Slots Stop Being "The" Vegas Moneymaker?

Quote: linked article

It’s also possible that the “stay-cation” phenomena has hit the gaming market and that may mean Las Vegas will have to work to tempt gamblers into the state. Vegas has lost its position as the gambling destination of choice – or only destination to choose. Now it has to compete with local casinos in many states as well as the growing phenomena of online gambling. When we can lose at slots in the comfort of our living room, Vegas no longer seems that special.

The article highlights other problems, but the bit about Slots has me thinking. Everyone knows that Slots are the big moneymaker for Casinos. What will Casinos do if it is true that eventually Slots just can't get the job done anymore? It could be that traveling to play slots, as opposed to table games and going to attractions, is just not going to be something that people do as much... perhaps a new paradigm indeed.

Article

Came across this browsing the "casino news" link to the right.

Quote: odiousgambit

Quote: linked article

It’s also possible that the “stay-cation” phenomena has hit the gaming market and that may mean Las Vegas will have to work to tempt gamblers into the state. Vegas has lost its position as the gambling destination of choice – or only destination to choose. Now it has to compete with local casinos in many states as well as the growing phenomena of online gambling. When we can lose at slots in the comfort of our living room, Vegas no longer seems that special.

The article highlights other problems, but the bit about Slots has me thinking. Everyone knows that Slots are the big moneymaker for Casinos. What will Casinos do if it is true that eventually Slots just can't get the job done anymore? It could be that traveling to play slots, as opposed to table games and going to attractions, is just not going to be something that people do as much... perhaps a new paradigm indeed.

Article

Came across this browsing the "casino news" link to the right.

Slots have been the big moneymaker for years. Casinos have gotten addicted to slots. Casino managers say, "Slot machines don't come in late or hung over; they don't take breaks; they don't ask for raises; they don't steal; and they don't form unions." But is the era of slots over or changing?

As more and more states opened casinos slots became less and less of a novelty. For my first corporate trip to AC I couldn't wait! One manager even had employees gave him "their" quarters to play and yes, he had to label them. By the fifth trip my boss asked why I wasn't "more excited about being in AC?" I replies, "Novelty has worn off after five years." Not yet the table game player I don't think I dropped a coin in the last trip as slots were just a money-sucker.

Surely I am not the only one!

Secondly, ever look at the average slots player? What is the median age? Slots have the same problem as Cadillac did in 1980--that median age seems to be somewhere between 65 and "deceased." Younger people want more and different action. Casinos need to evolve there. We see it already in 3-reel machines getting less and less space.

Quote: AZDuffman.

Casino managers say, "Slot machines don't come in late or hung over; they don't take breaks; they don't ask for raises; they don't steal; and they don't form unions." But is the era of slots over or changing?

Though there are benefits, there are also problems. Slots don't take breaks, but they do "break". They could ask for raises when they are leased, which the more popular ones usually are, and they can't learn different games, like dealers can. You spend tens of thousands of dollars for "The Weakest Link" slot when the TV show is popular, and who's playing it in 5 years? I always thought the argument that slots only have pluses and no minuses was pretty one sided.

There was an article that made the rounds on the East Coast in January called Surging Pa. slot-machine gambling surpasses N.J.’s for first time ever in December . The article failed to point out that in November the PA slot revenue came just 1.1% under the slot revenue for the Las Vegas strip.

In Macau they make something like 80% of their revenue from Baccarat. While a baccarat dealer may have a hangover, the Las Vegas strip only maintains 250 tables, vs. 5000 tables of other kind. Baccarat has exceeded the rest of the pit on two different months so far, and it is looking like it will be a regular phenomena.

NV statewide pit revenue is $3.4 billion over the last year, while slot revenue is $6.8 billion. But on the strip pit revenue is $2.7 billion and slot revenue is $2.8 billion.

Personally, I think that the next resort that MGM MIRAGE builds will have a casino without slot machines. I believe that many people simply would prefer a quieter casino with music over the claxons of slot machines.

For their first two weeks, ARIA casino made $2.5 million per week on their 2000 slot machines and their 21 baccarat tables were earning a phenomenal $1 million per week per table.

Personally, I think they would have been better off putting in a room with 500 high limit slots. A year from now ARIA would have the cachet of being the place to go where you can listen to classical music instead of penny slots.

If not ARIA, then ENCORE would have been a good place to try the experiment. People could still play slots at the WYNN. When they opened ENCORE they put an additional 91 tables and 800 slot machines, but the combined casinos have never exceeded last year's revenue at the WYNN casino alone. They should have just left the 800 slots out, and then ENCORE would be famous for the one place you can play games without listening to slot machines.

