Analysts have chimed in on the outlook for slot manufacturing firms in 2012, and for the most part, the outlook is positive. 

The Las Vegas Review-Journal gathered comments from several gaming analysts in comments to their investors on how slot suppliers may fare this year, and the opinions painted a picture that’s rosier than it has been in years. Analysts cite new casinos opening in Kansas, Ohio and Maryland as one catalyst, and say that slot replacements are already occurring at a quickened pace.

“We think 2012 should be a good year for suppliers," Macquarie Securities gaming analyst Chad Beynon told investors recently, according to the newspaper. “Following a disappointing year for the slot vendors in which all underperformed, we believe 2012 should be a much better year for the group.”

“Calendar 2012 is shaping up to be the best year for the pipeline that the industry has seen since 2009,” said Brian McGill, gaming analyst for Janney Montgomery Scott. “Either Illinois and/or Ohio will provide a major boost to the pipeline, or the pipeline will revert back to its anemic 2011 levels.” Illinois bar owners are expected to soon begin placing new machines under the 2009 Video Lottery Act, which recently survived a court challenge. Estimates predict as many as 30,000 or more new units could be placed across the state.

Joel Simkins, gaming analyst for Credit Suisse, said International Game Technology stands to gain the most from new sales. “IGT remains the most attractive supplier given its improved content pipeline, opportunity for continued market share growth on a domestic and international basis, strong balance sheet, history of returning capital to shareholders, and option value for its online gaming business,” Simkins wrote in an investor note.

By Staff