Slot machine makers aim to ring up sales at expo
LAS VEGAS — When Michael Jankoviak went shopping on Wednesday, he played the classic video game Centipede, "shot" at ducks flying out of a marsh and petted the cat from "Breakfast at Tiffany's."
He also studied the size of cabinets, inquired about computer network capabilities and gauged less tangible factors such as volatility and name recognition.
Jankoviak, director of slot operations at The Meadows in Washington County, perused hundreds of slot machines on display at the 11th annual Global Gaming Expo in Las Vegas, the largest casino trade show in the world. About 440 vendors, from AC Slots to Zambelli Fireworks, set up shop at the Sands Convention Center in hopes of getting business from more than 24,000 attendees.
The expo was not open to the public.
Displays by the big slot manufacturers -- IGT, Bally's Technologies, WMS Gaming, Konami and Aristocrat -- dominated the floor. Jankoviak let me tag along on his tour of IGT's offerings with Andre Burnett of IGT and Kate Benedetto, slot technology manager for the Meadows.
The displays were much like a casino slot area on a busy night -- loud, crowded and full of distractions. Many slots rely on "immersion," making the player part of the game through surround-sound speakers, chairs that move and vibrate with the action of the game and brilliant high-definition videos, both on the "reels" and on large screens above the machines.
Jankoviak said seeing how the games are played is an important part of deciding what slot machines to consider getting.
"I'm a player. I play slots," he said. "If (a game) intrigues me, then it's going to carry over." He said he considers the demographics of Meadows slot players and what themes appeal to them.
Casinos can buy or lease slot machines. "Premium" machines, often the newest models built on a theme such as "Breakfast at Tiffany's" or "Ghostbusters," are leased for a daily fee.
Jankoviak said the machines he bought last year had an average purchase price of $18,000.
He said IGT's "Breakfast at Tiffany's" machine, featuring video and characters from the 1961 Audrey Hepburn movie, might resonate with the Meadows' slot players, whose average age is 62.
Like many games, "Breakfast" includes bonus rounds that offer added payouts. In one, a lifelike cat struts across the screen, and payouts are awarded as the player pets it. The machine sets the payout amount beforehand, but the interaction aims to increase players' enjoyment of the game -- and the amount of time spent playing.
The slots at the expo were set up for free play. Burnett and other company representatives had keys that allowed them to access bonus rounds immediately, rather than make potential customers wait for one to come up. Only demo models have that function, said Jaclyn March of IGT public relations.
After "Breakfast," Burnett led Jankoviak to "Big Buck Hunter Pro," which sports a plastic rifle for use during bonus rounds. When they qualify, players "shoot" at wild animals shown on a high-definition screen above the game.
Jankoviak hit a few ducks during his hunt and "won" credits. Burnett said that while shooting accurately is a skill, the machine determines how much a player will win during a bonus. The amount does not depend on the number of ducks shot.
Atari Centipede, another game harkening back to the past, has three buttons the player pushes to stop each video reel. A bonus round brings up a duplicate of the video game, with the player shooting figures on the screen and using a joystick to dodge attackers.
Jankoviak must pay attention to the size of machines. He said a casino specifies how much floor space slots will occupy, and any increase must be submitted to the state. He said he had to notify the state when replacing a machine with one that was 6 inches wider.
One selling point is that some games use the same cabinet as others; for example, "Breakfast at Tiffany's" fits the same cabinet as "Sex and the City."
Jankoviak noted the "anticipation" factor of a slot whose final reel seemed to take an extra split-second to display on the screen.
He also inquired about "volatility," the number and frequency of generous payouts. When ordering machines, casinos tell manufacturers what overall payout percentage -- the amount of money bet that's returned to players over the long run -- to install.
Jankoviak will meet with representatives of other Cannery Casinos operations before deciding what to buy. The new machines probably won't reach the casino floor for several months.
Gambling at the Carnegie
Remember to stop by the Downtown branch of the Carnegie Library on Thursday for a brief talk about gambling strategies.
I'll give a free presentation, "Betting to Win: Your Guide to Casino Gambling," from 12:15 to 1 p.m. at the library, 612 Smithfield St.
It's part of the library's Thursday business program series.
Money trail
Slot players lost $45.9 million in Pennsylvania's 10 casinos during the week ended Oct. 2, the Gaming Control Board reported this week. That's up from $45.3 million in the comparable week last year.
The state takes 55 percent of that amount in taxes. The amount lost by players is known as "gross slot revenue" -- the difference between total bets and total payouts.
Statewide, slot machines have an average payout rate of 90.1 percent since the fiscal year started in July. For every $100 bet, the machines return $90.10.
Payout rates for Western Pennsylvania casinos:
- 89.84 percent: Rivers; gross slot revenue for the week was $5.37 million, up from $4.75 million last year.
- 89.71 percent: The Meadows; gross slot revenue for the week was $4.57 million, down from $4.8 million last year.
- 90.44 percent: Presque Isle in Erie; gross slot revenue for the week was $3.12 million, down from $3.28 million last year.
QUESTION OF THE WEEK
How much of a casino's revenue comes from gambling?
About 69 percent, according to the American Gaming Association. The association said commercial casinos had $49 billion in revenue last year. Thirteen percent of the total came from food and beverage sales, and 10 percent came from hotel revenue.
