"For Scientific Games, what happened in Europe was phenomenal"

What can you tell us about Scientific Games' 2015 overall performance after the mergers?

Every time there's consolidation, challenges and opportunities arise. For Scientific Games, what happened in Europe was phenomenal. Bringing together four major brands such as Bally, Barcrest, Shuffle Master and WMS allowed us to enrich and expand our games portfolio and hence grow our presence in those European markets that needed a wider product offering for local players. Having the possibility to offer games made in the U.S., Australia, and China gives us a powerful, competitive advantage that no one else in the gaming industry has.

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We recognize that people in general are becoming more technologically savvy, want more interaction, more social experiences, community-style play, more touch-based experiences, competitive-style play, and mobile, mobile, mobile

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What's your strategy to cover all markets?

It is vital to listen to customers to understand their needs. Whether we're choosing one of the games from our American or our Australian gaming libraries or developing new ones, we must carefully select our products to cater to market demands. We have to continue creating an array of game styles to appeal to every player, from premium, entertainment-style games, to games that appeal to repeat players who enjoy the experience locally. We strive to address all player segments from the time-on-device player to the local core-gambler style of player.

What is your approach to Millennials?

The Millennial generation encompasses people born between 1981 and 1997 (19-35 years old). This generation is facing some pretty significant economic challenges; they aren’t earning as much as previous generations earned when they were the same age and many are focused on paying off college loans and saving to buy their first home. They definitely don’t have as much discretionary spending money as their parents, and they are busy, often working two to three jobs to make ends meet and taking care of young kids.

That being said, this age group is the future of our industry. Our product portfolio is the broadest in the industry, with content and entertainment offerings that appeal to all adults and player demographics. We recognize that people in general are becoming more technologically savvy, want more interaction, more social experiences, community-style play, more touch-based experiences, competitive-style play, and mobile, mobile, mobile. Whether the player is 35 years old or 65 years old, they are demanding this type of experience, and we have the advantage of offering it all.

Nearly one in five Millennials are mobile-only users, meaning they do all of the internet browsing, emailing, searching, social networking, and online news reading on a smartphone or tablet. That’s pretty incredible. We are innovating in mobile, with products like Take ‘n Play, which enables slot players to take their active game off the casino floor and onto a mobile tablet to smoke, eat, and even lounge by the pool. And our SG Universe product has a Mobile Concierge, Play4Fun Network, and also a VenueBet feature that lets casino players play slot machines on their own personal mobile device within the casino-resort.

But at the end of the day, the core player right now is not Generation Y or the Millennials. They don’t have the time or disposable income yet. But they will, and when they do, we are confident that they’ll find gaming to be incredibly entertaining and that we will be able to provide the games anytime and anywhere they want to play. It is up to us to stay close to the trends and keep things fresh and exciting.

Ultimately, people choose gaming as a form of entertainment for the thrill of the chance to win; we need to work together to create more winners and more exhilarating experiences!

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France was one of the most important markets for Scientific Games in 2015

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What is your preferred product amongst operators?

Licensed games have very different impacts around the world. In the U.S., for instance, our licensed game library is very successful, and although not as big as in America, it has performed very well in Europe. Titles like The Flintstones and Michael Jackson attract people of all ages!

Innovation drives every aspect of the Scientific Games world: new game titles, new hardware, skill-based technology, we have it all! Operators don't want to get just one piece, but the whole cake. They need games that offer the best of everything, games that appeal to the broadest audience possible, and Scientific Games has that.

What was your best performing market in Europe in 2015?

France was one of the most important markets for Scientific Games in 2015. But it all depends on the product. In regards to electronic table games, England and Spain were our best-performing markets. Every market is in a different stage of maturity, and that is why it is important to create the right mix of content, cabinets and systems for each and every single market.
Having been under-represented in Eastern Europe, that market will be a focus for us in the years ahead.

How is the expansion of both online gaming and daily fantasy sports impacting your business?

We are watching the daily fantasy sports market and business very carefully, but are not involved at this time. Regarding online gaming, Scientific Games, through our SG Interactive division, offers online gaming through our Remote Game Server. In 2015, Scientific Games Remote Game Server saw continued year-over-year growth and several of our games rank among top performers with players in online markets worldwide. To date, SG Interactive has numerous games in a number of jurisdictions across a multitude of operator sites globally – including bingo, sports, and casino sites.