Tighter slot machines might be hurting revenue
By J.D. Morris, Las Vegas Sun
Casino markets in many states have tightened their slot machines over the years, and that could be hurting revenues, according to recent industry-backed research.
The Association of Gaming Equipment Manufacturers on Wednesday announced the results of a report it asked Las Vegas-based Applied Analysis to conduct on the nation’s slot machine industry. Applied Analysis found that, in general, slot hold percentages — which reflect how much of gamblers’ money the machines keep — have reached “all-time highs,” even as slot revenue and wagers remain well below their peaks from before the recession.
In other words, customers don’t gamble as much on slots as they once did, and casinos make less money from the machines but take a greater share of the wagers.
Nevada’s 6.4 percent slot hold last year was higher than it was when slot revenue peaked in 2007, but it was still the lowest of any state examined in the report.
I have said this for years. I stopped going to the casinos-even for a meal-several years ago. It used to be fun to put a few bucks into a slot machine and, maybe, win a few bucks. With the advent of the huge jackpots, the smaller wins had to be reduced. So now in order to possibly win a $1000 jackpot you have to forego the frequency of those little $25-$100 jackpots in the hope of “hitting it big”. Most people have learned that the chances are somewhere between slim and none of winning the big jackpots so they no longer play.
That, combined with the raising of the cost of meals and dumping on the locals, is a huge mistake. The Nevada casinos laughed at the idea of Indian casinos. Now they are feeling the hurt.
Totally agree with you. I used to go occasionally and didn’t care if I lost, just wanted to lose slowly and have an evening’s entertainment. Now there is no putting coins in a machine and no slow loss, no excitement of hearing wins….just a waste of time and money.
The very suggestion that machines may be ‘programmed’ is an anathema to the creation of the Nevada Gaming Commission, who recognized early on (think of Frank Sinatra’s expulsion), that there was more to be had by being straight-forward, honest, & fair. . .and built a huge market on that premise, as they instinctively realized that even hints can bw quickly blown-out-of-proportion. . .
My first clue to this was in being appalled at an ad program in Reno that “promises” that a ($_ _ _, _ _ _) will be “won” in the next 48 hours. . .
That’s not only a cheap shot for getting people to come down NOW. . .but a GIANT message for those who want to believe it’s all on the-up-&-up…this idea, & the Hard Rock article above, show how far down the thinking really is…and the industry probably doesn’t even recognize it, being several generations removed from those who created & nurtured the market for Nevada. . .as the customer’s enjoyable experience does not measure up to their expectations from a stock portfolio. . .