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# Slot Analysis

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• BUCCANEER CELTIC WARRIOR X 2GENIE MAGIC X2FROG WILD 2 X2PARISLIGHTS
• Keep an eye on the lease games installed 22 days ago there it is not enough data but if my calculations are correct these games are continuing the same pattern and will be sub-par games as well. (CI from least producing 5 Atronic games/9 /22*214=\$222,097.76)
• (CI from the least producing 20 leased Games/(AVG )*214 = \$221,825.98 With market fluctuations and demand structures these things can change quickly.
• .
• WILD MAGIC PROGRESSIVE CASH INFERNO PROGRESSIVELUCKY FOUNTAIN PROGRESSIVE LOTUS WARRIOR PROGRESSIVE
• House games with fantastic numbers that should be duplicated for the lower non producing games HOT HOT PENNY- STAR OF INDIA FREESPIN FRENZY ALL THAT GLITTERSANCIENT FORTUNES LUCKY LEMMINGS LUCKY SEALS OPEN THE VAULT KABOOM MONEYTOBURN
• I have taken the top 471 games to determine this out come.
• Probability that player wins = 0.90 Probability that casino wins = 0.10The expected value (EV) of a single unit wager, and its standard deviation (sd). The EV of a \$1 wager is the dollar amount a player can expect to win in a very long sequence of a particular wager. The sd measures the long-term volatility in player win amount. The general formulas for EV and sd of a wager are given as:where Σ denotes the process of adding over all possible outcomes in the particular bet.if a wager pays \$A-to-1, the EV and sd for the wager are calculated as:EV = Win Probability x A + Loss Probability x (-1) EV(\$1 wager ) = 0.90 x (+1) + 0.10 x (-1) = .80The house advantage of this wager is 100*(-EV) = 100 x ( +.80) or 80%.
• A quick slide to show what are customers are wanting in 2010 and what IGT to supply to make sure you get the right customer.
• ### Slot Analysis

1. 1. SLOT ANALYSIS<br />By Adam Lopez<br />
2. 2. Back Ground<br />XYZ Casino has 1173 total slot<br />ManufacturerNumber of GamesPercentage<br /> ATI 63 5.38<br />Atronic’s 29 2.48<br /> Bally’s 11910.14<br /> IGT 815 69.48<br /> Konami 41 3.5<br /> WMS 106 9.03<br />
3. 3. Popularity by Manufacturer <br />
4. 4. Coin In By Manufacturer<br />
5. 5. Win By Manufacturer<br />
6. 6. Average Daily Win<br />
7. 7. Analysis<br />Detailed information regarding each manufacturer. <br />The sub-par mentioned is calculated by <br />(Total CI/# of games= Average Coin in for all games) <br /> \$314,278,811.28/1173= \$267,927.37 <br />
8. 8. IGT <br />Dominate manufacturer on the slot floor.<br />Analysis shows your casino has a very strong video poker clientele bringing in 23% of play on your casino floor. <br />Of your top 100 games 45% are represented by poker games. <br />This market should be closely analyzed for player retention. <br />
9. 9. ARISTOCRAT<br />Win = \$786,310.06 (Average 162 days)<br />63 Total Games <br />5.38% of market share<br />Top Game TikiTourch<br />There are multiple sub-par games producing less than favorable numbers on your casino floor.<br />
10. 10. Atronic<br />Win = \$356,732.11 (Average 154 days)<br />29 Games 2.48% of Market<br />Top Game-- Sphinx <br />76% Leased games<br />To Improve this area<br />Convert<br /> GYPSY FORTUNE, MYSTERY MASK, DANCING SPIRITS, DEEP BLUE DOLLARDS<br />To SPHINX<br />
11. 11. Atronic cont.<br />
12. 12. Bally’s<br />Win \$2,127558.53 (Avg 154. Days)<br />119 Games 10.14 % Market Share<br />71% leased Games<br />Top Games <br />CASH WHEEL-DBL JP<br />
13. 13. Bally’s cont.<br />Great numbers on your floor <br />Most of your top producing machines are participation <br />The difference is being subsidized based on play. <br />New games you just put on the floor, these games should be monitored very carefully after my calculations these games are on their way of producing close to par numbers. <br />
14. 14. Bally’s cont.<br />
15. 15. IGT<br />Win \$14,151,587.70 (Average 169 days)<br />815 Games 69.48% Market share<br />20% Leased games<br />Top Games<br />Wheel of Fortune<br />Triple Play/Five Play Poker<br />
16. 16. IGT cont.<br />Most of your sub-par games are house games though there are a few that should be removed that are leased games producing sub-par numbers. <br />Average Coin in of house games is \$244,620.55 <br />RWB machines are doing great but you only have 3 games. Why? <br />This also is for Top Dollar, Triple Dbl Dollar, and Double Gold. <br />
17. 17. IGT cont.<br />All Games have 214 days, are leased, and producing below par<br />Replace<br />ThemeCoin InNet WinWin Per Day<br /> GET EGGCITED \$110826.89 \$5357.87 \$ 25.03678 <br />SUPER TIMES PAY \$125625 \$13619.98 \$63.64477 <br />GEMS WILD-TILES \$141403.85 \$7099.95 \$33.17734 <br />TRIPLE LUCKY 7'S \$145813.5 \$4348.23 \$20.31883 <br />BETTI THE YETTI \$166388.94 \$3905.46 \$18.24981 <br />TRIPLE DIAMOND STRIKE \$169240.5 \$10131.2 \$47.34206 <br />
