EILERS FANTINI Quarterly Slot Survey

Transcription

1 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 Research, LLC at teilers@eilersresearch.com, or call This report is also protected by federal copyright law. Any unauthorized review, dissemination, or copying of this communication is strictly prohibited. By accessing, reading, storing, distributing and archiving this research report, you hereby agree, fully, and without dispute, to all terms and conditions outlined above.

2 EILERS FANTINI Slot Survey 1Q13 April 22, 213 Table of Contents 1. Summary Results Participant Summary Key Participation Trends Product Type Mix Casino Owned vs. Leased Supplier Floor ( Static ) Share Total Game Sales for 1Q Ship Share by Supplier for 1Q Increase (rease) in Leased Units Top Performing Games Most Anticipated Premium Games Future New Openings & Expansions Expected Replacement Rate Expected Replacement Ship Share System & Technology Spending Historical Accuracy Contact Information Eilers Research, LLC Page 2 of 37

3 EILERS FANTINI Slot Survey 1Q13 April 22, 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 14 th 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, total slot machines or equivalent gaming devices. Our 7 North America participants operate 27 casinos and ~255, 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. 1 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. of1 of their games from Bally in the qtr and a non-weighted average of 17% and expect to allocate a weighted avg. of 1 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 1 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 and non-weighted avg. of 1 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. of the casino owned games on their floors in CY13, which is slightly ahead of our 1. 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. 213 Eilers Research, LLC Page 3 of 37

4 EILERS FANTINI Slot Survey 1Q13 April 22, Participant Summary Questions 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. Classification Responses Properties Slots U.S. and Canada participants Commercial - Multi-property ,325 Commercial - Individual ,55 Tribal - Multi-property ,522 Tribal - Individual ,592 Racino ,148 Government (VLT) ,1 Government (Class III) ,63 Other (Casino Mgt Company, Route Operator) 2 2 1,587 U.S. & Canada Total ,959 Avg. size of casino (ex VLT retail locations) 1,86 Est N. America Install base as of 31, , % of N. America install base 26.1% International participants (4 Asia, 1 Europe, 1 S. Africa, 1 Caribbean) Commercial - Multi-property ,674 Commercial - Individual 2 2 1,678 Total International ,352 Avg size of casino 316 Total worldwide ,311 Note: Route Operators are counted as a single property Participation Summary - N. America Government (VLT) 14% Racino 6% Government 1 Tribal - Individual 1 Tribal Multi-property 6% Commercial - Individual 13% Commercial - Multiproperty 4 3. Key Participation Trends Survey Participants Number of Casinos '9 '9 Number of Slot Machines % of Total N. America ket 35, 3, 273, % 25, 2 2, 15, 1, 5, ' '9 Number of Slot Machines - N. America Number of Slot Machines - International 3, 25, 2, 254,959 3, 25, 2, 18,352 15, 15, 1, 1, 5, 5, '9 '9 213 Eilers Research, LLC Page 4 of 37

5 EILERS FANTINI Slot Survey 1Q13 April 22, Product Type Mix Question 4 - Of the total number of slot machines installed as of ch 31, 212, 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. Product Type Mix - N. America Product Type Mix - International E-table 1% Video Poker 11% Mech Reel 26% Video Poker 2% E-table 8% Other 1% Mech Reel 19% Video Slot 62% Video Slot 71% Below we show the trend in product mix across survey participants starting with our 1Q CY11 survey through our 1Q13 survey. Product Mix - N. America Product Mix - International Mech Reel Video Slot Video Poker etable Other Mech Reel Video Slot Video Poker etable Other. 213 Eilers Research, LLC Page 5 of 37

