With many of the world’s casinos currently shut down, the trickle effect of hard times had to eventually reach gaming suppliers. PlayAGS, a gaming equipment and slot machine manufacturer, and TransAct Technologies, a casino and food safety equipment supplier, are both reporting huge losses, and worries about their long term prospects.

In an earnings call, PlayAGS president and CEO David Lopez predicted many firms will be closing up shop pretty soon. “Very small gaming suppliers, I think, will begin to roll up and be part of the larger gaming suppliers.” He said. “I wouldn’t be surprised to see a little bit of consolidation here and there.”

The Las Vegas-based company reported $54.3 million in revenue in the first quarter of 2020, down 26 percent from the same time last year. As a result, the company is focused on saving cash. It’s used salary reductions, layoffs and furloughs to get cash burn down by 80 percent, reducing it’s workforce by 10%, and Lopez expected the road to recovery could be long and painful.

“It shut down abruptly, and over the course of about a week,” he said. “The ramp-up’s going to take a number of weeks and months. Even when a casinos — or all casinos — are open 100 percent, it doesn’t mean 100 percent pre-COVID revenues will be in place.”