18. 18. Konami<br />Win \$468,456 (Avg. 134days)<br />Total Games 41 Market Share 3.5%<br />32% leased Games<br />Top Games <br />SUPER DEEP SEA SEVEN <br />SUPER RUINS OF GOLD <br />DIAMOND SOLITAIRE DELUXE <br />SUPER GOLDEN JACKPOT FIVETIMES <br />
19. 19. Konami cont.<br />Manufacturer has great potential <br />Enough house games to supply the demand of your customers. <br />Convert some of the older house games to more of your higher revenue games.<br />Solistic Gold<br />African Diamond<br />Rawhide Mystery<br />Change out progressive bank 04-610<br />
20. 20. WMS<br />Win \$1,885,878.39 (Avg. 196 days)<br />Total Games 106 9.03% Market Share<br />17% Leased Games<br />Top Games<br />ALL THAT GLITTERS (House)<br />EGYPTIAN RICHES- BIG EVENT <br />GOLDFISH (House)<br />
21. 21. WMS cont.<br />Games placed in a better location 600/602/605 are not high traffic area and should be utilized with your house games. <br />In addition to converting some of the older style Jackpot parties to the newer jackpot party themes that are available.<br />More<br /> X marks the spot <br />Rich little piggy’s<br />
22. 22. Conclusion<br />Total Coin in \$314,278,811.82<br />Total Win \$18,194,415.35<br />Daily Win \$97,702.47 <br />Avg. Daily win per Machine \$83.29<br />Great mix of games <br />Heavy on IGT but your market demands for it <br />High poker play<br />More<br />Bally’s <br />WMS<br />Exchange games that are sub-par leased games<br />
23. 23. Denominations performing the best<br />
24. 24. The Ranking of the denominations are accordingly<br />Pennies<br />Quarters<br />Dollars<br />Nickels<br />Fives<br />Halves<br />Tens<br />Twenty Fives<br />Two Cents<br />
25. 25. Unit % vs. CI vs. Win<br />
26. 26. Conclusion<br />Predominantly poker market <br />Penny games are doing extremely well <br />In turn keeping your volatility of poker at bay <br />ADD:<br />More dollars<br />More \$10 games<br />Move your two cent games up or down but they are not doing good at two cents<br />More Halves<br />
27. 27. Participation Games<br />Participation games are a necessity <br />Fine line of having the correct amount on your casino floor <br />Additional percentage put on by the manufacturer must exceed your average house game by 1.5% to justify the cause of having that game on your slot floor <br />Games must be monitored carefully, consistently, and objectively in order to fully utilize the participations game to their fullest potential. <br />Machines that have fallen sub-par should be converted or changed out for newer models by the manufacturer immediately. <br />Manufacturers will never tell you when games are doing bad, so it’s up to the operator to monitor all participation games closely. <br />Quoted by other slot directors in the industry.<br />
28. 28. Jim Mahnesmith, Director of Slot Operations, Eastside Cannery Resort, Las Vegas:<br />“We see participation games as an asset as they help us keep our slots floor fresh. We can get the latest games and themes and move them on the floor quickly. And we find them easier to swap on and off the floor than those games we buy outright. We do hold participation games to a higher standard. We regularly monitor the performance of all our slots games; and while we don’t have a set number games must reach, we do expect participation games to do as good or better than those we own. Any participation game meeting this criterion will stay on the floor.We also like to use participation games from many different manufacturers. Each company has themes that perform well, so we go with a good mix of new themes rather than saturate the floor with one or a few manufacturers.”<br />
29. 29. Jerry Roed, Director of Slot Operations, Ellis Island Casino & Brewery, Las Vegas:<br />“We have no problem putting participation games on our slot floor if they make us money. I can’t understand how some casinos are removing all participation games.Right now, Wheel of Fortune is the biggest slot game on anyone’s floor. You’re going to bar a game like that? I realize that nobody wants to pay the percentage of revenue to the game’s manufacturer, but if you have a square spot on your floor, you have to fill it. Why not fill it with a game that your customers will enjoy?With participation games, you don’t have to pay \$10,000 to fill that spot. And if the game does exceed your house average by your desired percentage point, it can easily be removed and replaced.”<br />
