Slot Floor Shake-Up Are Land-Based Casinos Facing an EGM Crisis?
Veteran slot specialist, Jon Lancaster, discusses the challenges facing the land-based casino sector due to aging EGM estates, delayed replacement cycles, and shifting player expectations.
Jon, what’s driving the growing disconnect between slot machine product cycles and player demand?
A combination of factors. Operators across EMEA are under pressure from reduced capital expenditure (CAPEX), often due to COVID- related debt, rising taxation, regulatory compliance costs, and increased entertainment competition. As a result, EGM replacement rates have slowed significantly—from 15–20 per cent a decade ago to as little as five-seven per cent today. Tat’s led to an aging machine base, while manufacturers continue to innovate at speed. Te result is a mismatch: hardware remains on floors long after it's no longer supported or capable of hosting new content.
Are manufacturers still producing the right content for today’s players?
Broadly, yes. Manufacturers are developing games for different types of players—from first-timers to high-frequency users—and content performance suggests they’re hitting the mark. However, the challenge lies in getting this content onto the floor. With limited new machine purchases, only a small subset of available games is installed. Tat limits diversity and fails to attract new or younger players, who are used to fast-paced, mobile-first gaming experiences.
What are the financial implications of extended machine lifecycles?
Deferred investment in hardware is already impacting floor performance. Machines past their technical lifespan are prone to failure and can’t support the latest game content. Over time, this reduces floor appeal and player retention. At peak times, casinos risk
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not having enough operational or engaging machines to meet demand. Te result is an operational and revenue risk that will worsen unless addressed.
Is there a way to realign product development with operator budgets?
Yes, but it will require a shift in mindset. European markets, in particular, need to move away from a pure purchase model and adopt more flexible arrangements such as leasing or participation. Tese models spread the cost, allow for more frequent upgrades, and give manufacturers a stake in ongoing performance. Some markets, like the UK, already operate on lease. With the right financial structure, this approach can work across EMEA.
How should manufacturers adapt to support this model?
Manufacturers must consider extending the supported lifespan of their platforms. Operators feel forced to replace hardware more frequently than necessary due to shortened component availability or software support cycles. If manufacturers can provide more longevity without stifling innovation, it would help ease the burden on operators and support long-term planning.
Is an “EGM reset” needed for the sector?
In EMEA, yes. Te industry needs to balance innovation with economic realities. Tat means finding a business model that allows manufacturers to deliver and support new technology without forcing operators into unsustainable investment cycles. If we can align these
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