“I swear on my mother’s grave, if this slot machine doesn’t earn more than what you’ve got sitting there today, I’ll give you all of your money back!”Si Redd reached out and put his hand on Warren Nelson’s shoulder, Warren Nelson looked over to me, and I looked back at Si in awe.This guy was the greatest salesman I had ever seen.It was in the fall of 1985 and we had joined Warren for lunch at his casino in Reno, the Cal Neva, to talk about IGT’s new wide area progressive concept called Megabucks.I was lucky enough to be managing the project for IGT. Nobody had ever done a wide area progressive link before.Si had a way to look you straight into your eyes with that boyish charm and make you think he was doing you a favor by letting you put some of his slot machines on your floor and on 60/40 participation.The deal was done.
Si Redd, or course, was the guy who led Bally to their dominance in the decade between 1967 and 1978 before he founded the most powerful slot machine company in the world, IGT.When I first met him in early 1984, he had just turned 72 years old but he was just getting started.He used to call me ‘boy’ but, then again, he called everybody ‘boy’.I was fortunate enough to work for Si not too long after IGT first went public.Back then IGT was making about $50 million a year by dominating the poker machine business.By the time he retired as Chairman from IGT in 1991, he had set IGT up to take off like a rocket ship.He loved slot machines.He loved people.Most of all, he loved to sell.In those early days he had a Beechcraft King Air that he loved to fly all over the country.The name on the side of the plane said it all:“The Slot Machine King”.
I got involved in the gaming business right about the time that the total revenue from slot machines crossed over the 50% mark in Nevada making them a bigger contributor to the top line revenues than table games.It was no surprise that since slot machines were winning more, they were getting more of the casinos’ attention and, consequently, their annual budgets.With this growing demand came more competition and more innovation.Progressives, signage, more colorful glass graphics and slot branding (like Megabucks which was the first real consumer slot brand) were pushing slots into the center of the casino floor.Slot machines were quickly shedding their old image of being the dark, drab distractions for wives while their men were at the tables.Slots had now become the main attraction and the driving force behind these innovations was John Acres.
I sold my first slot machine in 1984 to Jerry’s Nugget.It was on a progressive bank, so I guess you could say that I owe that first success to John.When I got to Las Vegas that summer, IGT’s offices were just off Industrial and they shared the building with Electronic Data Technology.John Acres had started EDT in 1981 to make modern progressive displays and controllers, an innovation brand new to industry.John had already sold EDT to IGT by the time I got there, but he had started something to which I owe more than that first sale.Progressives were proving to increase slot revenues from 20% to 50% on just about everything to which you attached them.But John was just scratching the surface with progressives.All roads from progressives to slot bonusing, to player tracking systems start from John Acres.I think it was 1983 when John installed the first automated player tracking system at Harrah’s in Atlantic City.“The Captain’s Circle” wasn’t exactly a success at first, but it paved the way for the entire industry to be transformed.At the end of 1985, there were only a few player tracking systems up and running.The casinos, at the time, didn’t believe that players wanted to be tracked much less rewarded for their slot play.With the opening of Michael Gaughan’s Gold Coast in December 1986, the first property to have 100% of their machines connected to an on-line player tracking system, the slot world changed.John Acres has never stopped pushing the envelope founding Mikohn, Acres Gaming and, most recently, Acres-Fiore.John is one of the most innovative and creative people I know, and, undoubtedly, one of the best sales people, although he’d probably deny the latter.John Acres is a Slot Machine King.
In Atlantic City there’s only one king, Mac Seelig.Mac has clearly sold more slot machines in New Jersey that all others combined.He became the IGT distributor for Atlantic City and the Caribbean in 1983 but since that time he has extended his reach across the country.The first time I met him I thought my hand had been captured by some kind of bionic device.I know that Mac has mellowed over the last 25 years, but back then he came at you like a freight train.One of my first jobs at IGT was to sort through these massive orders that A.C. Coin & Slots were putting through the system for the TrumpPlaza opening.IGT had never seen orders of this magnitude. Mac had somehow convinced the state to mandate that no manufacturer could have more than 50% of the floor.It was a brilliant move and a turning point for IGT.
