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Las Vegas Strip Casinos Tighten Slot Payouts12 July 2002LOS ANGELES, California – As reported by Reuters: “Slot machine enthusiasts take heart: that feeling that it's getting harder and harder to make a buck in Las Vegas is no illusion. ”Over the last few years, casinos on the Las Vegas Strip have quietly lowered the overall payout rates for their slot machines, effectively paying themselves millions of dollars more in profits at the expense of the slot player. ”According to data released on Wednesday, Strip casinos held onto 6.67 percent of all money they took in for slots in May, meaning they kept $6.67 for every $100 wagered. That figure was up sharply from May 2001, when they kept $6.30 for every $100 wagered, according to the Nevada Gaming Control Board. ”…UBS Warburg analysts Robin Farley said Las Vegas Strip casinos are tightening up their slots to offset cheap room prices and food prices, which are often treated as loss leaders to get people gambling. ”…The trend toward lower payouts has occurred for at least six years, according to Gaming Control Board data. ”In 1996, the average Strip casino kept $5.53 for every $100 wagered. That amount increased to $5.67 the following year, then $5.91 in 1998. It briefly plateaued in 2000 and 2001 at $6.02, but has been on the rise again to $6.15 for the 12 months through the end of May. ”Gaming Control Board senior analyst Frank Streshley said casinos' growing reluctance to part with their slot money may owe in part to the exploding popularity of nickel slots in recent years. ”He said lower denomination machines, with nickels typically being the lowest, are often programmed to pay out less than their higher-denomination counterparts as part of a casino strategy to get people betting in higher amounts…” |