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 [email protected], 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

21 EILERS FANTINI Slot Survey 1Q13 April 22, 213 Regional ket Increase (rease) 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 Net Increase / rease in Leased Units - 1Q CY13 Existing & New Openings Net Increase / rease in Leased Units - 1Q CY13 Existing & New Openings Note: Includes existing & new casino openings Central (IA, IL, IN, KS, MN, MO, & OH) 24 casinos Note: Includes existing & new casino openings Western U.S. Ex NV (AZ, CA, CO, NM, OR, WA) 24 casinos Net Increase / rease in Leased Units - 1Q CY13 Existing & New Openings Net Increase / rease in Leased Units - 1Q CY13 Existing & New Openings Note: Includes existing & new casino openings Note: Includes existing & new casino openings Southern U.S. (OK, LA, & MS) 34 casinos California Casinos 5 casinos Net Increase / rease in Leased Units - 1Q CY13 Existing & New Openings Net Increase / rease in Leased Units - 1Q CY13 Existing & New Openings Note: Includes existing & new casino openings Note: Includes existing & new casino openings 213 Eilers Research, LLC Page 21 of 37

22 EILERS FANTINI Slot Survey 1Q13 April 22, 213 Canadian Casinos (Slots only, no VLTs) 46 Casinos Net Increase / rease in Leased Units - 1Q CY13 Existing & New Openings 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 2 nd place with WMS s Lord of the Rings with each receiving 8% of responses (5 out of 63). We note four games tied for 3 rd 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: Number 1 Game Votes Supplier / Game 1Q1 2Q1 3Q1 4Q1 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 IGT / Wheel of Fortune Bally / Michael Jackson WMS / Lord of the Rings IGT / Megabucks Bally / Jumbo Series Aristocrat / Tarzan WMS / Wizard of Oz Aristocrat / Cash Express Multimedia / One Red Cent IGT / Sex and the City COLOSSAL / BIG THUNDER IGT / Star Wars Bally / Million Degrees IGT / Wheel of Gold 1 1 WMS / Monopoly Bally / Hot Shot WMS / Jackpot Station 1 WMS / Leprechaun's Gold 1 Bally / Betty Boop 1 Aruze / Gold 1 Multimedia Games / Jackpot Factory 1 IGT / Shinobi 1 IGT / Triple Play Poker IGT / Fort Knox IGT / Hangover Bally / Vegas Hits WMS / Life of Luxury 1 2 Bally / Lightning Jackpots Bally / Money Wheel 1 Bally / Sun God 1 Konami / African Diamond 1 Aristocrat / Loco Loot Aristocrat / Superman 1 Aruze / Crystal Slots 1 Aruze / Paradise Fishing 1 IGT / Ultimate X Poker 1 1 VGT / Pieces of Eight 1 IGT / American Idol 2 1 Bally / Cash Wheel Rocket / Gold Series Bally / Monte Carlo IGT / Spin Poker IGT / Red Hot Jackpots 1 1 IGT / All Star Poker VGT / Mr. Money Bags 1 1 Total Votes Eilers Research, LLC Page 22 of 37

23 EILERS FANTINI Slot Survey 1Q13 April 22, 213 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 1 st 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 2 nd 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 3 rd 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. Supplier Top 1-3 Ranking Supplier / Game 1Q1 2Q1 3Q1 4Q1 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 IGT % of total votes 44% 46% 44% 46% 51% 48% 48% 56% 54% 46% 44% 43% 44% WMS % of total votes 17% 17% 16% 17% 16% 14% 9% 1 12% 1 16% 17% 19% Bally % of total votes 28% 2 22% 21% 18% 23% 19% 12% 16% 17% 18% 18% 16% Aristocrat % of total votes 6% 4% 4% 4% 4% 6% 7% 11% 7% 14% 9% 7% 9% Spielo / Atronic % of total votes 2% 4% 2% 3% 2% 4% 1% 2% 3% Multimedia Games % of total votes 1% 1% 1% 2% 2% 2% Aruze % of total votes 1% 1% 1% 1% 2% Konami % of total votes 2% 2% 9% 4% 3% 4% 8% 2% 2% 3% 3% 1% Colossal % of total votes 1% 1% 2% 1% 1% 1% 1% 1% 1% Rocket Games % of total votes 2% 2% 2% 4% 3% 3% 2% 3% 1% 1% 1% 1% AGS % of total votes 1% 1% 1% 1% Lighting Gaming 1 1 % of total votes 1% 1% Ainsw orth 1 % of total votes 1% VGT % of total votes 2% 2% 3% Shuffle Master % of total votes 1% 1% 1% AlfaStreet 1 % of total votes 1% AC Slots % of total votes 1% 1% 1% Total votes Top 1-3 Leased Games by Qtr IGT Bally WMS Aristocrat Konami Spielo Multimedia 213 Eilers Research, LLC Page 23 of 37

