|Market Size in 2022||Market Forecast in 2030||CAGR (in %)||Base Year|
|USD 9.5 Billion||USD 13.4 Billion||4.35%||2022|
Slot Machines Market
The global slot machines market size was worth around USD 9.5 billion in 2022 and is predicted to grow to around USD 13.4 billion by 2030 with a compound annual growth rate (CAGR) of roughly 4.35% between 2023 and 2030.
The report analyzes the global slot machines market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the slot machines industry.
Slot machines are, generally, gambling machines, which often are operated by inserting a coin, token, barcode, and others in the slot of the machine and pulling the machine handle or pressing the button to spin symbols, in order to get probable outcomes. Slot machine results are determined through a random number generator which is a mathematically-based program. The program picks a set of numbers to fix which symbols are nominated to produce winning or losing results. The rising number of casinos, across the globe, is expected to fuel the slot machine industry. Slot machines are one of the key revenue-generating segments in casinos. Apart from casinos, these machines are also used for entertainment in pubs and clubs. The use of slot machines is government regulated and certified, as per the industry standards. Some of the key countries with the highest number of slot machines are Japan, the United States, Italy, Germany, Spain, and Australia, among others.
Increasing number of casinos, across the globe, to drive market growth during the forecast period.
The global slot machine market is projected to grow owing to the increasing number of casinos in different countries of the world. Over the past few decades, the commercial casino business has experienced enormous growth. The continued legalization of gambling-related activities has enabled licensed casinos to expand into new markets. In addition, the expansion of the economies with a significant number of casinos around the globe has further enhanced the demand for the slot machine industry. According to Casino.org, an independent gaming authority, as of 2022, the largest casino, across the globe, was the WinStar World Casino & Resort located in Oklahoma, United States. The casino has around 600,000 square feet of gaming space. The second largest casino was located in Venetian Macao, China, and has around 546,000 square feet of overall space.
According to the American Gaming Association, the number of commercial casinos in the United States accounted for 468 units in 2022, compared to 466 units in 2021. Some of the key states with the highest gross gaming revenue of casinos in 2022 are Nevada (around USD 14,842 million), Pennsylvania (USD 5,343 million), New Jersey (around USD 5,211 million), New York (around USD 4,228 million), and Michigan (around USD 3,258 million), among others.
In Europe, according to the European Casino Association (ECA), around 900 casinos were established in 28 countries across Europe, as of 2022. As per European Gaming and Betting Association, the casino was the key online gambling segment by revenue in 2022, accounting for around EUR 14.9 billion gross gaming revenue, up by around 9.56% year-on-year, and occupied around 39% of online gambling revenue share in Europe during the same year.
Government & regulatory policies in the gambling industry to restrict market expansion
Casinos & gambling are partly or completely banned in various countries across the globe, such as Qatar, United Arab Emirates, Brunei, Cambodia, Singapore, Poland, India, and many others. Slot machines are widely placed in casinos. Different countries regulate the gambling industry, as per their local laws and authorities. For example, commercial casinos & gambling are prohibited in India, except in the following locations, including, Goa, Sikkim, and Daman. Goa state permitted gambling after the Goa, Daman, and Diu Public Gambling Act, which was passed in 1976. Further, in the United Arab Emirates, gambling is strictly banned, as per the domestic regulatory bodies. The UAE government may impose a significant fine or sentence to prison for involving in any type of gambling activity. Further, as per the Government of Singapore, gambling in Singapore is regulated through strict laws & regulations, in order to maintain law & order as well as to minimize potential harm to society. In September 2022, the Gambling Control Act 2022 & the Gambling Regulatory Authority of Singapore Act 2022 came into effect in the country, after the bill was passed into law by the Singapore parliament in March 2022. Such regulations are expected to hinder the growth of the slot machine industry.
Increasing technological development in the slot machine industry to provide growth opportunities
Rising technological development in the slot machine sector is expected to act as an opportunity for the slot machine market in the coming years. The implementation of new technologies such as touch screens, video slot machines, etc., along with a wider selection of games, and varied payment options such as card payments, crypto coins, and others are likely to fuel the slot machine industry’s demand during the forecast period. Digital/video slot machines can be tracked easily from centralized locations inside a casino or other gambling places. The digitization of slot machines enabled the potential for a wealth of bonus games and added extra features which were impossible to implement earlier. Touchscreen slot machines offer a more aesthetic feel, compared to the traditional clunky button slot machines. Casino game designers are being inspired to make more advanced functional & visual products with touchscreen technology. Moreover, the implementation of cards & other online payment options in slot machine premises is increasing at a significant rate. Thereby, technology is playing a key role in the development of the slot machine industry.
Rising fraud cases to challenge market cap growth
In the recent past, there is a significant rise in fraud cases related to the use of slot machines. Due to the fast financial activity, the casino sector is a high-risk environment for fraud & scams. For example, fraudsters put skimming devices (illegal devices) on slot machines to manipulate slot machine outcomes or operations. Considering such frequent scams & frauds, many peoples don’t want to visit slot machine premises for gambling. However, various preventive actions can be taken to avoid such fraud on gambling premises.
The global slot machines market is segmented based on machine type, type, application, and region.
