EILERS – FANTINI Slot Survey - Eilers & Krejcik Gaming,...
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EILERS – FANTINI Quarterly Slot Survey
The Gaming Industry’s largest Slot Survey
Summary Results for 1Q CY13
Todd Eilers – Director of Research, Eilers Research, LLC
Frank Fantini – CEO, Fantini Research
Companies mentioned:
International Game Technology (IGT)
Bally Technologies (BYI)
WMS Industries (WMS)
Aristocrat (ALL.AU)
Multimedia Games (MGAM)
Scientific Games (SGMS)
Shuffle Master (SHFL)
Konami Gaming (KNM)
Ainsworth Game Technology (AGI.AU)
Spielo International (LTO.MI)
TransAct Technologies (TACT)
American Gaming Systems (AGS) (Private)
Video Gaming Technologies (VGT) (Private)
Aruze Gaming America (Private)
Leap Forward Gaming (Private)
FutureLogic (Private)
Disclaimer & Terms & Conditions of Use:
Eilers Research, LLC is an independent research firm and is neither a registered broker dealer nor a registered investment advisor. No information
contained in this report shall constitute as a recommendation or solicitation to buy or sell a security. Individuals receiving this report should consult with
an investment advisor or registered representative before making an investment decision related to any information contained in this report. In addition,
Eilers Research, LLC either does, or may seek to do business with any company mentioned in this report. This report was prepared for and distributed to
clients of Eilers Research, LLC. If you are not the intended recipient and/or received this report in error, please delete this document and notify Eilers
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EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 2 of 37
Table of Contents
1. Summary Results .................................................................................................................................................. 3
2. Participant Summary ............................................................................................................................................ 4
3. Key Participation Trends ....................................................................................................................................... 4
4. Product Type Mix .................................................................................................................................................. 5
5. Casino Owned vs. Leased ...................................................................................................................................... 6
6. Supplier Floor (“Static”) Share .............................................................................................................................. 7
7. Total Game Sales for 1Q13 ................................................................................................................................. 11
8. Ship Share by Supplier for 1Q13 ......................................................................................................................... 12
9. Increase (Decrease) in Leased Units ................................................................................................................... 20
10. Top Performing Games ................................................................................................................................... 22
11. Most Anticipated Premium Games ................................................................................................................. 25
12. Future New Openings & Expansions ............................................................................................................... 26
13. Expected Replacement Rate ........................................................................................................................... 26
14. Expected Replacement Ship Share ................................................................................................................. 27
15. System & Technology Spending ...................................................................................................................... 30
16. Historical Accuracy .......................................................................................................................................... 36
17. Contact Information ....................................................................................................................................... 37
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 3 of 37
1. Summary Results
The EILERS-FANTINI survey is designed to track slot machine and related technology purchasing trends on a quarterly basis
and is the gaming industry’s largest slot survey in terms of total casinos and slot machines surveyed. This quarter’s
report represents our 14th
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 seven international participants. In
total, our 77 survey participants collectively operate 265 gaming venues with ~273,000 total slot machines or equivalent gaming
devices. Our 70 North America participants operate 207 casinos and ~255,000 slot machines, representing ~26.1% of the total
install base of machines in North America.
Key summary findings:
IGT: Strong VLT & Corporate sales offset Premium Lease removals. Survey participants purchased a weighted
average of 39% of their games from IGT in the qtr and a non-weighted average of 24% and expect to allocate a weighted
avg share of 38% and 27% non-weighted in CY13. We note there is a large difference between weighted and non-weighed
share this qtr and actual results are likely to fall in between the two figures. As for leased games, survey participants
removed -81 (net) leased games in 1Q CY13 while IGT’s share of top performing leased games remained stable at 44%.
WMS: Improved Game Sales, Premium Leased Performance, & Multiple highly anticipated games. Survey
participants purchased a weighted avg. 15% of their games from WMS during the qtr and a non-weighted avg. of 14% and
expected to purchase a weighted avg. 12% and non-weighted avg. of 17% of purchases to WMS in CY13. Participants also
added +49 (net) leased games in the qtr while competitors lost units. Furthermore, WMS’s share of top performing games
improved meaningfully for the third qtr in a row from 17% to 19% indicating a positive response to new leased products with
two highly anticipated games set to launch.
Bally: Systems leader, NASCAR highly anticipated. Survey participants purchased a weighted avg. of10% of their
games from Bally in the qtr and a non-weighted average of 17% and expect to allocate a weighted avg. of 10% of
purchases to Bally in CY13 and a non-weighted average of 16%. Similar to IGT, there was a large difference between
weighted and non-weighted results and we believe actual ship share will likely fall in between the two figures. Bally also
saw -23 (net) leased game removals while its share of top performing games declined q/q from 18% to 16%. However,
Bally increased its share of most anticipated premium leased games to 38% with the pending launch of its NASCAR WAP.
Konami: Modest Game Sales Improvement ex Canada VLT markets. Survey participants purchased a weighted avg.
7% of their games from Konami during the qtr and a non-weighted avg. of 9% and expect to allocate a weighted avg. of 6%
of purchases to Konami in CY13 and a non-weighted avg. of 8%. Excluding Canada VLTs, weighted ship share was 14%
and non-weighted ship share was 10% in 1Q13 and is expected to be 14% (9% non-weighted) in CY13. We note Konami is
the only Big 5 supplier that is not participating in the Canadian VLT market, and therefore, we believe ship share (ex
Canada VLTs) is the more appropriate metric for assessing performance in existing markets.
Aristocrat: Game sales light while Premium Leased units expand & performance ranking improves. Survey
participants purchased a weighted avg. 7% and non-weighted avg. of 11% of their games from Aristocrat during the qtr and
expect to allocate a weighted avg. of 5% and non-weighted avg. of 10% in CY13. However, Aristocrat led the way with +66
(net) leased games added across our survey participants in 1Q13. Furthermore, Aristocrat’s share of top performing
premium leased games increased from 7% to 9% in the qtr.
Multimedia, Spielo gain ground. Multimedia and Spielo led the way for the Non-Big 5 suppliers this qtr across our survey
participants. Participants purchased a non-weighted avg. of 9% of Multimedia games this qtr and expect to purchase 7%
for CY13, which is well above the company’s trailing TTM avg. Spielo also received a non-weighted avg. of 7% in the qtr
and a weighted avg. of 16% which includes Canadian VLT sales as the company has a very strong market share position in
all provinces replacing games. Both Aruze and Ainsworth also continue to make gains as well with our survey participants.
Top performing leased titles. IGT’s Wheel of Fortune remained the top performing game in this qtr’s survey while Bally’s
Michael Jackson and WMS’s Lord of the Rings tied for second.
Replacement demand continues to improve. Our 68 N. America survey participants including Canadian VLT operators
expect to replace 11.0% of the casino owned games on their floors in CY13, which is slightly ahead of our 10.0%
replacement forecast. Survey results also imply healthy replacement activity in 1Q of CY13.
Interest in “Picture-in-Picture” (PiP) & printer-based “Target Couponing” technology. Roughly 29% of participants
plan to install “Picture-in-Picture” (PiP) system technology over the next 12 months and roughly 13% of participants plan to
install printer-based “targeted promotional couponing” technology.
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 4 of 37
2. Participant Summary
Questions 1-3 - Contact information, Operator Classification, & Total casinos & slots under management.
In the blow table and pie chart we provide a summary level view of this quarter’s survey participants below broken down
between North America and International casino operators, U.S. tribal vs. commercial, and whether or not the response was
from an individual casino or from a larger corporate multi-property operator.
Note: Route Operators are counted as a single property
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
3. Key Participation Trends
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Classification Responses Properties Slots
U.S. and Canada participants
Commercial - Multi-property 9 82 103,325
Commercial - Individual 28 28 34,055
Tribal - Multi-property 3 22 15,522
Tribal - Individual 14 14 24,592
Racino 7 8 14,148
Government (VLT) 5 5 36,100
Government (Class III) 2 46 25,630
Other (Casino Mgt Company, Route Operator) 2 2 1,587
U.S. & Canada Total 70 207 254,959
Avg. size of casino (ex VLT retail locations) 1,086
Est N. America Install base as of Dec 31, 2012 975,000
% of N. America install base 26.1%
International participants (4 Asia, 1 Europe, 1 S. Africa, 1 Caribbean)
Commercial - Multi-property 5 56 16,674
Commercial - Individual 2 2 1,678
Total International 7 58 18,352
Avg size of casino 316
Total worldwide 77 265 273,311
Commercial - Multi-property
40%
Commercial -Individual
13%
TribalMulti-property
6%
Tribal - Individual 10%
Racino6%
Government (VLT)14%
Government10%
Participation Summary - N. America
16 23 20 20
41 48
52 53 54 56
6872 73
77
0
20
40
60
80
100
Dec'09
Mar'10
Jun'10
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Mar'13
Survey Participants
65 73 69 68
139 157
204 196
248
203222
244 245265
0
50
100
150
200
250
300
Dec'09
Mar'10
Jun'10
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Mar'13
Number of Casinos
273,311
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Dec'09
Mar'10
Jun'10
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Mar'13
Number of Slot Machines
26.1%
0%
5%
10%
15%
20%
25%
30%
35%
Dec'09
Mar'10
Jun'10
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Mar'13
% of Total N. America Market
254,959
0
50,000
100,000
150,000
200,000
250,000
300,000
Dec'09
Mar'10
Jun'10
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Mar'13
Number of Slot Machines - N. America
18,352
0
5,000
10,000
15,000
20,000
25,000
30,000
Dec'09
Mar'10
Jun'10
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Mar'13
Number of Slot Machines - International
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 5 of 37
4. Product Type Mix
Question 4 - Of the total number of slot machines installed as of March 31, 2012, please indicate how many
games are considered mechanical reel, video slot, video poker, and/or electronic table game terminals?
Below we highlight the product mix for both North America participants and International participants. The mix of Mechanical
reel products in N. America continues to decline now representing only 26% of the total floor. Conversely, Video slot machines
continue to increase and now represent well over half of the casino floor at 62% while Video poker games have remained
relatively stable at 11% of the floor. We also note that e-Tables represent only 1% of the electronic gaming devices in N.
America now while we look for growth in this category going forward. In International casinos, video slots dominate the product
type at 71% while mechanical reels only represent 19% of the floor. As for other products, e-Tables represent 8% of the floor
and video poker is only at 2% of the floor.
