Here’s the Ticket!

T-Taps and Spade Connectors are Often the Source of Problems

(Dave Forlano, Alpha-Omega Amusements Regional Technician/Manager)

T-taps and spade connectors have become a quick substitute for splicing, soldering, and covering with electrical tape. However, the old method is still more reliable. Just today I have repaired 2 games that failed because of poor t-tap connections. In both cases, a motor had a t-tap and spade connector in use as a splice to the power source.  A row reset motor on Down the Clown wasn’t working at all and a Hoop Fever ball gate was acting like a limit switch had gone bad. I removed the hardware and properly soldered the wire(s) to the motor connector(s). Game manufacturers should not be using this hardware in situations where motors and high vibrations are involved.

Knock Out Punch Belt Tightening Modification – ICE (Johnny Pokrajac, Quality Control Manager, Alpha-Omega Amusements)
It is a frequent problem for the large belt to come loose and cause this game to be out of order. Just tightening does not stop the belt from loosening. The ‘figure heads’ attached to the belt often hit the side of the cabinet as the belt starts to loosen and then it just gets worse. To solve the problem permanently I designed and installed a ‘Belt Tension-er’ that I located under the middle of the conveyor as shown in the pictures below. The Belt Tension-er keeps the belt tight as it rolls over the rollers.  The Tension-er can be adjusted up or down as required using the slots that are cut into the top sections of each of the two plexi-glass sides.
 
Parts Cost: $15.00
Time to Complete Modification’s & Installation: 1 Hour
Parts Required: 2 pieces 11″ x 5″ Plexi and one 2″ Diameter -14″ Length PVC Tube. Nuts, Bolts as shown.
Tools Required: Drill and 2” D hole cutter and corresponding wrench for nuts & Bolts used.

Two Tips to Keep Games Operating (Larry Soffield, Alpha-Omega Amusements Tech)  
I always keep a can of canned air with me to blow away ticket dust from ticket dispenser sensors and remove dust from all moving parts. I also keep a tube of grease handy and use it each time I come across a moving part in a game I am working on.  I try to impress on each location that there needs to be a charted monthly schedule listing when all moving parts on each specific game need to be greased or oiled and dated and signed when completed. This really cuts down on service calls.

Cyclone Rim Lights Very Dim. (Ramon Vivar, Master Tech, Alpha-Omega Amusements)
Cyclone is still a workhorse game and keeping the running rim lights bright is important. A client called reporting that all of the rim lights on his Cyclone were very dim. I asked him to send me the main circuit board. When received, I tested it in a Cyclone we had in the shop. The rim lights were indeed very dim.  The voltage feeding the six ring light boards was measured at only 6 volts instead of the required 12 volts.  I replaced the usual board components along that line, namely bridge rectifier DB3 and the two regulators VR3 and VR4, which are both LM338K. After replacing those, the ring lights came on very bright. I smiled at another easy repair and shipped the main board back with a very reasonably priced invoice.
 
The client received the repaired board, plugged it into his Cyclone and had the same problem. He called me immediately. What else could be causing this problem? I asked him to send me back the main circuit board together with all 6 ring light boards. When received, I swapped his main board and all 6 of his ring light boards into my Cyclone and to my surprise, all the ring lights were shining bright. How can this be happening?
 
The only other logical possibility was that a problem existed in his Cyclone game itself. Final step, the client unhappily brought the whole game to our shop. With all original boards in his Cyclone, we both see the problem–ring lights are dim. ..So, I removed his main board and tried it again in my Cyclone and it worked perfectly—ring lights are bright. But when I installed my Cyclone board into his Cyclone game, all of the ring lights were bright. The client smiled and asked if he could keep my Cyclone board, but I needed to know what I missed.

To recap. His board would work in my Cyclone but not in his Cyclone and my board would work in both Cyclones. I checked thoroughly for any wiring anomalies but couldn’t find anything. I concluded that some “imperfection” in his board plus his machine’s own “imperfections” caused them not to work together, but I wanted to ‘solve’ the problem because I knew that I would get stuck with his board and have to repair it somehow
. 
Upon close inspection of his circuit board, the difference I finally noticed was the LM338K regulators that I used to replace VR3 and VR4 had a different brand name from the rest of the regulators on both boards. All the original regulators are made by SGS Thomson while the ones I used as replacements are made by Texas Instruments. I considered it initially as a long shot, because brands doesn’t really matter as long as they are the same device, plus considering they are both name brands. I proceeded replacing VR3 and VR4 with SGS Thomson regulators and to my surprise, it worked!!. So brands can make a difference. Now I’m thinking how many unsolved board troubleshooting issues did I gave up on in the past due to not realizing this? I will keep the below picture on the shop wall to always remind me of what I learned after 40 years on the job.
 
