Managing casino

SLOT OPERATIONS

Educational Institute Books

UNIFORM SYSTEM OF ACCOUNTS FOR THE LODGING
INDUSTRY
Tenth Revised Edition

ETHICS IN HOSPITALITY and tourism industry

Second Edition
Karen Lieberman/ Bruce Nissen

RESORT DEVELOPMENT AND MANAGEMENT

Second Edition
Chuck Y. Gee

HOSPITALITY FACILITIES MANAGEMENT AND DESIGN

Third Edition
David M. Stipanuk

PLANNING AND CONTROL FOR FOOD AND BEVERAGE

OPERATIONS
Sixth Edition
Jack D. Ninemeier

MANAGING HOSPITALITY HUMAN RESOURCES

Fourth Edition
Robert H. Woods

UNDERSTANDING HOSPITALITY LAW

Fourth Edition
Jack P. Jefferies/Banks Brown

HOSPITALITY INDUSTRY FINANCIAL ACCOUNTING

Third Edition
Raymond S. Schmidgall/James W. Damitio

SUPERVISION IN THE HOSPITALITY INDUSTRY

Fourth Edition
Raphael R. Kavanaugh/Jack D. Ninemeier
MANAGEMENT OF FOOD AND BEVERAGE OPERATIONS
Fourth Edition
Jack D. Ninemeier
MANAGING FRONT OFFICE OPERATIONS
Seventh Edition
Michael L. Kasavana/Richard M. Brooks
MANAGING SERVICE IN FOOD AND BEVERAGE
OPERATIONS
Third Edition
Ronald F. Cichy/Philip J. Hickey, Jr.
THE LODGING AND FOOD SERVICE INDUSTRY
Sixth Edition
Gerald W. Lattin
SECURITY AND LOSS PREVENTION MANAGEMENT
Second Edition
Raymond C. Ellis, Jr./David M. Stipanuk
HOSPITALITY INDUSTRY MANAGERIAL ACCOUNTING
Sixth Edition
Raymond S. Schmidgall
PURCHASING FOR FOOD SERVICE OPERATIONS
Ronald F. Cichy/Jeffery D Elsworth
MANAGING TECHNOLOGY IN THE HOSPITALITY
INDUSTRY
Fifth Edition
Michael L. Kasavana/John J. Cahill
BASIC HOTEL AND RESTAURANT ACCOUNTING
Sixth Edition
Raymond Cote
ACCOUNTING FOR HOSPITALITY MANAGERS
Fifth Edition
Raymond Cote
CONVENTION Sales AND SERVICEs
Seventh Edition
Milton T. Astroff/James R. Abbey
HOSPITALITY SALES AND MARKETING
Fifth Edition
James R. Abbey
MANAGING HOUSEKEEPING OPERATIONS
Revised Third Edition
Aleta Nitschke/William Frye
DIMENSIONS OF TOURISM
Joseph D. Fridgen
HOSPITALITY TODAY: AN INTRODUCTION
Sixth Edition
Rocco M. Angelo/Andrew N. Vladimir
MANAGING BAR AND BEVERAGE OPERATIONS
Lendal H. Kotschevar/Mary L. Tanke
9/08

