Which markets in Latin America does Aristocrat find most promising right now in terms of new sales and replacements?

Carrion: Chile is definitely the most important market for new sales. With the opening of 17 new casinos in the country, Aristocrat obtained an important market share. There is also a substantial amount of equipment that has been replaced with the latest Aristocrat games. Panama is another important market where Aristocrat is keen on expanding through upgrades and conversions.

Which markets exhibit the most exciting growth prospects near- to mid-term?

We foresee business in Peru and Colombia growing in the next two years as a result of new regulations that will cause operators to replace large numbers of their machines.

How will these regulations work?

Regulators are going to require all machines to be connected to an online monitoring system. The majority of existing machines have older technology and are not able to support this change. In the long term, operators will benefit by investing more in new machines and equipment rather than doing upgrades for machines that mostly have been discontinued by manufacturers and were introduced in these two countries as refurbished or reconditioned products. So these two markets have a lot of potential, and with the regularization, companies that have local and global operations see a big opportunity and have started to augment their business by acquiring more casinos and facilities that were previously operated by local companies. This will create a need for companies to have a replacement plan to be competitive and, ultimately, to offer better products and services to players.

In terms of product and product types, what is working for Aristocrat in the region?

The Latin American market buys a variety of products. Each country has its own particular preferences, and configurations vary. For instance, countries like Chile, Argentina and Panama are always asking for the latest equipment and products. Then there are other countries like Peru, Colombia or Ecuador that are more inclined to refurbished products and older platforms. Every country has a different currency. And a few customers have migrated to TITO. So Aristocrat has to support different platforms and have products suited to each particular country and sometimes for each particular operator. Product management activity in Latin America is a key activity, and it helps to ensure the success of Aristocrat in the region.

Can you elaborate on what is meant by “product management activity”?

It is having an effective business strategy. This definitely is a key to Aristocrat’s success in the region because of the complexities of the market. Every country, and even regions within each country, has different requirements in terms of products and regulations, not to mention each market’s preferences. At Aristocrat we strategically plan and roll out our products and support our customers at all stages in each of these markets. The Latin America market requires products with long life cycles and an ability to support more platforms. The product management team constantly monitors the ever-changing market and adapts to its needs.

In line with this, how important is “localization” in terms of language, theming, game design, math, etc.?

The success of Aristocrat in different regions around the world is based on game performance, the mathematics that allow players to play longer while still having fun, and the variety of themes that are easily accepted and recognizable to players in each region. In terms of Latin slot players, our main focus is the language. We like to offer games completely translated in Spanish, and not a mix of English and Spanish. We also care about the correct syntax and grammar of the language. Aristocrat has dedicated teams in R&D, quality, compliance and marketing that are constantly working on more titles in Spanish. Moreover, Aristocrat has a vast library of games that are well-suited to the Latin American market.

You mentioned the benefits of changes in regulations. The Latin markets are known also for presenting some unique challenges in this area. What has been Aristocrat’s experience?

In some Latin American countries, piracy of products is a big problem for manufacturers. There are many machines that have software and art copied illegally, including machines that were designed to operate in different regions of the world, like Australia or the U.S. Fortunately, most of the countries have decided to regulate their games and activities, helping us to easily identify the operators and channels of distribution in the region. Some countries already have solid regulations, while others are on their way to consolidate them. Peru is constantly working on the legalization and regulation of its market. Last year, [government regulator] MINCETUR identified a lot of the illegal operations as well as a lot of cloned or pirated machines in the country. Aristocrat works closely with the regulators in the region and actively participates in conferences and meetings with regulators to offer the support and information necessary to effectively regulate.

Does Aristocrat work through local distributors or sell directly?

We sell directly to most of the countries of the region except Peru and Colombia, where we have exclusive distributors.

Given the diversity and complexities you speak of, to sum up, how would you define the keys to Aristocrat’s success in the region?

Each market and region is treated individually, and the attention to each customer is one of the key ingredients of our success. One of our objectives is to be viewed by operators as a trusted commercial partner providing profitable gaming solutions. Our success has been possible because of the leadership at our office in Latin America headed by Juan Pablo Irarrazaval, who is general business manager, and the support of Sales Manager Alejandro Saraintaris and Technical Support Manager Jaime Achire, along with the contribution of the operational staff based in Buenos Aires. The experience and knowledge that this team has in the region has helped us achieve solid penetration in the market. Lastly, and most importantly, are Aristocrat’s products. Games that perform well above average that players enjoy. And unbeatable service.

Can you tell us a little about the products that are performing particularly well?

A stand-alone game called Queen of the Nile — it has been our best-performing game and has penetrated most casinos in the region. Because of its success it is available on a variety of platforms, the MKIV, MKV and MKVI. We have also received requests from customers to have this game on our new GEN7 platform. Double Dolphins is another classic game all over the region, designed to operate on the MKIV, MKV and MKVI. … There are countries like Peru, Venezuela and Colombia that are great fans of our MKIV and MKV platforms with games like Indian Dreaming, Margarita Magic, Adonis, Dolphin Treasure and Inca Sun. Panama, Argentina and Chile are big markets for the MKVI platform, and we have installed most of our MKVI titles in these countries in a number of popular game categories:  Multi Line, 50 Line, 100 Line, Reel Power, Mr. Cashman, Stand Alone Progressive, Double Stand Alone Progressive and Hyperlink. Cash Express and Jackpot Carnival are very popular in the region. These two Hyperlinks have some great performing game titles as well.  Our latest cabinet, Viridian, and the GEN7 platform will be introduced to Latin America this month at SAGSE.