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Below we show the trend in product mix across survey participants starting with our 1Q CY11 survey through our 1Q13 survey.
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Mech Reel26%
Video Slot62%
Video Poker 11%
E-table1%
Product Type Mix - N. America
Mech Reel19%
Video Slot71%
Video Poker2%
E-table8%
Other1%
Product Type Mix - International
0%
10%
20%
30%
40%
50%
60%
70%
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Mar'13
Product Mix - N. America
Mech Reel
Video Slot
Video Poker
eTable
Other
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Mar'13
Product Mix - International
Mech Reel
Video Slot
Video Poker
eTable
Other
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 6 of 37
5. Casino Owned vs. Leased
Question 5 - 6 - What percentage of the games on your casino floor are owned vs. leased?
In aggregate, our North America participants owned 88.9% of the games on their casino floor vs. 86.0% last qtr and leased
11.1% of the games vs. 14.0% last qtr. We note the percentage of casino owned games as a percentage of the casino floor has
increased each qtr starting with our 2Q12 survey.
Excluding Racino/VLT and Tribal Class II casinos with 100% leased games, the remaining N. America survey participants
owned 94.6% of the games on their casino floor vs. 94.0% last qtr and leased only 5.4% of the games vs. 6.0% last qtr, which
also reflects the same trend towards more casino owned games. Finally, our 7 international participants owned 86.7% of the
games installed in their casinos vs. 85% last qtr while leasing 13.1% of games vs. 15.0% last qtr reflecting the same trend
towards more casino owned product.
We highlight the mix between casino owned and leased games in the charts below and we also provide results excluding
Racino and Tribal Class II properties with 100% leased games. We note leased games include premium daily fee, Wide-Area
Progressive (WAP), Local Area Progressive (LAP), and VLT/Class II leases.
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Owned88.9%
Leased11.1%
Product Mix - N. America
Owned94.6%
Leased5.4%
Product Mix - N. America (Ex 100% leased Venues)
75%
80%
85%
90%
95%
100%
Dec'09
Mar'10
Jun'10
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Mar'13
Casino Owned Product - N. America
All Casinos Excl 100% leased Casinos
75%
80%
85%
90%
95%
100%
Dec'09
Mar'10
Jun'10
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Mar'13
Casino Owned Product - International
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 7 of 37
6. Supplier Floor (“Static”) Share
Question 5 - 6 – Please indicate the number of CASINO-OWNED games and LEASED games installed by supplier as of
March 31, 2012?
Note: Casino owned games were previously sold by a supplier and are now owned by the casino. Leased games include
participation games, WAP, LAP, Daily Fee, and VLT/Class II leased games.
North America participants
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
North America participants – Quarterly Trends
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
N. America Tribal participants only
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
46%
14%16%
14%
7%
1% 1% 0% 0% 1% 0% 0% 0% 0% 0% 1%
0%
10%
20%
30%
40%
50%
60%
Existing Static Market Share - Casino Owned Games
36%
7%
14%16%
3% 2% 1% 1% 0% 1%3%
13%
0% 0% 1% 2%
0%
10%
20%
30%
40%
50%
60%
Existing Static Market Share - Leased Games
0%
10%
20%
30%
40%
50%
60%
Mar'10
Jun'10
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Mar'13
Static Market Share for Casino Owned Games
IGT
ALL
WMS
BYI
KNM
MGAM
0%
10%
20%
30%
40%
50%
60%
Mar'10
Jun'10
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Mar'13
Static Market Share for Leased Games
IGT
ALL
WMS
BYI
KNM
MGAM
42%
16%
12%15%
8%
1% 2% 1% 1% 1% 0% 0% 0% 0% 0% 1%
0%
10%
20%
30%
40%
50%
60%
Existing Static Market Share - Casino Owned Games
27%
6%
11%9%
4%1% 2% 1% 0% 0%
4%
32%
0% 1% 0% 1%
0%
10%
20%
30%
40%
50%
60%
Existing Static Market Share - Leased Games
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 8 of 37
International Participants only
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Nevada Casinos only - 31 casinos
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Eastern Region U.S. Casinos (DE, FL, ME, NJ, NY, & PA) – 14 casinos
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
17%
34%
10%
5%1%
4%0%
14%
0% 0% 0% 0% 0% 0% 0%
15%
0%
10%
20%
30%
40%
50%
60%
Existing Static Market Share - Casino Owned Games
69%
6%9%
6%1% 0% 0% 1% 1% 0% 0% 0% 0% 0%
5% 3%
0%
20%
40%
60%
80%
Existing Static Market Share - Leased Games
63%
12% 12%7%
4%0% 0% 1% 0% 1% 0% 0% 0% 0% 0% 0%
0%
20%
40%
60%
80%
Existing Static Market Share - Casino Owned Games
45%
9%
16%14%
2%4%
0%
5%
0% 1% 0% 0% 0% 0% 0% 1%
0%
10%
20%
30%
40%
50%
60%
Existing Static Market Share - Leased Games
39%
13%15%
21%
8%
1% 0% 0% 1% 1% 0% 0% 0% 0% 1% 0%0%
10%
20%
30%
40%
50%
60%
Existing Static Market Share - Casino Owned Games
43%
10% 11%
27%
2%4%
0% 0% 0% 2% 0% 0% 0% 0% 0% 1%
0%
10%
20%
30%
40%
50%
60%
Existing Static Market Share - Leased Games
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 9 of 37
Central Region U.S. Casinos (IA, IL, IN, KS, MN, MO, & OH) – 24 casinos
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Western Region U.S. Casinos Ex Nevada (AZ, CA, CO, OR, & WA) – 24 casinos
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Southern Casinos (LA, MS, OK, & TX) – 34 casinos
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
43%
18% 16%
11% 10%
0% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0%0%
10%
20%
30%
40%
50%
60%
Existing Static Market Share - Casino Owned Games
37%
13%
20%
15%
2% 2% 2% 2% 0% 1% 0% 0% 0% 0%3% 4%
0%
10%
20%
30%
40%
50%
60%
Existing Static Market Share - Leased Games
44%
19%
11% 12%
7%
1% 2% 1% 0% 1% 0% 0% 0% 0% 0% 1%
0%
10%
20%
30%
40%
50%
60%
Existing Static Market Share - Casino Owned Games
42%
13%11%
16%
3% 4% 4% 2% 0% 1% 0% 0% 0%3% 1% 2%
0%
10%
20%
30%
40%
50%
60%
Existing Static Market Share - Leased Games
45%
17% 15%11%
8%
0% 1% 0% 1% 0% 0% 0% 0% 0% 0% 0%0%
10%
20%
30%
40%
50%
60%
Existing Static Market Share - Casino Owned Games
26%
5%
11%8%
4%0% 2% 1% 0% 0%
5%
35%
0% 1% 0% 1%
0%
10%
20%
30%
40%
50%
60%
Existing Static Market Share - Leased Games
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 10 of 37
California Casinos – 5 Casinos (4 Southern Cal, 1 Northern Cal)
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Canadian Casinos (Slots Only) – 48 Casinos
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Canadian VLTs – 5,328 Retailers
Source: EILERS-FANTINI Quarterly Slot Survey
39%
19%
11%13%
9%
1% 2% 1% 1% 1% 0% 0% 0% 0% 0% 2%
0%
10%
20%
30%
40%
50%
60%
Existing Static Market Share - Casino Owned Games
41%
12% 12%
17%
3% 3% 3% 3%0%
2% 0% 0% 0% 0% 1% 3%
0%
10%
20%
30%
40%
50%
60%
Existing Static Market Share - Leased Games
27%
14%
22% 21%
14%
1% 0% 0% 0% 1% 0% 0% 0% 0% 0% 0%0%
10%
20%
30%
40%
50%
60%
Existing Static Market Share - Casino Owned Games
38%
6%
17%20%
4%0% 0% 0% 0% 2% 0% 0% 0% 0%
8%4%
0%
10%
20%
30%
40%
50%
60%
Existing Static Market Share - Leased Games
45%
4%
22%
0% 0%
29%
0% 0% 0% 0% 0% 0% 0% 0% 0% 0%0%
10%
20%
30%
40%
50%
60%
Existing Static Market Share - Casino Owned Games
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 11 of 37
7. Total Game Sales for 1Q13
Questions 7-9 - How many replacement slot machines and new & expansionary slot machines did you PURCHASE by
supplier in 1Q CY13? How many conversion kits did your purchase by supplier in 1Q CY13?
Our North America survey participants purchased and took delivery of 15,858 slot machines in 1Q CY13 including 3,615 new &
expansionary units and 12,243 replacement units while also purchasing 4,620 conversion kits in the quarter. Similar to last qtr’s
survey, this qtr’s survey included a larger than normal amount of Canadian VLT replacement sales representing roughly 47% of
the total games purchased by our survey participants. In reality, we anticipate Canadian VLTs to represent ~30-35% of N.
America games sales in 1Q13. Therefore, in our analysis we provide market share statistics both including and excluding
Canadian VLT placements.
In addition, we also provide a weighted average ship share which reflects the size of the survey participant and a non-weighted
average ship share which normalizes the individual responses and counts each participant equal. We also highlight our survey
results as a useful predictor of actual replacement sales. Based on this quarter’s survey results and using a +10-+20% bias
range, we estimate actual N. America replacement sales are likely to fall between ~20,500 and 23,000 games in the 1Q CY13.
We note our industry forecast calls for ~20,500 games implying some modest upside if our survey is accurate.
We highlight our survey’s historical replacement sales vs. actual replacement sales and the trailing avg. deviation
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
-20%
0%
20%
40%
60%
80%
100%
120%
Mar'10
Jun'10
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec '12
Survey Bias - Replacements
% deviation Trailing avg deviation
0
5,000
10,000
15,000
20,000
25,000
30,000
Mar'10
Jun'10
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec '12
Implied Replacement Sales vs. Actual
Implied Repl Sales Actual Repl Sales
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 12 of 37
8. Ship Share by Supplier for 1Q13
Questions 7-9 - How many replacement slot machines and new & expansionary slot machines did you PURCHASE by
supplier in 1Q CY13? How many conversion kits did your purchase by supplier in 1Q CY13?
