Limited Participation

A couple of readers have written lately to ask why not every casino has their favorite slot machines. One reader was touting Monopoly, while the other is a big fan of Wheel of Fortune. Both noted that these games are available at most casinos and that they always seem to be busy. So why can they board a few of the area boats and not find these popular games?

Although Monopoly and Wheel of Fortune are different kinds of games manufactured by different companies, they share a link. Both are games referred to in the casino industry as "revenue participation games." When a casino installs a participation game, it does not buy the machine. The machine belongs to the manufacturer, and the manufacturer and casino share the revenue the game produces.

For a casino to install a participation game, executives have to be convinced it will be so popular that the casino's share of revenue will outweigh the earning potential of buying a less popular game and keeping all the cash.

Some casinos enter into no revenue-participation agreements at all. The problem is that manufacturers often put their most innovative, most popular games on the market as participation games. Most casino operators can't resist Monopoly or Wheel of Fortune--and neither can their customers.