Inside Asian Gaming

INSIDE ASIAN GAMING | May 2011 42 Feature in the world have universally determined that side bets and continuous shufflers on BJ are the way to go, and as a result they are holding more than double what casinos in other parts of the world hold. Admittedly, players in Macau have a greater desire to play side bets, but it is also a function of the fact that they have seen the bets on the tables for years and view them as part of the game, not as a “sucker bet.” In the USA, where craps is popular, there are a number of these “sucker bets”, such as the hard ways, that players consider part of the game and enjoy playing. A casino manager would never remove these bets because he is winning the player’s money too quickly, but he may reject a new side bet on the same grounds. The fact is that players like and want options when they gamble. They like to swing the bat occasionally and try to win that long-shot bet. This makes the game more fun for the player and more profitable for the casino. A look at the numbers The idea that the player has a fixed budget and will play until that budget is exhausted is the foundation of this old way of thinking. The first fallacy of this logic is that it suggests all players are budget- constrained rather than time-constrained. While some players have $20 and all the time in the world, others have $1,000 and a dinner reservation in 45 minutes. If we accept the basic premise that more hands and a higher house advantage result in greater casino win, then we need to explore how many players this will impact. Every casino is different, but generally 32% of all blackjack players lose 100% of their buy-in. This leaves 68% of the players either losing some but not all of their money, breaking even, or winning. So there you have it, “You will get the money anyway” from 32% of the players, but the other 68% are leaving with chips and you don’t “get the money anyway.” This antiquated way of thinking is unique to table games for some reason. The slot department is almost exactly the opposite, constantly trying new products and finding ways to increase the speed, house advantage, and ultimately the win. The slot floor of 2011 is dramatically different from the slot floor of 15 years ago, and the performance is better. Unfortunately, all too often the table games department looks the same as yesteryear, and so does the hold percentage. The fact that we casually accept a hold percentage in the low teens for blackjack is appalling. Industry CFO’s are increasingly asking how we can increase the hold, and we must try new things if we want new results. As an industry, we should be looking to the top performers such as casinos in Singapore, Macau and scattered around the world to see what is worth trying, because, “We will not just get the money anyway.” Todd Haushalter has worked as a dealer, run a scheduling department and opened properties, but mostly he is the guy who figures out ways to make major casinos more profitable—most notably Wynn Resorts, where he spent four years before joining Shuffle Master. Now, as Shuffle Master’s Director of Product Development, he travels the world working closely with casinos’ management teams to identify new ways to help make casinos more successful. Double down—Macau casinos have consistently higher holds on blackjack than their international peers The slot floor of 2011 is dramatically different from the slot floor of 15 years ago, and the performance is better. Unfortunately, all too often the table games department looks the same as yesteryear, and so does the hold percentage.