Las Vegas Sun

February 9, 2010

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Slot makers team up at behest of CityCenter

Many machines there will work in concert to give house flexibility

Monday, Nov. 30, 2009 | 2 a.m.

CityCenter

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Casinos have long complained about incompatible slot machine hardware and the increasing cost of upgrading their floors.

But that’s changing with CityCenter and its 4,004-room Aria resort, which will open Dec. 16 with many of its 2,000 slot machines connected by a high-tech system developed with the cooperation of major slot manufacturers.

It’s an unprecedented effort, unusual in the gaming industry as well as most of the business world, where Apple and PC-based computers and AT&T and Verizon cell phones, for example, run on discrete systems that allow these companies to better protect their profits from competitors.

Today’s slot machines are a world apart from the mechanical-reel cherry machines of years past. High-tech gambling games arrived years after other industries pioneered such entertainment features as Disney-quality graphics and high-fidelity sound. Some industry executives will admit that long-standing protectionism in the gaming industry has hampered the kind of innovation that benefits the entire industry by encouraging new products that might attract new customers or keep existing ones interested.

The same expectations that people have of their computers, cell phones and other consumer technology — including better innovation, flexibility and pricing — motivated CityCenter to demand more than a year ago that the big slot machine vendors work together to elevate the overall quality of the casino floor.

That was a tough pill for slot makers, which have struggled to increase profits in a recession that has shrunk the budgets of gamblers and casino operators alike.

Historically, competitors in gaming have had even less incentive to work together than other industries. Because state regulators license slot executives and evaluate machines for play, the cost of entry for newcomers is steep. Manufacturers fight tooth and nail for market share, as casino customers in most parts of the world are limited by regulation and new casinos are generally few and far between.

And yet, with the global publicity generated by CityCenter — an $8.5 billion resort complex touted as the Second Coming for Las Vegas — manufacturers couldn’t afford not to meet the property’s demands. So they agreed to get along.

“We’ve never had a better relationship with all of our competitors than we have now,” said Rob Bone, vice president of marketing for WMS Gaming.

And so, CityCenter will become the first Nevada casino to network its slot machines so that the casino, from a central computer server, can download games, marketing offers, coupons and customer greetings onto the machines.

Until now, slots were governed entirely by discretely programmed computer chips. These new slots won’t look much different except that some will feature flat screens whose content can be changed from a back room to reflect a newly downloaded game.

In some cases, players will be able to choose from a menu of several games — somewhat more variety than many slots now offer. At the touch of a few buttons, Aria managers will be able to create a bank of slots on which gamblers could compete with one another, tournament-style, or offer select gamblers a steak dinner.

Although manufacturers fell short of developing a single system to manage Aria’s slot floor, the casino will close in on a more cooperative effort after a year or so, when it will be able to offer games made by different manufacturers in boxes, commonly called “cabinets,” made by competitors.

For now, manufacturers are still carving out a few profit centers for themselves.

Bally Technologies makes a small screen on its slot machines that isn’t compatible with slot systems developed by IGT and WMS, for example. Using Bally’s screen, called iVIEW DM, gamblers can make a sports bet and then watch a football game as they gamble. They can also use the screen to order a drink or call a host.

By contrast, WMS games offer another window that is made by a third party that created it independently, based on a publicly available standard protocol created with input from many manufacturers. Adopting an open, Web-based system enables software companies that were traditionally shut out of the gaming business to compete for the development of slot applications — enabling WMS to focus on creating new games, said Mark Pace, vice president of network gaming, engineering and operations for WMS.

Games made by Bally, Aristocrat and Konami won’t work on the IGT/WMS network — at least not yet.

And some companies are protecting their legacy systems by requiring casinos to buy another piece of software that can “translate” between the old and new technology.

Giants in other industries have come together to develop new technology for major customers, as Lockheed Martin and Boeing have done with bombers and air traffic control systems for the federal government. Some sectors have shared research to better compete with others in the same industry, as Ford, Chrysler and General Motors have done with energy and mechanical technology.

Slot machine gizmos might seem a less important outlet for business ingenuity. And yet, the CityCenter effort, a fundamental shift in how an industry is positioning itself to do business, is more significant relative to the customers it will serve.

The technology developed for CityCenter will be used by casinos around the globe, affecting untold numbers of gamblers as systems now open to new competitors eventually replace older ones that quickly made games obsolete and the process of changing them expensive and time-consuming.

“We knew we wanted to go in this direction as an industry — it just makes sense,” said Javier Saenz, vice president of network systems for IGT. “CityCenter forced us to have a deadline. We need these kinds of catalysts.”