When the ‘Mac Attack’ hit you, it could take your breath away.Mac held a Black Belt in Karate and his approach to selling slot machines and customer service was the exact same tactic.It was Mac who pushed IGT into coming out with their first solid state spinning reel game, the M-Slot.Believe me, Mac would push hard until you got it right.
When IGT came out with the M-Slot, it struggled.We were having so many software issues with it that Mac got Peter Dickenson, then IGT’s VP of Engineering, to fly out and meet him in his office to personally to go over the problems.In classic Mac Seelig style, he asked Peter to give him a twenty dollar bill.Not exactly knowing what Mac had in mind Peter reached into his wallet, reluctantly, and handed Mac the 20 bucks.Mac took the bill and immediately stuck it into a paper shredder next to his desk.“That’s what you are doing to my customers with this machine”, Mac snapped.“Fix it!”Mac always took care of his customers.He still does.That’s what makes him one of the Kings.
You could make the argument that New Jersey’s success and strong regulatory environment helped legitimize gaming.It also created a fertile environment for the riverboat gaming wave that begin in the early 1990’s when Iowa, Illinois, Mississippi, Louisiana, Missouri and Indiana all came on line within a few years of one another.There is no question that James Maida and Gaming Laboratories International (GLI) provided the technical integrity and regulatory guidance that that was crucial in giving these new states the credibility they needed to progress as quickly as they did.GLI was founded in 1989 by James Maida and Paul Magno.To carry the moniker of King, in my definition, you really have to come up with great games as well as to be able to sell the machines.James indirectly sold more than anybody just by setting such high standards for the industry and by making sure the machines were always secure and reliable.
Before everybody wanted to be Ernie Moody (who is the undisputed Poker Machine King), everybody wanted to be Randy Adams.Although Randy is probably best known for “Wheel of Gold” and the ‘Wheel’ patent, Randy probably sold and placed more slot machines than any single salesman in his day.A student of Si Redd, Randy picked up where Si left off.He sold forIGT; he worked with John Acres at EDT to sell the progressives, ticket printers and player tracking systems, and he and Gary Harris (another all time slot great) turned Universal, with its new stepper product, into a overnight success knocking out Bally and almost upsetting IGT.After Universal, Randy set his sights on developing the first ‘top box games’ with Anchor Gaming.These types of games have become the signature of almost every participation game on the floor today.
Randy could always find a creative way to make the deal work.When he first started to place the Wheel of Gold games, the casinos were pushing back on any revenue share games.(It’s funny how things change but never really change.)Randy came up with a way to structure the fee on a per spin basis.Working with guys like Bob Campbell, who was then at the Excalibur, he conceived something like a $2.50 charge for every time the bonus event occurred.It sounded great to the operators in theory.Well, it turned out that this was happening every 85 handle pulls, 50 times or more a day in some stores.Brilliant!
I got to work with Randy many times over the years, but the most memorable was when I was with IGT and he was with Anchor.We had been carefully watching the great success that “The Wheel of Gold” was enjoying in the marketplace.At that time, the “Wheel of Fortune” game was only on a video slot and it wasn’t doing extremely well. The video game over-focused on the puzzle aspect of the game and not as much on the wheel.In fact, we couldn’t even display the entire wheel on the screen because the horsepower of the video slot wasn’t yet able to support it.Combining the wheel with such an incredible name created the most popular slot machine game in history.This one definitely puts Randy in the Slot Hall Of Fame.
This piece, by no means, is a definitive list of the Slot Machine Kings.It is only a reminiscing of some of the great talents with whom I have had the pleasure to work.Although I am known for taking over piano bars in various parts of the world to play a song called “The Slot Machine King’, the musical rhyme is just my way of showing respect for these guys.We owe our livelihood to the Slot Machine Kings.
There are so many talented people in our business that helped to bring us the ‘next great idea’ as well as those eminent sales people who get the games on the floors.I can’t begin to name them all.I’d be remiss if I didn’t mention the great Bob Luciano who has been behind so many of the technical innovations in our industry.Ben Maze, who taught us all about the power of signage and marketing our products.Other great talents like Bob Bittman, Joe Kaminkow, Mike Mitchell, Larry Pacey, Jason Stage, Jean Venneman and so many other distinguished game developers who have proven themselves in the creative fire and are the life blood of our industry.
Si Redd used to have an aphorism framed on his wall that said it all for me.“There is no shortage of good ideas, only a shortage of those who can bring those ideas to fruition.”Long live the Kings.