I wonder if kids even learn the phrase One Armed Bandit anymore? After all, there are no levers to pull, just that "easy button". So things do indeed change. Real gamblers used to disdain slot machines, then along came Reel Gamblers and now the Reel Gamblers disdain slot machines that lack themes, glitz, glamor and glory. When I first went to Las Vegas the only really good thing about slot machines were the Change Girls and Cocktail Waitresses. Now Change Girls are long gone and quite frankly the CWs will soon only deliver drinks as orders will be placed via the slot machine.
So when we refer to "change" and slot machines, we are not only referring to quarters. Slots predominate now. Yes, I know: its utterly disgraceful. Heck, even casino managers now often come from the Slots Department, a backwater area of a casino in the days of old wherein slots were decorative doodads they had around the casino in case a craps player wanted his broad to get lost for awhile.

Blackjack tables increased after Thorp's Beat The Dealer was on the best seller list. Yet all along, slot revenue kept climbing.

And now there is real competition: online wagering and Indian Casinos. One casino went full-electronic in their poker room but soon gave up on that notion. The "buzz" may be better in a Vegas casino but many seem to think that the "buzz" is good enough at an Indian casino. Poker games across America occasionally get robbed or raided, but it shows there is a real market in non-Vegas areas.

Perhaps all Vegas ever had to offer was escape. Escape dry counties, escape local law enforcement, escape the Bible belt laws against sinful gambling. Well, players may still enjoy quick trips to Vegas, but its not a monopoly anymore.

Demographics and slot players. Yes, most are elderly but a distinct portion of youthful people go out and play the machines. Its become an in thing to do.

Quote: FleaStiff

Perhaps all Vegas ever had to offer was escape. Escape dry counties, escape local law enforcement, escape the Bible belt laws against sinful gambling. Well, players may still enjoy quick trips to Vegas, but its not a monopoly anymore.

Demographics and slot players. Yes, most are elderly but a distinct portion of youthful people go out and play the machines. Its become an in thing to do.

Well, Vegas really did only come on big after the American Frontier closed and the nation was settled. Perhaps every nation need the "morality car wash" Vegas offers. And that could be a big reason the "Family Friendly" Vegas was an early 1990s phenomenon.

I read a review on some fiction book whose plot was the USA became polorized as the northern states population converted to Islam and the southern states drew in all the christians from up north. Somehow this became law (remember it is fiction.) Nevada was a "free state." The review said, "Even in an impossible scenerio work of fiction, Las Vegas can be nothing but Las Vegas."

As to youthful people on slots, they are there but notice what they play. The younger players want more acton and animation while it is the older ladies playing 2 and sometimes 3 reel slots.

It seems to me that Harrah's, and northern strip and downtown will still be hurting in five years. I know that they may close the slot club at Lake Tahoe Horizon's Casino while keeping the larger hotel and casino, Montbleau Resort across the street open. The competition with slot machines in Indian Casino in Sacramento region is just too intense.

All of the recovery on the strip in the last half year has been baccarat

Quote: pacomartin

All of the recovery on the strip in the last half year has been baccarat

Does this mean whales from Asia or that Buyout Beneficiaries played baccarat with their millions? Perhaps the owners of Vulture Funds who bought up all those distressed condos played baccarat?

Quote: FleaStiff

Does this mean whales from Asia or that Buyout Beneficiaries played baccarat with their millions? Perhaps the owners of Vulture Funds who bought up all those distressed condos played baccarat?

I don't know, because information on whales is one of the most closely guarded secrets in Vegas. When you see $1.3 billion in blackjack play in one month, you have to believe it is a lot more than just a few Asian high rollers.

Quote: FleaStiff

Perhaps all Vegas ever had to offer was escape. Escape dry counties, escape local law enforcement, escape the Bible belt laws against sinful gambling. Well, players may still enjoy quick trips to Vegas, but its not a monopoly anymore.

When I told colleagues and friends two years ago I was going to Vegas, many of them were surprised. They all said a variant of "I dind't know you liked to gamble."

Well, I do like to gamble, and that was a big reason for going to Vegas. But hardly the only one. I was also itnerested in the various attractions the city and surroundings have to offer. And once I got there I was taken aback by the sheer scale of things. The Strip is built on a grand scale. Not only are the hotels huge, but everything else is, too. The area attractions surpassed my expectations. I was also surprised by the many free attractions, like the Bellagio fountains or the architecture of both Paris and Caesars.