Discussion: 29 comments so far…

Comments are moderated by Las Vegas Sun editors. Our goal is not to limit the discussion, but rather to elevate it. Comments should be relevant and contain no abusive language. Comments that are off-topic, vulgar, profane or include personal attacks will be removed. Full comments policy.

  1. Centralization is a double-edged sword. The benefits are almost obvious at first, however, now a single point of failure has much more widespread impact. New (unproven) technology is a risky proposition with something so vital to casino revenue. I suspect that this will alienate slot 'traditionalists' -- they don't like new-fangled technology messing with what they've come to know and love. How do you feel? It'll be very interesting to see how this pans out, I could see it being the standard for all casinos in the future.

  2. People already go to bars and dumpy casinos for older style machines.

    Maybe Sheik Maktoon should become a pro-wrestler to bailout this failed project. He could call himself the "Sheik"

    How come Shelly Berkley doesn't comment on the Iranian influence in Dubai? Or Dubai's boycott of Isreal??

  3. WARNING ! WARNING ! WARNING !
    STAY AWAY FROM ANY SERVER BASED SLOT SYSTEM MACHINES ! THESE SYSTEMS ARE PUT IN PLACE TO LOWER YOUR ODDS AND STEAL YOUR MONEY! THESE MACHINES CAN BE MANIPULATED ON ONE KEYSTROKE BY THE SLOT MANAGER. THIS SYSTEM HAS BEEN PUT TOGETHER THROUGH THE COOPERATION OF THE SLOT MANUFACTURERS WITH THE CASINO COMPANIES AND SANCTIONED BY THE GAMING COMMISSION TO DO ONE THING ONLY.. STEAL OUR MONEY!!

  4. mred Why would Berkley comment on Dubai and it's fiancial problems or the supposed boycot of Isreal? Wall Street and the State Department are the sources for this information. Why would Ensign or the brain from the north Heller not comment on Dubia as well?

  5. There will still be idiots that put money into these machines...some people never learn..beat me, punch me, kick me.

  6. Casinos will now have what every gambler thought they always had...a switch in back to make the machines looser or tighter...and you know they won't ever make them looser.. they have a huge debt to service..I don't think the gamblers will embrace this new technology

  7. What is really insane, is that the gaming commission has approved the use of these systems/machines in this state. Where is the outrage from the public concerning this? Am I the only one?

  8. Gamblers will decide with their dollars. Right now they're deciding they liked a real sense of chance better than new technology as gaming revenues should have been increasing way more than they have been in the last five+ years.

  9. is this simply using the press to put a spin on a soon to be bust block of awful looking construction??

    Why does the sun give this company so much coverage?

  10. Where have all you people been ? unless you've worked in this industry on the back end you would know that it doesen't matter if its server based or chip based YOUR STILL GOING TO LOSE !!! the longer you play the worse your odds get!! Go back and re-read your comments and tell us something we don't know.

  11. By the way, when a casino first opens, is when the slots are the loosest !! go figure !!

  12. * * * *
    Hold on a second!
    * * * *

    Let me try and dispel any paranoia environprotector and the like are trying to spread:

    First of all the game must not be actively playing (there cannot be a customer playing the game) and it must be taken "out of service" and left to sit for minutes (with no tilts, etc) to implement the changes the "evil slot director" is attempting to make. These changes cannot be done "on-the-fly" while a guest is playing! Do you seriously think Nevada Gaming would allow such software to even see a casino floor if that were the case?!?

    You sir, are a paranoid fool who does not know what you are talking about.

  13. I use to love to play the slots but in the last 5 years they are not paying 100 lines huge bets with smaller and smaller returns. all the new slots are tight...they are lossing me and now they want me to play machines that can be changed from a room hidden under the casino floor. lol this is crazy sure some will come at first to see this monster but by next summmer we will be hearing about the demise of city center..if they were smart the would be promoting loose slots and pay out some money to get money.. but they are baking that we will dropp all of our cash on new bells and whistels ....truth is i have won 3 or 4 big jackpots a year for like 7 years but in the last two I have not won any...is it my luck ? i think not

  14. Nate ..you are correct in the way the machines can be changed ( no one currently playing etc..) but it still gives the Slot Director complete control over his machine mix and hold % on those machines. On weekends when the traffic is busiest he MAY tighten the hold% on video reel machines..then loosen them back up on Monday morning..I'm not saying this WILL happen only that it is possible with this new technology...

