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Slot Machine Market is Changing

The slot machine market is changing for Pennsylvania’s casinos and many of the manufacturers and distributors could not be happier about it. They are removing the caps on the slot machine industry that would only allow an individual slot machine manufacturer to hold 50% of the gambling floor. The larger slot machine companies had pushed to eliminate the cap, but the state said that it was necessary to give the smaller companies a chance.

This limitation has been on the books for four years, but the legislature has decided to remove it. They said that the idea that they had to police the slot machine manufacturers was ludicrous and that the large gap between the smaller slot machine manufacturers and the larger ones like International Game Technology were not an issue anymore. They said that the smaller companies have really cut into the slot machine lead that IGT used to have.

They said that the caps were originally a good idea because otherwise IGT may have taken over the market, but now the smaller ones have had an opportunity to show what they have to offer, and the caps could be eliminated. This cap removal was part of the new bill that the legislature is putting forth to legalize table games within the state. There was no comment or discussion about the cap removal – in fact; many didn’t even realize it was done.

The state said that the limits were arbitrary and that they punished the larger slot machine corporations. The smaller slot machine manufacturers like Bally and WMS are not pleased with the decision. They say that this could enable them to take over the PA market.

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