Among our survey participants, IGT posted the highest ship share in 1Q CY13 achieving a weighted average share of 39% and
a non-weighted share of 24% of game sales in the qtr. We note there is a large difference between the weighted average and
the non-weighted average ship share this qtr for IGT as a couple large corporate buyers purchased a much greater percentage
of IGT games relative to individual casino participants. We believe the company’s actual ship share will likely fall somewhere in
between the two figures. Although IGT’s weighted avg. survey ship share was -7% pts below its existing footprint of previously
sold games, we note it was +3% pts greater than its trailing twelve month (ttm) avg ship share. As we have highlighted before,
IGT continues to benefit from a large pickup in Canadian VLT replacement purchases with healthy placements in Quebec,
Alberta, Saskatchewan, Manitoba, and the Atlantic Lottery. Excluding Canadian VLT replacements, IGT’s weighted avg ship
share was 37% and its non-weighted share was 22% among our survey participants.
WMS obtained the next highest ship share of the Big 5 suppliers across our survey participants in 1Q CY13 achieving a
weighted avg ship share of 15% and a non-weighted avg. share of 14% of game sales in the qtr. Although its weighted ship
share was -1% pt below its existing footprint of previously sold games and its TTM ship share, we note it was much better than
the company’s actual ship share in the previous two quarters which was 10% and 13%, respectively. Excluding Canadian VLT
replacements, results were even better as WMS achieved a weighted average ship share of 17% and a non-weighted share of
15% in the qtr. We note WMS also benefited from a couple large corporate buyers purchasing a larger percentage of WMS
games this qtr vs. individual casino participants which was similar to IGT although to a much lesser extent. Regardless, it looks
like WMS likely hit bottom in 2H12 in terms of ship share and the data indicates the company is making modest improvement in
games sales likely boosted by its new Blade cabinet.
Bally came in just behind WMS in our 1Q CY13 survey achieving a weighted average ship share of 10% and a non-weighted
share of 17% for game sales in the qtr. Bally also had a large deviation between its weighted avg ship share and its non-
weighted share this qtr as we saw the reverse effect of a couple large corporate buyers purchasing a lower than normal amount
of Bally games this qtr vs. the vast majority of survey participants which are individual casinos. Again, we believe the company’s
actual 1Q13 results will likely fall somewhere in between which would place it roughly in-line with its static and TTM average.
Excluding Canadian VLT replacement activity, Bally did better achieving a 12% weighted average ship share and a non-
weighted share of 18% in the qtr. We note Bally remains a solid competitor with its improved video slot content for its Alpha 2
V32 and Pro Curve platforms.
Konami came in behind Bally and achieved a 7.5% weighted average ship share and a 9% non-weighted share in our 1Q
survey, which was -3% pts below its TTM ship share. However, results look much better when you factor out Canadian VLTs.
We note Konami is the only Big 5 supplier that is not participating in the Canadian VLT market. Therefore, the company’s
overall market share statistics are likely to be the most negatively impacted when including Canadian VLTs. Excluding
Canadian VLTs, Konami achieved a 14% weighted average ship share and a 10% non-weighted share in the qtr. Similar to IGT
and WMS, Konami benefited from some large corporate multi-property buyers in the qtr. We also note that the March qtr is the
Konami’s fiscal year end so the company tends to put up a strong sales qtr for the U.S. market which seems to be the case once
again this qtr.
Aristocrat came in just behind Konami in our 1Q CY13 survey achieving a weighted average share of 7.0% and a non-weighted
share of 11% in the qtr. We note the weighted share was -3% pts below the company’s TTM avg while the non-weighted share
was +1% pts above its TTM average. Similar to Konami, Aristocrat has a very small percentage of the Canadian VLTs
replacements and therefore its overall ship share will be somewhat depressed until the Canadian VLT cycle runs its course.
Excluding Canadian VLTs, Aristocrat’s weighted average ship share was 11% and its non-weighted share was 12% in this qtr’s
survey which is roughly in-line with its static and TTM average ship.
For the third qtr in a row Spielo International was the largest of the non-Big 5 suppliers achieving 16% weighted average ship
share (7% non-weighted) in our 1Q survey, which was +15% pts above its static share and +9% above its TTM share. The
strong performance this quarter was the result of significant Canadian VLT placements (~2,370). Excluding these Canadian
VLT placements, Spielo achieved 3% ship share (4% non-weighted) with our 1Q participants, which was also slightly ahead of
its static and TTM share as the company is also beginning to gain some traction in the traditional U.S. casino market.
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 13 of 37
We also highlight that Multimedia Games achieved a 1% weighted average ship share while we note its non-weighted ship
share was 9% in the qtr. Similar to Konami, Multimedia also has no exposure to the Canadian VLT market leaving its overall
market share somewhat depressed. Excluding Canadian VLTs, we note Multimedia’s weighted ship share was 2% and its non-
weighted avg share was 10% in with our survey participants. Similar to Bally, Multimedia was on the negative end of a couple
large corporate buyers in our survey as the company’s products were not fully licensed in some key markets yet (i.e. Nevada).
However, we look for the company’s ship share to pick up significantly in the coming quarters with products fully approved in
Nevada. Again, as we have highlighted many times the company’s award winning TournEvent product is a meaningful driver of
game sales for the company.
Finally, we note Ainsworth and Aruze both achieved a weighted average ship share of 0.5% in our survey this qtr (non-weighted
1.5%). Excluding Canada VLT units, both suppliers achieved a 1.5% weighted average and non-weighted avg ship share in the
qtr. Ainsworth continues to grab share with its high volatility, low denom video slots while Aruze continues to make headway
with its mechanical reel and e-table products.
Below we provide a summary of the weighted and non-weighted average ship share by supplier for total sold games sold to N.
America customers in our 1Q CY13 survey. As we mentioned above, this quarter’s survey results resulted in a larger than
normal deviation between the weighted and non-weighted average ship share data due to a small number of large multi-property
corporate buyers allocating game purchases much differently than the majority of individual casino participants. We note our
survey is more biased to the large corporate buyers than the overall market. As such, we believe actual results for the quarter
will likely fall somewhere in between the two figures.
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Below we provide a summary of the weighted and un-weighted ship share by supplier for total sold games sold to N. America
customers in our 1Q CY13 survey excluding Canada VLTs. We believe the adjusted numbers more accurately reflect the
underlying market share trends in the U.S. casino market.
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
39%
7%
15%
10%7%
16%
1% 1% 0% 1% 1% 0% 0% 0% 0%2%
0%
10%
20%
30%
40%
50%
1Q CY13 Survey - Weighted Avg Ship Share
24%
11%14%
17%
9%7%
9%
2%0%
2%0% 0% 0% 0% 0%
5%
0%
10%
20%
30%
40%
50%
1Q CY13 Survey - Non Weighted Avg Ship Share
37%
11%
17%
12%14%
3% 2% 1% 0% 1% 2%0% 0% 0% 0% 0%
0%
10%
20%
30%
40%
50%
60%
1Q CY13 Survey - Weighted Avg Ship Share (Ex Canada VLTs)
22%
12%15%
18%
10%
4%
10%
2%0%
2%0% 0% 0% 0% 0%
5%
0%
10%
20%
30%
40%
50%
1Q CY13 Survey - Non-Weighted Avg Ship Share (Ex Canada VLTs)
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 14 of 37
Below we highlight the weighted and non-weighted relative gain / loss on a percentage point basis compared with the
company’s overall trailing twelve month (ttm) ship share.
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Below we highlight the weighted & non-weighted relative gain / loss on a percentage point basis compared with the company’s
overall trailing twelve month (ttm) ship share after excluding Canada VLTs from both the survey and our TTM ship share.
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Big 5 vs. Non-Big 5 Suppliers
One of the most consistent themes we hear from our casino operator contacts is that smaller (non-Big 5) suppliers are getting a
large share of replacements. We note this is reflective in our quarterly surveys as well. Below we highlight our quarterly survey
ship share grouped into Big 5 share including and excluding Canada VLTs. We note that our 1Q13 Big 5 share includes the
average of the weighted and non-weighted ship share given the large deviation between the two metrics this qtr.
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
3%
-3%-1%
-6%-3%
9%
-2% 0%
0%
0%
1% 0% 0% 0% 0%2%
-20%
-10%
0%
10%
20%
1Q CY13 Weighted Ship Share - Gain/Loss on Sold Units Compared w/ TTM ship share
-12%
1%
-2%
1%
-1% 0%
6%
1% 0% 1% 0% 0% 0% 0% 0%
5%
-20%
-10%
0%
10%
20%
1Q CY13 Non-Weighted Ship Share - Gain/Loss on Sold Units Compared w/ TTM ship share
3%
0% 0%
-6%
1% 2%
-1% 0%
0%
0%
2%0% 0% 0% 0%
-1%
-20%
-10%
0%
10%
20%
1Q CY13 Weighted Ship Share - Gain/Loss on Sold Units Compared w/ TTM ship share - Ex Canada VLTs
-12%
1%
-2%
0%
-3%
3%
7%
0% 0% 1% 0% 0% 0% 0% 0%
4%
-20%
-10%
0%
10%
20%
1Q CY13 Non-Weighted Ship Share - Gain/Loss on Sold Units Compared w/ TTM ship share - Ex Canada VLTs
50%
60%
70%
80%
90%
100%
Dec'09
Mar'10
Jun'10
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Mar'13
Ship Share Sold - Big 5 Share
Canada Repl VLT Cycle begins
50%
60%
70%
80%
90%
100%
Dec'09
Mar'10
Jun'10
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Mar'13
Ship Share Sold - Big 5 Share (Ex Canada VLTs)
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 15 of 37
Replacement Sales
Below we highlight both weighted and non-weighted average “Replacement Sales” ship share across our N. American survey
participants in 1Q CY13.
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Below we highlight both weighted and non-weighted average “Replacement Sales” ship share across our N. American survey
participants in 1Q CY13 excluding Canada VLTs.
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
New Openings & Expansion Sales
Below we highlight New Casino Opening & Expansionary Sales across our N. American survey participants in 1Q CY13. We
only provide a weighted ship share as we believe we have captured the majority of new openings in the quarter.