  15. Nate is correct. The "evil" slot operators are not going to mess with what is essentially a money machine. They are permitted to take a guaranteed amount of money from the machines, so they will not up the percentage without the approval of the gaming authorities. That's a big red tape process and why go through that if you've already got the golden goose?

  16. Nate702 : Here's the skinny. A slot machine should be what it was originally conceived to be, a stand alone pre-set odds device which the player sits down to knowing full well what the pay out schedule is as printed on the glass or whatever. It's bad enough that we more or less don't really know what the payback percentage is, however sometimes we can get familiar enough in an area which states 98%. That being said, as a slot player I want NO other inside or outside connection to this machine that can change ANYTHING except for my own ability to change the denomination. For too long there has been a back and forth between player and casino as to whether or not machines can be "tightened" or loosened at the casino's discretion. I believe that time and experience with this issue has pretty much shown that some machines and/or casinos are looser than others, which proves that this is possible within the programming on the RNG chip change out which usually occurs on Thursday's prior to weekend swell play. I am NOT a paranoid fool as you charge, I just believe that slot machine play walks a VERY thin line of trust with the foolish player as it is, Server based systematic technology just takes this whole notion of mistrust with the players and puts it on steroids.

  17. @pacman720: Oh I agree THAT is possible. Not the spin-by-spin changes that had been suggested.

    Folks lets face it: There are immoral people out there and the gaming industry has a history of inadvertently maintaining a tarnished image. There is always the danger that the house will slant the odds towards itself to stay afloat but there are checks and balances put in place. Nevada Gaming does it's best to keep gaming legit but let's not forget there is a chance you can win (or loose) and no matter how small: it's still there. Such is the nature of the beast.

  18. Nate702 : Don't forget the scenario of American Coin...

  19. To By mrtmtrvlr and followers thereof:

    Excellent point, decline in casino slot hold is not all due to slumping economy, but very possibly a rejection of video slots by reel slot fans (no pun intended, but hey it works).
    I find video penny slots insulting. I know slots in general are a losing propostion over the long run. I know that going in. So be it. It's my money.
    But I don't appreciate high-tech graphics and wrap-around sound effects that try to make me feel I'm a winner with visual and audio woo-woo when they give me 8 credits back on a 25-cent bet. Add to this insult server based options available for management access, the slope gets even sliprier. I'm out of there.

    I've found lots of older, three-reel coin slots at Gold Strike (Jean), and Downtown--El Cortez, Fitzgerald, to name a few. True, these are chip-driven machines, but the odds are not changeable by management once established on the floor. That unchangeableness is something I can live with.
    (Psst, MGMM--I know you own Gold Strike, please leave it the way it is--comfortable and very good value!)

  20. People should know that even if the machine is on a chip system, it is also on a secure network connected to different "controllers banks. These are operated by slot operations dept. Just because the new system is on a PC based system doesen't mean the odds are going to be different just how they control the individual or "banks" of machines. City Center will have the same odds as any other casino: YOU LOSE !!

  21. Slot machines are not true slot machines any longer.

    Instead they are glorified arcade machines for adults, if you get your money back from the machine its comparable to a kid finding money in the coin return slot.

  22. Man! who ever thought we would see the demise of Vegas unfolding right before our very eyes!! It's just like an implosion! just unbelievable !!

  23. Typical public relations hype. New and Improved! Yeah, sure.

  24. What about keno machines? Are they on the same programmable manipulation by the 'house'?

  25. "CityCenter -- an $8.5 billion resort complex touted as the Second Coming for Las Vegas"

    One of the biggest offenders of this "touting" is this very web site/paper. A quick Google search shows that "CityCenter" has been mentioned on 23,000+ pages on this site.

  26. All slot machines operate with a random number generator. It does not matter whether they are server based or not.

  27. You know what's designed to take your money?

    Casinos. And ESPECIALLY slots.

    Instead of running around spreading FUD about things you don't know about, it's probably best to stay away from them if you don't want to lose your cash. People who are out of their depth are an easy mark for casinos.

  28. mike_ch : C'mon , if your familiar with gambling, Las Vegas, whatever, you would know that fairly balanced odds on slot machine can offer good play, with some payback, and a good chance at some jackpots from time to time. The key is hitting that jackpot before you put too much of your own bankroll into it. The other strategy is moving on to another machine with just a little profit, or a break even scenario. This is why slot machines are so popular. But these Server based systems machines are just asking the player to trust too much! human nature is that of greed, and server based slots are just a little to comfortably manipulated by that human element for my taste.

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