Slot Machines Jump Into Interactive Era

LAS VEGAS (Nov. 13) - Some hotly anticipated new themed slot machine games based on "Sex and the City" and "American Idol" may headline next week's Global Gaming Expo, but the real buzz at the year's most important gambling tech show will be over next month's debut of the world's first casino to run all its machines off a common computer server.

That revolution, referred to as "server-based gaming," could portend huge changes for the player. The system can turn the face of a slot machine into a computer screen, where players can choose the game they want at the denomination they desire. In addition, the casino will be able to tailor real-time offers of show tickets or free meals via the server based on an instant analysis of your historic preferences.


"The players are going to like the potential for instant two-way communication, which has never existed before," said John Grochowski, a syndicated gambling columnist and author of six books including "The Slot Machine Answer Book." "If a casino knows that their showroom is only three-quarters full and they see they have some players on their floor who may not have earned a comp yet, they can have a pop-up on the screen to offer it to them anyway to fill the room and make a customer happy."

MGM Mirage plans to go slow at first when it opens that industry test case, the 4,004-room Aria Las Vegas resort on the Strip with 1,950 slot machines. Aria President Bill McBeath said slot makers must first show that the system works seamlessly -- including the networking of machines from five manufacturers -- before the resort can experiment with the two-way communication.

Of course, the house gets an edge here, too. Operating the machines off communal servers is expected to help the casino maximize profits by allowing it to change the game and denomination mix on the slot floor depending on the occasion.

"If we need more nickel games, penny games or quarter games on, say, Monday, Tuesday or Wednesday nights but would like to have a greater percentage of dollar games on weekends when our volumes are much higher, we'll be able to change the price, for instance," McBeath said. "We're in the infancy of understanding how to deploy server-based gaming to not only increase the choices for the customer but to manage the floor more intelligently than we have in the past."

Aria is an ideal first stop because it is the first new major casino to open on the Strip since Nevada gaming regulators approved server-based gaming and the resort had to purchase fleets of new slot machines anyway. It will be many years before casinos nationwide or even at other Vegas resorts see a wide-scale use of the technology because slots are expensive to replace, said Melissa Price, vice president of slots for Harrah's Entertainment, which operates more than 50 casinos worldwide.

The server-based concept represents a leap forward for slot machines, which account for about $50 billion of the $74 billion annually wagered in America's casinos. But it also highlights how far behind technologically the industry is compared to other forms of video entertainment. The conundrum for casinos is that, by law, slots must remain games of random luck with pre-set odds and no skill-based element to give one player an advantage over others or the house.

"Before I first got here, I wondered why casinos were so behind," said Jeff Allen, vice president of network gaming systems technology and applications for Chicago-based slot maker WMS Gaming. Allen was recruited from Microsoft, where he was instrumental in launching the interactive video game system Xbox Live. "But then I realized there was this whole regulatory structure. There are a lot of barriers and walls up" that keep slot machines from behaving like, say, arcade games."

Slot makers have tried a couple of new tactics to compete, most notably an expansion of graphic technology. That includes games where 3D images fly around the player, which will be shown at the Global Gaming Expo.

They are also creating games based on pop culture themes with more elaborate bonus rounds. The debut of CenterStage will feature the "American Idol" theme from dominant slot maker International Game Technology. In that one, players at a bank of five machines get to participate on a massive communal screen in any of their bonus rounds. That will involve watching video clips from "American Idol" and seeing how their preferences match up with Simon, Randy and Kara. (Gossip tidbit: Paula Abdul was the lone holdout participant for the game even before she announced she was leaving the show.)

"Idol" won't be in casinos until next summer. But the "Sex and the City" game -- complete with new video clips for bonus rounds that will feature all four female stars and Mr. Big -- makes its debut in seven Vegas casinos and one Reno casino on Nov. 16, the day the Global Gaming Expo begins, IGT spokeswoman Julie Brown said.

"There's shoes and purses and lots of bling and big bonuses and the music track, and it's a very interactive game," Brown said.

McBeath views these as niche offerings that appeal to specific audiences and will come and go with even greater frequency once casinos can swap them out via their servers when their popularity wanes.

"The slot makers are trying to push the technology and clearly, for this next generation, which grew up having 200 apps on their iPhones and Twitter and iChat, to maintain their attention, the games are going to have to be as innovative and engaging," he said. "But other than that it's a recognizable brand; 'Sex and the City' is something that might get someone to play the game one time. Beyond that, the game itself has to provide entertainment value. The correlation is always going to come down to what the pay table is, what the bonus is, whether it's something the consumer actually enjoys. If they get traction, then we'll have it on the floor."