact that they could refresh their offering so thoroughly and frequently. I see this repeating itself and we are already having these discussions with operators. In the short- term this is a very practical solution, which may or may not become permanent.
We had pre-Covid discussions with operators about their floor mix in which the trend was to diversify away from high volatile gambler-style products, as they were heavily reliant on just a small number of players.
However, as Covid struck those conversations immediately
switched to the delivery not only of high performing products, but games that practically guaranteed that level of performance.
G3: Extending your cinema analogy, is it the case that operators want the blockbusters right now, rather than the indie titles?
Jon – We had pre-Covid discussions with operators about their floor mix in which the trend was to diversify away from high volatile gambler-style products, as they were heavily reliant on just a small number of players. However, as Covid struck those conversations immediately
switched to the delivery not only of high performing products, but games that practically guaranteed that level of performance. Our track record in this area certainly helped, because when we bring the next iteration of our high performing titles to market, they know they’ll perform to expectations.
I’m sure that in five years from now, discussions will shift again. Te perennial discussion within casinos is how do we attract new players, younger players? Pre- Covid, that’s where the discussion was heading, but now it’s about survival and without the luxury of forward-thinking investments in products that don’t guarantee success, the kinds of products that attract new players do not generate the same level of revenue.
G3: Historically, engagement with participation games in the EMEA is universally low. Is Covid about to change this stance?
Jon – Based on the discussions we’ve had with customers, this is going to be a trend for the next few years. European customers have traditionally been reticent about sharing the revenue of their slot machines. It is not a model that is readily accepted in the EMEA, though Scientific Games has built a solid footprint on the power of the brands that we don’t sell outright.
P38 WIRE / PULSE / INSIGHT / REPORTS
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