Source: EILERS-FANTINI Quarterly Slot Survey
40%
6%
15%
7% 8%
20%
1% 1% 0% 0% 0% 0% 0% 0% 0%2%
0%
10%
20%
30%
40%
50%
60%
1Q CY13 Weighted Avg Ship Share - Replacements Only
24%
12%15% 16%
11%8%
6%
2%0%
2%0% 0% 0% 0% 0%
3%
0%
10%
20%
30%
40%
50%
1Q CY13 Non-Weighted Avg Ship Share - Replacements Only
38%
10%
19%
6%
21%
1% 1% 2% 0% 1% 0% 0% 0% 0% 0% 1%
0%
10%
20%
30%
40%
50%
60%
1Q CY13 Weighted Avg Ship Share - Replacements Only (Ex Canada VLTs)
22%
14%16% 17%
13%
4%6%
2%0%
3%0% 0% 0% 0% 0%
3%
0%
10%
20%
30%
40%
50%
1Q CY13 Non-Weighted Avg Ship Share - Replacements (Ex Canada VLTs)
35%
12%14%
20%
5% 4%2%
1% 0% 1%
5%
1% 0% 0% 1% 0%0%
10%
20%
30%
40%
50%
1Q CY13 Weighted Avg Ship Share - New & Expansionary Only
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 16 of 37
Conversion Kits
Below we highlight the number of Conversion kits purchased in 1Q CY13 by our N. American survey participants and the ship
share by supplier during the quarter.
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
27%
15%
25%
10%12%
5%1% 1% 0% 1% 0%
4%0% 0% 0% 0%
0%
10%
20%
30%
40%
50%
1Q CY13 Survey - Conv Kit Ship Share
1,247
684
1,164
466545
215
50 41 0 27 0
163
0 2 0 16
0
500
1,000
1,500
2,000
1Q CY13 Survey - Conv Kit Sales
0%
5%
10%
15%
20%
25%
30%
35%
40%
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Mar'13
Ship Share - Conv Kits
IGT
ALL
WMS
BYI
KNM
MGAM
0
200
400
600
800
1,000
1,200
1,400
1,600
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Mar'13
Conv Kit Sales
IGT
ALL
WMS
BYI
KNM
MGAM
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 17 of 37
Regional Ship Share
Below we highlight N. American ship share by region across our survey participants in 1Q CY13.
Nevada Casinos – 31 Casinos
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Eastern Region U.S. Casinos (DE, FL, ME, NJ, NY, PA) – 14 casinos
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Central Region U.S. Casinos (IA, IL, IN, KS, MN, MO, & OH) – 24 casinos
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
5%
25%
39%
8%
17%
4%
0% 0% 0% 0% 0% 0% 0% 0% 0% 1%
0%
10%
20%
30%
40%
50%
1Q13 Ship Share - Total Sales
48
230
354
75
157
36
0 0 0 4 0 0 0 0 0 10
0
50
100
150
200
250
300
350
400
1Q13 Game Sales - Total Sales
22%
6% 5%
22%
10%
3% 4%6%
0%
5%
15%
2%0% 0%
2% 1%
0%
10%
20%
30%
40%
50%
1Q13 Ship Share - Total Sales
246
6452
248
111
3241
68
0
56
174
200 0
209
0
50
100
150
200
250
300
1Q13 Game Sales - Total Sales
35%
15%18%
16%
7%
1%3%
1% 0% 1% 0% 0% 0% 0% 0% 1%
0%
10%
20%
30%
40%
50%
1Q13 Ship Share - Total Sales
481
210250
223
98
1139
190 17 0 0 0 0 0 12
0
100
200
300
400
500
600
1Q13 Game Sales - Total Sales
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 18 of 37
Western Region U.S. Casinos Ex Nevada (AZ, CA, CO, NM, OR, & WA) – 24 casinos
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Southern Casinos (LA, MS, & OK) – 34 casinos
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
California Casinos – 5 casinos
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
41%
9%
15%18%
9%
2% 3%0% 0% 1% 0% 0% 0% 0% 0% 0%
0%
10%
20%
30%
40%
50%
1Q13 Ship Share - Total Sales
806
178
290355
184
43 536 0 23 0 0 0 0 8 6
0
200
400
600
800
1,000
1Q13 Game Sales - Total Sales
22%
33%
7%
11%
3%0%
6%
9%
0% 0% 0% 0% 0% 0% 0%
9%
0%
10%
20%
30%
40%
50%
1Q13 Ship Share - Total Sales
40
60
12
20
6
0
10
17
0 0 0 0 0 0 0
16
0
10
20
30
40
50
60
70
1Q13 Game Sales - Total Sales
41%
11%
7%9%
21%
2%4%
1% 0%2%
0% 0% 0% 0%2%
0%0%
10%
20%
30%
40%
50%
1Q13 Ship Share - Total Sales
216
56
3648
112
821
6 012
0 0 0 08
00
50
100
150
200
250
1Q13 Game Sales - Total Sales
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 19 of 37
Canadian Casinos (Slots only) – 46 Casinos
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Canadian Casinos (VLTs only) – 4,046 retail locations
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
International – 58 casinos: Game Sales & Conversion Kit Sales
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
11%
6%
43%
7%
32%
0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%0%
10%
20%
30%
40%
50%
1Q13 Ship Share - Total Sales
70
40
266
44
196
0 0 0 0 0 0 0 0 0 0 00
50
100
150
200
250
300
1Q13 Game Sales - Total Sales
40%
0% 0%
12%
0%
40%
0% 0% 0% 0% 0% 0% 0% 0% 0%
7%
0%
10%
20%
30%
40%
50%
4Q CY12 Survey - Ship Share
1,640
0 0
500
0
1,645
0 0 0 0 0 0 0 0 0
300
0
500
1,000
1,500
2,000
4Q CY12 Survey - Game Sales
18%14%
0%
16%
0% 0% 0%
19%
0% 0% 0% 0% 0% 0% 1%
32%
0%
10%
20%
30%
40%
50%
1Q CY13 Ship Share - Total Sales
40
32
0
36
0 0 0
44
0 0 0 0 0 0 2
74
0
10
20
30
40
50
60
70
80
1Q CY13 Ship Share - Total Sales
14%
25%23%
7%
0% 0% 0% 1% 0% 0% 0% 0% 0% 0%2%
29%
0%
10%
20%
30%
40%
50%
1Q CY13 Conv Kit Ship Share
52
9486
28
0 0 0 3 0 0 0 0 0 06
108
0
20
40
60
80
100
120
1Q CY13 - Conv Kit Sales
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 20 of 37
9. Increase (Decrease) in Leased Units
Question 10 – Please indicate how many (net) games were added to the lease install base in 1Q CY13 by supplier.
With this question we are trying to determine which suppliers are gaining or losing leased units in their recurring revenue install
base. For the purpose of this survey, leased games include WAP, LAP, Daily fee, 80/20 Participation, and VLT/Class II leases.
This quarter our survey participants added +469 (net) recurring revenue games which included +248 net additions from new
casino openings and +490 net additions from two major 100% leased Class II and VLT casino operators offset by -269 game
removals from several traditional casinos.
Below we highlight the (net) increase / decrease in leased units by supplier during the quarter ending on March 31, 2013. Note
the first chart shows the (net) increase / decrease in leased units for both existing casinos, as well as new openings while the
second chart includes only new casino openings.
Note: Includes existing & new casino openings Note: Includes only new casino openings & major expansions
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
The first chart below highlights the (net) increase / decrease in leased units for existing casinos only and excludes new casino
openings. The second chart to the right shows only existing casinos and also excludes Class II and VLT facilities with 100%
leased product. We believe this is the best gauge for premium installations / removals in the quarter. We note multiple large
corporate multi-property operators removed several premium leased games in the qtr.
Note: Includes only existing casinos
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
-81
66 49
-23
650
130
22
-8
45
188
-58
0 10 10
63
-300
-200
-100
0
100
200
300
Net Increase / Decrease in Leased Units - 1Q CY13Existing & New Openings
95
30 30 30
15 12 12 120
120 0 0 0 0 0
0
25
50
75
100
125
150
Net Increase / Decrease in Leased Units - 1Q CY13New Casino Openings Only
-176
36 19
-53-9
38
118
10
-8
33
188
-58
0 10 10
63
-300
-200
-100
0
100
200
300
Net Increase / Decrease in Leased Units - 1Q CY13Existing Casinos Only
-249
51
-22
-133
-14
20 11
-7 -8
25 220 0 2 0
33
-350
-250
-150
-50
50
150
250
Net Increase / Decrease in Leased Units - 1Q CY13Existing Casinos Only, Also excludes Class II, VL, & Route Ops
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 21 of 37
Regional Market Increase (Decrease) in Leased Units
Below we highlight (net) leased games added/removed by region across our survey participants in 1Q CY13. Note, we do not
include corporate multi-site participant responses in this section unless the portfolio of casinos can be grouped into a certain
region. As a result, most of the removals from corporate multi-site operators are not reflected in this section.
Nevada Casinos – 31 casinos Eastern U.S. (DE, FL, ME, NJ, NY, & PA) – 14 casinos
Note: Includes existing & new casino openings Note: Includes existing & new casino openings
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Central (IA, IL, IN, KS, MN, MO, & OH) – 24 casinos Western U.S. Ex NV (AZ, CA, CO, NM, OR, WA) – 24 casinos
Note: Includes existing & new casino openings Note: Includes existing & new casino openings
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Southern U.S. (OK, LA, & MS) – 34 casinos California Casinos – 5 casinos
Note: Includes existing & new casino openings Note: Includes existing & new casino openings
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
19
42
2014
-1
18
-6 -6
0
19
0 0 0 0 0
-5
-20
-10
0
10
20
30
40
50
60
Net Increase / Decrease in Leased Units - 1Q CY13Existing & New Openings
78
2
15 16
0 2 0
-6
0 0
18
0 0 0 0
15
-20
0
20
40
60
80
100
Net Increase / Decrease in Leased Units - 1Q CY13Existing & New Openings
32
6
24
2
17
84
15
0
10
0 0 0 0 0
6
0
10
20
30
40
50
Net Increase / Decrease in Leased Units - 1Q CY13Existing & New Openings
-22
8 10 9
-2
0
12
0
-8
4 4 0 0 2 04
-30
-20
-10
0
10
20
30
Net Increase / Decrease in Leased Units - 1Q CY13Existing & New Openings
50
-19
5870
17 22
116
26
012
139
-58
0 8 10
49
-100
-50
0
50
100
150
200
Net Increase / Decrease in Leased Units - 1Q CY13Existing & New Openings
-27
0
10
0
-6
0 0 0
-8
4 4 0 0 0 04
-40
-30
-20
-10
0
10
20
30
40
Net Increase / Decrease in Leased Units - 1Q CY13Existing & New Openings
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 22 of 37
Canadian Casinos (Slots only, no VLTs) – 46 Casinos
Source: EILERS-FANTINI Quarterly Slot Survey
10. Top Performing Games
Question 11 – What were your Top 3 performing Premium LEASED games in 1Q CY13 on a Net Win basis?
