Archive for December, 2011

The Riffraff and Friends

Saturday, December 31st, 2011
Casinos are not perfect.  And yes it is true that casinos do bring out the riffraff, but that is only because casinos bring out a little bit of everybody.  It is a common accusation that casinos lure criminal types to an area that then hikes up the crime rate and takes a big part in lowering property value.  That may be the case at some casinos.  But people need to take a closer look at what a big investment casinos are for a state.  Most states will likely do everything in their power to suppress crime at their casinos for the simple reason that they want people to show up continue to use the facilities.  Plain and simple, people will not visit a casino if they feel like they are going to be robbed.

States spend a lot of money on casinos because casinos bring in a lot of money for the states.  It seems logical to me that each state is going to do everything the can to protect their investment.  Especially in a state like Maryland.  Maryland is one of the states that have chosen to purchase and lease their own slot machines, as opposed to allowing the casino operators to do it themselves.  When the the state is literally spending millions of dollars on slot machines, it will be a top priority to make sure that the areas surrounding slot machines will remain hopping social centers and not crime ridden skid rows.  Their measures may not be perfect, but they make an effort.

Slot Machines Make Money Fast

Saturday, December 31st, 2011
Just listening to people talk about slot machines and casinos tells me volumes about how little most people know about the industry.  I remember talking to my roommate about the Resorts World Casino in New York before it was finished.  He immediately rolled his eyes and blurted out something about how quickly the casino was going to bring about social decay in that area of Queens.  When I spoke to him about how much money casinos actually bring in to a state, especially that one, the only one located in New York City, it was clear that he did not know how much states actually generate from slot machines annually.

Most people think of slot machines as these dank smoke filled places that only old gambling addicts visit.  While there are reason for these stereotype, it has not seem to have become common knowledge how much states generate in tax revenue.  When a new casinos comes to town many under informed antigambling advocates seem baffled as to why a state would risk changing the demographic of an area by bringing in slot machines.  If only these people could get a clear picture as to how valuable casinos are to a state and how much effort a state puts in to ensure that the place remains clean safe and profitable. Any industry that has to the power to pull an entire state out of debt needs to be more closely studied.  There is a reason Native Americans are allowed to open casinos on their plantation.

On the Radar

Saturday, December 31st, 2011
I do not often talk to people about the slot machine and casino industry. Frankly, because it is a topic that people know very little about.  This is true for even those that consider themselves very regular gamblers.  I have met a lot of people that consider themselves experts at a variety of poker games, but very few people that know anything about the business.  While I understand that gambling is not for everybody, I find it absurd that people do not understand how influential the casino industry, particularly slot machines.  We are talking about an industry that generates enough revenue to pull whole states out of a recession.

I think most people only have a vague understanding of the casino industry.  Those that visit like to play the games.  Many that do not visit see it as this dirty, borderline illegal, business that are out to empty the purses of grandmothers.  In the meantime slot machines are making enough money to renovate schools and build new roads.  There are very few industries in the world that make as much money as the casino industry.  I am not saying that more people should gamble.  I do not even think it is a wise idea to gamble on a regular basis, even if you are very good at poker.  But I do think people should be better informed about the casino industry since it plays such a major role in most state politics.  It is such a big industry to fly under so many radars.

Know More

Saturday, December 31st, 2011
My knowledge of the casino industry is a somewhat extensive.  I always find it funny to talk to my friends about the slots and casino industries, because it is something I never talk about, but over the years have come to know a great deal about.  So, since I it is my business to stay on the inside of loop of the latest news about slot machines, it always surprises me to see who little people know about the politics of the casino industry.  The politics of casinos and slot machines are not just exclusive to the industry.  Slot machines have become very important to states all across the nation and have become a very hot political issue on the state level.

This is especially true of the last few years.  I would not be surprised if one of the talking points about this global recession will be about how many states sought gambling expansion to alleviate their budget deficits.  37 states looked to gambling during this recession to boost revenue, many of them used slot machines as their core game plan.  Slot machine revenues have been used for public works projects and school systems.  With the important role that slot machines in particular have played during this recession in well over half the states in this country, it just shocks me that more people are not talking about.  One would think that a multibillion dollar industry like slot machines would receive a little more attention in the press these days.

The Great Unwashed

Saturday, December 31st, 2011
I have given a lot of thought to the claims that slot machines are predatory.  I have always had a hard time understanding how people could accuse in animate objects of being addictive or even preying on people.  I have always found it interesting that people bring up the argument of slot machines taking money from people that can least afford to lose money as if people with a lot of money did not ever visit casinos.  I know that not to be the case because that is where the term, high roller come into play.  So, needless to say I felt like I was missing out on something.  Slot machines are not advertised as being anything but games of chance and they are not rigged to prevent individual people from winning.  Then it dawned on me that there may be a few euphemism at play here.

I may be jumping to conclusions but it is starting to feel like when people say the elderly and the poor are being targeted by slot machines, I think that is probably just another way of saying the uneducated.  Obviously saying uneducated people are likely to spend all of their money on a casino is not a pleasant idea, but I have a hard time thinking who else would think it smart to dump all of their money into a game that is clearly based on chance.  Slot machines are designed to be occasional entertainment, not a way of life or a weekly hobby.

