This quarter’s report represents our 27th proprietary slot survey and includes record level responses from key purchasing agents at a number of North American commercial and tribal casinos, several racino/VLT operators, as well as several international participants.
In total, our 121 survey participants collectively operate 441 casinos worldwide with approximately 388,200 total slot machines or equivalent electronic gaming devices. Our 108 North America participants operate 283 casinos and approximately 349,300 slot machines, representing around 36 percent of the total install base of gaming machines in North America.
KEY SURVEY HIGHLIGHTS
Purchasing activity for 2Q CY16: Our North America survey participants purchased and took delivery of 7,982 slot machines in 2Q CY16, including 2,374 new and expansionary units and 5,608 replacement units while also purchasing 3,901 conversion kits in the quarter. Based on this quarter’s survey results, we estimate total North America replacement sales are likely to be between 14,500 and 15,500 games sold in 2Q CY16, which is on the high end of our current industry forecast and above last quarter’s survey purchasing activity. Including new and expansionary demand, we estimate total slot demand for the quarter to be between 17,000 and 17,500 games sold.
Market share gainers/losers: Aristocrat, Ainsworth and Incredible Technologies were the primary market share gainers on sold games this quarter. Aristocrat was the primary gainer followed by SciGames and AGS on lease/participation placements.
Non-big four vendors remain strong: Non-big four vendors remain strong although down slightly from our prior quarter survey, with survey participants purchasing 15 percent of games from non-big four vendors during the quarter and 17 percent excluding route operations markets like Canada/Oregon VLTs and Illinois VGTs. Key suppliers include Ainsworth, Incredible Technologies, Everi Holdings and Aruze.
Gaming operations units grow for the fifth quarter in a row: This quarter our North America survey participants added +544 (net) lease/participation games to their install base. This is the fifth quarter in a row of net additions to the market after several quarters of net removals. The gains this quarter came from both the premium (+418 q/q) and non-premium (+126 q/q) categories.
Top performing leased titles:After over six years and 27 individual surveys conducted, we note that IGT’sWheel of Fortunehas been dethroned from the top spot in premium leased category as Aristocrat’s highly successful Lightening Linkgame is now the gaming industry’s top performer. As for suppliers, Aristocrat retains the industry’s top premium leased portfolio of games for the second quarter in a row followed by IGT and Scientific Games.
Most anticipated premium leased games. SciGames had the most anticipated lineup of premium leased games according to our 2Q16 survey. The Simpsonson the interactive Gamescape cabinet generated the most excitement for SciGames and was the second highest anticipated game among our survey respondents. IGT was tied for second place for the industry’s most anticipated lineup at 26 percent share. The majority of IGT’s votes came from the upcoming Wheel of Fortune 3D which was the most anticipated game in our survey for the second consecutive quarter. Aristocrat tied with IGT for the second most votes for most anticipated game lineup with 26 percent of total votes this quarter. Aristocrat’s The Walking Dead 2 and Game of Thrones were the company’s most highly anticipated releases this quarter.
Forward replacement demand: Our 108 North America survey participants (operating 283 casinos and 349,300 slots) plan to replace an average of 7.2 percent of the casino-owned games on their floors (7.3 percent ex route operations markets) over the next 12 months. We continue to see a slight trend upward in forward replacement rates likely driven by improved industry GGR trends. Tribal markets and international casino operators have been and continue to replace games at a much higher rate than commercial casinos.
This article is only a brief summary version of the EILERS-FANTINI Slot Survey for 2Q16. The full report can be purchased by contacting Todd Eilers at (714) 619-9330 or e-mail at firstname.lastname@example.org.