The grocery store carries plenty of items they don't make a
profit on, to stay competitive.
Milk in California cannot be sold for less than cost (silly)
because it was such a loss leader.
The Casino should look at the overall handle and hold,
not only the individual machine.
Just like with a grocery store, you have a mix of products
with various margins, all designed to keep your numbers
overall up.
Using aforementioned Casino management logic, they
ought to pull all VP machines because even a 95% game
'gives away' twice as much as a 90% slot.
--- On Sun, 3/4/12, Bob Dancer <bobdancervp@hotmail.com> wrote:
From: Bob Dancer <bobdancervp@hotmail.com>
Subject: RE: [vpFREE] Re: Gambling With an Edge
To: vpfree@yahoogroups.com
Date: Sunday, March 4, 2012, 3:03 PM
Tom argued: I'm not sure who is advising the casino's, but its not really good advice.
Instead of getting rid of Full pay deuces , lower the pay schedule. For
example, If a casino takes a fp deuces 5 coin schedule and cuts the 5K=70,
and WRF=120, folks would still play it ! Why , simply because at 100.27 EV,
its still the best game in town, and the casino makes an extra $50,000 cash,
for every 10M coin in thanks to the reduced pay schedule.
That's not as easy as you imply. When a casino wishes to change pay schedules, they do not have free reign. They are limited to choosing among the pay schedules offered by the manufacturers. If you want to argue that IGT should offer looser pay schedule options, go ahead. But whether they offer them or not, unless slot directors choose to put them on their machines, it doesn't change anything. If casinos wanted looser pay tables, IGT would offer them. As to the specifics of your example, keep in mind that few casinos even offer NSU --- which is a half percent tighter than the example you gave. When casinos add up slot club, promotions, overhead, etc., most have come to the conclusion that they cannot afford a 99.7% game. In a different post, Bruce Cohen argued strongly that there are enough bad players out there that casinos can make money with FPDW. This is a case of preaching to the choir. Members of vpFREE obviously wants loose pay tables --- and any
argument in favor of that resonates here. Except the argument is basically incorrect. Whatever arguments players want to use that there some bad players out there (and undoubtedly there are many), the bottom line for the casino is how many dollars per day do FPDW and other 100% machines make for the casino. The slot director at the South Point told me the machines were making $10 per day BEFORE including slot club and other benefits. And there were several 100% games on those machines quite a bit tighter than FPDW. I argued as strongly as I knew how that "loss leaders" made sense for the casino. I used many arguments similar to the ones Bruce made here. The arguments fell on deaf ears. Their mind was made up. And this was at a casino committed to loose video poker. Most casinos have no such commitment. There are more bad players than good players --- but good players put a lot more coin-in through the machines than their not-so-good counterparts.
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