I could go elsewhere to gamble, surely. But 1) no other place is Vegas and 2) other places are more expensive to get to from Mexico City

The final numbers are just in:
Wynn/Encore made $161.593 million in slots in 2009, up from $158.991 in 2008 for just the Wynn.
An increase of $2.602 million or 1.64%

That's virtually no increase for 800 slot machines. I think they would have done better in the long run if they just left the machines out. People can still play them over at the Wynn, and the Encore casino would be unique.

Of course that might just be an artifact of the recession.
Table games went up to $443 million form $436 million with the additional 85 tables. That's only 2.5%.

I'm a bit confused by this Wynn/Encore slots posting.

Is the Encore relatively new? Do you think the Encore cannibalized the Wynn's customer base?

If those 800 slot machines didn't do well, perhaps there is something about the Encore that attracts the more serious gamblers rather than the Slot Feeders? Or perhaps it just takes some time to develop a customer base?

Note:
Upthread there was some post about classical music rather than the kaching of slot machines.
Yes, I'd probably love such a casino. The canned Musak at blaring decibles is bad enough and the din of slots (also soundtracked perhaps) is fun for about five minutes only. The trouble is that casinos know the "sights and sounds" is what makes gamblers shift from conservative, Basic Strategy types on the PassLine to being bettors who are all over the Prop Bets.

If anyone would have made a slot-less casino, it would have been Steve Wynn. Encore was probably our last, best chance for this. I was really hoping he wouldn't denigrate the casino with "Jackpot Party" penny slots. Would have been much classier.
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It was too hard to resist putting in slots. They are like reverse ATMs. Too easy to put in and too tempting to leave out.
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A slot-less casino would be a "noble experiment" for a adventurous operator to try. I don't think we'll ever see it, though.
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In this economy, how bad could you do with just tables? I've heard Encore has a very nice "Sky Casino" on the top floor of the hotel. This may be a slotless area.

Quote: pacomartin

The final numbers are just in:
Wynn/Encore made $161.593 million in slots in 2009, up from $158.991 in 2008 for just the Wynn.
An increase of $2.602 million or 1.64%

That's virtually no increase for 800 slot machines. I think they would have done better in the long run if they just left the machines out. People can still play them over at the Wynn, and the Encore casino would be unique.

Of course that might just be an artifact of the recession.
Table games went up to $443 million form $436 million with the additional 85 tables. That's only 2.5%.

Someone check my math but using the numbers from this web site 158.991 million divided by
2100 slots = $75,710. And 2.602 million divided by 800 slots is only $3253.

So adding slots to Encore was not even worth the time and trouble.

Quote: Slowride

Someone check my math but using the numbers from this web site 158.991 million divided by
2100 slots = $75,710. And 2.602 million divided by 800 slots is only $3253.

So adding slots to Encore was not even worth the time and trouble.

You're math is correct, but it's human nature that is the question. The question is without the additional slots would people have wandered down the hallway back to the Wynn, or not played at all, or gone to another casino. And if Encore's casino was slotless, would it attract big players who might otherwise be gambling at the Palazzo or Aria.

Originally, the state required that the bets be a minimum of $500 in private casinos like the Sky Casino or the Paiza Room. I don't know if they have a slot machine in there, but they would probably set up one if someone asked. I've always assumed that these gamblers played strictly baccarat. One of the photos of the casino shows only a baccarat table.

I sort of think of the old style craps and blackjack players as craving the attention of playing in public.

Slots were the number one moneymaker in Nevada, but now there are 193K slots in the state, one for every 13 people. They are just too common anymore, and there is no attraction to playing them by the well-heeled.

Quote: From last year

Wynn/Encore made $161.593 million in slots in 2009, up from $158.991 in 2008 for just the Wynn.
An increase of $2.602 million or 1.64%

That's virtually no increase for 800 slot machines.

Number of Table Games: 145 in Wynn, and 95 in Encore
Number of Slots: 1,840 in Wynn, and 780 in Encore

Slots at the Wynn dropped even further in 2010
They averaged $169 per machine day in 2009, and that dropped to $164.

So for 2010 overall slot revenue is $156.833 million or slightly lower than the return in 2008, when there was 780 fewer slot machines.

Overall casino revenue went to $534.286 million in 2010, from $505.779 m in 2009.

So the big question is what would have happened if the Encore had opened with no slot machines at all? Would the determined players have just walked to the Wynn? Would a slot free environment have attracted even more high rollers to the table games?