Slots Are Growing In Popularity

07.21.2008 | 9:51 pm | Slots, casinos

Casino industry reports today revealed that the popularity of slot machines continues to grow year after year, having brought in $20 billion last year to the USA. This total is higher than the revenue provided by other popular goods, for example movie ticket sales, book sales and coffee sales, demonstrating just how profitable slot machines are becoming to the casino business. Furthermore, this trend has recently shown signs of crossing the Atlantic divide - in the UK, the slot machine phenomenon is flooding the online gambling market, with the company Vernons.co.uk reporting a tenfold increase in players over the last six months.

The appeal of slot machines to the casino industry is based on the certainty of profit-making, thanks to the computer chip at the centre of the machine – the Random Number Generator (or RNG). This is programmed to produce a certain ‘hold’ for the casino over time, called the hold percentage – and most slot machines in casinos now average hold rates of 10 to 15 percent. Legally, the maximum hold rate for a slot machine is 20%, or no more than 20 cents per dollar taken, with a beneficial hold percentage from a slot user’s perspective at around 6%. The figure of a 10 to 15 percent hold rate is therefore almost guaranteed to bring in revenue for a casino.

The casino industry has become increasingly dependent on “slots”, with statistics from Illinois revealing that slot machines brought in 88% of casino revenue last year. Part of the phenomenon can be explained by the figure that slot players lost $1.7 billion at casinos last year in Illinois alone. Additionally, the increasing popularity of slot machines heralds a boom in employment, with a projected increase of 23% in the next 8 years in job opportunities in the gaming services market.

Have You Ever Played Slots Online?

06.9.2008 | 11:02 am | Slots

If ever there was one gambling game which would struggle to make a major impact online it had to be slots, but it seems as though even this may be changing. Over the last year there has been a growing acceptance of slots online even though to the gambler on the street the attractions may be limited. So what is it about slots which have all of the major casinos swarming all over the sector?

Firstly it has to be said that there is a very close correlation between slots, casinos and poker, something which the major casino players have not been slow to appreciate. On the surface the main thrill of playing slots is the pull of the handle or the press of the button and the wait, and wait, and waits to see how it drops, but now there is more.

A number of major casinos have now become involved in what is known as progressive jackpots, the type which keep on rising and rising until there is a winner. A percentage of each dollar you spend is added to the jackpot pool and the amount up for grabs just keeps growing and growing until the jackpot drops. This seems to be the main attraction for those looking to play slots online and is something which has attracted the attention of the press. But is it still slots?

The traditional slots player would argue that this new system is not really slots, it is just the opportunity to drop a large jackpot without the game play involved with the physical slots machines. However, many were adamant that this style of play would never catch on, but this does not seem to be the case – although it is polarising the slots community.

Has the thrill of a big slots drop tempted you to play online yet?

$5 Million Investment Pays Off In B.C.

05.12.2008 | 4:31 am | Slots, Poker, News, casinos

Despite all of the doom and gloom in the economy, and the casino industry in particular, it seems that investment does pay off. We are hearing news that the Las Vegas owners of the Edgewater Casino in Vancouver have already seen a sizeable return on their $5 million upgrade investment.

The casino was only acquired in 2006, for a figure reported to be in the region of $42 million, so a ten percent plus upgrade investment was a fairly substantial amount to risk. However, the new owners have just announced that revenues for the year to March 2008 were up some 18%, or $5.56 million indicting that total revenues for the casino have topped $100 million for the first time ever. So what did they do?

Interestingly, while slot machines have been something of a favourite in new age casinos, the owners of the Edgewater complex decided to rip out 100 slot machines (reducing the total number from 600 to 500) and increase the number of Poker tables from 4 to 18. While slot machines offer a low margin high turnover return, it seems that the move to create one of the largest Poker rooms in British Columbia is starting to reap rewards.

The new owners also used the additional investment to increase the media profile of the operation, which they claim was the “best kept secret in the region”. This increased promotional spend together with a general improvement in the overall facilities available has taken the casino onto a new level. The owners are now looking to replicate this success in other areas of the country with a number of possible targets in mind.

It will be interesting to see if the new owners are able to replicate this success in other areas of the country, at a time when many in the industry seem to be struggling.

Slots Man Has “Jackpot” Win Taken From Him

10.24.2007 | 10:29 pm | Slots, News, casinos, gambling

In a move which may have major repercussions for the right to legal redress against the many Indian Casinos throughout America, Gary Hoffman is suing the Sandia Resort and Casino for some $1.6 million after the casino blamed a computer malfunction when he “won” a slots jackpot.  The casino management then took Mr Hoffman aside and claimed the jackpot win was null and void, instead presenting him with $384 and an array of free meals.

After his “win”, Hoffman was surrounded by customers and casino staff who offered congratulations to the quiet gambler who could not believe his luck.  After being ushered into a private room, where he expected the jackpot win to be settled, he was amazed to be told he would not be receiving the winnings.  He has since taken legal advice and is taking the casino management to court, but what are his chances of success?

While it was confirmed that there had been a malfunction with the slots machine, which should not have offered payments over $2,500, Hoffman did nothing wrong and should surely be entitled to collect his win? Unfortunately, legal opinion is mixed and there are those who are suggesting that as the Casino was regulated under Indian Tribe rules, he may have no legal recourse in the US courts.  This in itself has the potential to blow a hole in the whole US / Indian Tribe Casino industry, which has expanded rapidly over the last few years.

The case will be going before the courts very soon, and will be closely watched by an array of casino companies, all looking to up hold the name of the industry, while protecting their own positions.  If the case is thrown out then this may put pressure on the US authorities to take action.  Would the authorities then be brave enough to rebuke the Indian casinos, or would this be political suicide?

Is Slots Really Popular Or Just A Distraction?

09.14.2007 | 10:44 pm | Slots, casinos

Slots is a market which has been growing for some time, and is unrecognisable from the same industry of ten years ago.  Prize money has gone through the roof, the machines are now allowed in a whole host of venues and player numbers are at record highs.  So you might say that Slots is popular, and more than just a distraction!

Venues such as Las Vegas have for many years been major supporters of the Slots industry, which has itself developed and introduced more and more ground breaking machines, giving users that little bit extra, tempting them with the chance of a massive jackpot.  Progressive jackpots, which increase as a percentage of how much is spent on the machine,  have become the new lottery of today, with regular stories of million dollar winners, often just passing by the machine and having a “quick go”. 

This added publicity has brought in more and more customers, and parts of Las Vegas are as popular for the slot machines as they are for the overall casino business.  While experienced Slots players will know what to look for when playing different types of machine, some of the new gamblers are having trouble understanding the rules.  It can often be difficult to fully appreciate the different styles, patterns and prize money available from the different types of machine.  For these people, Slots can be very frustrating!

However, so long as we are seeing wins of up to one million dollars, each and every new player seems willing to learn a little more about the game.  They say that money talks, and in the Slots industry this could not be more apt.  The industry is set to move ahead still further over the next few years with worldwide gambling laws under review, and the potential for increased relaxation of the regulations.