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Aristocrat and Ainsworth poised for growth in U.S. slot market

Australia-based gaming suppliers Aristocrat Leisure Ltd and Ainsworth Game Technology Ltd are well positioned for growth in the U.S. market, according to a report from J.P. Morgan Australia.

The report followed the release of data from the completion of their 7th Annual US Slot Market Survey.

“Aristocrat looks set to be the key beneficiary, with 66 percent of participants saying the company is the top performing manufacturer,” said J.P. Morgan analysts. The survey also revealed that 57 percent of casinos intended to increase their floor allocation for Aristocrat products by 5 percent.

JP Morgan also said that Ainsworth is gaining traction, albiet slowly. “Ainsworth should also grow sales as its profile builds – purchasers are likely to devote 6.2 percent of a new floor to Ainsworth, up from 2015 (5.2 percent),” analysts added.

The report also adds that Bally and Konami are performing well in terms of current performance and gaining share, followed by IGT and Ainsworth. On the other hand, WMS ranked poorly in the survey.

The report also noted the increased reliance that slot manufacturers will have on the replacement market in the U.S. now that the rate of new casinos opening have lowered. “As a result, slot manufacturers will be increasingly reliant on the replacement market. In our latest survey, 66 percent of casinos report they will maintain spend on replacements [in 2016], 17 percent intend to increase spend and 6 percent will see a large increase in their replacement budget.”

Asia Gaming Brief is a news and intelligence service providing up to date market information for worldwide executives on relevant gaming issues in Asia.

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