Players deserve better gambling value, consultant says
By Mark Gruetze. Tribe live

Casinos are taking money from gamblers faster than ever and need to change tactics as competition increases, a veteran gaming consultant says.

That might range from loosening penny slots to providing more player-friendly table games to paying better attention to customers, says Dennis Conrad, founder and president of Raving Consulting in Reno, Nev.

“When markets mature and expenses go up and the pool of gamblers remains stagnant after a point, how do you make more money?” Conrad asks. “That’s the million dollar question.”

Part of his answer is to make the gambling better.

Conrad’s emphasis on increasing value for customers — which he maintains will increase casino profits, as well — comes from a dose of gambling in his blood. A native of Buffalo, N.Y., he attended Stanford University, where he was on the school golf team with Tom Watson, who went on to become PGA player of the year six times.

After giving up on a golfing career and law school, Conrad got hired as a craps dealer in 1977 at the Stardust in Las Vegas. He later became “Captain Casino” at the former Holiday casino on the Strip, where he taught visitors about blackjack, craps and other games. He rose to training casino executives for Harrah’s, requiring them to play the games themselves and arranging presentations by advantage players, acknowledged cheaters and compulsive gamblers so the managers could learn all aspects of the business. He still enjoys playing craps.

Over the years, casinos have made many changes to meet budget and increase business, Conrad tells Player’s Advantage in a phone interview. Slot machines got faster with coinless operation and digital displays. ATMs, and high transaction fees, became common. Penny slots took up more of the casino floor but kept their stingy payout rates even though bets are often $5 per spin, which would receive a better payback at, say, a dollar machine. Automated shufflers generated more hands per hour at table games.

Slot manufacturers refer to “velocity,” which Conrad defines as how fast they make money.

“They like to increase velocity and not have it seem like the (gambling) experience has been altered,” he says. “It’s all short-sighted” because players realize their money doesn’t last as long as it once did.

“We’re taking the money faster than at any point in gambling history,” Conrad says. “How do we disengage? How do we go back?”
Many casinos turn to free play to entice players.

“They throw it out like candy,” Conrad says. “It’s spiraling out of control.”

Conrad says players’ response is predictable: “They gladly take it and ask for more. By the way, they still want their comps and the good promotions. We’ve created a large sense of entitlement with players.”

That presents a problem for casinos: “They can’t afford all of it. It’s just not possible.”

Casinos haven’t recovered from the recession. Conrad thinks gamblers are playing less because it’s not as much fun as before.

He suggests that casinos concentrate on improving the player experience on multiple fronts. Increasing slot-payout rates would lead to customers playing longer and more frequently. Players enjoy themselves more, and casinos end up making more money in the long run.
Other improvements might include better parking, better food deals, tiered lines at restaurants and a more helpful staff.

Conrad cites Barona casino near San Diego as a place that caters to players through liberal video-poker pay tables, a group of “manufacturers’ best” slots certified to have the highest available payouts and supervisors who roam the floor handing out “lucky” $20 bills to selected customers, such as those on a losing streak or visiting after a long absence.
With increased competition, casinos can’t afford short-term fixes, Conrad says.

“There’s a finite pool of people who use the product. Growing in this business is a real, real challenge.
“There needs to be more appreciation of the players and the playing experience.”

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