Gaming Industry Dynamics Simplified Leave a comment

Gaming Industry Dynamics Simplified

Operators spend around $10 billion annually on selling and leasing new slot machines and systems to stay competitive. In North America, there are an estimated 1 million slot machines. The performance of these machines, measured by Win per Unit (WPU), affects how much operators can spend on new machines.

Condition 1: High-Performing Markets

• High-revenue machines allow operators to maintain and buy new ones.
• Options for disposing of used machines:
  • Trade-in to manufacturers
  • Sell to brokers or intermediaries
  • Destroy
• Operators are often dissatisfied with the low returns from selling used machines.

Condition 2: Low-Performing Markets

• Low WPU markets choose to:
  • Buy a mix of new and used machines
  • Buy used machines only
• This increases demand in the secondary market.

Market Inefficiencies

• Sellers lack information about the resale value of used machines, benefiting brokers and manufacturers but not the original owners.
• Buyers face challenges in finding inventory and fair prices due to fragmented supply and limited eCommerce solutions.

Resolving Inefficiencies

• Digital marketplaces can improve efficiency by connecting buyers and sellers directly, reducing costs and middleman fees.
• Sellers can aggregate products for a better shopping experience, and buyers can find necessary parts and software.

Introducing SlotCycle

• SlotCycle is a digital marketplace for buying and selling gaming equipment.
• It offers:
  • Listings and auctions for sellers
  • Requests for buyers to find specific equipment
  • Efficient workflows and access to third-party services like shipping and financing.