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The perfect storm of subprime mortgage meltdown, credit collapse and falling real estate prices, mixed with rising fuel and energy costs, has severely impacted the amusement industry. Add to that scenario those regions across the U.S. that have been devastated by hurricanes and tornadoes, and it will be a very tough year for coin-op. Automatic vending and coin-operated amusements are a part of the equipment finance sector that totals more than $600 billion and fuels the nation's economic growth.
The current rash of credit crisis disasters began in mid-September when the first of Wall Street's financial houses collapsed, and the federal government did not bail Lehman Brothers out of its bankruptcy. Others followed, and financial markets went into a tailspin.
However, it soon became apparent that Washington had to step in and do something to prevent a total economic meltdown. These events occurred as the coin-op industry gathered in Las Vegas for the Amusement and Music Operators Association (AMOA) trade show, celebrating AMOA's 60th anniversary.
While many convention attendees were viewing new products, these manufacturers and operators were also wondering how these banking and financial facilities would supply them much needed credit to continue placing games and jukeboxes out in the marketplace.
How will the American distributors handle this crisis in their own sales departments? Some larger distributors claim that their strong, core customers will see no disruption in services. However, they are requiring more comprehensive information about operations in order to evaluate an operator's ability to repay loans. New customers will receive much tougher scrutiny.
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