As the evolution of slots progresses, skill-based slots are seeing an increase in their representation, both with traditional brick and mortar casinos as well as with casinos that operate online. A skill based slot is not like your traditional slot that is based on a random outcome, but one that involves the level of skill of the player versus the outcome being “chance” based. The decisions of player will be the deciding factor of each games outcome.
The Pennsylvania Commonwealth Court confirmed in a ruling on Nov. 20 that video game machines manufactured and distributed by the company Pace-O-Matic (POM) under the name “Pennsylvania Skill” are considered slot machines under Pennsylvania law. However, Judge Patricia McCullough did not state that POM was in violation of the Gaming Act. The biggest misconception surrounding skill-based slot machines is that your results are largely dependent on skill. The reality is that skill-based games work just like other slots for the most part. You spin the reels and rely on chance to win. It’s only when you trigger the bonus round that you get to influence the results.
The driving force behind their inclusion to casino gaming floors is to appeal to the millennial generation, who tend to not be drawn to traditional games of chance, preferring games that allow participation to impact the outcome. While this generation is not against gambling, statistics have shown they prefer to have more control over the outcome such as sports betting, which requires a degree of knowledge and skill in order to be successful.
As the Skill-based games, which require users to perform tasks similar to those seen in a video game, are released, they are seeing regulators looking more closely at the games to determine if new regulations are needed to ensure protection of those choosing to engage in skill-based slot play. This in itself is a clear indication that slot games are beginning to lose their appeal in multiple markets.
Skill Based Slots Available at Traditional Brick and Mortar Casinos
The first casinos to see the inclusion of skill-based slots was the traditional brick and mortar casinos found in Las Vegas and around the world. If you consider that video poker began to gain traction in the early 80’s, one can argue that skill-based slot styled games have long been part of the gaming environment most casinos provide.
However, when identifying slots, skill based game are relatively new, and only began to hit the market in the last few years. One of the first to enter this segment of gaming was Scientific Games Corporation with its release of Space Invaders, a popular video game that still enjoys a high level of popularity with millennials. It is based on the original game and offers 60 paylines with the inclusion of multiple bonus games such as free games, a Space invaders bonus game that has players using controls to shoot aliens to advance to new levels and subsequently, additional winning opportunities and progressive jackpots.
The success of skill-based slots will be determined by the reward vs risk, and for this generation and those that follow who are tech savvy, and have an understanding of how casinos continually adjust the house edge in their favor, casinos will need to overhaul the way they attract new players, whether it is by increasing the frequency of comps and drinks, but more so in providing odds that are more favourable than traditional slots.
Yet, with that said, skill-based gaming is here to stay, and those that develop them will need to be particularly attentive to this, but also attentive in their creation that appeals to a cross generational demographic.
Skill Based Slots Available at Online Casinos
The largest impact will be seen online, and this is especially true with the online generation who naturally are drawn towards online entertainment in an increasing world of segregation from a social perspective. Online casinos exploded in the last 15 years and continue to see substantial growth with no end in sight. Simply said, they offer better value for your money due to reduced operating costs that translate into higher payouts, increase technological advances, superior graphics and sounds and the ability to quickly change to different games without difficulty.
IGT and Scientific Games are two who are venturing into skill based slots online, however true skill-based slots for those looking to play online have yet to be released. Yet, as the development of these games continues in so far as determining the right mix between randomness and skill, slot developers are in a constant push to release video slots that appeal to the younger generation such as Games of Thrones or Jurassic Park. The push to design games that are more video game based, and therefore include actions that require dexterity skill, and based on evidence in traffic, it appears to be having a positive impact on players.
Future of Skill Based Video Slots
There is little denying that traditional and online casinos are making the move towards skill-based slots, but also are pushing to appeal to the younger generation by implementing reward/level up style gaming that is similar to those seen in many video games.
Whether skill based games dominate the landscape of gaming in the future is yet to be determined. The belief that traditional slots will disappear is one that is difficult to conceive as they will always have an audience interested and attracted to the thrill of slot gaming.