6 EILERS FANTINI Slot Survey 1Q13 April 22, Casino Owned vs. Leased Question 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. last qtr and leased 11.1% of the games vs. 14. 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 1 leased games, the remaining N. America survey participants owned 94.6% of the games on their casino floor vs. 94. last qtr and leased only 5.4% of the games vs. 6. 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. 8 last qtr while leasing 13.1% of games vs. 15. 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 1 leased games. We note leased games include premium daily fee, Wide-Area Progressive (WAP), Local Area Progressive (LAP), and VLT/Class II leases. Product Mix - N. America Product Mix - N. America (Ex 1 leased Venues) Leased 11.1% Leased 5.4% Owned 88.9% Owned 94.6% Casino Owned Product - N. America Casino Owned Product - International '9 All Casinos Excl 1 leased Casinos 7 '9 213 Eilers Research, LLC Page 6 of 37

7 EILERS FANTINI Slot Survey 1Q13 April 22, Supplier Floor ( Static ) Share Question 5-6 Please indicate the number of CASINO-OWNED games and LEASED games installed by supplier as of ch 31, 212? 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 Existing Static ket Share - Casino Owned Games Existing Static ket Share - Leased Games % % % 16% 14% 7% 1% 1% 1% 1% 2 1 7% 14% 16% 3% 2% 1% 1% 1% 3% 13% 1% 2% North America participants Quarterly Trends 6 Static ket Share for Casino Owned Games 6 Static ket Share for Leased Games IGT ALL WMS 4 3 IGT ALL WMS 2 1 BYI KNM MGAM 2 1 BYI KNM MGAM N. America Tribal participants only Existing Static ket Share - Casino Owned Games Existing Static ket Share - Leased Games % % 32% % 12% 1 8% 1% 2% 1% 1% 1% 1% 2 1 6% 11% 9% 4% 1% 2% 1% 4% 1% 1% 213 Eilers Research, LLC Page 7 of 37

8 EILERS FANTINI Slot Survey 1Q13 April 22, 213 International Participants only Existing Static ket Share - Casino Owned Games Existing Static ket Share - Leased Games % % % 1 1% 4% 14% 1 2 6% 9% 6% 1% 1% 1% 3% Nevada Casinos only - 31 casinos Existing Static ket Share - Casino Owned Games Existing Static ket Share - Leased Games % % 12% 7% 4% 1% 1% 2 1 9% 16% 14% 2% 4% 1% 1% Eastern Region U.S. Casinos (DE, FL, ME, NJ, NY, & PA) 14 casinos Existing Static ket Share - Casino Owned Games Existing Static ket Share - Leased Games % % % 1 21% 8% 1% 1% 1% 1% % 27% 2% 4% 2% 1% 213 Eilers Research, LLC Page 8 of 37

9 EILERS FANTINI Slot Survey 1Q13 April 22, 213 Central Region U.S. Casinos (IA, IL, IN, KS, MN, MO, & OH) 24 casinos Existing Static ket Share - Casino Owned Games Existing Static ket Share - Leased Games % % % 16% 11% % % 1 2% 2% 2% 2% 1% 3% 4% Western Region U.S. Casinos Ex Nevada (AZ, CA, CO, OR, & WA) 24 casinos Existing Static ket Share - Casino Owned Games Existing Static ket Share - Leased Games % % % 2 13% 11% 16% 1 11% 12% 7% 1% 2% 1% 1% 1% 1 3% 4% 4% 2% 1% 3% 1% 2% Southern Casinos (LA, MS, OK, & TX) 34 casinos Existing Static ket Share - Casino Owned Games Existing Static ket Share - Leased Games % 2 17% 1 11% 2 1 8% 1% 1% 1 11% 8% 4% 2% 1% 1% 1% 213 Eilers Research, LLC Page 9 of 37

10 EILERS FANTINI Slot Survey 1Q13 April 22, 213 California Casinos 5 Casinos (4 Southern Cal, 1 Northern Cal) Existing Static ket Share - Casino Owned Games Existing Static ket Share - Leased Games % % % 11% 13% 9% 1% 2% 1% 1% 1% 2% % 12% 17% 3% 3% 3% 3% 2% 1% 3% Canadian Casinos (Slots Only) 48 Casinos Existing Static ket Share - Casino Owned Games Existing Static ket Share - Leased Games % % 14% 22% 21% 14% 1% 1% % 17% 2 4% 2% 8% 4% Canadian VLTs 5,328 Retailers 6 Existing Static ket Share - Casino Owned Games % 29% 1 4% 213 Eilers Research, LLC Page 1 of 37

