*Click on each of the links below to read essays from various sectors of the industry.
Part 1 (Architecture, Construction and Design; Associations, Attorneys and Law Firms; Cash Handling, Equipment and Cash Access; Commentators; Compliance, Development and Profitability Software)
Part 2 (Finance; Mobile; Online Gaming; Operators; Peripherals, Accessories and Equipment; Regulation and Testing)
Part 3 (Security; Slot and Game Developers; Slot, Class II and Table Game Operators; Sports Betting; Table Games and Equipment)
The tsunami of consolidation that began in 2013 continued to wash over the supplier side of the gaming industry in 2014 as two lottery industry giants swallowed Bally Technologies and International Game Technology, and several other companies found themselves with different ownership at year’s end.
2014 was also the year when legal Internet gaming in the United States was predicted to take off after three states—Nevada, Delaware and New Jersey—began offering various online wagering within their borders. Experts predicted 2014 would be the breakout year for a new frontier of legal Internet gaming. That didn’t happen. Results did not live up to initial projections, and Nevada, which currently only allows online poker, saw its first entrant Ultimate Gaming shutter its Nevada online gaming operations in the fourth quarter of 2014, while N.J. also saw often-disappointing results. However, the still-nascent real-money online U.S. industry marches on and has made some strides. Pala Interactive, operated by the Pala Casino in California, recently started its PalaCasino.com in New Jersey, and California promises to be a hotbed of activity on this front as tribes and card rooms agreed to come together to try to come up with a unified bill to send to the state Legislature in 2015. But those who favor online gaming expansion will likely continue to face opposition from foes of its spread. These foes, including an organization underwritten by Las Vegas Sands Chairman Sheldon Adelson, made their voices heard in 2014 and show no sign of going away in 2015, as they continue to push for a federal ban.
But it was the consolidation on the supplier side that dominated the headlines in 2014. In addition to the acquisition of Bally Technologies by Scientific Games, and IGT by GTECH, there were other significant M&A moves. Among them were Aristocrat Technologies’ $1.3 billion purchase of major Class II gaming company Video Gaming Technologies, Global Cash Access’ acquisition of Multimedia Games and JCM’s purchase of ticketing technology company FutureLogic.
2014 also brought home the realization, at least in Las Vegas and Atlantic City, that visitors to the nation’s biggest gaming destination are not only beginning to trend younger, but those younger adults are often more at home on the nightclub dance floor than a casino slot floor. That trend led New Jersey regulators to loosen regulations to permit games with skill-based elements in Atlantic City, and for proponents, led by the Association of Gaming Equipment Manufacturers, to push for a similar move in the Nevada Legislature. At the industry’s biggest U.S. trade show, gaming companies, such as newcomer Gamblit Gaming as well as veteran slot and table game makers, showed how they are exploring how to make their games more relevant to attract a younger demographic, while still meeting the needs of core players. Other trends promising more growth for 2015 include mobile and social casino gaming.
Several jurisdictions in the U.S. made headlines, not all of them for the right reasons. For instance, Atlantic City saw four casinos shutter their doors in 2014, many due to increasing competition in the Northeast. But in September, Maryland saw the opening of its fifth casino, the Horseshoe Casino Baltimore, and New York is moving forward on plans to add casinos that voters approved in 2013. Among other moves, voters in November approved casinos in Massachusetts and liberalized regulations to allow new table games in casinos in South Dakota.
Beyond North America, bright spots loom for 2015. Mexico, as of this writing, appears on the verge of passing a new gaming law that shows much promise for successful expansion there. Meanwhile, Macau, which suffered from a soft market last year, hopes to turn things around in 2015, even as the Philippines and other Asian countries also look for growth in the new year.
If 2015 is anything like 2014, there will be no shortage of events to cover and stories to write about in the pages of Casino Enterprise Management, and we look forward to keeping our readers abreast of the latest trends and developments along the way. Read on to learn more about what your peers and other industry experts think about the new year’s prospects and what you should be prepared for in the coming year. May the new year bring good tidings to you in 2015!
With 50 essays in this year’s collection of forecasts, we found many observations and predictions particularly insightful, and we know you will, too. Check out a select few highlights here and then continue on to this year’s complete Gaming Industry Forecast.
“The current conditions are very likely not the new norm, but rather a period of adjustment and realignment while the industry figures out what form it’s going to take in the next 20 years. Technology and a shifting demographic have caught a number of industries flatfooted, and I am confident we’ll see the casino industry adapt to meet the challenge, because casinos still provide some of the most exciting, high-energy places that are available for adults. I believe in 2015 we will see more evidence that casinos are planning to become more about being entertainment brands than just gambling houses; an appropriate response given the shifting entertainment experience demands of their visitors.”
Eric Meyerhofer
CEO, Gamblit Gaming
“The newest generation of travelers wants myriad experiences. They want to be a part of the experience, not just ‘experiencing the experience. ’They also place social responsibility and environmental sustainability high on their list of priorities when choosing where to spend their time. As a result, companies in our industry, as well as many other industries, are taking a careful look inward to better understand how reputation is connected to the bottom line. For them, character—corporate character—matters.
Jim Murren
Chairman and CEO, MGM Resorts International
“2015 will see more European and Asian companies seeking to enter the Americas market—particularly North America. While many will focus on the traditional entry route—Nevada and New Jersey—some of the Asia-based suppliers will most likely start making their presence felt first in the Indian country market, which represents approximately 45 percent of the United States land-based gambling market. The United States continues to be the market in which to have a footprint, and more European and Asian companies are going to be entering this market in 2015 and beyond.”
Robert W. Stocker II
Member, Dickinson Wright PLLC
“We enter 2015 at one of our industry’s most exciting and transformative stages to date, with continued consolidation redefining the landscape of gaming. Consolidation will help rationalize industry costs against consumer demand. After this wave of consolidation, the industry can find a new equilibrium and operate with an emphasis on sparking and maintaining industry growth under a new paradigm. For the long term, we need to take a hard look at other forms of entertainment and determine how to be competitive with them. We need to be proactive if we want to promote the health of the industry and stimulate growth.”
Patti Hart
CEO, IGT
“The consumer is driving convergence and consolidation of the industry in so many ways, with the modern player open to experiencing novel content on new and emerging channels. In 2015, the successful supplier will anticipate evolving consumer behavior with the development of platforms, tools and systems that are sophisticated and easy to use, and, above all, fun games that players love to play. We need to lead, not follow the consumer—the more entertaining the game, the better the system, the smarter the investment in research, the greater the potential for success for the supplier and the operator.”
Gavin Isaacs
President and CEO, Scientific Games Corp.
Click on each of the links below to read essays from various sectors of the industry.
Part 1 (Architecture, Construction and Design; Associations, Attorneys and Law Firms; Cash Handling, Equipment and Cash Access; Commentators; Compliance, Development and Profitability Software)
Part 2 (Finance; Mobile; Online Gaming; Operators; Peripherals, Accessories and Equipment; Regulation and Testing)
Part 3 (Security; Slot and Game Developers; Slot, Class II and Table Game Operators; Sports Betting; Table Games and Equipment)