It is expected that as skill-based games continue to hit the market, they will have their own market appeal. The bottom line is they provide casino operators, both online and land-based a new source of generating revenue and that alone will see increased exposure in the near future.
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Skill-based slot machines, the subject of much buzz and speculation over the last couple of years, have officially arrived in a Las Vegas casino.
The first skill-based slot machines in Las Vegas can now be played at Planet Hollywood, and we’ve got all the details about what casinos are hoping will help deal with “The Millennial Problem.”
Welcome to Las Vegas, you sexy, skill-based vixens, you.
The Millennial Problem, of course, is the belief on the part of casinos and slot machine makers that traditional slots are “losing their luster,” especially with younger customers, specifically, millennials. While the number of millennials visiting Las Vegas is going up (roughly 34 percent of the city’s 43 million visitors in 2016 were millennials, an increase of 24 percent since 2015), casinos cite a decline in slot machine play as evidence millennials raised on video games don’t find traditional slot machines compelling.
There’s some debate about whether The Millennial Problem actually exists, but damn it, casinos are out to solve it whether it exists or not. That’s where skill-based slot machines enter the picture.
Why, look, here’s one now. This is one of three skill-based slot machines at Planet Hollywood.
If you’re a millennial, your nether region should be throbbing right about now.
Of the three games being tested on the casino floor at Planet Hollywood (the machines have to pass a field trial before regulatory approval can be granted), two are Gamblit Poker and the third is a game called Cannonbeard’s Treasure.
The first distinctive thing you notice about these skill-based games is you can’t play with yourself. Yes, we know how that sounds, we are a snark-based Las Vegas blog.
The machines can accommodate up to four players each, but not individual players.
It should be noted the machines currently won’t take loyalty club cards, in case you’re into that kind of thing.
Here’s how they work.
Gamblit Poker is a variation of (wait for it) poker. Players “grab” cards from a common pool of cards, building a hand of five cards. The player with the best hand wins the jackpot, the amount of which is determined by the machine.
Cannonbeard’s Treasure is a variation of blackjack. Players, again, grab cards from a pool of cards. The cards are added up, and the player whose card total is closest to the target number (without going over) wins the pot.
Here’s a look at how the simulated game play looks on the machines, courtesy of us risking our neck to get video of how the simulated game play looks on these machines.
A key element of skill-based machines, and what differentiates them from traditional slot machines, is customers aren’t playing against the machine (or a dealer), they’re playing against each other. The outcome is based upon skill, rather than chance alone.Mind, meet blown.
So, let’s dig a bit deeper into the pros and cons of Gamblit Poker and Cannonbeard’s Treasure.
First, a big pro of these games is the low price to play. There’s a $2 Gamblit Poker and Cannonbeard’s Treasure is also $2. There’s also a $5 Gamblit Poker.
Second, the competitive and social aspects of skill-based games are undeniable. Traditional slot machines are solitary endeavors. With skill-based games, you can hang out with friends and do your best to relieve them of their hard-earned cash.
Observing people play skill-based slots, it’s easy to see how one’s competitive instincts can kick in, keeping players engaged and playing longer than they might otherwise.
Interactivity certainly does seem to be more appealing than staring blankly at a screen while repeatedly hitting a button.
This is Cannonbeard’s Treasure. They had us as “each player gets not one, but two, cup holders.”
The biggest twist in this whole story, though, is millennials aren’t actually the ones playing skill-based games, at least not the ones at Planet Hollywood. Millennials are curious about the machines, but they’re hit-and-run looky-loos, rarely playing more than $20 a pop.
Truth be told, we didn’t see a ton of play on these machines at all. But when people played, they weren’t millennials. Who’s playing skill-based slots? Slot players. That’s right, older players who already enjoy slot machines. A representative of Gamblit confirmed millennials aren’t the majority of those playing skill-based slots.
