[toc]It seems like a lifetime ago, but it’s only been just over a year since the first skill-based casino game, GameCo’s Danger Arena, made its debut at Caesars’s three Atlantic City properties in November 2016.
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Since then, skill-based casino games have proliferated across the country, driven by the aforementioned GameCo, and a second skill-based company, Gamblit Gaming.
Several other companies have made some inroads on the skill-based gaming front, including gaming giants like Konami and Scientific Games. By and large though, it’s been GameCo and Gamblit that are leading the charge.
In just over a year, the two companies have placed their skill-based games in over two dozen casinos across the country.
Here is a rundown of where both companies’ skill-based casino games can currently be found.
GameCo
To date, GameCo has placed its VGMs in seven US casinos, mainly on the East Coast.
Those casinos are:
- Caesars AC
- Bally’s AC
- Choctaw Casino
- Foxwoods
GameCo also has machines in two St. Maarten casinos, Jump Up Casino and Casino Royale, as well as Mundo Dreams Casino in Puerto Varas, Chile.
Because they have a slower game speed, skill-based games aren’t generating the same handle as traditional slot machines. A round on a skill-based game takes 5-10 times longer to play than a slot machine. So, even though they have occupancy rates on par with slot machines, they’re not the revenue generators slots are.
Because of this, GameCo machines have been removed from the three Caesars AC properties and more recently Borgata.
GameCo is trying to counteract this in two ways:
- Educating casinos on the value of a new customer.
- Increasing the bet frequency of its products.
In an October interview, GameCo CEO Blaine Graboyes told Play USA:
“We just finished a report [where] we estimate that the lifetime value of a net new casino gamer is $35,000 – $40,000. That is a massive opportunity for our industry to grow the player base and the revenue opportunity.
“It’s really important to start to look at how are we going to change the decline and stagnancy around gross gaming revenue in general and slot gaming revenue in particular, and right now I don’t see a lot of other products in the market that have the opportunity to do that.”
During the interview, Graboyes also said that the next-gen GameCo machines will have bet frequencies similar to slot machines.
Gamblit Gaming
Compared to GameCo, Gamblit was fashionably late to the skill-based party.
Free Gaming Slots
Gamblit first skill-based game launched at Planet Hollywood in March 2017.
GameCo may have been first to market, but its Gamblit games, like the Model G tables and TriStation cabinets, that are spreading like wildfire.
These games can be found at 12Nevada casinos, and have been picked up by casinos in Oklahoma, New Mexico, and California.
Nevada locations
- Planet Hollywood (Model G™ Table & TriStation™)
- MGM Grand Casino Floor (Model G™ Table & TriStation™)
- MGM Level Up (Model G™ Table & TriStation™)
- The Venetian (Model G™ Table & TriStation™)
- Caesars Palace (Model G™ Table)
- Paris (Model G™ Table)
- The LINQ (Model G™ Table)
- Boulder Station (Model G™ Table)
- Bally’s (Model G™ Table)
- Flamingo (Model G™ Table)
- Harrah’s Las Vegas (Model G™ Table)
- Harrah’s Lake Tahoe (Model G™ Table)
Other locations
- Choctaw Casino in Durant, Oklahoma (Model G™ Table)
- Downstream Casino in Quapaw, Oklahoma (Model G™ Table)
- Route 66 Casino in Albuquerque, New Mexico (Model G™ Table)
- Tonkawa Casino in Tonkawa, Oklahoma (Poker Live!™ Felt Table)
- Native Lights Casino in Newkirk, Oklahoma (Poker Live!™ Felt Table)
- Harrah’s Resort Southern California (Poker Live!™ Felt Table)
Gamblit games can also be found on three cruise lines:
- Celebrity Equinox Cruise
- Ruby Princess Cruise
- Grand Princess Cruise
The future
Skill-based games are still in their infancy, but it’s safe to say they’re going to continue to make headway for the following reasons.
