International Game Technology (IGT) is confident that its systems technology is helping lead it in market share worldwide, and it has a strong continued focus on both the Philippines and Macau (despite being very different markets), as it navigates changing world trade restrictions.
Speaking to AGB, Dallas Orchard – Chief Operating Officer for Asia Pacific of IGT – noted that “The first point of call for us is to make sure that our systems business is what leads the way, because that’s the foundation inside of any new market and any new casino”.
The executive was responding to a question regarding which machinery it could be supplying to Japan – as MGM’s project in Osaka shapes up for a 2030 opening, having finally surpassed legislative and public opposition.
Orchard opines that the “framework” in Japan “is incredibly complex”, noting that it is dedicated to its clients going into the new gaming environment and “making sure that we’re continuing to let them know that we’ll be around and dedicated and committed to that market”.
But, many questions remain
“It’s been delayed […] in regards to understanding who the casino suppliers will be, “notes Orchard. “None of that regulatory framework exists at this point in time. That’s obviously a really complicated piece of the pie. And so, we can’t respond to that until such time as it’s in black and white and it’s been fully legislated.”
Each gaming jurisdiction sets its own framework for what type of games are allowed, how they can be played and what oversight there is. That means each manufacturer may have games primed for multiple markets but needs some re-tooling to fit the specificities (legally or customer-based) of each one.
Orchard is confident in IGT’s prospects in the nation, noting that “our advantage system is the top system around the world, in our opinion, and we probably have the largest market share.”
But for the on-the-ground operator and the clients “the selection of particular products and EGMs comes much later in the process.”
Macau: a long love story
Meanwhile, Macau continues to boom. Results haven’t been great in the first quarter, but coming out of the pandemic, the market continues to show its need to shine as the world’s top gaming jurisdiction.
For IGT, the SAR has taken “a long time to come back. But we are seeing it come back now”.
Regarding its customers, Orchard, notes that May’s Golden Week figures were encouraging and that their customers say “there’s more demand than supply”.
Evidently, for a supplier: “that’s music to our ears”.
But the market is evolving. The lack of junket play, the change in the mass consumer, the rise in non-playing visitation has made Macau more difficult to predict.
But that could mean there’s still room for more slots, or at least a revamped floor – as Macau’s capped at 12,000 slots under current legislation.
“Even though we understand it trends towards tables more over slots, slots are maturing every day […] all signs are that it’s heading in the right direction and more opportunity will arise in the short term,” notes Orchard.
Philippines
The rise of online gaming in the Philippines has been undeniable. Revenues from the sector surpassed those of land-based in the first quarter, prompting a stark reconsideration about how operators should be approaching the market.
But is it a threat?
“It’s an opportunity,” notes Orchard.
“The evidence that we’ve seen in the convergence of land-based and online is that ultimately the best products win out. And I believe you’re starting to see more evidence of the better land-based games starting to drive that market as well,” he notes.
“As a manufacturer who takes our global R&D (research and development) footprint very seriously, [and who] contributes enormous amounts of money to the game design across the globe with global studios, we believe that our products will start to rule the roost in that direction.
“So, I think for those established, mature manufacturers, the convergence and the growth of the online is more opportunity,” indicates the executive.
Emerging markets (again)
Okay then, what’s the next bet?
The UAE has been discussed into obsession. But the pylons have long been sunk and the expectations are increasingly based on data.
Where is IGT in the picture?
While no team is specifically “on the ground”, Orchard notes that “we’ve got people that we know and consultants that we’re doing business with and customers that will be in that market”.
The executive notes that requests for proposals (RFPs) “have been presented “so we are much more mature with the customer base there. Wynn in particular: understanding what IGT products will be going into that market and how those bids look.”
Prospects in Thailand are looking “more immature”, but there could be potential as it is “picking up speed”.
Overall, IGT is strong. It has competition, but it vocally pushes for market domination. The growth and change of the Asian market could help or hinder its aspirations, and stakeholders will be here to urge it towards whichever path suits their pocketbooks.
