The land based casinos in the U.S. are currently dealing with serious revenue problems as it concerns their slot machines. The revenues have been falling for the last 7 years and it is predicted to continue so over the next years.
There are quite a few concrete reasons why this is happening. At first and according to the Association of Gaming Equipment Manufacturers report, the main reason is the lower RTP, Return to Player, that the casinos give to the casino players. The RTP has been falling over the last 18 years in the U.S. land based casino industry. The total amount bet on the slot machines fell to $291 billion in 2014 from $355 billion in 2007. The RTP, Return to Player, fell as well to 92.3 % in 2014 from 92,75 % in 2007. The association says that there is a correlation between the RTP value and revenue.
New Casinos states an alternative reason for the slot machine revenue decrease. We firmly believe that the lost revenue is an outcome of the slot machine players transfer from land based to online casinos. Especially for the younger casino players, who prefer to play on online casinos and on new mobile casinos from the comfort of their own place. We believe that the reasons are more than obvious. It is more convenient to just sit on the sofa with a laptop in your hands or grab any mobile device of yours and start spinning the reels. What is more, players can get advantage of great promotions that give away cool offers like free spins, bonus money and many other benefits that the land based casinos can not match. Not to mention the latest gasification trend that actually is an alternative loyalty system that makes players go through challenges and complete missions in order to get rewarded. Last but not least, the RTP, Return to Player, value is also higher, 97 to 98 % for the online casinos compared to 92.3 % for the land based casinos.
The biggest land based casino operator in Las Vegas, MGM Resorts International, has reduced its slot machines by 24% from 2007 to around 13500 pieces. Also the largest owner of land based casinos in the U.S., Caesars Entertainment Corp, has returned around 2000 leased slot machines this year to the manufacturers due to weaker performance. They have instead chosen to focus on non gambling amenities like restaurants, nightclubs and shops to make up for the lost revenue. Facts that indicate the ongoing changes in a truly dynamic casino industry towards iGaming.