InterGame looks at the possibilities for new business being offered by the video lottery terminal
While traditionally confined to gaming markets within eastern Europe and some areas of the US, video lottery terminals are now having a real impact on the industry and are providing some much needed opportunities for new business on a larger scale.
For Bally Technologies’ vice president of business development John Connelly, the definition of VLTs has evolved considerably since the first machines were placed in South Dakota in 1986. The term was phrased for political reasons at the time and generally pertained to a Class III slot machine tied to a central system with very limited functionality between the two. “If you fast forward to today,” he tells InterGame, “the term VLT is much more complicated and has taken on many variations around the world. Bally has been involved in this evolutionary process for well over 15 years and currently has tens of thousands of VLTs operating around the world.”
Italy’s recent introduction of VLTs has been the hot topic of conversation for suppliers and operators alike and, according to Connelly, was a surprise to everyone. “Despite a downward global economy, Italy’s VLT numbers continue to rise and the performance is far beyond anyone’s initial projections,” he says. “There are obviously challenges with any new market though and Italy is no exception.”
Commenting on Greece and Illinois in the US, which are also both now looking to VLTs, Connelly adds: “Greece and Illinois are two markets we see as growth opportunities in the coming 12 to 24 months. Between the two, we are expecting approximately 55,000 machines to be deployed when everything is finalised.”
Following in the footsteps of Italy, Illinois and Greece, Hungary has been confirmed as the most recent country to consider the operation of VLTs. Hungary has been full of older gaming equipment for a long time, offering almost nothing to players and operators. For Miklos Dubai, of Hungarian gaming supplier Novo Parts, the new technology will bring fresh, new ideas and competitors to Hungary and generate healthy competition.
“The legislation process will hopefully be clear and something foreign operators will understand,” he says. “VLTs will provide opportunities for new jobs which is a positive for the country as unemployment currently sits at 10 per cent. It will also increase the number of machines in the market and generate more tax income for the country. From the operator’s point of view it will provide calculable business and reduce the illegal operation of machines, which has been increasing over the years.”
This feature can be read in full in the March 2012 issue of InterGame magazine.
