M I X I N G
Developing slot floor strategies for emerging markets By Andrew Klebanow and Jeff Jordan
It Up
Casinos continue to expand into new markets around the world . Development of new casinos in emerging markets has never been easy , as rarely does one cookie-cutter approach work in every new market . As the authors of this article work on new projects around the world , they always ask an important question : How does the slot mix meet the needs of the anticipated customer segments ?
In their experience , addressing this question as early as when breaking ground will enhance the operator ’ s decision-making in acquiring their slot product . The purchase of slot machines is like any other long-term capital investment , requiring a degree of research , analysis and intuition to execute well .
Properly done , it will lead the operator to make the best decisions possible regarding which product strategies to pursue , which slot manufacturers to work with , and what tactics to pursue in collaboration with the slot manufacturers . It is rare to have the scale of capital purchases for slot products associated with a new opening . Leveraging that scale requires the operator to act with vision and articulate said vision to the slot manufacturers , who in turn help deliver the slot machines and game content needed to be successful .
Asian Influences
As Thailand and Japan move forward with the development of integrated casino resorts , albeit on different timelines , developers will need to begin planning how to address this question . They will need to determine how much space to allocate to slot machines , what type of slot machines to offer , and which manufacturers should provide those slot machines .
Additionally , market and product analysis will have to identify if the slot machines currently in the market or in adjacent markets are appropriate to meet the desires of the market segments that the casino hopes to attract .
Thailand and Japan are unique and vastly different markets , and it would be dangerous to assume that the same kinds of slot machines would have equal appeal in both countries . Since these nations do not have legal casino gaming today , understanding what types of slot machine or electronic gaming devices players will gravitate to five years from now when those casinos begin to open requires considerable research .
Research should focus on understanding what kinds of electronic gaming are found in comparable markets today and how consumers respond to
28 Global Gaming Business JUNE 2024
For any casino operator fortunate enough to earn the right to operate a casino in the Kingdom of Thailand , getting the slot product right will take a considerable amount of research .
Casinos in Bangkok , Thailand will have to consider what their players have been used to in neighboring jurisdictions like Cambodia , Malaysia or Singapore when considering their choice of slot machines
those products . Examining where gamblers play and what types of slot machines they find appealing is the first step in a rigorous review of markets and products . Additional work is also required to understand how the market structure developed over time , examining the push and pull as suppliers provide products , operators buy those products , and consumers gamble on those devices .
For Thailand , one can start by visiting the casinos in Cambodia , notably the properties across the border in Poipet . The problem is that one is relying on the purchasing decisions of slot directors who may not have had the budget to buy the machines with the most significant probability of success . They may also be relying on slot directors who may have picked machines based on price or selected product without doing the legwork to understand what is offered in competing markets .
Looking only at what seems to work in those markets today may not be the best strategy . Therefore , one must take into account the context of how the market was developed and how it compares and contrasts with other markets . Without context , future operators in Thailand may only