That ought to give casino operators more than a few restless nights.
While play on the machines appears light, there’s obviously going to be a period when awareness of the games has to be raised. At Planet Hollywood, a small sign tells customers they can actually gamble on these tables. Most would mistake them for similar interactive, touchscreen tables like those in several Las Vegas lounges like Ignite at Monte Carlo, Encore Players Lounge at Wynn and iBar Ultra Lounge at Rio.
The new games are simply lost among the crop of current slot machines, many with massive vertical screens.
Not gonna lie, we’re missing you a little right now, Quark’s Bar.
Those who did play the games seemed to spend a lot of time just sitting and drinking and talking. Which is great if you’re trying to increase revenue from drinks, but not so much if you’re trying to make money from gambling. At a table game, dealers and other players keep the pressure on to make more bets. The social aspect of skill-based games actually distracts from the gambling.
Slot Machine Vs Skill Machine Tricks
A critical downside to these games, though, has to do with perceived value.
As players make bets, the machine serves up the amount of the jackpot they’re trying to win. In the vast majority of cases, the jackpot is less than the players are contributing.
For example, we saw a couple sit down to play Gamblit Poker. They each bet $5, for a total contribution of $10. The jackpot was $7.50. They had fun playing, but the next pot was the same, ditto the one after that. It didn’t take the couple long to realize they were getting dinged a $2.50 “rake” with each passing hand.
The rake accumulates, similar to the jackpots in progressive machines. Part of the rake goes to the machine manufacturer, and the manufacturer has a revenue sharing agreement with the casino. We’ve yet to see any published information about the house edge for these games.
While the potential for larger jackpots is there (the max jackpot on the $5 machine is $1,200, $480 on the $2 machine), the couple cashed out and dashed. A Gamblit rep says the biggest jackpots happen several times each hour, but the perception problem means many players won’t be sticking around that long.
Presumably, though, the more play the machine gets, the more frequently the larger jackpots (considerably more than what the players are betting at any time) will hit.
There are some other peculiar aspects to these skill-based games.
Slot Machine Vs Skill Machine Cheats
For starters, we were told there will always be an attendant with the games. Why? Because they have to monitor the play to avoid collusion and bullying. We were told there’s the potential for experienced players, or teams, to take advantage of novice players. Essentially, there’s room for cheating.
A smaller annoyance, but one that’s undeniable, is the table surfaces require constant cleaning. Nobody wants to touch a screen that has hand smudges all over it, so attendants have to continually spritz and wipe the screens. High maintenance is right.
Gamblit calls these skill-based slot machines “ModelG.” Find the ModelG spot near the Pleasure Pit, if you get our drift.
Overall, these new skill-based slot machines are a great conversation piece, and any “first” is a great PR opportunity.
It’s premature to say, though, skill-based slot machines are going to halt or reverse the decline of slot revenue trends. In fact, we’re going to venture they’ll have little or no effect on those numbers. Oh, yeah, we’re putting our naysaying right out there.
Gamblit officials have said they’re happy with the early results of their field test, but honestly, what would you expect them to say?
Here’s the bottom line, and it’s something you won’t hear often.
The fact is millennials are smarter than previous generations.
Millennials know more about gambling than their parents or grandparents ever did.
They know casinos have been gradually increasing the house edge for 20 years, and what millennials aren’t particularly interested in is being screwed. Shocker.
Millennials aren’t a thing, they’re people. People who happen to be technologically adept. People who value experiences. They’re people who know when the deck is stacked against them, and know when they’re being squeezed. They want value for their entertainment dollars, just like the rest of us.
Here’s how you solve The Millennial Problem. Lower the rake. Lower the minimums. Bring comped drinks more frequently. Let people take photos in the casino to share with friends.
The Millennial Problem isn’t a slot machine problem or a disposable income problem. It’s a perceived value problem.
And here’s hoping casinos are listening, because giving customers, young and old, better value and remarkable experiences is the solution. All due respect, Cannonbeard.