- The next-gen games GameCo and Gamblit introduced at G2E have yet to find their way onto casino floors.
- Because the industry is in its nascency, companies like GameCo and Gamblit are still tinkering with and improving the user experience.
- Education efforts are paying dividends. Casinos are realizing the value these games possess beyond handle, and customers are becoming more familiar with these types of gambling machines.
All in all, skill-based casino games look like they’re here to stay.
Skill-based slot machines, the subject of much buzz and speculation over the last couple of years, have officially arrived in a Las Vegas casino.
The first skill-based slot machines in Las Vegas can now be played at Planet Hollywood, and we’ve got all the details about what casinos are hoping will help deal with “The Millennial Problem.”
Welcome to Las Vegas, you sexy, skill-based vixens, you.
The Millennial Problem, of course, is the belief on the part of casinos and slot machine makers that traditional slots are “losing their luster,” especially with younger customers, specifically, millennials. While the number of millennials visiting Las Vegas is going up (roughly 34 percent of the city’s 43 million visitors in 2016 were millennials, an increase of 24 percent since 2015), casinos cite a decline in slot machine play as evidence millennials raised on video games don’t find traditional slot machines compelling.
There’s some debate about whether The Millennial Problem actually exists, but damn it, casinos are out to solve it whether it exists or not. That’s where skill-based slot machines enter the picture.
Why, look, here’s one now. This is one of three skill-based slot machines at Planet Hollywood.
If you’re a millennial, your nether region should be throbbing right about now.
Of the three games being tested on the casino floor at Planet Hollywood (the machines have to pass a field trial before regulatory approval can be granted), two are Gamblit Poker and the third is a game called Cannonbeard’s Treasure.
The first distinctive thing you notice about these skill-based games is you can’t play with yourself. Yes, we know how that sounds, we are a snark-based Las Vegas blog.
The machines can accommodate up to four players each, but not individual players.
It should be noted the machines currently won’t take loyalty club cards, in case you’re into that kind of thing.
Here’s how they work.
Gamblit Poker is a variation of (wait for it) poker. Players “grab” cards from a common pool of cards, building a hand of five cards. The player with the best hand wins the jackpot, the amount of which is determined by the machine.
Cannonbeard’s Treasure is a variation of blackjack. Players, again, grab cards from a pool of cards. The cards are added up, and the player whose card total is closest to the target number (without going over) wins the pot.
Here’s a look at how the simulated game play looks on the machines, courtesy of us risking our neck to get video of how the simulated game play looks on these machines.
A key element of skill-based machines, and what differentiates them from traditional slot machines, is customers aren’t playing against the machine (or a dealer), they’re playing against each other. The outcome is based upon skill, rather than chance alone.Mind, meet blown.
So, let’s dig a bit deeper into the pros and cons of Gamblit Poker and Cannonbeard’s Treasure.
First, a big pro of these games is the low price to play. There’s a $2 Gamblit Poker and Cannonbeard’s Treasure is also $2. There’s also a $5 Gamblit Poker.
Second, the competitive and social aspects of skill-based games are undeniable. Traditional slot machines are solitary endeavors. With skill-based games, you can hang out with friends and do your best to relieve them of their hard-earned cash.
Observing people play skill-based slots, it’s easy to see how one’s competitive instincts can kick in, keeping players engaged and playing longer than they might otherwise.
Interactivity certainly does seem to be more appealing than staring blankly at a screen while repeatedly hitting a button.
This is Cannonbeard’s Treasure. They had us as “each player gets not one, but two, cup holders.”
The biggest twist in this whole story, though, is millennials aren’t actually the ones playing skill-based games, at least not the ones at Planet Hollywood. Millennials are curious about the machines, but they’re hit-and-run looky-loos, rarely playing more than $20 a pop.
Truth be told, we didn’t see a ton of play on these machines at all. But when people played, they weren’t millennials. Who’s playing skill-based slots? Slot players. That’s right, older players who already enjoy slot machines. A representative of Gamblit confirmed millennials aren’t the majority of those playing skill-based slots.