24 EILERS FANTINI Slot Survey 1Q13 April 22, 213 Finally, we provide a complete breakdown of the Top 1-3 voting by supplier and game title for the quarter. Top 1-3 Ranking Supplier / Game 1Q1 2Q1 3Q1 4Q1 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 IGT / Wheel of Fortune WMS / Wizard of Oz IGT / Megabucks WMS / Monopoly Bally Michael Jackson Aristocrat / Tarzan IGT / Sex and the City WMS / Lord of the Rings Bally / Betty Boop Bally / Jumbo Series IGT / The Hangover Multimedia / One Red Cent Spielo / Deal or No Deal Bally / Money Wheel 2 3 Aristocrat / Cash Express Bally / Hot Shot IGT / Tw ilight Zone 1 2 WMS / Aladdin Bally / Vegas Hits IGT / Wheel of Gold 1 2 Spielo / King Kong 2 IGT / Diamond Jackpot IGT / Fort Knox Konami / Beat the Field WMS / Life of Luxury Bally / Lightning Jackpots IGT / Red Hot Jackpots Bally / Monte Carlo IGT / Wheel Poker WMS / Leprechaun's Gold AGS / Diamond Lotto 1 1 Aruze / Crystal Slots 1 1 WMS / Game of Life 1 1 WMS / Monster Jackpots 1 1 Konami / Money in the Bank 1 1 IGT / Star Wars COLOSSAL / BIG THUNDER Ainsw orth / Thunder Cash 1 Aruze / Gold 1 Aruze / Innovators 1 Aruze / Rich Life 1 Bally / Code Red 1 Colossal / Wild Gambler 1 IGT / Red Hot Fusion 1 IGT / Tx Holdem Poker 1 WMS / Cheers 1 Rocket Gaming / Snow White 1 Multimedia Games / Jackpot Factory 1 Lightning Gaming / Penny Palooza 1 Aristocrat / Xtreme Mystery IGT / Electronic Roulette MP Bally / Million Degrees IGT / Triple Play Poker IGT / CSI 1 IGT / Party Time Aristocrat / Bank Busters 1 1 IGT / Joker's Heist IGT / Shinobi IGT / Triple Spin Poker Aristocrat / Jaw s Aristocrat / Wonder IGT / Sirens 1 1 Aristocrat / Mummy 1 Total Votes Eilers Research, LLC Page 24 of 37

25 EILERS FANTINI Slot Survey 1Q13 April 22, 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 2 nd 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. 3 last qtr and 4 in our 3Q survey. IGT came in third receiving 12% of the total votes vs. 19% last qtr and 14% in our 3Q survey. 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 Bally Pawn Stars 3 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 1 Below we provide a summary table of the historical responses to our question regarding the most anticipated premium leased games aggregated by supplier. Most Anticipated Premium Leased Games by Supplier Supplier 1Q12 2Q12 3Q12 4Q12 1Q13 Bally % of total 62% 64% 32% 37% 38% WMS % of total 13% 13% % IGT % of total 18% 1 14% 19% 12% ALL % of total 2% 4% 4% 7% Spielo % of total 4% 4% 7% 4% 1 Aruze 2 % of total 4% Konami 1 1 % of total 2% 2% Multimedia 1 % of total 2% Total Most Anticipated Premium Leased Game IGT Bally WMS Aristocrat Spielo Multimedia Aruze Konami 213 Eilers Research, LLC Page 25 of 37

26 EILERS FANTINI Slot Survey 1Q13 April 22, 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 5,13 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. Future New Openings & Expansions - N. America Future New Openings & Expansions - International % % % 17% 9% 7% 3% 3% 3% 1% 1% 2% % 2% 1% 1% 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 27 casinos & 255, slots) plan to replace a weighted average of 11. of the casino owned games on their casino floors in CY13, which is slightly above our industry forecast for a 9. replacement rate. Excluding Canadian VLT replacements, survey participants plan to replace a weighted average of 7. of the casino owned games on their floors in CY13, which is also above our 6. replacement forecast. Our five international participants (operating 45 casinos & 7,5 slots) plan to replace ~1 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: Expected Forward Repl Rate Expected Forward Repl Rate - Ex Canada VLTs Canada VLT Impact Eilers Research, LLC Page 26 of 37

