A few weeks ago, I wrote about slot players (including me, occasionally) “hustling” at Harry Reid International Airport and the organization that runs those slots doing what it could to remove these hustlers. I received a few comments that didn’t get posted, and I want to address those now.
One comment was from someone whose contacts among knowledgeable people in the gambling world are as good as anyone’s. I’m not naming him. Had he wanted to be identified, he could have figured out how to post the comment so that everybody could see he sent it. He wrote:
I am told that it is the employees who are playing these slots so that they are trying to intimidate players off them to get them for themselves. I’ve also heard a big team is paying them off, but I think it is more the former.
My personal contact was with the managers of the airport slots. One of them was a former shift slot manager at the South Point, and since Michael Gaughan owns both the South Point and MJG Airport Slots, this strikes me as a reasonable, believable promotion for him. This man had worked for Gaughan for a couple of decades.
I asked him if identifying “advantage” players and restricting them was company policy or just some rogue employees doing their own thing for their own purposes. He was very clear that it was company policy. I’ve known him for years and watched him closely as he answered. I believe he was telling me the truth. If my expert friend is correct, I got conned. You can draw your own conclusions.
Another player wrote words to the effect of:
If the advantage players keep going after certain brands of slot machines, the obvious solution is to remove those machines so there’s nothing to attract these players.
Perhaps obvious to you, but to me this is clearly the wrong approach. Many of the machines the pros like are also very popular with the recreational players. If the airport removed these slots, whatever machines they replaced them with would not be as popular — and hence, not as profitable.
One thing not obvious to some of my readers is the difference in the way a casino profits between video poker and slots.
In video poker, if only expert players play the machines, the house makes a lot less money — or they may even lose, depending on the pay schedule, slot club, and promotions. Whether a casino profits or not can depend on removing expert players.
In slots, however, the house makes the same percentage whether the game is played by pros or novices. The competition is not between players and the house, but just among the players themselves.
So, if they’re making the same percentage, why do some casinos run off advantage players? Let’s say a casino’s slots average a 94% return. If pros pick off the games when they are positive, regular players are playing games averaging maybe 89%. Occasional players can’t tell the difference, but frequent players get a sense that their money doesn’t last as long at this particular casino. When the game returns that little to the players, many quit.
If the casino removes the knowledgeable players, the average player gets a 92% return or higher. These players enjoy themselves more and play more. The casino holds more money because there are more coins played. Casinos depend on repeat customers — especially casinos with a lot of competition.
The airport is different in several ways. While at the airport, there is essentially no competition from casinos. If someone wants to play slots, he/she has to play whatever is offered by the airport. You can bet that these slots are tighter than they are at most of the casinos in Vegas.
A related factor is that the customer base of players at the airport is a lot more diverse than the players inside the casinos. Many people inside the airport are not casino patrons. Their flight between, say, Fresno and Phoenix, makes a layover in Las Vegas. These customers are not in town to gamble — but since they have an hour to kill between flight legs, why not? Such players might not be able to differentiate between tight and loose slots. You have to be a somewhat frequent player to know this.
This means the organizers of the airport slots have less incentive to kick out pros than regular casinos do. So why do they do it?
My guess is that it’s in the DNA of the managers that having an environment that supported professional gamblers was a bad thing for them — simply because it was a bad thing back when they worked for regular casinos. So they continue to do it.