Based on machine type, the global market segments are single-coin slot machines, multiple-coin/multiple pay line slot machines, buy-your-pay slot machines, progressive slot machines, multi-game slot machines, video/touch-screen slot machines, and other slot machines. Currently, the global market is dominated by multiple-coin/multiple-pay-line slot machines, considering their high chances for favorable outcomes and better results. IGT & Aristocrat are among the key manufacturers of multiple-coin/multiple-pay-line slot machines.
Based on type, the slot machines industry is segmented into digital and mechanical. The digital segment dominated the market share in 2022. Currently, old mechanical slots with spinning reels are being replaced by digital slot machines. Digital slot machines are eye-catching & appealing, compared to the old mechanical slot machines.
Based on the application, the global market segments are casino and other applications. Currently, the slot machines industry is dominated by the casino segment. Slot machines are one of the key segments through which casino operators make their most profits. Casinos are preferred in nations with relaxed gambling laws. Some of these countries include the United States, Japan, and others. The rising per capita income in such countries is expected to further boost the industry.
|Report Attributes||Report Details|
|Report Name||Slot Machines Market Report|
|Market Size in 2022||USD 9.5 Billion|
|Market Forecast in 2030||USD 13.4 B1illion|
|Growth Rate||CAGR of 4.35%|
|Number of Pages||213|
|Key Companies Covered||AGS LLC, Ainsworth Game Technology Limited, AMATIC Industries GmbH, Apollo Games, Aries Technology LLC, Aristocrat, Aruze Gaming America Inc., Eclipse Gaming, Everi Holdings Inc., IGT, Incredible Technologies Inc., Inspired Entertainment Inc., INTERBLOCK LUXURY GAMING PRODUCTS, Konami Gaming Inc., NOVOMATIC AG, Recreativos Franco S.A., Scientific Games, and UNIVERSAL ENTERTAINMENT.|
|Segments Covered||By Machine Type, By Type, By Application, and By Region|
|Regions Covered||North America, Europe, Asia Pacific (APAC), Latin America, Middle East, and Africa (MEA)|
|Historical Year||2017 to 2021|
|Forecast Year||2023 - 2030|
|Customization Scope||Avail customized purchase options to meet your exact research needs. Request For Customization|
North America to lead the market during the forecast period
The global slot machines market growth is expected to be driven by North America, during the forecast period. The U.S. is the key revenue generator for the slot machine industry in the region. As per the American Gaming Association, total consumer spending on commercial casino gaming & sports betting in the United States reached USD 60.46 billion in 2022, registering a growth rate of around 14% compared to the previous year. Further, in the first five months of 2023, commercial gaming revenue reached around USD 27.59 billion, witnessing a growth rate of around 12.4% compared to the same period in the previous year. Specifically, in May 2023, slot machines generated USD 2.98 billion of revenue, up by 1.3%. Moreover, according to the American Gaming Association, total commercial casino direct gaming tax revenue in the United States reached USD 13.49 billion, witnessing a growth rate of around 15.3% compared to the previous year.
In Asia Pacific, countries such as Japan, Australia, and China are the key revenue generator in the regional slot machine industry. In Japan, slot machines are often called Pachinko or Pachislo. According to the National Police Agency, the number of pachinko parlors operating in Japan accounted for around 7.67 thousand in 2022, registering a decline rate of around 9.34% compared to the previous year. Most forms of gambling are banned in the country; however, pachinko is kept as an exception. In Japan, Pachinko parlors can be found all over the country and they are operated by private firms. In April 2023, Japan government approved a plan to build a casino in Osaka to attract tourists & related incomes. The casino is likely to be a part of an integrated resort facility. The casino is expected to come online by 2029.
In Australia, slot machines are often called Pokies. Globally, slot machines are found generally in casinos, however, in Australia, they can be found everywhere. The gambling industry or Pokies is legal & well-regulated in the country. Australia accounts for around 20% of the global gaming machines. New South Wales (NSW) accounts for the majority of the slot machines in clubs & hotels. According to the New South Wales (NSW) government, the number of electronic gaming machines in clubs, as of 30 November 2022, accounted for 64,444 units in the region. Moreover, in hotels, the number of electronic gaming machines, as of 30 November 2022, accounted for 22,428 units in the NSW region.
The global slot machines market is dominated by players like:
By Machine Type
Slot machines are, generally, gambling machines, which often are operated by inserting a coin, token, barcode, and others in the slot of the machine and pulling the machine handle or pressing the button to spin symbols, in order to get probable outcomes.
The global slot machines market cap may grow owing to the rising number of casinos, across the globe. Significant growth opportunities can be expected due to rising technological development in the slot machine industry.
According to study, the global slot machines market size was worth around USD 9.5 billion in 2022 and is predicted to grow to around USD 13.4 billion by 2030.
The CAGR value of the slot machines market is expected to be around 4.35% during 2023-2030.
The global slot machine market growth is expected to be driven by North America. It is currently the world’s highest revenue-generating market owing to the presence of a large pool of casinos in the United States, Canada, and Others.
The global slot machines market is led by players like AGS LLC, Ainsworth Game Technology Limited, AMATIC Industries GmbH, Apollo Games, Aries Technology, LLC, Aristocrat, Aruze Gaming America, Inc., Eclipse Gaming, Everi Holdings Inc., IGT, Incredible Technologies, Inc., Inspired Entertainment, Inc., INTERBLOCK LUXURY GAMING PRODUCTS, Konami Gaming, Inc., NOVOMATIC AG, Recreativos Franco S.A., Scientific Games, and UNIVERSAL ENTERTAINMENT.