27 EILERS FANTINI Slot Survey 1Q13 April 22, 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. Expected CY13 Weighted Avg Ship Share Expected CY13 Non-Weighted Avg Ship Share % % % 16% 1 12% 1 6% 3% 1% 2% 3% 1 1 8% 4% 7% 3% 4% 1% 3% Expected CY13 Weighted Ship Share - Gain/Loss on Sold Units Compared w/ TTM ship share Expected CY13 Non-Weighted Ship Share - Gain/Loss on Sold Units Compared w/ TTM ship share 2 13% % - -4% -6% -4% 1% 3% % 1% -2% -3% 4% 2% 3% 1% 3% Eilers Research, LLC Page 27 of 37

28 EILERS FANTINI Slot Survey 1Q13 April 22, 213 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. Expected CY13 Weighted Avg Ship Share - Ex Canada VLTs Expected CY13 Non-Weighted Avg Ship Share - Ex Canada VLTs % % 13% 12% 2% 6% 3% 4% 2% % 17% 9% 1% 8% 3% 4% 1% 3% 2 Expected CY13 Weighted Ship Share - Gain/Loss on Sold Units Compared w/ TTM ship share - Ex Canada VLTs 2 Expected CY13 Non-Weighted Ship Share - Gain/Loss on Sold Units Compared w/ TTM ship share - Ex Canada VLTs 1-1% 1% 4% 2% 2% 1% 1-1% 1% -1% -4% 2% 3% 1% 2% -1-2% -1% % -2-2 Expected CY13 Ship Share by Region Nevada - 31 casinos 5 Expected CY13 Replacement Ship Share Eastern U.S. (DE, FL, ME, NJ, NY, PA) 14 casinos 5 Expected CY13 Replacement Ship Share % 7% 11% 6% 11% % 9% 2 19% 7% 1% 1% 1% 1% 1% 2% 4% 213 Eilers Research, LLC Page 28 of 37

29 EILERS FANTINI Slot Survey 1Q13 April 22, 213 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 Expected CY13 Replacement Ship Share Expected CY13 Replacement Ship Share % 21% % 17% 16% % 1 6% 3% 3% 2% 1 9% 8% 4% 9% 3% 1% 2% Southern U.S. (OK, LA, MS. TX) 34 casinos California Casinos 5 Casinos Expected CY13 Replacement Ship Share Expected CY13 Replacement Ship Share % 22% % 14% 17% 1 1% 11% 1% 1% 6% % 9% 1 11% 1% 7% 6% 8% 1% 2% Canada Casinos 46 Casinos Canada VLTs 4,36 retail outlets Expected CY13 Replacement Ship Share Expected CY13 Replacement Ship Share % % 3 23% 29% % 14% 6% 2 1 2% 8% 8% 3% International Casinos 53 Casinos 5 Expected CY13 Replacement Ship Share 4 37% % 1 4% 2% 1% 4% 213 Eilers Research, LLC Page 29 of 37

30 EILERS FANTINI Slot Survey 1Q13 April 22, 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. Slot Mgt System Provider - N. America & International Company / System Responses % Casinos % Slots % Bally (SDS, ACSC, BallyOne, MC) 32 42% , 4 IGT (Advantage, Sbx, CasinoLink) 2 26% ,3 28% Aristocrat (Oasis) 15 19% ,435 12% Multimedia Games 1 1% 1 1,1 Konami (KCMS) 2 3% 2 1% 2,577 1% Other (includes multiple & none) 7 9% 34 13% 37,899 14% Total ,311 1 Note: We do not include VLT central system technology. The chart below highlights quarterly trends from our survey participants: 6 5 System ket Share by Qtr - Based on Slots Installed Bally IGT Aristocrat Konami Other 213 Eilers Research, LLC Page 3 of 37

