A major stumbling block to casino profitability is that slot floors offer way too much variety, according to experts on a panel at last week’s AGS GameON customer summit.
Nick Hogan, co-founder and CEO of ReelMetrics, displayed research results that show more than half of a typical casino’s slot floor space is occupied by games that account for only 15 percent of revenue. Hogan called them “dogs” that occupy too much floor space. “It’s like your front-row customers spending all their time in the cheap seats,” Hogan said.
Hogan outlined ReelMetrics’ “Cupid Initiative,” which is designed to help casinos match players and slots in a way that increases profits. The aim, he said, is to allot at least 40 percent of floor space to the best-performing games, with the lowest-performing games designated to 15 percent of the floor.
“What we’re seeing is there is a lot of fat to carve out,” Hogan said. “These acute inventory imbalances are the rule, not the exception.”