11 EILERS FANTINI Slot Survey 1Q13 April 22, Total Game Sales for 1Q13 Questions 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 4,62 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 ~3-3 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 bias range, we estimate actual N. America replacement sales are likely to fall between ~2,5 and 23, games in the 1Q CY13. We note our industry forecast calls for ~2,5 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 Implied Replacement Sales vs. Actual Survey Bias - Replacements 3, 12 25, 1 2, 15, 1, , -2 Implied Repl Sales Actual Repl Sales % deviation Trailing avg deviation 213 Eilers Research, LLC Page 11 of 37

12 EILERS FANTINI Slot Survey 1Q13 April 22, Ship Share by Supplier for 1Q13 Questions 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 1 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 1 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 1 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 1 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 nonweighted 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 nonweighted 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. 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 1 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 ch 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. 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 +1 pts above its static share and +9% above its TTM share. The strong performance this quarter was the result of significant Canadian VLT placements (~2,37). 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. 213 Eilers Research, LLC Page 12 of 37

13 EILERS FANTINI Slot Survey 1Q13 April 22, 213 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 nonweighted avg share was 1 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. in our survey this qtr (non-weighted 1.). Excluding Canada VLT units, both suppliers achieved a 1. 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. 1Q CY13 Survey - Weighted Avg Ship Share 1Q CY13 Survey - Non Weighted Avg Ship Share % % 2 1 7% 1 1 7% 16% 1% 1% 1% 1% 2% % 14% 17% 9% 7% 9% 2% 2% 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. 1Q CY13 Survey - Weighted Avg Ship Share (Ex Canada VLTs) 1Q CY13 Survey - Non-Weighted Avg Ship Share (Ex Canada VLTs) % 11% 17% 12% 14% 3% 2% 1% 1% 2% % 12% 1 18% 1 4% 1 2% 2% 213 Eilers Research, LLC Page 13 of 37

14 EILERS FANTINI Slot Survey 1Q13 April 22, 213 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. 1Q CY13 Weighted Ship Share - Gain/Loss on Sold Units Compared w/ TTM ship share 1Q CY13 Non-Weighted Ship Share - Gain/Loss on Sold Units Compared w/ TTM ship share % -3% -1% -6% -3% 9% -2% 1% 2% 1-1 1% -2% 1% -1% 6% 1% 1% -12% -2-2 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. 1Q CY13 Weighted Ship Share - Gain/Loss on Sold Units Compared w/ TTM ship share - Ex Canada VLTs 1Q CY13 Non-Weighted Ship Share - Gain/Loss on Sold Units Compared w/ TTM ship share - Ex Canada VLTs % -6% 1% 2% -1% 2% -1% 1-1 1% -2% -3% 3% 7% 1% 4% -12% -2-2 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. 1 Ship Share Sold - Big 5 Share 1 Ship Share Sold - Big 5 Share (Ex Canada VLTs) Canada Repl VLT Cycle begins '9 5 '9 213 Eilers Research, LLC Page 14 of 37

15 EILERS FANTINI Slot Survey 1Q13 April 22, 213 Replacement Sales Below we highlight both weighted and non-weighted average Replacement Sales ship share across our N. American survey participants in 1Q CY13. 1Q CY13 Weighted Avg Ship Share - Replacements Only 1Q CY13 Non-Weighted Avg Ship Share - Replacements Only % % 1 16% 11% 1 6% 7% 8% 1% 1% 2% 1 8% 6% 2% 2% 3% 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. 1Q CY13 Weighted Avg Ship Share - Replacements Only (Ex Canada VLTs) 1Q CY13 Non-Weighted Avg Ship Share - Replacements (Ex Canada VLTs) % % 21% 2 22% 14% 16% 17% 13% 1 1 6% 1% 1% 2% 1% 1% 1 4% 6% 2% 3% 3% 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. 5 1Q CY13 Weighted Avg Ship Share - New & Expansionary Only % 14% 2 1 4% 2% 1% 1% 1% 1% 213 Eilers Research, LLC Page 15 of 37