The Slot Machine King (lyrics)
I’ve got three 7’s on my paycheck, three 7’s on my diamond ring.
They call me Mr. Lucky.That can only mean one thing.
Maybe you’ve heard about me, I’m The Slot Machine King.
You don’t have to worry about nothin’; slot machines can cure the blues.
We’ll let the gamblers spend their money; they’ll pay the bills for me and you.
Just put your money on the table darling, I’ll tell you what I’m gonna do.
I’ll put a slot in your casino, a slot machine in your bar,
And if it’ll make some money, I’ll put a slot machine in your car.
I’m the slot machine king, that’s what I was born to be.
Don’t be talking to nobody but me baby, you’ve got to buy your slot from the slot machine king.
If you have a ‘candidate’ for Slot Machine King, email me at MRoemer@RoemerGaming.com the information and a brief story about the person and I’ll keep it close at hand for the next edition.
Top 10 Slot Managers Mick Roemer – Roemer Gaming LLC / Slot Manager Article May 2008 It was April 22 a few years back when Rick Laman was still in charge of slots at the El Cortez. We were walking through the El Cortez on our way to have lunch at the coffee shop to have a little birthday lunch together since our birthdays fall just a week apart.
As with most days, Rick couldn’t walk more than a few yards through the casino before a customer would come up to him to say hello or he’d stop quickly to take care of a player who needed something. It took us 20 minutes to get across the casino. But that is just the way it was with Rick. He didn’t just know everything about slots; he knew everything about his customers. That’s what being a great slot manager is all about.
Whether your title is slot manager, slot director, slot vice president, chief slot machine officer, you are one of the most important people in the casino. No other person manages more of the revenue stream than you do.
Every day you have to make sure all the machines are working right, all the vendors are delivering when they say they will, the slot management system isn’t freaking out, the daily slot reports are accurate and on the bosses’ desk and marketing isn’t doing something crazy again. You have to make sure the jackpot that just got hit is authentic and gets paid, that the gaming control board doesn’t have any reason to call, all your employees are enthusiastic and you get approval for all those new slot machines you want to buy. Most importantly you have to make sure your customers are happy. And, in your spare time you get to keep up on all your competitors as well as the latest slot trends and technology. Do you people ever relax?
It is high time somebody patted you on the back and gave you credit for all the long hours you put in and for all the endless weekends with your cell phones perpetual ringing.Slot Manager and I are taking up the challenge for an upcoming column.
Some of you may remember a guy named Mike Stone. Mike was vice president of sales for IGT back in the day.He used to keep a mental list of the top 10 slot managers in his head. On more than one occasion, I would hear him ask casino executives in conversation, “Who do you think are the best slot managers in the business?” Back then the same names kept coming up over and over again. Names like Mando Rueda from Harrah’s, Jim Buchanan from Harvey’s, Cecil Freddie from the Las Vegas Hilton, Dick Burnside at The Frontier, Charlie Lombardo, Vern Holmes, George Thompson, John Pasqualoni, Butch Witcher…just to name a few.I don’t think having an actual list really mattered to Mike.It was more about showing respect for the great work these people were doing.These guys were some of the pioneers in slots, the first slot superstars.So that was then.Who are today’s Top 10 Slot Managers?
We want to hear it from you. E-mail, write, fax or call me with your top picks. This doesn’t have to be complicated or take much of your time. Just send me the names of the slot managers that you think should be on the list, and, if you can, include some detail. A short bio and description of the person or persons and why you think he or she is one of the Top 10 would be even better. All submissions are confidential.
What makes a great slot manager?That’s kind of like asking what makes a great artist or musician. Beyond all the hard work and dedication, there is a special magic that comes with the love of the job, a passion for slots, and a true interest in ensuring your customers enjoy themselves. It’s that special combination that sets the great ones apart.
There are no hard and fast rules or formulas to what makes a great slot manager. Anyone who is in charge of slot operations for any particular property or corporation will be considered. Your thoughts can be as simple as “He or she is the best slot manager I know,” to “He or she increased the revenue of the slot machines 300 percent over the last five years” or “She is the most respected by the customers…the employees love her”. What about “He gets more out of his slot floor than anyone else I know”? So who are the slot managers you respect the most? E-mail, mail or fax your suggestions to: Mick Roemer Roemer Gaming LLC 204 Surtees Point LLC Las Vegas, NV 89144 mroemer@roemergaming.com Fax: (702) 736-3839 The deadline for submission is June 1. I’ll compile a list of some of the submissions for a column to be published in the September/October issue of Slot Manager.