Once again IGT’s Wheel of Fortune remained the “Top Performing” premium leased game among our N. America and
International participants in 1Q CY13 receiving 33% of the participant responses (21 of 63 responses) vs. 32% last qtr and 26%
the prior qtr. Bally’s Michael Jackson remained strong and tied for 2nd
place with WMS’s Lord of the Rings with each receiving
8% of responses (5 out of 63). We note four games tied for 3rd
place including IGT’s Megabucks, Bally’s Jumbo Series,
Aristocrat’s Tarzan, and WMS’s Wizard of Oz franchise. We highlight the breakdown of Number 1 votes by supplier below:
Source: EILERS-FANTINI Quarterly Slot Survey
-14
1
-6
-24
-16
0 0 0 0 0 0 0 0 0 0 0
-40
-30
-20
-10
0
10
20
30
40
Net Increase / Decrease in Leased Units - 1Q CY13Existing & New Openings
Number 1 Game Votes
Supplier / Game 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13
IGT / Wheel of Fortune 5 6 3 7 11 12 13 10 12 11 15 20 21
Bally / Michael Jackson 0 0 0 0 0 0 0 0 0 0 6 4 5
WMS / Lord of the Rings 0 0 0 2 0 1 0 0 0 0 3 2 5
IGT / Megabucks 0 0 0 1 2 2 1 3 2 0 1 4 3
Bally / Jumbo Series 0 0 0 0 0 0 0 1 5 3 2 3 3
Aristocrat / Tarzan 0 0 0 0 1 3 2 1 2 4 2 1 3
WMS / Wizard of Oz 3 1 2 3 5 1 2 0 1 1 1 1 3
Aristocrat / Cash Express 0 0 0 0 0 1 1 1 0 0 0 0 2
Multimedia / One Red Cent 0 0 0 0 0 0 0 0 0 0 2 2 1
IGT / Sex and the City 4 5 5 12 6 4 7 4 5 5 1 1 1
COLOSSAL / BIG THUNDER 0 0 0 0 0 0 0 1 1 1 1 1 1
IGT / Star Wars 0 0 0 0 0 1 0 1 1 1 1 1 1
Bally / Million Degrees 0 0 0 0 0 0 0 0 1 1 0 1 1
IGT / Wheel of Gold 0 0 0 0 0 0 0 0 0 0 0 1 1
WMS / Monopoly 0 0 0 1 0 0 1 0 0 3 1 0 1
Bally / Hot Shot 0 0 0 0 0 0 1 0 0 1 1 0 1
WMS / Jackpot Station 0 0 0 0 0 0 0 0 0 0 0 0 1
WMS / Leprechaun's Gold 0 0 0 0 0 0 0 0 0 0 0 0 1
Bally / Betty Boop 0 0 0 0 0 0 0 0 0 0 0 0 1
Aruze / Gold 0 0 0 0 0 0 0 0 0 0 0 0 1
Multimedia Games / Jackpot Factory 0 0 0 0 0 0 0 0 0 0 0 0 1
IGT / Shinobi 0 0 0 0 0 0 0 0 0 0 0 0 1
IGT / Triple Play Poker 0 0 0 0 1 0 0 0 1 0 1 0 1
IGT / Fort Knox 0 0 0 0 0 0 0 1 0 1 0 0 1
IGT / Hangover 0 0 0 0 0 1 0 0 0 1 0 0 1
Bally / Vegas Hits 0 0 0 0 0 0 1 1 1 0 0 0 1
WMS / Life of Luxury 0 0 0 0 0 0 0 0 0 0 1 2 0
Bally / Lightning Jackpots 0 0 0 0 0 0 0 0 0 1 1 2 0
Bally / Money Wheel 0 0 0 0 0 0 0 0 0 0 0 1 0
Bally / Sun God 0 0 0 0 0 0 0 0 0 0 0 1 0
Konami / African Diamond 0 0 0 0 0 0 0 0 0 0 0 1 0
Aristocrat / Loco Loot 0 0 0 1 0 0 0 1 0 1 0 1 0
Aristocrat / Superman 0 0 0 0 0 0 0 0 0 0 0 1 0
Aruze / Crystal Slots 0 0 0 0 0 0 0 0 0 0 0 1 0
Aruze / Paradise Fishing 0 0 0 0 0 0 0 0 0 0 0 1 0
IGT / Ultimate X Poker 0 0 0 0 0 0 0 0 0 1 0 1 0
VGT / Pieces of Eight 0 0 0 0 0 0 0 0 0 0 0 1 0
IGT / American Idol 0 0 0 0 0 2 0 0 0 0 0 1 0
Bally / Cash Wheel 0 0 0 0 0 0 0 0 0 2 1 1 0
Rocket / Gold Series 1 1 1 1 1 2 2 1 2 0 1 1 0
Bally / Monte Carlo 0 0 1 0 0 2 0 1 2 0 1 1 0
IGT / Spin Poker 0 0 0 0 0 1 2 2 0 0 1 1 0
IGT / Red Hot Jackpots 0 0 0 0 0 0 0 0 0 0 1 1 0
IGT / All Star Poker 0 0 0 0 0 0 0 1 0 0 1 1 0
VGT / Mr. Money Bags 0 0 0 0 0 0 0 0 0 0 1 1 0
Total Votes 14 13 15 33 36 41 43 43 48 51 58 63 63
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 23 of 37
We also provide a ranking by supplier based on the total number of Top 1-3 votes for all games. We believe this reflects which
suppliers have the best overall premium leased portfolio. IGT remained in 1st place this qtr. receiving the most Top 1-3 votes as
Wheel of Fortune remains the industry’s top earning game while the company’s Megabucks and Sex and The City games also
performed well although we note Sex and The City seems to have lost a few Top game votes over the last couple of quarters
(see previous table). However, we also note this was the first time IGT’s share of Top 1-3 games increased q/q since 4Q11 with
most of the q/q gains coming from its WOF franchise.
WMS posted the biggest gain in the qtr moving past Bally into the 2nd
position as its share of top performing games increased
from 17% to 19% with our survey participants led by strong Wizard of Oz, Lord of the Rings, and Monopoly game performance.
We note several of the games listed above were on the company’s new Gamefield XD cabinet which seems to have boosted
results. Bally came in 3rd
receiving 16% of Top 1-3 votes, which was down from 18% the last two quarters. Bally’s Michael
Jackson game continues to perform well while Betty Boop posted strong gains on the company’s new WAP link. Although Bally
dropped a bit q/q we look for a rebound next quarter with the introduction of its high profile NASCAR WAP.
Aristocrat also had a strong qtr receiving 9% of the Top 1-3 votes vs. 7% last qtr. The company’s Tarzan branded games and
Cash Express remain strong although we note newly introduced Superman dropped off the board. Finally, smaller players like
Spielo, Multimedia Games, and Aruze obtained 2-3% of the Top 1-3 votes this qtr. Below we provide a summary table of
participant voting for the Top 1-3 premium leased games on a quarterly basis through 1Q CY13 aggregated by supplier.
Source: EILERS-FANTINI Quarterly Slot Survey
Supplier Top 1-3 Ranking
Supplier / Game 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13
IGT 24 22 20 45 55 57 62 64 69 70 74 81 82
% of total votes 44% 46% 44% 46% 51% 48% 48% 56% 54% 46% 44% 43% 44%
WMS 9 8 7 17 17 17 12 11 15 15 27 32 36
% of total votes 17% 17% 16% 17% 16% 14% 9% 10% 12% 10% 16% 17% 19%
Bally 15 12 10 21 19 27 25 14 20 25 31 33 30
% of total votes 28% 25% 22% 21% 18% 23% 19% 12% 16% 17% 18% 18% 16%
Aristocrat 3 2 2 4 4 7 9 13 9 21 15 14 16
% of total votes 6% 4% 4% 4% 4% 6% 7% 11% 7% 14% 9% 7% 9%
Spielo / Atronic 1 2 1 0 3 0 3 5 7 7 2 3 5
% of total votes 2% 4% 2% 0% 3% 0% 2% 4% 5% 5% 1% 2% 3%
Multimedia Games 0 0 0 0 1 0 1 0 1 3 8 4 4
% of total votes 0% 0% 0% 0% 1% 0% 1% 0% 1% 2% 5% 2% 2%
Aruze 0 0 0 0 0 0 0 0 1 1 1 2 4
% of total votes 0% 0% 0% 0% 0% 0% 0% 0% 1% 1% 1% 1% 2%
Konami 1 1 4 4 3 5 10 2 0 3 5 6 2
% of total votes 2% 2% 9% 4% 3% 4% 8% 2% 0% 2% 3% 3% 1%
Colossal 0 0 0 1 1 2 0 1 1 1 1 1 2
% of total votes 0% 0% 0% 1% 1% 2% 0% 1% 1% 1% 1% 1% 1%
Rocket Games 1 1 1 4 3 4 6 2 4 1 1 2 1
% of total votes 2% 2% 2% 4% 3% 3% 5% 2% 3% 1% 1% 1% 1%
AGS 0 0 0 0 0 0 1 0 0 1 0 2 1
% of total votes 0% 0% 0% 0% 0% 0% 1% 0% 0% 1% 0% 1% 1%
Lighting Gaming 0 0 0 0 0 0 0 0 0 0 0 1 1
% of total votes 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 1% 1%
Ainsw orth 0 0 0 0 0 0 0 0 0 0 0 0 1
% of total votes 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 1%
VGT 0 0 0 0 0 0 0 0 0 3 3 6 0
% of total votes 0% 0% 0% 0% 0% 0% 0% 0% 0% 2% 2% 3% 0%
Shuffle Master 0 0 0 1 1 0 0 0 1 0 0 0 0
% of total votes 0% 0% 0% 1% 1% 0% 0% 0% 1% 0% 0% 0% 0%
AlfaStreet 0 0 0 0 0 0 0 1 0 0 0 0 0
% of total votes 0% 0% 0% 0% 0% 0% 0% 1% 0% 0% 0% 0% 0%
AC Slots 0 0 0 1 0 0 0 1 0 0 1 0 0
% of total votes 0% 0% 0% 1% 0% 0% 0% 1% 0% 0% 1% 0% 0%
Total votes 54 48 45 98 107 119 129 114 128 151 169 187 185
0%
10%
20%
30%
40%
50%
60%
Mar'10
Jun'10
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Mar'13
Top 1-3 Leased Games by Qtr
IGT
Bally
WMS
Aristocrat
Konami
Spielo
Multimedia
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 24 of 37
Finally, we provide a complete breakdown of the Top 1-3 voting by supplier and game title for the quarter.
