COMPANY PROFILE
BY FRANK LEGATO
Slot Clearinghouse
SlotCycle provides a one-stop shop for selling , recycling and buying gaming equipment
Operators are facing more challenges managing the life cycle of their slot machines , and their related equipment , than ever before .
As the number of suppliers continues to grow along with the number of new platforms , the pressure and intensity of competition for the operator also grows . Operators are constantly looking to replace underperforming slot machines , as some newer models struggle and some top performers become obsolete with parts that are hard to find .
On top of it all , there is a lack of transparency to go with the rising support costs for maintaining older machines , leaving operators looking for the best way to recover capital when liquidating slot machines , or the best way to purchase parts for obsolete platforms .
Enter Jeff Jordan , an industry veteran who has a solution to these problems through his company , SlotCycle .
Jordan , the company ’ s CEO , and the other two founders tapped industry veterans and finance officials to grow SlotCycle into a single solution bringing together buyers and sellers of used gaming equipment , including hard-to-find parts for games no longer supported by the OEMs .
Within the SlotCycle system , there are refurbished cabinets , slot machines and game kits from all the major manufacturers , and a complete menu of parts such as bill validators , ticket printers , circuit boards and other system components .
“ There are really two services that the company primarily delivers today ,” Jordan explains . “ The first is that we operate a marketplace where buyers and sellers can connect for transactions on gaming equipment on the website SlotCycle . com . We ’ ve found that there were customers who were very interested in the vision of having a central marketplace to clear transactions and allow customers to network on those transactions .”
The second main service is what Jordan calls their “ White Glove Service .” SlotCycle has a staff of former slot technicians who completely refurbish slot machines and highly sought-after parts to like-new condition for resale on SlotCycle . com .
“ It ’ s basically a consignment model where we take in equipment on behalf of customers , and then we turn around and sell that equipment for them ,” Jordon says . “ We have a 35,000-square-foot facility that we operate that business out of . We ’ ve moved quite a few pieces of equipment .”
Prior to founding SlotCycle , Jordan served as an executive for some of the best brands in the business , including MGM Resorts International and IGT . He says the idea for SlotCycle came from a project in which he was advising an investor looking to build a casino project in New Mexico .
“ He asked me for a slot budget for the build-out , and I advised that he didn ’ t really want new slot machines , because the yields in New Mexico can
be quite low depending on where you are ,” he says . “ I said I ’ d see if I could buy secondary equipment . We acted as a buyer . I studied the prices and the inventory , and this was the incubation of SlotCycle . com .”
After that , Jordan joined with Chase Easterling , another gaming veteran with 15 years of experience in the secondary gaming market , and Richard Castro , a former senior agent with the Nevada Gaming Control Board and law enforcement official who worked as a special marshal with the FBI ’ s Organized Crime Task Force , to form SlotCycle . Jordan , with Easterling , the chief commercial officer , and Castro , vice president of compliance , began operations in 2020 .
SlotCyle . com serves as the catalyst for sales of equipment to and from casinos of all sizes , from the smallest of operations to the largest corporate casino chains .
The company includes a compliance team that assures the licenses for all equipment are properly ushered from sellers to buyers . “ When you own these slot machines and you ’ re a licensed entity , you are responsible for ensuring that the next owner of that device is compliant from a regulatory perspective ,” says Jordan .
Jordan says SlotCycle has built a strong business , but the company is still growing . “ Our priority in the coming year is to continue to grow our customer base on both the selling and the buying sides ,” he says . “ We ’ ve set up Latin American distribution , and we ’ ll continue to grow that out . Also in the coming year , we will spend more time marketing the platform so we can get our brand out and communicate what ’ s in the marketplace and what ’ s available .
“ We ’ ll continue to expand the number of licenses we have and build out that distribution capability . We are methodically working through the marketplace to build out our portfolio of licenses .”
36 Global Gaming Business AUGUST 2023