Not really. It would take a very long time to fully explain it, but the
quick answer is that almost everyone running a casino in Las Vegas grew up
in the industry. "Common Knowledge" is, at least in this case, extremely
limited and all these guys have the same assumptions about what is "right"
and "wrong" to do. The very gross example is treating modern machines like
the old single-line slots. They think that it is correct to give your
highest theoretical return on your highest denomination machines. This
doesn't actually work anymore in slots since a nominal penny game might cost
$5 or more per pull at full coin, more than single line dollar machines did.
Look at how many casinos (almost all?) that have their highest return VP at
the highest denoms, at least those that are not nominal 100% games. But they
really don't understand the economics or risks of various games. Add that to
the fact that many slot directors and GM's come from Harrah's with the
philosophy of having mediocre returns on ALL machines on the floor.
Unless we can overcome "common knowledge" and find management that actually
can follow solid business strategies the locals casinos will continue to
deteriorate and many will end up going out of business.
Bill
Correct me if I'm wrong. I was always under the impression that Las Vegas
locals casinos were unlike any other casinos ( including the Strip), in that
they were heavily driven by VP play. If that's the case and these local
casinos continue to downgrade or remove playable games and are seeing these
moves bringing a marked decrease in revenue, then why are they still doing
it ?
Am I missing something ?
Larry Feldman