30. 30. Robert Allen, Corporate Vice President of Slot Operations, Grand Casinos Minnesota, Hinckley, Minn<br />“We like participation games, but we are very sensitive about them. Since we are sharing the proceeds, participation games must earn a premium over the games we own to stay on the slots floor.In selecting participation games for our casinos, we look for those that add an extra dimension of play that you don’t get from ordinary machines. Right now, community bonus games like WMS’ Big Event, Press Your Luck, and IGT’s eBay games are generating a lot of play and are helping out meet our financial objectives. The theme is very important.WMS’ Happy Days is doing very good for us now, as some players as part of their entertainment and gaming experience want to forget the world and its problems and reflect on happier times – which this game does while providing a lot of fun.Immersion games also are generating interest. We’re doing well with The Wizard of Oz, which provides a truly entertaining experience. And we have high hopes for the Star Trek immersion game, which we just put on out floor.”<br />
31. 31. Leasing Machines<br />Reviewing your leasing numbers <br />I have to be honest I am stuck between a rock and a hard place, normally I am against leasing games. Not because of the cost associated but more so the feeling of not having anything at the end of your lease to show for but in your case you do profits <br />2.4 Million to be exact.<br />
32. 32. Over the last 241 days you have paid \$393,791.12 To Company X. <br />192 games equaling about 16% of your slot floor.<br />Per day you are spending \$2,353.72 <br />Per Year \$859,107.8 <br />If we take an average game costing \$20,000 <br />Depreciated over 5 years <br />In addition to \$15,000 worth of conversions over the life of the machine the total cost is<br />
33. 33. \$6,720,000 VS \$4,295,539<br />That you would have paid in lease fees, now granted at the end of the five years you do have a slot machine but with the way technology is growing you may just have an empty box to sell to your local slot refurb guy for \$100 with a container going to S. America. <br />To be honest I would try and slowly integrate some new game replacements in place of your leased games though at a slow rate possibly 5 per quarter. This way you are not getting hurt as bad if games are not producing and you are keeping more cash flow on hands for conversions and repairs.<br />
34. 34. Top 10 Game Themes<br />
35. 35. Location Analysis<br />The location is tied in very closely to the performance of the game.<br />Games that people will search out for like your WOF’s and Cash Wheels<br />
36. 36.
37. 37. Location Analysis cont.<br />Have legibility, and a certain flow, with explorable space that is discovered through a path of well-placed “bread crumbs” along an enjoyable (and clear) casino journey between integrated casino areas. Dr. David Kranes“visual space and design” <br />Desired flow patterns<br />
38. 38. What is the cost to the casino of a \$1 promotional coupon? <br />Basically promotional coupons is not that different from cash basically with the difference of taking into account what particular machine they play because of the hold. <br />The probabilities of the events of interest are:<br />EV = Event_Probability x Payoutsd = Σ Event_Probability x (Payout – EV)2<br />The sd of a \$1 bet on player hand is 0.90 x (+1 + .8) + 0.10 x (-8) = 0.82<br />
39. 39. Promotional Coupon<br />Cost Difference<br />The cost of free play can go down a little if:<br />You are targeting the right customers<br />Sending a black out of free play tickets will get you a net result worse then imagined but getting the right free play to the right individual will get you top dollar return on investment.<br />Through Mariposa you will be able to distinguish these factors resulting in a cost saving and player morale boost.<br />Different players choose different games making the cost of free play change. <br />IE. Video Poker Players VS. Video Reel Slot Players<br />
40. 40. Understanding consumer trends is vital to casino marketingGlenn Goulet is principal of Gaming Strategies Casino Journal November 2009<br />
41. 41. Conclusion<br />Market aggressively to your poker players<br />Monitor your lease/participation games<br />Negotiate wheel of Fortune fees<br />Make a target for overall daily win per EGM <br />Convert your two cents<br />Add more \$10/.50 Denominations<br />Continue leasing games with a slow to moderate influx of house games<br />
42. 42. Conclusion<br />Increase the numbers of Bally’s and WMS<br />Investigate location discrepancies<br />What is attributing to these fluctuations <br />Understanding promotional coupons<br />Trends in the casino<br />