Source: EILERS-FANTINI Quarterly Slot Survey
Top 1-3 Ranking
Supplier / Game 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13
IGT / Wheel of Fortune 14 9 6 15 25 22 26 29 27 27 37 38 42
WMS / Wizard of Oz 8 7 7 12 12 13 10 7 13 8 9 13 13
IGT / Megabucks 0 0 0 2 6 4 2 4 3 3 6 10 10
WMS / Monopoly 0 0 0 1 2 1 1 1 0 5 3 3 10
Bally Michael Jackson 0 0 0 0 0 0 0 0 0 0 10 8 9
Aristocrat / Tarzan 0 0 0 0 1 4 5 7 6 10 7 8 8
IGT / Sex and the City 6 10 10 18 12 13 12 6 15 13 6 10 6
WMS / Lord of the Rings 0 0 0 4 3 1 0 0 0 0 5 6 6
Bally / Betty Boop 0 0 0 0 0 0 3 2 0 0 0 2 5
Bally / Jumbo Series 0 0 1 1 0 4 3 1 7 5 5 5 4
IGT / The Hangover 0 0 0 0 0 1 5 1 1 6 1 2 4
Multimedia / One Red Cent 0 0 0 0 0 0 0 0 0 2 7 4 3
Spielo / Deal or No Deal 0 0 0 0 0 0 1 0 5 5 2 2 3
Bally / Money Wheel 0 0 0 0 0 0 0 0 0 0 0 2 3
Aristocrat / Cash Express 1 0 1 1 0 1 2 2 0 2 1 1 3
Bally / Hot Shot 5 3 1 4 2 2 3 1 2 3 3 1 3
IGT / Tw ilight Zone 0 0 0 0 1 0 0 0 0 0 0 0 2
WMS / Aladdin 0 0 0 0 0 0 0 0 0 0 3 2 2
Bally / Vegas Hits 0 0 0 2 3 2 4 3 2 0 1 2 2
IGT / Wheel of Gold 0 0 0 0 0 0 0 0 0 0 0 1 2
Spielo / King Kong 0 0 0 0 0 0 0 0 0 0 0 0 2
IGT / Diamond Jackpot 0 0 2 0 1 2 2 2 0 0 1 0 2
IGT / Fort Knox 0 0 0 1 0 1 2 1 1 3 3 4 1
Konami / Beat the Field 0 0 2 2 1 0 3 0 0 2 1 4 1
WMS / Life of Luxury 0 0 0 0 0 0 0 1 0 0 2 3 1
Bally / Lightning Jackpots 0 0 0 0 0 0 0 0 0 1 1 3 1
IGT / Red Hot Jackpots 0 0 0 1 1 1 0 0 0 0 3 2 1
Bally / Monte Carlo 0 0 0 0 0 0 0 1 2 3 2 2 1
IGT / Wheel Poker 0 0 0 0 0 0 0 0 1 1 1 2 1
WMS / Leprechaun's Gold 0 0 0 0 0 0 0 0 0 1 2 1 1
AGS / Diamond Lotto 0 0 0 0 0 0 0 0 0 0 0 1 1
Aruze / Crystal Slots 0 0 0 0 0 0 0 0 0 0 0 1 1
WMS / Game of Life 0 0 0 0 0 0 0 0 0 0 0 1 1
WMS / Monster Jackpots 0 0 0 0 0 0 0 0 0 0 0 1 1
Konami / Money in the Bank 0 0 0 0 0 0 0 0 0 0 0 1 1
IGT / Star Wars 0 0 0 1 1 3 2 3 2 1 1 1 1
COLOSSAL / BIG THUNDER 0 0 0 0 0 1 0 1 1 1 1 1 1
Ainsw orth / Thunder Cash 0 0 0 0 0 0 0 0 0 0 0 0 1
Aruze / Gold 0 0 0 0 0 0 0 0 0 0 0 0 1
Aruze / Innovators 0 0 0 0 0 0 0 0 0 0 0 0 1
Aruze / Rich Life 0 0 0 0 0 0 0 0 0 0 0 0 1
Bally / Code Red 0 0 0 0 0 0 0 0 0 0 0 0 1
Colossal / Wild Gambler 0 0 0 0 0 0 0 0 0 0 0 0 1
IGT / Red Hot Fusion 0 0 0 0 0 0 0 0 0 0 0 0 1
IGT / Tx Holdem Poker 0 0 0 0 0 0 0 0 0 0 0 0 1
WMS / Cheers 0 0 0 0 0 0 0 0 0 0 0 0 1
Rocket Gaming / Snow White 0 0 0 0 0 0 0 0 0 0 0 0 1
Multimedia Games / Jackpot Factory0 0 0 0 0 0 0 0 0 0 0 0 1
Lightning Gaming / Penny Palooza 0 0 0 0 0 0 0 0 0 0 0 0 1
Aristocrat / Xtreme Mystery 0 0 0 0 0 0 0 1 0 0 1 1 1
IGT / Electronic Roulette MP 0 0 0 0 1 0 0 0 1 1 1 0 1
Bally / Million Degrees 0 0 0 0 0 0 0 0 1 1 0 1 1
IGT / Triple Play Poker 0 0 0 0 0 0 0 0 1 2 1 0 1
IGT / CSI 0 0 0 0 0 0 0 0 0 0 0 0 1
IGT / Party Time 0 0 0 0 0 0 0 1 1 0 1 0 1
Aristocrat / Bank Busters 0 0 0 0 0 0 0 0 0 0 1 0 1
IGT / Joker's Heist 0 0 0 0 0 0 0 0 1 0 1 0 1
IGT / Shinobi 0 0 0 0 0 0 0 1 1 0 1 0 1
IGT / Triple Spin Poker 0 0 0 1 0 1 0 0 0 0 1 0 1
Aristocrat / Jaw s 0 0 0 0 0 0 0 0 1 3 0 0 1
Aristocrat / Wonder 4 0 0 0 0 0 0 0 0 0 0 2 0 1
IGT / Sirens 0 0 0 0 0 0 0 0 0 1 0 0 1
Aristocrat / Mummy 0 0 0 0 0 0 0 0 0 0 0 0 1
Total Votes 39 36 45 97 106 119 129 115 128 150 168 187 185
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 25 of 37
11. Most Anticipated Premium Games
Question 12 – In your opinion, what is the most anticipated premium leased game that has not yet been released in
your market?
This quarter Bally’s NASCAR WAP regained the top spot for
most anticipated premium leased game, according to our
survey participants, receiving 24% of the total votes.
WMS’s Willy Wonka game also remains highly anticipated
coming in 2nd
receiving 19% of the votes. After these two
games there is a noticeable drop off with Spielo’s Plants vs.
Zombies and WMS’s Spiderman titles each receiving 9% of
the votes and Bally’s MJ game rounding out the top 5.
In total, Bally earned the highest number of most anticipated
game votes this quarter receiving 38% of the total vs. 37% last
qtr, and 32% in our 3Q survey.
WMS had the second highest number of most anticipated
games at 33% of the total vs. 30% last qtr and 40% in our 3Q
survey. IGT came in third receiving 12% of the total votes vs.
19% last qtr and 14% in our 3Q survey.
Below we provide a summary table of the historical responses to our question regarding the most anticipated premium leased
games aggregated by supplier.
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Most Anticipated Premium Leased Games by Supplier
Supplier 1Q12 2Q12 3Q12 4Q12 1Q13
Bally 28 30 18 21 22
% of total 62% 64% 32% 37% 38%
WMS 6 6 23 17 19
% of total 13% 13% 40% 30% 33%
IGT 8 7 8 11 7
% of total 18% 15% 14% 19% 12%
ALL 1 2 2 4 3
% of total 2% 4% 4% 7% 5%
Spielo 2 2 4 2 6
% of total 4% 4% 7% 4% 10%
Aruze 0 0 0 2 0
% of total 0% 0% 0% 4% 0%
Konami 0 0 1 0 1
% of total 0% 0% 2% 0% 2%
Multimedia 0 0 1 0 0
% of total 0% 0% 2% 0% 0%
Total 45 47 57 57 58
0%
10%
20%
30%
40%
50%
60%
70%
Mar '12 Jun '12 Sep '12 Dec '12 Mar '13
Most Anticipated Premium Leased Game
IGT
Bally
WMS
Aristocrat
Spielo
Multimedia
Aruze
Konami
Most Anticipated Premium Leased Games
Supplier Game Votes % of total
Bally NASCAR 14 24%
WMS Willy Wonka 11 19%
Spielo Plants vs. Zombies 5 9%
WMS Spiderman 5 9%
Bally Michael Jackson 4 7%
IGT Family Guy 3 5%
Bally Pawn Stars 3 5%
WMS Wizard of Oz 2 3%
Aristocrat Cash Express 1 2%
Aristocrat Superman 1 2%
IGT CSI 1 2%
Bally Hot Shot WAP 1 2%
Aristocrat Feature Frenzy 1 2%
Spielo Bejeweled 1 2%
WMS Monopoly 1 2%
IGT Dark Knight 1 2%
IGT Little Green Men 1 2%
IGT Rapid Progressive 1 2%
Konami Goliath 1 2%
Total 58 100%
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 26 of 37
12. Future New Openings & Expansions
Question 13 – If you have a new casino project or major expansion underway, please indicate how many NEW &
EXPANSIONARY slot machines you plan to purchase by supplier.
We note there are 14 North American survey participants that have new openings and expansions underway and plan to
purchase 5,130 games in aggregate. As for international, we had 5 participants with new openings or expansions underway
with plans to purchase 4,426 slot machines in aggregate. We provide the weighted average ship share by supplier below.
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
13. Expected Replacement Rate
Question 14 – What % of the casino owned slot machines on your floor do you plan to replace in CY13? Responses
should exclude conversion kits and lease replacements.
