Fewer venues will invest in replacement products and conversions despite forecasting a faster recovery of revenues.
Australia.- Pokies and slots operators in Australia are being cautious about spending on products due to the pandemic, a J.P. Morgan annual slot machine survey has revealed.
About 32 per cent of the casinos and pubs expect to retain the existing level of spending on replacements, which is down 50 per cent compared against the last annual survey.
Only 23 per cent of venues will increase spending on replacements, compared with 37 per cent in 2019, while 45 per cent are considering reducing spending further.
Just 42 per cent said they would increase spending on conversions, down from 78 per cent last year.
J.P. Morgan analysts said: “Conversions are seen as a strong cost focus from casinos and pubs as they serve an efficient way for operators to update their floors.”
Operators are, however, more optimistic now about the potential recovery after the pandemic than they were in July.
This is due to a recovery in revenues. In July, venues collectively brought in 48 per cent of what they did in 2019, but by October numbers had recovered to 72 per cent of 2019 levels.
In July, 48 per cent of operators expected revenues to take from 12 to 24 months to recover. Now 42 per cent expect a full recovery within less than six months.