Gotta Admit…

Saturday, December 31st, 2011
I must admit that sever based slot machines are a rather brilliant idea on the part of the slot machine manufacturers.  Space has always been a restricting factor on the gambling industry and I am not referring to the black void that surrounds our planet.  What I mean is that having a lot more slot machines to offer patrons means you are a lot more likely to make more money as a casino operator.  But, of course how many slot machines you can offer your patrons largely depends on how many slot machines you can fit in your venue.  There is also a necessary juggling act.  While certain patrons like to spend all day on the low risk penny slot machines, there are also the high rollers that do no mind wagering 5 dollars for every line.  But restrictions on slot machines due to space and government mandate means you have have to compromise.

Now, with server based slots there is no compromise necessary.  While you cannot physically have more slot machines than a space will hold, slots manufacturers have made it so that individual slot machines can do more for their owners.  While you cannot bring in more penny slot machines or more high rolling slot machines, having your entire fleet of slot machines be able to switch between the two at your leisure or your customers technically multiplies the number of slot machine options that you can offer to your patrons. This is a big win for casinos.

Slot Machines Aren’t Out to Get You

Saturday, December 31st, 2011
I think part of the reason that slot machines get such a bad wrap is that people think the games are rigged.  People do not often win a huge jackpot from slot machines though it happens to people regularly.  So when people go the casino to play slots and they walk away not having one anything they feel like they have been cheated.  They have not.  These are just the odds of the game.  If there is any rigging going on with slot machines it is in the payout percentage, but that is posted on the front of the machine for all to see.  But people need to learn that 97 percent of a dollar is less than 97 percent of 97 cents and the longer you play a slot machine the lower your return is bound to be.

I think people get the feeling that there is some person sitting in a casino security booth with a finger on the button to make sure that jackpots remain low.  Or even worse some sort of algorithm designed prevent the slot machines from ever paying out big.  That would be a waste of time.  The system is designed so that people will get a little bit of money on a lucky day, but at the end of everyday the casino will make a profit.  It is a business model and it has been perfected over many decades.  The casino is not trying to rip you off, they are only interested in making a profit.

Sounds Conservative

Saturday, December 31st, 2011
At the risk of sounding like a conservative I would like to say that at some point in time personal responsibility has to taken into account.  I understand that compulsive gambling is a serious issue for many people.  I have seen some sad sights on the casino floor.  I have seen old people with oxygen tanks rolling into a smoke filled casino, likely just to get a chance to play the slot machines.  It is a shameful sight, but slot machines simply do not have this kind of influence over every, or even most gamblers.  It would not make any sense to ban casinos just because a few people do not have the ability to say know.

I could maybe understand all of the predatory talk of casinos were pretending to be something other than what they are.  The do not.  The odds always favor the house and that is not a secret.  It is only due to peoples ignorance that they feel if they play long enough they will strike it rich.  The games at a casino are not rigged.  The government places strict oversight on them and most casinos are not interested in tampering with them.  They do not have to tamper with slot machines.  The slot machine system has been in place for many decades now.  Even if a casino has to pay out the occasional multimillion dollar jackpot, they are still making far more money than they lose off of slot machines.  There is nothing misleading about this.

Sad Sights

Saturday, December 31st, 2011
Yes.  I know that seeing a compulsive gambler is a sad sight.  I have seen a few people hobble into a casino when it was obvious that they would be better off staying at home, but I just cannot accept the claims that slot machines and casinos are these long standing predatory institutions.  Even if I did not spend all of my time writing about slot machines I am sure that I would feel the same way.  Though I know more about slot machines than the average bear, you do not need to know a lot to realize there is no rhyme or reason to how these games work and that you are likely to lose more money on them the longer you play them.  That is standard knowledge.  Slot machines would not be a sound business investment for casinos if they were prone to paying out jackpots all the time.

I cannot think of one person that does not know this.  So I personally feel that if people want to go to a casino every night and dump their entire paycheck into a slot machine, that is their prerogative.  I especially feel this way since in most cases that money is used to fund public works in the state.  Many states establish a casino program as a means of raising funds for public schools as well as for major road projects.  I would be surprised to learn that someone did not know slot machines are random games of chance.  If they were advertised otherwise, then maybe they would be predatory.

The Demographic

Saturday, December 31st, 2011
The slot machine playing crowd is notoriously filled with elderly people.  That could be problematic for the future of the industry.  No person is the same, but the elderly population has reputation for not wanting to learn new tricks and I honestly do not blame them.  I plan on being just at stubborn in my twilight years just as a right of passage.  My grandmother is one of my favorite examples.  This is a woman that loves to listen to music and has a stack of CDs in my mother’s living room.  I once suggested to her that I get her an MP3 player so that she can listen to all of her music with less hassle.  She frowned at the idea.  She said she had finally learned how to use the CD player, it works, and she could not be bothered to figure out a whole new system.

Like everything else on the planet, slot machines are becoming more complex and advanced, especially with the rise of the server based slot machines that give patrons options as to what type of gambling experience they would like.  Though this may be the type of thing that young gamblers would like, many elderly slots enthusiasts may find this off putting.  While our generation like the tailor made digital experience, many elderly people prefer a time when certain decisions were pre-decided for them and all they had to do was work freely within the digital frame work.  However, the elderly are a key slot machines demographic.