Introduction to the analysis of slot machines

The continual development of new tools for the analysis of the profitability metrics and performance of machines, the constant progress of communication technologies and its application to the casino environment, as well as the advent of complex systems of molding and prediction player behavior to optimize products and services, require professionals in the industry to be solidly trained on the key aspects on which those concepts are based.

We should point out that the companies related to the sector, maybe both gaming operators or providers of equipment and/or systems, have only relatively recently begun to appreciate the essential importance of this type of analysis and advanced metrics, both in terms of daily business operation as well as, and especially, in taking key investment decisions, such as the ones nowadays related to the acquisition of new machines, progressives or management systems. It is specifically for this reason that in recent years a novel figure within the new organizational structures of these companies has emerged: the Gaming Analyst. Although this position has existed for decades in the organizational charts of the main American gaming companies, under the title of Slot Performance Analysts, just in the last two years, the main groups of the gaming companies in our country, one of which I belong to, have started developing this role within their Operational Departments.

It is noteworthy that historically many of our (Latin American) companies have tended to model their operational structures on those of the key US organizations. If I may digress a little, and wind the clock back to 2009, I can’t fail to forget the look of surprise and confusion on my then boss’ face when, asked what we could do to improve our operational efficiency, I suggested we create a Gaming Analyst position and appoint a Statistics graduate to the role. The idea was dismissed there and then. But just a year and a half later, not only did I have the chance to recruit for that position but also to set up a complete Department centered around it comprising 11 staff. Nowadays, this Department is fully active, and provides services to several casinos belonging to the group – at which, in turn, similar Departments are being developed. 

Some of the tasks and responsibilities of this type of Department are:

•Collecting, shaping, standardizing and compiling all the information coming from the different data processing systems that provide information regarding the different parameters of game and slot collection that currently operate at the casino, as well as  relevant and important information coming from other sources that have not been computerized yet (for example, softcount of bill, technical reports, etc), for a complete control, conciliation and optimization of gaming operations at the casino. 

•Run daily, weekly, monthly and annual reports required by the different Areas and/or Departments of the company, related to the different operational parameters of the game and the movement of values related to those operations, in the formats and time set for each.

•Monitor constantly the networks and/ or computing services corresponding to the systems that are under their supervision, considering all the necessary and pertinent actions to guarantee its operability in a continuous and smooth way. 

•Audit in real time all the critical events of the slots operating at the gambling venue (removal of RAM, changes to configurations, setting of progressive parameters), requiring technical and/ or other kinds of report relevant for the analysis.

•Develop methods of analysis and tools based on the information available from the different sources, allocated to maximize the profitability of the machines, optimize the operations carried out at the casinos, or improving the global management of the Area and its Departments.

•Undertake planning, control and monitoring of future tasks, such as movements and/or incorporation of machines, progressive jackpots, gaming systems, etc.

•Perform statistical analysis of customers based on their game preferences.

•Bring support to the Marketing area to establish promotion campaigns.

•Firm up, in a permanent way, the necessary relationships with the other areas of the company, with internal and external providers and with the Monitoring Bodies.

Our aim in this section will be to analize with the reader the basic necessary core elements to develop those tasks, with the aim to achieve a proper awareness and interpretation of the main parameters that nowadays intervene on the development of the activities in the areas related to the operation of slots. In particular, we will consider basic and initial aspects of the analysis of the performance and profitability of slots, the parameters and variables that such an analysis involves, as well as the criteria to consider when facing the complex permanent optimization process of the offer of products and services in which professionals that participate in the industry are immersed.

In this column, we will try to develop the basic notions regarding the way in which casino games in general, and slots in particular, generate utilities for the casino, as well as the different parameters and variables that have more impact on them. In subsequent articles we will analyse in depth the PAR sheet of a real game and, through it, we will try to determine the different components of the product analysis, as well as the different factors that have influence on the success of a game. 

We will explore, together with the reader, the basis of the progressive systems and problems related to its accounting, analyzing the different types and configurations, its main characteristics and its effects on the increment of gaming volume of the machines.

Also examined will be the basic elements of analysis and interpretation of performance and profitability data of slot machines, examining the relevant calculations and reports. We will then proceed with a look at the selection of the gaming mix, configuration and slot hall design, as an introduction to the complex decision-making process that is required of an efficient casino operation. 

I don’t want to conclude this introduction without warning the reader that a considerable part of the content that we will explore isn’t original, but part of a compilation of different courses, seminars, articles and talks that the author has made over the course of twelve years in the industry, together with a myriad of practical experiences, trials and errors, from the daily management at the Slots Area of one of the biggest and most prestigious regional casinos.

Until the next issue!