Lawrence Levy, CEO of Ainsworth, emphasised the importance of operators retaining ‘high performing’ slot machines, even though less are in use, due to similar revenue being generated.
Speaking as part of its CEO Insights 2020, Frank Fantini, CEO of Fantini Research, interviews Levy as part of it’s CEO Insights 2020.
Ainsworth is a gaming solutions and being a leading supplier in Australasia, Europe, North and Latin America. The first topic of discussion was retail customers physical return to casinos with COVID-19 restrictions in place.
Levy noted that although fewer customers have been allowed in casinos venues due to social distancing measures and therefore fewer machines are in operation, they are still seeing similar revenues being generated: “Regionally, I think in the US and in Australia as well most of the operations have re-opened, they all have social distancing regulations, that have cut down the number of machines or the number of customers that they are allowed to operate but we’re seeing similar revenues with fewer machines.”
Although Levy saw an increase in the overall machine ordered by operators, the demand to have ‘higher quality’ and newer machines has increased: “For a slot manufacturer, you want to be selling more machines but it has meant that the operators are getting rid of the older lower performing machines and it is important now that they have high performing machines in there. Which includes new products from us and other manufacturers. At least we know that the desire to gamble, to play socially, not just to play online is still there and still strong.”
Seven days before international lockdowns were imposed, Ainsworth Game Technology purchased assets of MTD Gaming Inc – a company that specialises in video poker and video keno. The deal would see Ainsworth offer MTD products across multiple markets which included Nevada, California, Arizona and New Mexico.
Speaking on the acquisition Levy spoke of its appeal to allow Ainsworth to access new markets: “We just saw the opportunity to take these products into other markets, newer markets such as Nevada, California. We have been through the process of getting the certifications through GLI so they can qualify in those markets. There’s other markets too and there is also South America.”
Although the purchase happened before a national lockdown was enforced Levy spoke of his confidence in the purchase: “we are still confident it was a great move and a great purchase. We have the four principles that are working for us now. Basically it was an asset purchase. We’re still doing well, we’re still putting machines out there.’
“We’ve signed a good deal in Montana. Recently we’ve got machines going out in South Dakota and we’ve got a second and a third order going out there. I believe we will be into California, Nevada by the end of this year or beginning of next year. Timing wasn’t great but we are still positive it was a good move.”
You can watch the full interview on Fantini Research’s YouTube channel found here