16 EILERS FANTINI Slot Survey 1Q13 April 22, 213 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. 1Q CY13 Survey - Conv Kit Ship Share 1Q CY13 Survey - Conv Kit Sales 5 2, % % 1% 1% 1% 4% 1,5 1, 5 1,247 1, Ship Share - Conv Kits Conv Kit Sales 4 1,6 3 1,4 3 IGT 1,2 IGT 2 ALL 1, ALL 2 WMS 8 WMS 1 BYI 6 BYI 1 KNM 4 KNM MGAM 2 MGAM 213 Eilers Research, LLC Page 16 of 37

17 EILERS FANTINI Slot Survey 1Q13 April 22, 213 Regional Ship Share Below we highlight N. American ship share by region across our survey participants in 1Q CY13. Nevada Casinos 31 Casinos 1Q13 Ship Share - Total Sales 1Q13 Game Sales - Total Sales % % % 4% 1% Eastern Region U.S. Casinos (DE, FL, ME, NJ, NY, PA) 14 casinos 1Q13 Ship Share - Total Sales 1Q13 Game Sales - Total Sales % 6% 22% 1 3% 4% 6% 1 2% 2% 1% Central Region U.S. Casinos (IA, IL, IN, KS, MN, MO, & OH) 24 casinos 1Q13 Ship Share - Total Sales 1Q13 Game Sales - Total Sales % 16% % 1% 3% 1% 1% 1% Eilers Research, LLC Page 17 of 37

18 EILERS FANTINI Slot Survey 1Q13 April 22, 213 Western Region U.S. Casinos Ex Nevada (AZ, CA, CO, NM, OR, & WA) 24 casinos 1Q13 Ship Share - Total Sales 1Q13 Game Sales - Total Sales 5 1, 4 41% % % 9% 2% 3% 1% Southern Casinos (LA, MS, & OK) 34 casinos 1Q13 Ship Share - Total Sales 1Q13 Game Sales - Total Sales % 33% 7% 11% 3% 6% 9% 9% California Casinos 5 casinos 1Q13 Ship Share - Total Sales 1Q13 Game Sales - Total Sales % % % 7% 9% 2% 4% 1% 2% 2% Eilers Research, LLC Page 18 of 37

19 EILERS FANTINI Slot Survey 1Q13 April 22, 213 Canadian Casinos (Slots only) 46 Casinos 1Q13 Ship Share - Total Sales 1Q13 Game Sales - Total Sales % 32% % 6% 7% Canadian Casinos (VLTs only) 4,46 retail locations 4Q CY12 Survey - Ship Share 4Q CY12 Survey - Game Sales , 1,5 1,64 1, % 7% 1, International 58 casinos: Game Sales & Conversion Kit Sales 1Q CY13 Ship Share - Total Sales 1Q CY13 Ship Share - Total Sales % 14% 16% 19% 1% 32% Q CY13 Conv Kit Ship Share 1Q CY13 - Conv Kit Sales % 29% % 7% 1% 2% Eilers Research, LLC Page 19 of 37

20 EILERS FANTINI Slot Survey 1Q13 April 22, Increase (rease) in Leased Units Question 1 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, 8/2 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 +49 net additions from two major 1 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 ch 31, 213. 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. Net Increase / rease in Leased Units - 1Q CY13 Existing & New Openings Net Increase / rease in Leased Units - 1Q CY13 New Casino Openings Only Note: Includes existing & new casino openings Note: Includes only new casino openings & major expansions 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 1 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. Net Increase / rease in Leased Units - 1Q CY13 Existing Casinos Only Net Increase / rease in Leased Units - 1Q CY13 Existing Casinos Only, Also excludes Class II, VL, & Route Ops Note: Includes only existing casinos 213 Eilers Research, LLC Page 2 of 37