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LuckyPhow
LuckyPhow
Joined: May 19, 2016
  • Threads: 50
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Thanks for this post from:
Gialmere
October 1st, 2019 at 7:59:04 AM permalink
IMHO, this article spills the beans:
House Edge Bites Back

The author examines how casinos have tried to increase revenue by increasing the PAR (average return as determined by a setting on the slot machine). The article chastises casinos for believing players cannot detect when the payout odds against them increase. Apparently, casinos have come to believe this continues to be an increasing source of revenue.

This article examines state (Iowa) data from the early 1990s to most recent (2017), and it suggests casinos have been deceiving themselves.

Quote:

The idea that the gambler can’t perceive the difference in the house advantage—or won’t notice the many methods of nickel-and-diming—is the single most destructive line of reasoning going, at a time the industry desperately needs to start thinking both differently and accurately.



For many WoV members, the story this article tells will sound like someone preaching to the choir. You know. The author know you know. But, the casinos? Maybe not.
DRich
DRich
Joined: Jul 6, 2012
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AxelWolftringlomane
October 1st, 2019 at 8:35:53 AM permalink
My belief is that casinos do realize it but like anything everyone is trying to protect their jobs and the way to do that is to make more money now. They are not concerned about long term because the slot manager won't be there in two years if he doesn't make the money now.

There is also a big differnce in regional casinos (local casinos) and tourist casinos. On the Las Vegas strip most of your customers are once or twice a year. Those players will never be able to tell the difference between a 10% machine and a 12% machine. They just don't play enough to feel the difference. Locals casinos customers will definitely notice the difference because they play about twice a week.
Living longer does not always infer +EV
Wizard
Administrator
Wizard 
Joined: Oct 14, 2009
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  • Posts: 21609
October 1st, 2019 at 10:09:26 AM permalink
Quote: DRich

My belief is that casinos do realize it but like anything everyone is trying to protect their jobs and the way to do that is to make more money now. They are not concerned about long term because the slot manager won't be there in two years if he doesn't make the money now.



I agree 100%.
It's not whether you win or lose; it's whether or not you had a good bet.
ChumpChange
ChumpChange
Joined: Jun 15, 2018
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October 1st, 2019 at 12:35:25 PM permalink
One arm bandits.
tringlomane
tringlomane
Joined: Aug 25, 2012
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October 2nd, 2019 at 12:12:30 AM permalink
Pretty well written, but i don't think it considers all the factors. He seems to overlook increased competition with the Iowa numbers as Iowa was the FIRST riverboat state, iirc.

And when hold goes up, sure thing volume goes down because John and Jane Q. Public brought $300 to the casino that night and don't plan to lose anymore than that!

And also, younger adults are more entertained with their phones than gambling. How many people now are itching to go gamble when they turn 21?

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