Our 73 N. America survey participants (operating 207 casinos & 255,000 slots) plan to replace a weighted average of 11.0% of
the casino owned games on their casino floors in CY13, which is slightly above our industry forecast for a 9.5% replacement
rate. Excluding Canadian VLT replacements, survey participants plan to replace a weighted average of 7.0% of the casino
owned games on their floors in CY13, which is also above our 6.0% replacement forecast. Our five international participants
(operating 45 casinos & 7,500 slots) plan to replace ~15% of the casino owned games in CY13, which is above our N. America
participants. Below we highlight historical trends in N. America slot replacement rates including our current industry forecast:
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
32%
10%13%
17%
9% 7%
3% 3%0%
3%1% 0% 0% 0% 1% 2%
0%
10%
20%
30%
40%
50%
Future New Openings & Expansions - N. America
25% 24%
5%
11%
5% 5%2%
5%
1% 0% 0% 0% 0% 0% 1%
15%
0%
10%
20%
30%
40%
50%
Future New Openings & Expansions - International
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Mar'10
Jun'10
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Mar'13
Expected Forward Repl Rate
Canada VLT Impact
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
Mar'10
Jun'10
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Mar'13
Expected Forward Repl Rate - Ex Canada VLTs
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 27 of 37
14. Expected Replacement Ship Share
Question 15 – For expected CY13 game purchases, please indicate your estimated % allocation (“Ship Share”) by
equipment supplier. Please do not include conversion kits.
Similar to our question on 1Q13 purchasing activity, expected CY13 replacement ship share by supplier can vary greatly by
participants and a few large corporate multi-site operators can skew the data. Therefore, we provide both weighted ship share
and non-weighted ship share in analyzing this question.
We also adjust for Canadian VLTs as well as they also reflect a larger percentage of our sample than we estimate actual results
will impact. In looking at the results, we believe the best overall metric to use when assessing the suppliers is the non-weighted
ship share as it removes the large operator bias as well as the Canadian VLT bias while still including both in the results.
In looking at the expected CY13 non-weighted ship share, we highlight two key takeaways. First, non-Big 5 suppliers are
expected to continue to gain ground with Multimedia Games, Ainsworth, and Aruze leading the way. Second, it looks like
WMS’s falling ship share is expected to stabilize and possibly improve slightly in CY13.
Below we highlight both the weighted and non-weighted expected CY13 ship share for North American casinos and the potential
gain/loss vs. TTM ship share.
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
38%
5%
12%10%
6%
20%
3%1% 0%
2%0% 0% 0% 0% 0%
3%
0%
10%
20%
30%
40%
50%
Expected CY13 Weighted Avg Ship Share
27%
10%
17% 16%
8%
4%7%
3%0%
4%1% 0% 0% 0% 0%
3%
0%
10%
20%
30%
40%
50%
Expected CY13 Non-Weighted Avg Ship Share
2%
-5% -4%-6%
-4%
13%
0% 0% 0% 1% 0% 0% 0% 0% 0%3%
-20%
-10%
0%
10%
20%
Expected CY13 Weighted Ship Share - Gain/Loss on Sold Units Compared w/ TTM ship share
-9%
0%
1% 0%
-2% -3%
4%2%
0%3%
1% 0% 0% 0% 0%3%
-20%
-10%
0%
10%
20%
Expected CY13 Non-Weighted Ship Share - Gain/Loss on Sold Units Compared w/ TTM ship share
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 28 of 37
Below we highlight both the weighted and non-weighted expected CY13 ship share for North American casinos and the potential
gain/loss vs. TTM ship share excluding Canada VLTs.
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Expected CY13 Ship Share by Region
Nevada - 31 casinos Eastern U.S. (DE, FL, ME, NJ, NY, PA) – 14 casinos
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
32%
10%
17%
13% 12%
2%
6%3%
0%4%
0% 0% 0% 0% 0%2%
0%
10%
20%
30%
40%
50%
Expected CY13 Weighted Avg Ship Share - Ex Canada VLTs
25%
10%
18% 17%
9%
1%
8%
3%0%
4%1% 0% 0% 0% 0%
3%
0%
10%
20%
30%
40%
50%
Expected CY13 Non-Weighted Avg Ship Share - Ex Canada VLTs
-2% -1%0%
-5%
-1%
1%4%
2%0%
2%0% 0% 0% 0% 0% 1%
-20%
-10%
0%
10%
20%
Expected CY13 Weighted Ship Share - Gain/Loss on Sold Units Compared w/ TTM ship share - Ex Canada VLTs
-9%
-1%
1%
-1%-4%
0%
5%2%
0%3%
1% 0% 0% 0% 0%2%
-20%
-10%
0%
10%
20%
Expected CY13 Non-Weighted Ship Share - Gain/Loss on Sold Units Compared w/ TTM ship share - Ex Canada VLTs
15% 16%
30%
7%
11%
6%
11%
1% 0% 1% 1% 0% 0% 0% 0% 1%
0%
10%
20%
30%
40%
50%
Expected CY13 Replacement Ship Share
25%
14%
9%
20% 19%
1% 2%4%
0%
7%
0% 0% 0% 0% 0% 0%0%
10%
20%
30%
40%
50%
Expected CY13 Replacement Ship Share
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 29 of 37
Central U.S. (IA, IL, IN, KS, MN, MO, OH) - 24 Casinos Western U.S. Ex NV (AZ, CA, CO, NM, OR, WA) – 24 casinos
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Southern U.S. (OK, LA, MS. TX) – 34 casinos California Casinos – 5 Casinos
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Canada Casinos – 46 Casinos Canada VLTs – 4,036 retail outlets
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
International Casinos – 53 Casinos
Source: EILERS-FANTINI Quarterly Slot Survey
21%
15%16% 17% 16%
0%
6%3%
0%3%
0% 0% 0% 0% 0%2%
0%
10%
20%
30%
40%
50%
Expected CY13 Replacement Ship Share
28%
9%
15% 16%
8%
4%
9%
3%0%
5%
0% 0% 0% 0% 1% 2%
0%
10%
20%
30%
40%
50%
Expected CY13 Replacement Ship Share
22%
14% 14%17%
10%
1%
11%
5%
0% 1% 1% 0% 0% 0% 0%
6%
0%
10%
20%
30%
40%
50%
Expected CY13 Replacement Ship Share
29%
11%9%
15%
11%
1%
7%6%
0%
8%
0% 0% 0% 0% 1% 2%
0%
10%
20%
30%
40%
50%
Expected CY13 Replacement Ship Share
23%
15%
29%
11%14%
0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
6%
0%
10%
20%
30%
40%
50%
Expected CY13 Replacement Ship Share
43%
2%
8% 8%
0%
36%
0% 0% 0% 0% 0% 0% 0% 0% 0%3%
0%
10%
20%
30%
40%
50%
Expected CY13 Replacement Ship Share
4%
23%
2%5%
1%
5%
0%
5%
0% 0% 0% 0% 0% 0%
4%
37%
0%
10%
20%
30%
40%
50%
Expected CY13 Replacement Ship Share
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 30 of 37
15. System & Technology Spending
Question 16 – Who is your current slot management system provider?
The vast majority of our survey participants utilize a Bally slot management system with the next largest system providers being
IGT and Aristocrat. Note, summary results include both N. America and International participants.
Source: EILERS-FANTINI Quarterly Slot Survey
The chart below highlights quarterly trends from our survey participants:
Source: EILERS-FANTINI Quarterly Slot Survey
Slot Mgt System Provider - N. America & International
Company / System Responses % Casinos % Slots %
Bally (SDS, ACSC, BallyOne, MC) 32 42% 94 35% 122,000 45%
IGT (Advantage , Sbx, CasinoLink) 20 26% 94 35% 77,300 28%
Aristocrat (Oasis) 15 19% 40 15% 32,435 12%
Multimedia Games 1 1% 1 0% 1,100 0%
Konami (KCMS) 2 3% 2 1% 2,577 1%
Other (includes multiple & none) 7 9% 34 13% 37,899 14%
Total 77 100% 265 100% 273,311 100%
Note: We do not include VLT central system technology.
0%
10%
20%
30%
40%
50%
60%
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Mar'13
System Market Share by Qtr - Based on Slots Installed
Bally
IGT
Aristocrat
Konami
Other
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 31 of 37
Question 17 – Did you purchase a system product in 1Q CY13? If so, please indicate the type?
We note that 17 of 77, or 22% of participants purchased a system product in 1Q13 vs. 22% in our 4Q12 survey and 28% in our
3Q12 survey and 29% in our 2Q12 survey. We also note those making purchases represented 29% of the total casinos
surveyed vs. 11% last qtr and 32% of the total slots surveyed vs. 20% last qtr.
As for products purchases, we note there were three Bally slot management system installs for new casino openings and one
Bally system upgrade to a newer version. One participant also purchased a Bally Business Intelligence package. One
participant installed an Aristocrat slot management system for a new opening and purchased an Aristocrat Personal Banker
add-on. As for IGT, one participant purchased IGT’s Tournament Manager add-on product and another purchased its Carded
Luck Coin add-on product.
Source: EILERS-FANTINI Quarterly Slot Survey
The below chart highlights the quarterly purchasing trends from our survey participants:
Source: EILERS-FANTINI Quarterly Slot Survey
Systems technology investment - 1Q CY13
Company / Product Responses % Casinos % Slots %
Did not purchase any technology 60 78% 188 71% 184,922 68%
Purchased systems technology 17 22% 77 29% 88,389 32%
Total 77 100% 265 100% 273,311 100%
35%18% 25% 20% 23% 29% 28% 22% 22%
65%60% 75% 80% 77% 71% 72% 78% 78%
0%
20%
40%
60%
80%
100%
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Mar'13
System Related Purchase in the Quarter
No
Yes
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 32 of 37
Question 18 – Do you currently have plans to purchase and install a system product over the next 12 months? If so,
please indicate the type of product.
We note that 27 out of 77, or 35% of our survey participants have plans to purchase systems technology over the next 12
months. This compares with 52% of our survey participants in 4Q12 and 54% in our 3Q12 survey.
Source: EILERS-FANTINI Quarterly Slot Survey
The below chart highlights quarterly responses from our survey participants:
Source: EILERS-FANTINI Quarterly Slot Survey
The below table is a list of all system products expected to be purchased over the next 12 months.