That ought to give casino operators more than a few restless nights.
While play on the machines appears light, there’s obviously going to be a period when awareness of the games has to be raised. At Planet Hollywood, a small sign tells customers they can actually gamble on these tables. Most would mistake them for similar interactive, touchscreen tables like those in several Las Vegas lounges like Ignite at Monte Carlo, Encore Players Lounge at Wynn and iBar Ultra Lounge at Rio.
The new games are simply lost among the crop of current slot machines, many with massive vertical screens.
Not gonna lie, we’re missing you a little right now, Quark’s Bar.
Those who did play the games seemed to spend a lot of time just sitting and drinking and talking. Which is great if you’re trying to increase revenue from drinks, but not so much if you’re trying to make money from gambling. At a table game, dealers and other players keep the pressure on to make more bets. The social aspect of skill-based games actually distracts from the gambling.
A critical downside to these games, though, has to do with perceived value.
As players make bets, the machine serves up the amount of the jackpot they’re trying to win. In the vast majority of cases, the jackpot is less than the players are contributing.
For example, we saw a couple sit down to play Gamblit Poker. They each bet $5, for a total contribution of $10. The jackpot was $7.50. They had fun playing, but the next pot was the same, ditto the one after that. It didn’t take the couple long to realize they were getting dinged a $2.50 “rake” with each passing hand.
The rake accumulates, similar to the jackpots in progressive machines. Part of the rake goes to the machine manufacturer, and the manufacturer has a revenue sharing agreement with the casino. We’ve yet to see any published information about the house edge for these games.
While the potential for larger jackpots is there (the max jackpot on the $5 machine is $1,200, $480 on the $2 machine), the couple cashed out and dashed. A Gamblit rep says the biggest jackpots happen several times each hour, but the perception problem means many players won’t be sticking around that long.
Presumably, though, the more play the machine gets, the more frequently the larger jackpots (considerably more than what the players are betting at any time) will hit.
There are some other peculiar aspects to these skill-based games.
For starters, we were told there will always be an attendant with the games. Why? Because they have to monitor the play to avoid collusion and bullying. We were told there’s the potential for experienced players, or teams, to take advantage of novice players. Essentially, there’s room for cheating.
A smaller annoyance, but one that’s undeniable, is the table surfaces require constant cleaning. Nobody wants to touch a screen that has hand smudges all over it, so attendants have to continually spritz and wipe the screens. High maintenance is right.
Gamblit calls these skill-based slot machines “ModelG.” Find the ModelG spot near the Pleasure Pit, if you get our drift.
Overall, these new skill-based slot machines are a great conversation piece, and any “first” is a great PR opportunity.
It’s premature to say, though, skill-based slot machines are going to halt or reverse the decline of slot revenue trends. In fact, we’re going to venture they’ll have little or no effect on those numbers. Oh, yeah, we’re putting our naysaying right out there.
Gamblit officials have said they’re happy with the early results of their field test, but honestly, what would you expect them to say?
Here’s the bottom line, and it’s something you won’t hear often.
The fact is millennials are smarter than previous generations.
Millennials know more about gambling than their parents or grandparents ever did.
They know casinos have been gradually increasing the house edge for 20 years, and what millennials aren’t particularly interested in is being screwed. Shocker.
Millennials aren’t a thing, they’re people. People who happen to be technologically adept. People who value experiences. They’re people who know when the deck is stacked against them, and know when they’re being squeezed. They want value for their entertainment dollars, just like the rest of us.
Here’s how you solve The Millennial Problem. Lower the rake. Lower the minimums. Bring comped drinks more frequently. Let people take photos in the casino to share with friends.
The Millennial Problem isn’t a slot machine problem or a disposable income problem. It’s a perceived value problem.
And here’s hoping casinos are listening, because giving customers, young and old, better value and remarkable experiences is the solution. All due respect, Cannonbeard.