I confess, I am at least 20 years older than the oldest “millennial.” I’ve experimented with Twitter, Facebook and LinkedIn, but find them too intrusive on my privacy. The social networking I do consists of contributing to a few old-fashioned message boards and keeping a blog. Nevertheless, I am overjoyed that Governor Brian Sandoval of Nevada signed Senate Bill 9 last week, allowing skill-based slot machines that can integrate arcade-style features and social networking into Nevada casinos. The long-term health of the industry necessitates getting the millennial generation to walk through the doors into brick and mortar casinos.
According to the text of Senate Bill 9, a “game of skill” means, “a game in which the skill of the player, by reason of the knowledge, dexterity or any other ability of expertise of the player, rather than chance, is the dominant factor in affecting the outcome of the game as determined over a period of continuous play.” This language makes it appear as if games of skill are new to casinos. In fact, skill-based games have been front and center in Nevada casinos since gambling was legalized in 1931.
Blackjack is the most well-known skill-based table game. The player who knows basic strategy plays at the house edge. The unskilled player may give up an extra 1% (or more) to the casino. The highly-skilled card counter is playing with an advantage over the house. The casino is satisfied with players who have some skill and with those who have the illusion of being skilled, but they definitely don’t want players who are sufficiently skilled to beat them. The difference is often a fuzzy line. Other strategy games, Like Three Card Poker, Ultimate Texas Hold’em and Caribbean Stud also involve skill to get the advertised house edge. And like blackjack, the highly skilled player can gain an edge. The only popular table games that require absolutely no skill are Casino War and roulette.
Casino games that include elements of skill are not limited to table games. Video poker is skill-based. The typical video poker player gives up as much an extra 4% to the house by not knowing the correct draw strategy. Sports betting also requires skill. Many craps players believe they have dice control skills (forgive me while I quietly chuckle). Casinos already have considerable experience offering games of skill.
With the door open to skill-based slot machines, there are a number of lessons I hope gaming companies will bear in mind as they bring new slot products to market.
First, profitability relies on the game ending in a relatively short period of time. The skilled video-gamer is used to being able to play until he loses all his “lives” (or whatever). Open-ended skill games like pinball or Pac-Man will be great for players but will not pay the rent. Game manufacturers must design their games keeping the all-important “decisions per hour” firmly in mind.
Next, the games should not punish the unskilled player too much. Video poker works because the unskilled player believes his method of play is fairly accurate, even if he knows it is not 100% accurate. The same goes for blackjack. At the poker tables, nearly every player feels he is above average, even if he knows he is no Phil Ivey. However, on a skill-based slot machine, if a player repeatedly scores very poorly on the feature, he is likely to walk. The learning curve should not be too steep.
Next, skill-based games should never allow any player to gain an outright advantage over the house. If there is any circumstance where a player can generate a long-term edge, then it is a certainty that skilled players will camp out at the game, treating it as an ATM. Unlike table games, slot companies have limited experience with players who are out to beat the house. Can you imagine having to back off a skilled slot player? “Sir, you are too good for us. You are welcome to play any other game but I’m going to ask that you not play Asteroids any longer.”
Finally, the games must be accessible and interesting to more casino goers than just millennials. The process of integrating skill-based slots onto the casino floor is not going to be an overnight success story. These new games are not likely to draw younger players into casinos right away. Unless a skill-based game attracts a fair number of traditional slot players, the new puppy will turn into an old dog very quickly.
The grand game design experiment has begun. Great new ideas and exciting innovations are going to come to the industry over the next few years. There are going to be plenty of winners and losers as skill-based slots are introduced and evolve on the gaming floor. I applaud Governor Sandoval and the state of Nevada for the courage to take the lead. Maybe it’s time for me to reboot my Facebook account. I wouldn’t want to miss the opportunity to like the jackpots posted to my nephew’s timeline. That’ll give me something to tweet about.
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Learn the ways skilled players beat every table game in Eliot Jacobson’s new book, “Advanced Advantage Play,” available from Amazon.com. For more information, visit www.advancedadvantageplay.com