RETAIL MANAGEMENT FOR SPAS

INTERNATIONAL HOTELs: Development and

MANAGEMENT
Second Edition
Chuck Y. Gee
QUALITY SANITATION MANAGEMENT
Ronald F. Cichy
HOTEL INVESTMENTS: ISSUES & PERSPECTIVES
Fourth Edition
Edited by Lori E. Raleigh and Rachel J. Roginsky
LEADERSHIP AND MANAGEMENT IN THE HOSPITALITY
INDUSTRY
Second Edition
Robert H. Woods/Judy Z. King
MARKETING IN THE HOSPITALITY INDUSTRY
Fourth Edition
Ronald A. Nykiel
CONTEMPORARY HOSPITALITY MARKETING
William Lazer/Roger Layton
UNIFORM SYSTEM OF ACCOUNTS FOR THE HEALTH,
RACQUET AND SPORTSCLUB INDUSTRY
CONTEMPORARY CLUB MANAGEMENT
Second Edition
Edited by Joe Perdue for the Club Managers Association of America
RESORT CONDOMINIUM AND VACATION OWNERSHIP
MANAGEMENT: A HOSPITALITY PERSPECTIVE
Robert A. Gentry/Pedro Mandoki/Jack Rush
ACCOUNTING FOR CLUB OPERATIONS
Raymond S. Schmidgall/James W. Damitio
TRAINING AND DEVELOPMENT FOR THE
HOSPITALITY INDUSTRY
Debra F. Cannon/Catherine M. Gustafson
UNIFORM SYSTEM OF FINANCIAL REPORTING FOR CLUBS
Sixth Revised Edition
HOTEL ASSET MANAGEMENT: PRINCIPLES & PRACTICES
Edited by Paul Beals and Greg Denton
MANAGING BEVERAGE SERVICE
Lendal H. Kotschevar/Ronald F. Cichy
FOOD SAFETY: MANAGING THE HACCP PROCESS
Second Edition
Ronald F. Cichy
UNIFORM SYSTEM OF FINANCIAL REPORTING FOR SPAS
FUNDAMENTALS OF DESTINATION MANAGEMENT AND
MARKETING
Edited by Rich Harrill
ETHICS IN THE HOSPITALITY AND TOURISM INDUSTRY
Karen Lieberman/Bruce Nissen
HOSPITALITY AND TOURISM MARKETING
William Lazer/Melissa Dallas/Carl Riegel

MANAGING Casino
Slot Operations

B. Roger Pettersson
Nathanial Hammond

Disclaimer
This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering
legal, accounting, or other professional service. If legal advice or other expert assistance is required,
the services of a competent professional person should be sought.
From the Declaration of Principles jointly adopted by the American Bar Association and a Committee of
Publishers and Associations
The authors are solely responsible for the contents of this publication. All views expressed herein are
solely those of the authors and do not necessarily reflect the views of the American Hotel & Lodging
Educational Institute (the Institute) or the American Hotel & Lodging Association (AH&LA).
Nothing contained in this publication shall constitute a standard, an endorsement, or a recommendation of the Institute or AH&LA. The Institute and AH&LA disclaim any liability with respect to the
use of any information, procedure, or product, or reliance thereon by any member of the hospitality
industry.

2009
By the AMERICAN HOTEL & LODGING
EDUCATIONAL INSTITUTE
800 N. Magnolia Avenue, Suite 300
Orlando, Florida 32803
The American Hotel & Lodging
Educational Institute is a nonprofit
educational foundation.
All rights reserved. No part of this
publication may be reproduced, stored in
a retrieval system, or transmitted, in any
form or by any meanselectronic,
mechanical, photocopying, recording, or
otherwisewithout prior permission of the
publisher.
Printed in the United States of America
1 2 3 4 5 6 7 8 9 10 13 12 11 10 09
ISBN 978-0-86612-342-6
Writers/Editors: Kelly Haughton

Dawn Nason

Tim Barto

Cover photos: Courtesy of Station Casinos, Inc., Las Vegas, NV.

Contents

Preface.................................................................................................. xii
1

The History of Slot Machines.......................................................

The History in the United States.................................................................

Gaming in Other Countries.........................................................................

3
6

The Slot Department Organizational Structure........................... 11

Slot Department Roles..................................................................................
Supporting Services and Departments.......................................................

12
15

3 Gaming Control and Regulations................................................. 21

History............................................................................................................
The Creation of Modern Gaming Agencies...............................................
State Gaming Control Board........................................................................

21
22
23

The Nevada Gaming Commission The Gaming Control Board

Overview of Gaming Regulations

Gaming Taxes.................................................................................................

26

Business Licenses Employment Licensing Gross Revenue and Per

Game Taxes

Indian Gaming Regulation...........................................................................

36

National Indian Gaming Commission Powers of the Chairman

Powers of the Commission Tribal Gaming Ordinances Tribal-State
Compacts Management Contracts Indian Gaming Working Group

4 Currency Reporting and Recordkeeping...................................... 49

Bank Secrecy Act............................................................................................
Title 31 Requirements...................................................................................

49
51

Currency Transaction Reporting Suspicious Activity Reporting

IRS Reporting.................................................................................................
Recordkeeping Requirements......................................................................
Non-Gaming Areas.......................................................................................

57
58
59

Responsible Gaming Guidelines.................................................. 63

Problem Gambling........................................................................................
American Gaming Association....................................................................

63
63

vi Contents
AGA Code of Conduct for Responsible Gaming AGA Annual Survey
Responsible Gaming Education Week

Individual Company Efforts........................................................................