To the right is a picture of both LM338K regulators. The one at the bottom is the original SGS Thomson used in Cyclone and the one at the top is made by Texas Instruments. They should be identical, but, well, not exactly. I will keep the picture on the shop wall to always remind me of what I learned after 40 years on the job.

Here’s the Ticket!

Two companies, Vengo Labs and Signal 360 are officially working together on an iBeacon network that combines both digital and audio interactivity with approaching mobile devices. The network has been installed on vending machines throughout New York City, Boston, and Chicago in locations that include malls, offices, and colleges. Expansions to six other cities are scheduled within the next six months.  Currently these vending machines are attracting customers by advertising unique sample new products such as over-the counter medicines, electronic gadgets, and even contest offers.

The concept of using vending machines as the physical product delivery system for the network adds another dimension to vending machines. The suppliers and owners of vending machines get their message out to potential nearby customers using apps that are triggered when their mobile device enters the iBeacon network range. Currently the average time that the network is engaged with potential customers is 30 seconds, an amazingly long time period.

What this could mean?  Once again the vending industry is leading the way and finding ways for vending machines to expand their product lines and increase their relevancy and importance in a fast changing world. We most likely are in agreement that the younger generations prefer interacting with machines rather than with people and even older folks are slowly moving in that direction. Retailers have already jumped on the bandwagon and are using a variation of this technology to attract potential customers to their stores, but nearby vending machines may prove to be a more preferable choice for people to stop and take a good look at a new product after they have received a direct communication about that product or offer on their mobile device rather than entering a store and being confronted with human sales people.

Amusement games such as cranes and merchandisers in street locations can also benefit from this new technology as these machines can also dispense the prizes that the customer was notified about. Playing and having fun is an added dimension we offer. Perhaps video games and other types of redemption games would attract customers to our games and use printed receipts or tickets to convey the offers.

I am unsure if having many games using this technology in a family entertainment center or arcade setting would not ‘overload’ a person, but surely having a few games to attract people to the facility to physically see a new product in one or more of our merchandisers would be a great marketing concept.

The fact is that our industry already has the games and machines is an advantageous starting point. We must be on the lookout for ways to make these machines an important part of everyday life to as large a percentage of the general population as possible.  We have been losing ground since the video game boom era ended more than 20 years ago and must find new ways to remain relevant.  Perhaps this new technology deserves a serious look.

Here’s the Ticket!

As I walked around the recent Amusement Expo it was encouraging to see many innovative products that raised the bar by incorporating both old and new concepts that added new and exciting dimensions to the games and machines. As I have stated many times, new technology is our best friend and not the enemy. Technology can also be used to combine proven concepts that work separately into new multi-level concepts and that is a good direction to head into. Below are some new products that caught my attention:

The Prize Express and Route 66 Redemption Crane (S&B Candy & Toy) – AMOA was on target when it choose these two games as one of the two winners of the 2015 Innovator Award. S&B has done a lot more than just add a ticket dispenser and a receipt printer to a crane. They have created a game within a game!  They have added a second level of play to their crane by incorporating an attractive light feature that runs up the left side of the cabinet, across the top, and down the right side. Each of the 168 lights can be individually programmed to award tickets, or open one of the prize boxes on two keyless prize towers, or print out a receipt for a special promotional discount or value offer from an advertiser if the player misses a prize box light or lands on an empty prize box. The player attempts to stop on the specific colored light that lines up with the prize tower box compartment that holds a prize that he/she wants to win. The Route 66 Redemption Crane is the model that does not have the two prize towers. The objective of the Route 66 Redemption Crane is to stop on the light that has the highest ticket value or win a receipt for a discount or offer such as $3 off a pizza at Joe’s Pizza or a free game of bowling on Wednesday from 3-6 pm at X Bowling Center.

I enjoyed speaking with Brian Riggles, President of S&B and admire his enthusiasm for our industry.  For more information to go www.SandBsales.com, email Brian at [email protected] or call 314 588 7103.

