Small Gaming Companies Still Suffering
Thursday, April 28th, 2011Companies in the gambling world are having a hard time keeping up with the market. Things are still iffy when it comes to consistent revenue in gambling. Sure people are moving back into the casinos but they seem to be picking games that are much lower cost to play. Right now slots games are at the height of their popularity and it is the penny- and nickel-games that seem to be getting the most public attention. This is with good reason. Remember that we still aren’t that far away from the recession and its aftermath is still haunting people who were having difficulties in the market. They know full well that they need to have a way of reviving their own revenue streams before they are going to be able to start wagering like they once did. This is exactly what gaming companies are hoping is going to happen sooner than later. They keep on working with a “business as usual” attitude, but it is difficult for them to come up with solutions in the interim. Companies are weighing in right now with their revenue for Q1 of 2011 and the numbers aren’t as positive as they had hoped. Larger gaming companies are rallying and finding some positive number, but the smaller ones are not as lucky. It seems that smaller companies with smaller cash reserves are having a much more difficult time working their way to turning themselves around.
Two companies that posted their revenues were WMS Industries and Bally Technologies. For all intensive purposes these are both categorized as “small gaming companies.” They haven’t been around that long and still were in the process of building up their businesses when the recession first began. It was a difficult time for them to be cut off at the knees when they still were in the midst of their growing pains. Now, they are posting positive numbers, but not as high as they would have liked. This is a chronic result though of the past problems the recession has created for gaming companies. Most likely when things level off again gambling companies—even the small ones—are going to see good revenues again.

