During the Great Recession of 2007 through 2009, slot play all across Nevada dropped to an unprecedented low. In fact, revenue from the state’s ubiquitous slots fell faster than table games and sports betting. Many were left uncertain whether the machines tucked into every corner of Nevada would ever bounce back.
But, those fears proved unfounded, as slots have surged in popularity. Higher-risk games and big entertainment branding have secured slot machines a place on casino floors.
“Now, slots are more popular than they’ve ever been,” said longtime slot game developer, Joe Kaminkow.
The Numbers Prove It
Across Nevada, slot machines generated $8.5 billion in gaming revenue in 2007, but that income had fallen by over 20% by 2010, to $6.6 billion. Table game and sportsbook fell by less, from $4.2 billion to $3.6 billion during the same three-year period.
While slot revenue for the state remained slow, table game revenue also bounced back to pre-recession levels by 2013. However, historically, slots have been a relatively stable revenue source for the state’s gaming industry.
Since 2004, slots have accounted for on average 65% of Nevada’s total annual gaming revenue.
According to data from the UNLV Center for Gaming Research, despite the ups and downs, slot machine revenue has grown more over the decades than table games.
The Strip Turned Away from Slot Machines
The one place in Nevada that saw a definite move away from slots was the Strip.
By 2010, casinos along the Strip saw table games generating more revenue than slot machines. Until very recently, that trend continued. The shift away from slots on the Strip was partially due to the recession and partially intentional, observed Charlie Lombardo; Lombardo was formerly head of Bally’s Las Vegas slot operations.
Lombardo noted that the Strip absolutely backed away from casinos. Instead, the major players focused their attention on big-name entertainment, nightlife, fine dining, group business travel, and conventions. Casino executives made the conscious decision to shift away from Las Vegas history as a gambling mecca to that of an international resort destination. That move helped fuel the narrative that slots were a thing of the past.
However, The Strip is not Nevada; throughout the rest of the state, where local players and out-of-state traffic are essential, it’s been a very different story. That difference has been especially stark during the COVID-19 shutdown.
Big Slot Wins for the State, Off the Strip
Between July 1, 2020, through June 30, 2021, slot machines made up more than 80% of the total gaming revenue in Clark County, off the Strip. Since Covid-19 restrictions were largely lifted in June, the one-armed bandits tucked away in grocery stores and border towns have been on fire.
In June, slot machines generated an all-time monthly high of $870 million in gaming revenue across the state. That number not only topped COVID-restricted June 2020 by 120% but also topped unrestricted June 2019 by more than 36%.
May 2021 wasn’t far behind, raking in $840 million in slot machine revenue.
Slot Machines Enter the 21st Century
Technology in the gaming industry moved slowly throughout the 1990s. But over the last decade, slots have modernized, to keep pace with the times.
For example, more games are designed for higher risk and higher rewards. Also, the slot you see today are huge; some are well over 10 feet tall, featuring gigantic, 100-inch, high-definition screens. The effect is one of an engrossing, personalized movie theater experience, right on the casino floor.
A Total Entertainment Experience
Giving players a total entertainment experience has become one of the biggest factors for gaming developers, said Rich Schneider, Scientific Games Chief Product Officer.
“If you’re going to a casino, deciding to play away from home, that engaging, physical appearance ends up being an important emotional experience for the player,” Schneider said.
Following the COVID-19 shutdown, that need for an emotionally satisfying entertainment experience has been made clear to the gaming industry. People are not really content playing casino games at home on their phones. They want to get out and experience the excitement with other people. They want the lights, the sound, and the action.
Game developer Kaminkow points out that the shutdowns gave game developers time to slow down, and really think about what they’re going to do in the future. In fact, behind the scenes, the new slot games are truly breathtaking. Casino goers can expect 3D games in the near future, and much more.
Time will tell if the advances in slot game technology leave the Strip behind the curve. But, while the big Strip casinos chose to relegate slot machines as a relic of the past, slot technology is moving into the 21st Century.