Source: EILERS-FANTINI Quarterly Slot Survey
Systems technology investment plans over next 12 months
Company / Product Responses % Casinos % Slots %
No investment plans 50 65% 140 53% 180,000 66%
Plan to invest 27 35% 125 47% 93,311 34%
Total 77 100% 265 100% 273,311 100%
45% 47%
71%58%
35%
60%
38% 43%54% 56% 52%
35%
55% 53%
29%42%
65%
40%
62% 57%46% 44% 48%
65%
0%
20%
40%
60%
80%
100%
Jun'10
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Mar'13
Expected System Purchases over next 12 months
No
Yes
No Supplier Product
1 Ace Systems ACE SYSTEMS, new install
2 Bally Bally / SDS CMP
3 Bally Bally System, replacing competitor
4 Bally Bally System, new opening
5 Bally Bally System, new opening
6 Bally Bally System, new opening
7 Bally Bally Tournament Manager
8 Bally Bally/SDS, upgrade
9 Bally Bally/CMP, add-one
10 IGT IGT Advantage, upgrade
11 IGT IGT Media Manager, UGAs & Nexgens
12 Bally New Bally System for new opening
13 Bally Replace old system w / Bally
14 Aristocrat Ricochet Rew ards / Aristocrat
15 Bally SDS upgrade
16 Bally SDS upgrade
17 Aristocrat Sentinel 5
18 Konami SYNKROS/KONAMI, replacing competitor
19 Spielo VLT System
20 Spielo VLT System
21 IGT TITO
22 Bally Up-Grade ACSC
23 IGT Upgrade in softw are
24 Aristocrat Aristocrat System, New opening
25 Bally Upgrade to Bally SDS 10.x
26 Aristocrat upgrade to Oasis nCompass system
27 IGT No product mentioned
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 33 of 37
Question 19 – Do you currently have plans to install “Picture-in-Picture” (PiP) player communication technology within
the next 12 months? If so, what product/supplier do you plan to use?
In our survey, 22 of 77, or 29% of participants expect to install Picture-in-Picture (PIP) player communication technology over
the next 12 months vs. 33% in our 4Q12 survey, 38% in our 3Q12 survey and 29% in our 2Q12 survey. After a pickup in
interest in our 2Q12 and 3Q12 surveys, we note PIP interest has slowed a bit with our survey participants in the last two qtrs.
Bally’s iView DM also remains the dominant vendor choice for PiP technology.
Source: EILERS-FANTINI Quarterly Slot Survey
The below chart highlights quarterly responses from our survey participants:
Note: We did not ask this question in Sep ’10, Dec ’10, & Mar ’11 surveys
Source: EILERS-FANTINI Quarterly Slot Survey
Source: EILERS-FANTINI Quarterly Slot Survey
Plans to Use Picture-in-Picture (PIP) Player Communication Technology - N. America & International
Company / Product Responses % Casinos % Slots %
No PIP Investment plans 55 71% 170 64% 177,811 65%
Plan to invest in PIP 22 29% 95 36% 95,500 35%
Total 77 100% 265 100% 273,311 100%
41% 43%34% 28% 23% 29%
38% 33% 29%
59%
0 0 0
57%66% 72% 77% 71%
62% 67% 71%
0%
20%
40%
60%
80%
100%
Jun'10
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Mar'13
Plans to Invest in Picture-in-Picture (PiP) Technology over next 12 months
No
Yes
Plans to Use Picture-in-Picture (PIP) Player Communication Technology - N. America & International
Company / Product Responses % Casinos % Slots %
Bally (iView DM) 13 59% 52 55% 51,500 54%
IGT (sbX Media Mgr) 3 14% 19 20% 28,000 29%
Aristocrat (nCompass) 4 18% 21 22% 13,000 14%
Leap Forw ard 1 5% 2 2% 2,000 2%
Konami 1 5% 1 1% 1,000 1%
Total 22 100% 95 100% 95,500 100%
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 34 of 37
Question 20 – Do you currently have plans to install printer-based “Targeted Promotional Couponing” within the next
12 months? If so, what product/supplier do you plan to use?
In our survey, 10 of 77, or 13% of participants expect to install printer-based “Targeted Promotional Couponing” technology over
the next 12 months vs. 18% in our 4Q12 survey, 16% in our 3Q12 survey and 13% in our 2Q12 survey. We note TransAct’s
EpiCentral continues to receive the most interest in term of individual responses while FutureLogic’s PromoNet was higher in
terms of number of casinos and slot machines.
Source: EILERS-FANTINI Quarterly Slot Survey
The below chart highlights quarterly responses from our survey participants:
Note: We did not ask this question prior to our Dec ’11 qtr survey
Source: EILERS-FANTINI Quarterly Slot Survey
Source: EILERS-FANTINI Quarterly Slot Survey
Plans to install printer-based "Targeted Promotional Couponing" technology
Company / Product Responses % Casinos % Slots %
No Investment plans 67 87% 237 89% 244,262 89%
Plan to invest 10 13% 28 11% 29,049 11%
Company / Product 77 100% 265 100% 273,311 100%
15%27%
13% 16% 18% 13%
85%73%
87% 84% 82% 87%
0%
20%
40%
60%
80%
100%
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Mar'13
Plans to Invest in Printer-based Promotional Couponing over next 12 months
No
Yes
Plans to install printer-based "Targeted Promotional Couponing" technology
Company / Product Responses % Casinos % Slots %
TransAct (EpiCentral) 6 60% 7 25% 9,558 33%
FutureLogic (PromoNet) 4 40% 21 75% 19,491 67%
Total 10 100% 28 100% 29,049 100%
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 35 of 37
Question 21-22 – Do you currently have a Social Gaming presence on Facebook or any other social gaming network?
If yes, please indicate what technology / content provider you are using. If not, do you plan to have a presence within
the next 12 months?
Note, this was the first time we have asked a question regarding social gaming in our slot survey. In this qtr’s survey 43% of
participants indicated that they have a social gaming presence and 29% expected to have one within the next 12 months.
Social Casino Presence - Current
Company / Product Responses % Casinos % Slots %
No 44 57% n/a n/a n/a n/a
Yes 33 43% n/a n/a n/a n/a
Total 77 100% n/a n/a n/a n/a
Social Casino Presence - Next 12 Months
Company / Product Responses % Casinos % Slots %
No 55 71% n/a n/a n/a n/a
Yes 22 29% n/a n/a n/a n/a
Total 77 100% n/a n/a n/a n/a
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 36 of 37
16. Historical Accuracy
Below we provide some charts on the historical accuracy of our quarterly survey ship share by supplier through the quarter
ending Dec 31, 2012. In doing this, we compare our survey results with actual units shipped by major suppliers.
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Source: EILERS-FANTINI Quarterly Slot Survey Source: EILERS-FANTINI Quarterly Slot Survey
Source: EILERS-FANTINI Quarterly Slot Survey
0%
5%
10%
15%
20%
25%
Dec'09
Mar'10
Jun'10
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Survey vs. Actual - Aristocrat
Survey results (Ship Share Sold) Actual data
0%
10%
20%
30%
40%
50%
60%
Dec'09
Mar'10
Jun'10
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Survey vs. Actual - IGT
Survey results (Ship Share Sold) Actual data
0%
10%
20%
30%
40%
50%
Dec'09
Mar'10
Jun'10
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Survey vs. Actual - WMS
Survey results (Ship Share Sold) Actual data
0%
5%
10%
15%
20%
25%
Dec'09
Mar'10
Jun'10
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Survey vs. Actual - Bally
Survey results (Ship Share Sold) Actual data
0%
5%
10%
15%
20%
25%
Dec'09
Mar'10
Jun'10
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Survey vs. Actual - Konami
Survey results (Ship Share Sold) Actual data
0%
3%
5%
8%
10%
Dec'09
Mar'10
Jun'10
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Survey vs. Actual - MGAM
Survey results (Ship Share Sold) Actual data
-15%
-10%
-5%
0%
5%
10%
15%
Dec'09
Mar'10
Jun'10
Sep'10
Dec'10
Mar'11
Jun'11
Sep'11
Dec'11
Mar'12
Jun'12
Sep'12
Dec'12
Average Deviation - % pts
EILERS – FANTINI Slot Survey – 1Q13 April 22, 2013
©2013 Eilers Research, LLC Page 37 of 37
17. Contact Information
Thank you to all participants
On behalf of Eilers Research and Fantini Research we would like to thank all participants for completing our quarterly survey.
Our goal is to make this report a must read by casino operators and investors every quarter. We look forward to your continued
participation and welcome any feedback you might have on how we can improve our survey.
Sincerely,
Todd Eilers, Director or Research, Eilers Research, LLC
Frank Fantini, CEO, Fantini Research
About Eilers Research, LLC
Eilers Research, LLC is a boutique research firm focused on servicing the gaming equipment, technology, and interactive
sectors within the casino gaming industry. Our products and services include market research, equity research, and advisory
services designed specifically for casino operators, equipment & technology suppliers, online & social gaming operators and
suppliers, gaming regulators, and investors. Additional information regarding our research products and services can be
obtained calling Todd Eilers at 949-216-7999, or visiting our website at www.eilersresearch.com .
About Fantini Research
Fantini Research publishes e-dailies and information services for investment professionals and corporate executives. Titles:
Fantini¹s Gaming Report, Fantini¹s Lodging Report and The National Revenue Report. Fantini also performs research projects
on request and offers an advisory service, Gaming Investment Research. Additional information regarding Fantini research
products and services can be obtained calling Mike Pelrine at 302-730-3793, or visiting the company’s website at
www.fantiniresearch.com .
Disclaimer & Terms & Conditions of Use:
Eilers Research, LLC is an independent research firm and is neither a registered broker dealer nor a registered investment advisor. No information
contained in this report shall constitute as a recommendation or solicitation to buy or sell a security. Individuals receiving this report should consult with
an investment advisor or registered representative before making an investment decision related to any information contained in this report. In addition,
Eilers Research, LLC either does, or may seek to do business with any company mentioned in this report. This report was prepared for and distributed to
clients of Eilers Research, LLC. If you are not the intended recipient and/or received this report in error, please delete this document and notify Eilers
Research, LLC at [email protected], or call 949-887-7726. This report is also protected by federal copyright law. Any unauthorized review,
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hereby agree, fully, and without dispute, to all terms and conditions outlined above.