Analysis Detailed information regarding each manufacturer. The sub-par mentioned is calculated by (Total CI/# of games= Average Coin in for all games) $314,278,811.28/1173= $267,927.37
IGT Dominate manufacturer on the slot floor. Analysis shows your casino has a very strong video poker clientele bringing in 23% of play on your casino floor. Of your top 100 games 45% are represented by poker games. This market should be closely analyzed for player retention.
ARISTOCRAT Win = $786,310.06 (Average 162 days) 63 Total Games 5.38% of market share Top Game TikiTourch There are multiple sub-par games producing less than favorable numbers on your casino floor.
Atronic Win = $356,732.11 (Average 154 days) 29 Games 2.48% of Market Top Game-- Sphinx 76% Leased games To Improve this area Convert GYPSY FORTUNE, MYSTERY MASK, DANCING SPIRITS, DEEP BLUE DOLLARDS To SPHINX
Bally’s Win $2,127558.53 (Avg 154. Days) 119 Games 10.14 % Market Share 71% leased Games Top Games CASH WHEEL-DBL JP
Bally’s cont. Great numbers on your floor Most of your top producing machines are participation The difference is being subsidized based on play. 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.
IGT Win $14,151,587.70 (Average 169 days) 815 Games 69.48% Market share 20% Leased games Top Games Wheel of Fortune Triple Play/Five Play Poker
IGT cont. 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. Average Coin in of house games is $244,620.55 RWB machines are doing great but you only have 3 games. Why? This also is for Top Dollar, Triple Dbl Dollar, and Double Gold.
IGT cont. All Games have 214 days, are leased, and producing below par Replace ThemeCoin InNet WinWin Per Day GET EGGCITED $110826.89 $5357.87 $ 25.03678 SUPER TIMES PAY $125625 $13619.98 $63.64477 GEMS WILD-TILES $141403.85 $7099.95 $33.17734 TRIPLE LUCKY 7'S $145813.5 $4348.23 $20.31883 BETTI THE YETTI $166388.94 $3905.46 $18.24981 TRIPLE DIAMOND STRIKE $169240.5 $10131.2 $47.34206
Konami Win $468,456 (Avg. 134days) Total Games 41 Market Share 3.5% 32% leased Games Top Games SUPER DEEP SEA SEVEN SUPER RUINS OF GOLD DIAMOND SOLITAIRE DELUXE SUPER GOLDEN JACKPOT FIVETIMES
Konami cont. Manufacturer has great potential Enough house games to supply the demand of your customers. Convert some of the older house games to more of your higher revenue games. Solistic Gold African Diamond Rawhide Mystery Change out progressive bank 04-610
WMS Win $1,885,878.39 (Avg. 196 days) Total Games 106 9.03% Market Share 17% Leased Games Top Games ALL THAT GLITTERS (House) EGYPTIAN RICHES- BIG EVENT GOLDFISH (House)
WMS cont. Games placed in a better location 600/602/605 are not high traffic area and should be utilized with your house games. In addition to converting some of the older style Jackpot parties to the newer jackpot party themes that are available. More X marks the spot Rich little piggy’s
Conclusion Total Coin in $314,278,811.82 Total Win $18,194,415.35 Daily Win $97,702.47 Avg. Daily win per Machine $83.29 Great mix of games Heavy on IGT but your market demands for it High poker play More Bally’s WMS Exchange games that are sub-par leased games
Conclusion Predominantly poker market Penny games are doing extremely well In turn keeping your volatility of poker at bay ADD: More dollars More $10 games Move your two cent games up or down but they are not doing good at two cents More Halves
Participation Games Participation games are a necessity Fine line of having the correct amount on your casino floor 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 Games must be monitored carefully, consistently, and objectively in order to fully utilize the participations game to their fullest potential. Machines that have fallen sub-par should be converted or changed out for newer models by the manufacturer immediately. Manufacturers will never tell you when games are doing bad, so it’s up to the operator to monitor all participation games closely. Quoted by other slot directors in the industry.
Jim Mahnesmith, Director of Slot Operations, Eastside Cannery Resort, Las Vegas: “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.”
Jerry Roed, Director of Slot Operations, Ellis Island Casino & Brewery, Las Vegas: “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.”
Robert Allen, Corporate Vice President of Slot Operations, Grand Casinos Minnesota, Hinckley, Minn “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.”
Leasing Machines Reviewing your leasing numbers 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 2.4 Million to be exact.
Over the last 241 days you have paid $393,791.12 To Company X. 192 games equaling about 16% of your slot floor. Per day you are spending $2,353.72 Per Year $859,107.8 If we take an average game costing $20,000 Depreciated over 5 years In addition to $15,000 worth of conversions over the life of the machine the total cost is
$6,720,000 VS $4,295,539 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. 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.
Location Analysis cont. 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” Desired flow patterns
What is the cost to the casino of a $1 promotional coupon? 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. The probabilities of the events of interest are: EV = Event_Probability x Payoutsd = Σ Event_Probability x (Payout – EV)2 The sd of a $1 bet on player hand is 0.90 x (+1 + .8) + 0.10 x (-8) = 0.82
Promotional Coupon Cost Difference The cost of free play can go down a little if: You are targeting the right customers 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. Through Mariposa you will be able to distinguish these factors resulting in a cost saving and player morale boost. Different players choose different games making the cost of free play change. IE. Video Poker Players VS. Video Reel Slot Players
Understanding consumer trends is vital to casino marketingGlenn Goulet is principal of Gaming Strategies Casino Journal November 2009
Conclusion Market aggressively to your poker players Monitor your lease/participation games Negotiate wheel of Fortune fees Make a target for overall daily win per EGM Convert your two cents Add more $10/.50 Denominations Continue leasing games with a slow to moderate influx of house games
Conclusion Increase the numbers of Bally’s and WMS Investigate location discrepancies What is attributing to these fluctuations Understanding promotional coupons Trends in the casino