31 EILERS FANTINI Slot Survey 1Q13 April 22, 213 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. 2 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. Systems technology investment - 1Q CY13 Company / Product Responses % Casinos % Slots % Did not purchase any technology 6 78% % 184,922 68% Purchased systems technology 17 22% 77 29% 88,389 32% Total ,311 1 The below chart highlights the quarterly purchasing trends from our survey participants: 1 System Related Purchase in the Quarter % 71% 72% 78% 78% % % 29% 28% 22% 22% No Yes 213 Eilers Research, LLC Page 31 of 37

32 EILERS FANTINI Slot Survey 1Q13 April 22, 213 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 3 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. Systems technology investment plans over next 12 months Company / Product Responses % Casinos % Slots % No investment plans % 18, 66% Plan to invest % 93,311 34% Total ,311 1 The below chart highlights quarterly responses from our survey participants: 1 Expected System Purchases over next 12 months % 29% 42% % 57% 46% 44% 48% % 71% 58% % 43% 54% 56% 52% 3 No Yes The below table is a list of all system products expected to be purchased over the next 12 months. 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 1 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 2 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 1.x 26 Aristocrat upgrade to Oasis ncompass system 27 IGT No product mentioned 213 Eilers Research, LLC Page 32 of 37

33 EILERS FANTINI Slot Survey 1Q13 April 22, 213 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. Plans to Use Picture-in-Picture (PIP) Player Communication Technology - N. America & International Company / Product Responses % Casinos % Slots % No PIP Investment plans 55 71% 17 64% 177,811 6 Plan to invest in PIP 22 29% 95 36% 95,5 3 Total ,311 1 The below chart highlights quarterly responses from our survey participants: 1 Plans to Invest in Picture-in-Picture (PiP) Technology over next 12 months % 57% 66% 72% 77% 71% 62% 67% 71% 41% 43% 34% 28% 23% 29% 38% 33% 29% No Yes Note: We did not ask this question in 1, 1, & 11 surveys Plans to Use Picture-in-Picture (PIP) Player Communication Technology - N. America & International Company / Product Responses % Casinos % Slots % Bally (iview DM) 13 59% ,5 54% IGT (sbx Media Mgr) 3 14% , 29% Aristocrat (ncompass) 4 18% 21 22% 13, 14% Leap Forw ard 1 2 2% 2, 2% Konami 1 1 1% 1, 1% Total , Eilers Research, LLC Page 33 of 37

34 EILERS FANTINI Slot Survey 1Q13 April 22, 213 Question 2 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, 1 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. Plans to install printer-based "Targeted Promotional Couponing" technology Company / Product Responses % Casinos % Slots % No Investment plans 67 87% % 244,262 89% Plan to invest 1 13% 28 11% 29,49 11% Company / Product ,311 1 The below chart highlights quarterly responses from our survey participants: 1 8 Plans to Invest in Printer-based Promotional Couponing over next 12 months % 27% 87% 84% 82% 87% 13% 16% 18% 13% No Yes Note: We did not ask this question prior to our 11 qtr survey Plans to install printer-based "Targeted Promotional Couponing" technology Company / Product Responses % Casinos % Slots % TransAct (EpiCentral) ,558 33% FutureLogic (PromoNet) ,491 67% Total , Eilers Research, LLC Page 34 of 37

35 EILERS FANTINI Slot Survey 1Q13 April 22, 213 Question 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 1 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 1 n/a n/a n/a n/a 213 Eilers Research, LLC Page 35 of 37

36 EILERS FANTINI Slot Survey 1Q13 April 22, Historical Accuracy Below we provide some charts on the historical accuracy of our quarterly survey ship share by supplier through the quarter ending 31, 212. In doing this, we compare our survey results with actual units shipped by major suppliers. Survey vs. Actual - IGT Survey vs. Actual - Aristocrat '9 1 1 '9 Survey results (Ship Share Sold) Actual data Survey results (Ship Share Sold) Actual data Survey vs. Actual - WMS Survey vs. Actual - Bally '9 Survey results (Ship Share Sold) Actual data '9 Survey results (Ship Share Sold) Actual data Survey vs. Actual - Konami Survey vs. Actual - MGAM % 3% '9 '9 Survey results (Ship Share Sold) Actual data Survey results (Ship Share Sold) Actual data Average Deviation - % pts '9 213 Eilers Research, LLC Page 36 of 37

37 EILERS FANTINI Slot Survey 1Q13 April 22, 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 , or visiting our website at 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 , or visiting the company s website at 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 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. 213 Eilers Research, LLC Page 37 of 37