Slots machines are still the casino industry’s cash cow. But where will they be in another five years? Replaced by all of this skill-based gaming we keep hearing about?
According to Yahoo! Finance, casino slots should be just fine within the next few years.
This info comes from Technavio’s forecast, which sees the slot machines market growing at a CAGR of 15.49% from 2017-2021.
CAGR stands for compound annual growth rate, and, according to Wikipedia, it accounts for the “geometric prgressive ration that provides for a constant rate of return over the time period.” Going further, CAGR, “dampens the effect of volatility of periodic returns that can render arithmetic means irrelevant.”
I’m not an investment guru, and have trouble understanding the exact nature of CAGR. But it sounds like we can expect the slots market to continue doing well if its CAGR will increase by over 15%.
Technavio came to this conclusion after interviewing a number of gaming industry experts and slots providers. They released an extensive report that covers many notable slots providers, including Ainsworth, Amatic, Aristocrat, NOVOMATIC, Galaxy Entertainment, IGT, Konami and more.
Their end analysis is that slot machines are trending in the right direction and, thanks to more growth, will still be king of casinos.
It should be noted that this report is entirely about land-based casino slots. Even still, I imagine that if slot machines will continue increasing in popularity, so too will their online counterparts.
In fact, land-based slots improving should be a sign that slots as a whole will continue rising. After all, more people are playing mobile slots than ever before, and this trend should hit an all-time high by the time 2021 rolls around.