Published in Casino Enterprise Management November 2007
Are Dollar Slots Dead?
Las Vegas: Mick Roemer – Roemer Gaming
Over the last few years the focus for slot manufacturers has been low denomination games.It would appear that most of the creative energy in slots has gone into penny games. Who is looking after the quarter, dollar and high denomination player?Are dollar games dead?
It looks like a bone yard, a warehouse of 1990’s reel slot titles.The newest 3 reel stepper game in this room is an IGT Triple Diamond (circa 1996).You might think that this was some forgotten casino road house between Las Vegas and Reno, but it’s the high limit room at Barona Valley Ranch, one of the hottest resort casinos in California.
In a world where the life span of a video slot title is quickly approaching 6 months, it seems amazing that reel slots over a decade old are still the preferred machines in the quarter, dollar and high denomination segment.It fact, it’s tricky to get a video slot to work in anything other than a penny or a nickel in any numbers. It is not that it can’t be done it just hasn’t been done very well yet.
What magical properties do the basically ignored reel slots have to be able to hold on to their 40% and 50% floor share in the wake of so much video development? The ‘magic’ is a voodoo concoction of pay back percentages, minimum and average bet, pay table, volatility, and the mechanical nature of the machine itself.
The human fascination with seeing an object move and anticipating where it will stop comes from our most basic survival instinct. In the wild we needed to know where the lion was at all times.When Marshall Fey first put those three reels on the Liberty Bell slot machine in 1897 and combine it with the risk of winning or losing something of value, it embodied the essence of man against nature.
Reel slots are experiencing something of a revival these days. Driven by more lines, five reels and a lower minimum bet, these games are the hot new category. Players have always like penny reels slots but casinos couldn’t afford to put them on the floor with only three coins per spin. But with the new models offering 25 lines and more, it starts to make sense. Customers are flocking back to these stalwarts of the gaming industry.
It’s about time. Low denomination video has been the growth story starting in the late ‘90’s with the acceptance of TITO. Manufacturers had been myopically ignoring reel slots in their efforts to cash in on the video craze.In fact if you believed the hype back then you’d have thought steppers were going to disappear by 2008. But the problem wasn’t the reel slot, it was lack of good game development for the product line.Sure, there have been some noted exceptions like Bally’s Monte Carlo series, but reel slots needed to get current with the changing market expectations like denomination options.But even with the latest 5 reel stepper craze there is still a segment of the market that isn’t getting any respect - The dollar player.
The dollar player is looking for a chance to win something a little more significant and with a respectable pay back return.She likes the mechanical slots because she trusts them and more importantly she understands them.There are not a lot of confusing lines and funny cartoon graphics to figure out.When you pull the handle you can easily see if you win or lose.She has probably also been in love with them since her first trip to Las Vegas 30 years ago. There is an imprinting that occurs with slot machines.When someone first learns to play and hits that big win, they remember that game for as long as they live.If they get a chance to play it several more time and have a similar experience, they are hooked for life.Given a chance, players will develop a loyalty for a game, even down to the machines exact location on the casino floor.Try moving some of those Blazing 7’s or Red, White and Blue’s around and see how many complaints you get.
Some casinos have tried to put penny slot games in a dollar denomination. However, for the most part penny video product has been designed for the high hit frequency and time on device.It doesn’t reward a player in the same way a dollar game does. The mapping of the pays for a penny game doesn’t provide the same play experience that a dollar player is looking for.There is a true art to choreographing the frequency and size of the wins closely tied to the level of wager.With dollar product, players use to talk about ‘tray money’ referring to mid-level wins that keep them going waiting for the $1000 jackpot.The size of the jackpot is also critical in that it must be significant but achievable. For this reason, translating penny jackpot awards into a dollar game becomes a challenge. Plus, the dollar player has an instinct for those games that have a better return.
