Once upon a time, the VP inventory at the Majestic Star Casino in
Gary, Indiana included two banks of very popular 100-play penny
machines. Except for 9/6 BDLX on 5X days, none of the games in these
banks offered a positive return. Yet the machines were usually busy.
Often there were people waiting in line to get at them. Apparently,
lots of folks enjoyed playing 50 or 75 or 100 hands of 98-99% games
like 7/5 BP, 8/5 SDB, 7/5 SA, 9/7 DB, 9/6 DDB, etc.
Not any more. Several months ago the Star ravaged the bank's pay
scales, replacing the 98-99% games with a limited menu of 95-97%
trash. Now most of the machines sit idle. No one plays them. You can
hear the wind whistle through the TITO chambers.
I'm wondering: how can this be good business? I'm no MBA, but I'm
pretty sure that 1-3% of a lot of coin-in is better for a casino's
bottom line than 4-6% of nada.
By the way --- very few of the players chased away by the pay table
downgrades will be inducted into the VP Hall Of Fame any time soon.
The overwhelming majority are casual recreational players, and a
substantial segment of the group are pretty clueless --- EXCEPT:
apparently they're smart enough to realize that when a 9/6 games
suddenly becomes a 6/5 game, that ain't a good thing.
The decline of the Star's penny banks is only one example of a
puzzling trend evident all over the VP landscape. Casinos, driven by
greed, paranoia, ignorance, or a blend of all three, are
systematically alienating what should be a sizable --- and
profitable --- customer base. Instead of allowing simple math to
provide a consistent return for years and years, casinos have decided
that a scorched earth VP policy is a better way to go.
This makes no sense. Unless a joint's cashback and promos are
idiotically liberal, there's no way 99% VP should lose money for the
house. If you're a savvy slot manager, shouldn't you want your VP
players to become loyal steady customers who feel they're getting
what Benny Binion called "a good gamble?" Don't you want them to win
occasionally, and, almost as importantly for many of them, don't you
also want them to play a little longer when they lose? There's no
need to gouge your customers; in fact, it's against your interest to
do so.
I would think experienced casino execs wouldhave a better handle on
their markets by now. Didn't VP provide a big chunk of the revenue
that built the Coast and Stations empires in Vegas? Didn't a
neighborhood joint specializing in VP eventually accumulate enough
cash to build the Palms?
Just wondering.