Gaming Machines
| Electronic gaming machines – a profile on game selection and placement. By Andrew MacDonald Senior Executive Casino Operations, Adelaide Casino, 1996 |
Casino Analyser Reference Slot |
Introduction | Utility of Games | Price Sensitivity | Denomination and Placement | Conclusion |
Denomination choice can only be achieved by market segmentation and analysis. Based upon price alone and with products being virtually identical the market will sensibly gravitate to the lower priced option.
It is important then to differentiate products and analyse, what the market will bear, competitive activity, price/return perceptions and the overall strategic goals of the operation. Thus in a monopolistic situation with high demand levels it would not necessarily be appropriate to offer one cent and two cent games. However in a competitive market, an operator is less able to direct demand and must be willing to provide what the market requires.
On a highly simplistic basis the machine player market is pyramidal. A large number of people at the “bottom” are prepared to pay a low “price” for gambling as entertainment. Moving up the pyramid the number of players is fewer and their propensity to gamble higher. These players are the machine “gamblers” with profiles closer to table game players in many ways than to the bulk of the machine market.
Sub-segments clearly exist in all areas, with frequency of visitation not necessarily linked to the above. Thus while $1 players are important, frequently visiting five cent players may be as well. The Pareto effect is also quite evident within the machine market where roughly 20% of the players generate 80% of the revenue.
Thus in terms of determining the optimal denomination mix for an establishment, whilst there is no simple answer of “x” percent five cent machines; “y” percent ten cent machines, there is the sound business principle of considering the market you are in and adopting a minimum “price” which suits; and then structuring from that base according to market size. Thus in a highly competitive, local market, 60% to 80% of machines may be “low (base) denomination” with the balance being “high denomination”.
Placement and layout of gaming machines within a facility is also a critical issue and is much like the product placement of items within a supermarket. Impulse purchase items are placed near entry/exit points with essential items or consumables as far away as possible to encourage and direct users past other items. The analogy of the supermarket is “milk at the back and sweets and tabloid magazines at the checkouts”.
For the gaming machine venue this may mean “low” denomination machines at the rear with higher denomination jackpot games or novelties like oversized machines (Big Berthas) in high traffic areas. Provided activity can still be created as a first impression of the facility. As machines on ends of rows often perform well due to higher comfort it may be that these machines could have higher hold percentages at the same denomination. Smaller carousels whilst space inefficient in comparison to long rows or banks of machines offer greater comfort and opportunity for social contact. Thus players may gravitate to these and consequently revenue may be higher.
Facilities for players such as Cafes, restaurants, bars, toilets, change outlets and lounges should also be positioned to maximise revenue generating opportunities.
High denomination machines should be situated to maximise player comforts (close to coin outlets and toilets) or if these are $1 novelty games in areas with high traffic flows.
Other factors which should be considered when designing a gaming machine layout are: machine height, signage and machine numbers in distinct areas. Gaming machines are often available in three heights in Australia. “Low Boys”, (0.9m), “Casino Box” (1.17 m) or “Club Box” (1.51m) above their bases.
“Club Box” machines are ideal for walls whereas “Low Boys” or “Casino Box” machines may be used more centrally as these afford clearer views across the gaming floor (particularly of other gaming machine product). I am not suggesting here that all machines should be low, however for visual reasons it is desirable to break up an area while at the same time allowing clients to see other machines behind banks or carousels.
Signage within machine areas should be designed to create atmosphere, attract and inform the machine player. Ideally players should easily be able to identify the games minimum denomination and if a progressive or mystery jackpot is included the amount and type of jackpot as well as what they need to do to win.
Signage should where-ever possible (subject to Heritage constraints) be “electric” adding to the vibrance and atmosphere of the area.
If discrete areas of machines exist it is also useful to remember that creating a “winning” atmosphere requires a critical mass in terms of play and thus machine numbers. It appears that approximately 40 machines is the minimum necessary to stimulate this.
Other subjective factors which need to be assessed when considering an individual gaming machine are; Top Box and belly panel artwork; game graphics and sound.
These are entirely subjective, however, it is important to recognise that trial will be stimulated if a player is initially attracted to the game and this is where artwork and the use of sound comes in. Distinctive colours and imagery will catch the eye while game sounds will also attract interest. The game itself and its graphics will however ultimately determine a games success. The graphics need to be easy to recognise and allow for comfortable viewing for periods of up to two to three hours without creating headaches. In some cases brand is also an important aspect from a players perspective.
Difficult to recognise symbols or characters combined with glaring colours are all things which should be avoided.