Now by definition, since reel slots are usually in the quarter denomination and above, the hold percentages fall more in the 90% and up category.Dollar slots are commonly in the 92% range.Some would argue that they should be set even higher, after all players are betting $3 at a whack.One critical distinction between the dollar reel slot and the penny or nickel video is the minimum bet.This minimum bet drives the hold percentage a casino is willing to set. Even though the penny video player can bet $10 per handle on a 1000 coin max bet game, the operator expects to get only $.50 to $.75 a pull and therefore pushes up the hold percentage of the game.The better players get penalized with the lower pay back.
Recently I got into a very robust conversation at Casino Fest 4 with some good friends – Bruce Rowe from Bally Technologies, George Levine from CDI and Mark Pace from WMS - about hold percentages.One camp firming believes that a player can’t tell the difference between an 88% and a 92% game.The debate argues that it is tribal myth rather than actual player perceptibility that pushes for these higher pay back percentages. This now famous “humidity factor” theory clearly states that the moisture content in the air from where the slot manager comes from is inversely proportional to how loose the machines are set. I happen to err on the side that players can tell the difference, especially dollar players. True, I am a liberal even when it comes to the gambling business believing every slot player deserves a bigger chicken in his pot. But being from the school of Warren Nelson, Bill Boyd and Michael Gaughan, I’m convinced a more satisfied player breeds loyalty and makes us all more money in the long run. Perhaps an infrequent tourist player can’t tell the difference with their $100 bankroll, but get enough of them on a plane headed back home talking about how well they did at Sassy Sally’s and it will change where they spend their money the next time.
Almost to the person, slot directors tell me that there is a shortage of good dollar product.Their dollar games are making proportionally more money than their respective footprint.It feels like a golden opportunity for manufacturers.Of course, it doesn’t just have to be in stepper games, but in my mind they hold the greatest potential.There is some light at the end of the tunnel.Slot makers like WMS have recently come out with some 3 reel 5 coin games like Wild Zone and 2X Wild and Crazy that are doing fantastic in early results.Bally and Konami are introducing minimum bet typology on some of their new stepper product which could catch on.This betting method forces players to cover all line on lower denomination games to get average bet up and justify lower hold percentage.This should allow for some more dollar type math and top awards. I’m told IGT will be showing a lot of new dollar product at this coming G2E. Maybe dollar slots aren’t dead.
The slot floor is an ice cream store. There are different flavors for different tastes and gambling budgets.Some people want a lot of time on device (penny video), some want strategy and a recognizable pay schedule (poker), some want life changing jackpots (Megabucks), some like mechanical reels and thrilling but achievable jackpots (dollar reels).It’s our job to come up with product that fills those needs. There are cycles gaming business, like everything in life.What is popular today will eventually get replaced with something newer and more exciting.In the late 90’s, three reel steppers got push aside for nickel video, then penny video became the mantra, now penny reel slots are coming back.Will dollar reel slots, armed with the latest technology, more bet options and bonusing features be the next hot category?
Mick Roemer is a regular contribute to Casino Enterprise Management.
SBG – Technology versus Content
Mick Roemer – Roemer Gaming LLC Global Gaming Business Magazine - November 2007
Have you ever heard a slot customer ask “where’s the latest new technology? I can’t wait to put my hard earned money into that server based gaming thingy”?
My guess is that the average slot customer could care less about the latest technology. All she wants is to play her lucky game, have a little fun, and maybe win some money. So what’s all the fuss about server based gaming and what is really going to get this train out of the station? This will be the third G2E that we’ve seen server based gaming touted as “this year’s big product”.
Server based gaming could be one of the most powerful drivers for the slot machine industry since the hopper. It has the potential to improve customer service, enhance security and controls, and overwhelm us with marketing and statistical data. But more importantly for the players and for the industry, it can expand the quality and creativity of our slot content. That is where the real payday lives and that is what will ultimately be the most compelling force for acceptance.
There are five players at this table, but one of them will ultimately pay for it all - the casinos, the suppliers, the stockholders, the regulators and, oh yeah, the customers (that would be the one with all the money). The casino wants all the money from the customers, the suppliers want to be the one to provide the products that help the casinos get all the money from the customers, Wall Street wants to make a bunch of money off the suppliers making the money, the regulators want to make sure that nobody gets any money without them knowing about it, and the customers just want to have a good time.
Therein lays the problem. Everybody is getting excited about it except the customers. They may like it, they may even want it but they just don’t know why yet.
