Zona de Azar USA – Aristocrat Responding to Growing Interest in Class II Gaming

USA.- April 11th 2023 www.zonadeazar.com Class II is a big focus for Aristocrat, which in 2014 acquired Video Gaming Technologies (VGT), a leading provider of Class II gaming machines for the tribal market in North America.

“We’re proud to be a leader in the space, as evidenced by our top rankings on Eilers and the significant amount of quality products available,” said VGT President James Starr, who also appeared on a panel discussion on Class II at the conference. “Aristocrat brought new resources and talent (to VGT) to expand the game portfolio and with that expansion we’ve been able to gain more market share. It’s also created more interest from the tribes, because they know there’s a competitive product out there.”

Starr said they’re continuing to focus on Class II development, not only on their legacy mechanical-reel platform, but also on extending those brands that have been successful.

“There’s a renaissance in Class II,” Starr said. “The platforms, hardware, software, and content have almost caught up to Class III. There’s more investment in Class II today and you’re seeing the top minds in the industry working on it.”

There’s no longer the performance gap between Class II and III like there was in the past, Starr said. Ten years ago, there were a lot of platform issues in the industry with servers going down and the games going down, creating downtime.

“You don’t have that anymore,” Starr said. “The platforms are solid. We’re using the same technology as we do for all our gaming platforms and we’re making a huge investment in our legacy platforms to bring in a new platform. You’re seeing a lot more stability, better performance, and more variety in the game portfolios. You can go to Class II and not make a sacrifice in revenue.”

More tribes are turning to Class II gaming to self-regulate and exercise sovereignty.

“It gives them leverage when they go into compact negotiations with the state,” Starr said. “If something falls through in the negotiations, there’s Class II to fall back on. Now that the performance is on par with Class III, more people are giving it a try.”

Oklahoma has been the center of Class II. In that state, they like to see a larger share of their floor as Class II. Interest has also picked up in California, Washington, and other states, he said.

“Most manufacturers used to copy Class III over to Class II and you didn’t see a game released in Class II first before Class III,” Starr said. “But with all the interest in Class II from the tribes, that revenue is going to Class II research and development. You don’t have to introduce a game in Class III first.”

As for the future of Class II, Starr said he sees continued investment in hardware, software, and technology. Aristocrat is working on a Class II mobile option for on-premises use and expects others in the industry to follow.

The interest in Class II gaming was evident at the tradeshow and has been growing in strength the last couple of years, he said.

“I’ve definitely seen more people come in to talk about Class II than in the past,” Starr said. “Before, they were kicking the tires, but now they want to place Class II games.”

Edited by: @MaiaDigital www.zonadeazar.com