66

6 Anatomy of a Slot Machine......................................................... 71

The Parts.........................................................................................................

72

7 Slot Machine Classifications and Types........................................ 81

Purpose of Slot Classifications.....................................................................

81

Class I Slot Machines Class II Slot Machines Class III Slot

Machines

Types of Slot Machines.................................................................................

83

Reel and Video Slot Machines Progressive Slots Video Poker

Video Keno Participation Games or Products Action Gaming
Multi-Denominational Machines Penny Slot Machines

8 Common Slot Operation Myths................................................... 99

The Myths Abound.......................................................................................

99

9 Slot Technology and Trends.......................................................... 103

Adaptive Gaming..........................................................................................
Slot Ergonomics.............................................................................................
Wide-Screen Technology..............................................................................
Cashless Slots (TITO)....................................................................................

103
104
104
104

Other Cashless Initiatives

Guaranteed Play............................................................................................
Video Reels.....................................................................................................
Transmissive Reels........................................................................................
Community Gaming.....................................................................................
Progressives....................................................................................................

107
107
108
108
109

Multi-Player Progressives Multi-Level Progressives Wide-Area

Progressives

Server-Based Gaming.................................................................................... 111

Collecting Player Data Player Controlled Choices Casino
Controlled Choices

3-D Video Display Technology....................................................................

Sensory Immersion Gaming........................................................................
Bonusing.........................................................................................................
Tethered Remote Gaming.............................................................................
Hand-Held, Portable Gaming Device.........................................................

112
113
113
113
114

Contents

vii

Sensory Touch Screen Technology.............................................................. 114

Online Slots.................................................................................................... 114
Technology in the Future.............................................................................. 115

10 Customer Reward Programs and Incentives................................. 119

Customer Amenities and Benefits...............................................................
Player Club Card Programs.........................................................................
Credit Lines....................................................................................................
Comps.............................................................................................................
Marketing Promotions and Incentives.......................................................

11

119
120
121
122
123

Floor Design and Layout.............................................................. 127

Floor Design................................................................................................... 127
Slot Floor Dcor Supporting Slot Marketing Strategy Designing
for a Market Segment Profit-per-Square-Foot

Floor Layout................................................................................................... 130

Functionality of Layout Aisle Width Traffic Flow Slot Mazes
Machine Placement Focal Points and Signage The Psychology of
Casino Design and Slot Machines Sensory Experiences Influencing
Consumer Behavior

Slot Floor Infrastructure............................................................................... 136

Casino Management System (CMS) Wide-Area Machine Systems
Casino Slot Management System Dynamic Floor Design

Floor Security................................................................................................. 140

Slot Floor Employee Security Protocols Hidden Security Issues
Face-to-Face Recognition Capabilities Many Eyes Are Watching

12 Slot Math..................................................................................... 147

Benefits of Understanding Slot Math......................................................... 147
The Key to Slot Math..................................................................................... 148
Actual vs. Projected Hold............................................................................. 158

13 Slot Reports and Analysis............................................................. 161

Tracking Slot Financials................................................................................
Slot Report Types...........................................................................................
Analysis and the Slot Floor..........................................................................
Player Behavior and Slot Choices...............................................................
Analyzing the Floor Operation....................................................................
Slot Report Information................................................................................
Financial Reports Game Performance Reports Monitoring Reports

161
161
162
163
163
165

viii Contents
Using Reports................................................................................................. 169

14 Slots Human Resource Issues....................................................... 173

Non-Traditional Labor Markets................................................................... 173
Making Jobs Easier to Fill............................................................................. 175
Recruiting Employees................................................................................... 175
Internal Recruiting External Recruiting

Skills Training................................................................................................. 178

Prepare to Train Present Practice Follow Up

Scheduling...................................................................................................... 187
The Staffing Guide Developing Employee Work Schedules

Motivation...................................................................................................... 190
What Is Motivation? Methods of Motivating Employees

Human Resources.......................................................................................... 195

15

Delivering Quality Service in Slot Operations............................. 201

Why People Visit Casinos.............................................................................
Generational Differences in Expectations..................................................
What Is Quality Service?..............................................................................
Moments of Truth..........................................................................................

201
203
203
205

Create Company Advocates

Focus on Retention and Recognition.......................................................... 206

Glossary................................................................................................ 209