The ‘hype’ got in front of the cart a little bit on this one. The technology is pretty complicated especially when you add in an evolving regulatory landscape. We don’t just have ourselves to please when satisfying our thirst for innovation, gigabytes, download speed, and connectivity. When “money” is the product, everybody in the food chain pays more attention to the details. Although some of us would love to go out and buy a boat load of iPhones, hand them out to our nation of gadget primed gamers and stream the latest multi-hand poker product down into their wallets, our path is more circuitous. Dungeons, dragons, and gaming regulators.
It is very tough to get a slot machine product approved and that’s a good thing. There is nothing more important for our industry than protecting the integrity and fairness of our products. We have to ensure at all cost that our customers know they have a fair shot at winning every time. When explaining to the uninitiated who complain about how far behind the technology curve we are, I just say “yeah, but can your iPhone work after being hit with 40,000 volts of electricity from a cattle prod and not drop your call or lose your contact information?” That’s exactly what a slot machine, and slot systems like download servers, are expected to do. Literally. They are expected to work every time, flawlessly, no matter what. That takes a little more time than ordering your new computer from Apple.com.
So, a few years ago when Wall Street started going crazy about how server based gaming was going to take over the planet, I smiled. It is amusing to me how some become so eager to build a success story to move the stock price that we forget how complicated the engineering and approval process is and, most importantly, what we should really be focusing on:how we improve the quality of the players’ gaming experience. But what does that mean exactly?(Smile).
Our customers want to have fun and maybe win a little money. Even if you could explain to the player about all the benefits of server based technology: access to hundreds of game titles quickly, intuitive download of game preference, enhanced player rating and bonusing, faster upgrades of software, and better security, you would probably get a blank stare. If the player doesn’t have fun playing the game, the games won’t drive higher revenue and SBG will be a technology with no place to go. It is hard to justify the cost of this kind of technology on operational savings alone. Remember how long it took slot accounting and ticket in ticket out systems to take hold?
TITO technology was first introduced in the 80’s. Operators loved the idea of getting rid of all those nasty coins and expensive coin handling, but the players didn’t want it. Players loved their coins. There was little benefit to them for giving up something they liked and were used to just so the casino could save money. So the test at places like the Desert Inn and MGM in the early 90’s failed. It took another 6 years for the multi-coin video slot with a penny denomination to drive customer acceptance. It was entertaining to watch unfold. The customers finally embraced the technology because it solved a problem for them. They loved their penny slots but they were a pain in the butt. You see the penny slots kept emptying the hoppers because it took too many pennies to make a cash-out. This caused a lot of handpays and a lot of unhappy customers. Suddenly TITO had real value to the player. It made playing a fun game more enjoyable. So what is server based gaming’s ‘tipping point’?
In a word - content. Our world is now wired in just about every way imaginable and people are becoming comfortable with being connected. They are starting to embrace it and even look for it in all aspects of their lives. As a player, if you give me a good math model and excite me with a way to play with others or somehow participate in a shared gaming space, I’m all in. Tournaments, progressives, shared bonuses, and poker all lend themselves to networked play. This is one way of moving server based gaming from an interesting technology to a money maker for the casinos. My bet is that at this year’s G2E you will see a lot of great creative ideas with this theme. But be patient. With most really cool new games that you see at the show there is another 12 to 24 months before you see them fully deployed in the market. And my guess is that new regulations will have to be written or modified in order for these new and very creative games to be approved. For example PONG. The addition of a little skill (dexterity) required some special attention by the Nevada regulators. Think about what a group play PONG game will require regulatorily. Think about Dungeons and Dragons on a slot machine?
This has got to be one of the most exciting times to be a part of the slot machine industry. If we work together and keep the architecture open, giving access to an even broader set of talented developers, it will truly be a ‘tipping point’ for server based gaming. This new technology affords us so much potential to shake up our world and expand what we think of as gambling entertainment. But remember, the technology is only the vehicle not the destination. Now it is time for game developer to get busy.
Mick Roemer is President of Roemer Gaming a gaming content, marketing and product development firm in Las Vegas. Copyright 2007.All rights reserved.
