Free Slot Play Declining

Free slot play increasingly is declining, due to an improved economy and aging Baby Boomers, says slot expert, Vince Manfredi (l). For example, in Pennsylvania, free slot play fell from a peak of $681.2 million in fiscal year 2012-13 to $622.4 million in fiscal 2016-17,and from $93.9 million in fiscal 2011-12 to $74.3 million in 2016-17 in West Virginia.

Free slot play is declining in casinos across the nation. Analysts attribute the decrease to an improved economy and aging Baby Boomers. According to casino consultant Vince Manfredi, a former executive with the company that introduced free play concept in the U.S., “We’re in a state of flux. The slot experience has to be reimagined to appeal to a younger audience. The younger person is not as inclined to play in a traditional slot experience because it doesn’t compare well with other kinds of electronic gaming experience, where there is competition, there is socialization, there is more entertainment value through the animation.”

One example is the “World of Wonka” slot machine, which recently debuted at Rivers in Pittsburgh and Mount Airy in the Poconos in Pennsylvania. Developed by Scientific Games, the slot has three high-definition displays that slant toward the player plus a 40-inch top screen and a tablet button panel. A Rivers spokesman said the machines are so popular, people wait in lines to play.

But free slot play in Pennsylvania is on the downward trend. Gaming Control Board figures indicate it peaked at $681.2 million in fiscal year 2012-13. In fiscal 2016-17, ending June 30, free slot play totaled $622.4 million. The pattern is similar in West Virginia, where free slot play totaled $93.9 million in fiscal 2011-12, and fell to $74.3 million in 2016-17, according to the West Virginia Lottery.

Manfredi said free slot is a viable way to attract new visitors or build loyalty among existing customers. However, he noted, “From the operator’s point of view, there’s a cost to giving a player free pulls on a slot machine. There’s an expense, and the expense has to be managed.” For example, he said, it’s not unusual for some players to use just enough free credits to convert them into cash. Then they depart without having spent any money of their own.

Manfredi said casinos must go beyond free slot play to attract and keep customers, and that involves focusing on the overall customer experience.

“Casinos that are savvy have identified what can make a difference. Wheel of Fortune is Wheel of Fortune. An environment that’s perhaps less smoky, or more friendly or has a loyalty program a little bit more favorable” will attract customers, he said.

Another issue for casinos is reporting free play. It’s not required in Nevada and several other jurisdictions. But according to a monthly report from Manfredi Consulting in San Diego, casinos in Pennsylvania, Ohio, New Jersey, New York, Connecticut and Florida must report free play numbers. Pennsylvania, number one in commercial casino revenue behind Nevada, reportedly gives out the most free play at 27 percent.

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