For the last several years (sans 2020, of course) Fantini Research has met with the gaming industry’s top gaming equipment suppliers ahead of G2E to get a gauge as to the top products and trends for which investors should be on the lookout.
Here are some observations with a little less than two weeks to go until the show starts:
- This year, of course, Covid-19 is a major topic. Booths are going to be smaller in many cases, there will be little international presence given quarantine restrictions in many countries and new logistical issues like vaccine verification will have to be dealt with.
More broadly, the last 18 months have provided an opportunity for the industry to innovate and several companies have made it clear what they are showing this year is a testament to the research and development investments they’ve made.
These innovations range from software and systems to hardware and game content.
- However, despite the fast-pace of innovation, most of what is being shown at G2E will be available in the next couple of quarters, if not already on casino floors, allowing operators to make more solid purchasing decisions.
And let’s consider what we know about the current purchasing environment.
According to the latest Eilers Slot and Table Forecast, slot sales are forecasted to rise 25 percent in calendar 2021 to 51,400 machines with the expectation being that replacement demand will continue to grow sequentially despite lingering effects on budgets from COVID. This sequential replacement demand will be fueled by casino operator desire to capture all the returning gaming demand.
A recent survey released by the Association of Gaming Equipment Manufacturers with Reed and the American Gaming Association found 25 percent of G2E attendees are planning to buy at the show or within the next two months and 14 percent in the next three-to-six months.
- Cashless gaming is one of the definite beneficiaries of R&D investments and that is going to be on full display by several companies. Attendees will be able to gain a greater understanding of cashless products both from a gambler perspective and from the perspective of providers and operators.
We know that the world at large uses cashless. I’m not sure I remember the last time I paid for my Starbucks with anything but my phone. That technology for slot machines is here and happening.
- Major advancements are also happening in the area of data and analytics that will be at the show. While not as sexy as some of the other topics, the data casino operators have access to matters and the innovation on this front is worth a look.
- Cabinet innovations. While I don’t want to point to specific companies or products, there are going to be a slew of new cabinets to see with a variety of different innovations ranging from size, scope, configurations and how gamblers interact with the game and other gamblers playing the game. Several companies also have some yet-to-be announced product that will be released right before or at the show.
If you want to see specific products, click here view the full Fantini Pre-G2E Guide.
- And while not necessarily a G2E-specific trend, there is more discussion happening around what some call the term “HBO Max” model. (A side note: can someone come up with a generic term the gaming industry can use.)
The idea is that an operator can launch both an online version of a game and land-based version of a game at the same time, building brand loyalty and create cross-promotion opportunities
Fantini Research will once again be back at G2E, as well, with CEO Frank Fantini conducting one-on-one interviews with gaming equipment supplier CEOs and with the At-Booth Product Demo series.
See you there.