Skill Based Gaming – The New Frontier
Mick Roemer – Roemer Gaming Published in Slot Manager Magazine - November 2007
Maybe Nolan Bushnell should not get the credit for the coming wave of skill based gaming….but I’m giving it to him anyway. Nolan Bushnell is the inventor of PONG and the founder of Atari.In the early ‘70s, Atari was the driving force in the newly emerging video game and arcade business.Titles like PONG, Break Out, and Asteroids created an entertainment world never seen before.
Legend has it that Mr. Bushnell convinced a friend of his who owned Andy Capp’s Tavern in Sunnyvale to put in a test version of his new video game. It was a video type arcade game where two players could hit an electronic ball back and forth using video paddles – it was like a video ping pong game.In less than 24 hours, Nolan got an angry call from the tavern manager to come down and remove his game; it wasn’t working.Bushnell wasn’t that surprised.He had suspected that the silicon chips in the game processor might not be able to hold up to the hostile environment of a bar.Deflated, Nolan arrived at the bar to collect the game. As he open up the door of the cabinet, hundreds of dollars in coin spilled out onto the floor.The games weren’t working because so much coin had been put into the machine that it had jammed.That was the moment that Nolan Bushnell decided to create Atari.
When you look back at these games, the graphics look so simple and primitive. But even today those games still have that magic.It is the same way with slot machines.Even though so much money and effort goes into putting high resolution graphics and stereo sound effects into the product, the games’ success still comes down to the math models and the play mechanics.All the cool packaging helps bring the players to the machines, no doubt, but you’ve also got to have some steak with that sizzle.The games have to be fun to play.
I know we are talking about two completely different types of games here.PONG is a skill based game as opposed to a slot machine which is totally random.With PONG, let the best man win; with slot machines every man has an equal chance of winning.How can you combine these two types of video entertainment and still have a gambling device?Up until recently this was something that some regulators, specifically in Nevada, have shied away from.Now it looks like things are changing.
Skill in slot machines in Nevada has been defined in two ways: strategy and dexterity.Video poker, for example, has been around for years.The percentage of the game can be greatly improved with the right strategy.A hold on a 9/6 video draw poker game can vary anywhere from 95% to 99%.In other words, good poker strategy can improve your odds over 80%.
Dexterity, on the other hand, has never been allowed in a slot machine in Nevada until now.PONG is a breakthrough product for that very reason.You might say that the concept of allowing some form of skill in a slot machine, which is supposed to be totally random, is contradictory to giving each person an equal chance. Maybe it is, but it is time to blow that old idea out of the water.
Gaming needs to be fair and honest.But it is possible to have fair and honest games of skill that include dexterity.We’ve managed to figure out how to legally bet today on sports events like football and horse racing – all which rely on the physical dexterity of the athletes and a pari-mutuel type betting scheme.We should be able to figure out how to capture this same kind of competitive adrenaline in a video slot machine.The first version of PONG is a stand alone but it won’t be long before you see multi-player versions of these type games on the market.
The industry is struggling to understand how to get younger players more interested in slot machines.Younger players are being attracted by table games and sports betting. Many in this generation find slots to be boring and mindless.That doesn’t have to be the case. Video games like Gears of War or Madden Football account for over $8 billion in revenue every year. Over 64% of American heads of households play video and computer games.Maybe it is time to adapt some of these creative game concepts to slot machines.
Baby steps.PONG approached the addition of skill in the right way.It only included it during the bonus round where players couldn’t lose. How well they played the PONG game could only improve their bonus potential.The main game of PONG is a traditional 5 reel, 20 line, and 1000 coin video slot game.The bonus round triggers the PONG game where the player gets to play the real game of PONG against the slot machine.The developers spent almost three years developing the right computer algorithms, perfecting the graphics and game mechanics and working with regulators to make the game actually play like real game.
So where do we go from here?Well, we first need to see if the game of PONG actually works in the marketplace.A lot of great ideas on paper fall flat on their faces when the public has to put coin in a machine 24/7.But on this one, my bet is that this is the beginning of something big.Even if the first version doesn’t work, the second or third version will.(Most every ground breaking product that has ever hit the market, took more than one version to get it right – Megabucks, WOF, Triple Play Poker, etc.) The idea of adding some level of skill – dexterity or strategy – just makes too much sense.
Hear that?That’s the door to a new frontier of games opening.
Mick Roemer is a regular contributor to Slot Manager Magazine.