What this could mean?  When I first saw the Route 66 Redemption Crane it struck me as a crane that also included a game like Cyclone was uniquely built into the sides of the cabinet as running lights. So two games in one taking up the space of only one game. This is a great concept to not only make a crane more interesting to play, but to also support a higher price/play (as it is actually 2 games), with 2 opportunities to win 2 entirely different types of prizes.  In addition this crane is also a redemption game and this game can be placed in any type of location.  It is good for the street as a stand-a-lone as well as for FECs.

The promotional aspects can be very profitable and not only benefit a specific location but can be used to cross market with a large number of local, regional, or even national companies. This is like having a big prize wheel and a player will win something every time no matter if he wins the crane prize or not. Just imagine getting even $5 a week for 100 of the light stops that are not used for ticket or other internal awards.  That equates to $500/week ($26,000/year) in advertising revenue from just one game. On the other hand, if you choose to not charge any advertising fees, you can benefit greatly from cross-promotions with the advertisers sending new customers to your location or facility. Any combination of the two methods is a plus.

I am hopeful that the industry will soon see additional play levels being added to cranes and merchandisers. Merchandisers are a strong category for our industry and it all revolves around giving the players more ways to win while receiving both entertainment and real redemption value. Thank you S&B and also for offering these two games at a reasonable price.

Here’s the Ticket!

The industry debates continue as different opinions are shared on social media and in the trade press. Here are three topics that continue to interest the amusement game industry:

Tickets vs.Ticketless?  More results are coming in that show that going from a debit card system using tickets to ticketless (e-tickets) results in a revenue drop of 15% to 20%. This is predictable because there are certain games that are not as appealing to play without tickets (namely pushers and other quick coin games). Once the underperforming games of this category are removed and replaced with other new games (at quite an unexpected investment cost), the revenues pick up to some degree but not to where they were.

I have personally been involved with 5 new FEC’s that have opened ticketless and in all 5 the redemption games are underperforming. The owners do not have any way of acknowledging this as they do not have decades of redemption game operating experience and previous revenues to fall back on. 

We are planning on converting a debit card operated waterpark game room that has been using tickets for several years over to ticketless redemption in the near future (at the request of the owner) and am looking forward to learning the results. We will be keeping tickets as prizes in the merchandisers but encouraging the winners to turn in the ticket bundle forms (which we most likely will glue together with a clear coating so our staff does not have to keep making additional ticket bundle forms). The upside here is not having to deal with ‘wet’ redemption tickets being fed into the ticket eaters.

I have also been involved in converting more than a dozen long standing token operated FEC’s over to debit card operation and have initially seen a 15%-25% increase in redemption revenues before any promotions and VIP programs were implemented. Once these programs were implemented, the revenue increased further. To make the best of both worlds, over 90% of our revenue-share FECs and about 75% of our AEM clients are now giving the customer the ‘option’ of receiving tickets or e-tickets and the result is that half of the guests are choosing tickets and half are choosing e-tickets. Initially it does make a difference in what the ‘default’ setting is (tickets or e-tickets) as new customers tend not to make a decision within the 20 seconds we give them because they do not understand what the choice means unless it is explained to them upfront.

All readers of the Redemption & FEC Report have noticed the amazing earnings that are generated by having bundles of tickets as prizes in cranes and rotaries and other types of merchandise dispensing games. I believe that using bundles of tickets in merchandisers, even in a ticketless operation, is a major reason not to ever abandon the power of tickets.   

Should guests be able to purchase redemption prizes, purchase redemption tickets, or neither?
A large majority of FEC operators are in agreement that redemption prizes should not be sold.  The main reason is that you would be telling your customers that the perceived value they are placing on a ticket is less and that breaks the magic spell of redemption. We want the customers to save their tickets and come back again and play more games. AEM recommends never selling the merchandise. With many high perceived value prizes, our customers perceive that the value of a redemption ticket is four times what it actually is when wholesale vs. retail costs are compared.

Selling tickets has both pros and cons.  Sometimes in order to please a customer selling tickets can be the best solution rather than having an unhappy customer.  AEM uses a specific formula for selling tickets to those parents who ask and have no additional time before they have to leave the FEC and their child does not have enough tickets to get the one prize they want.  The key is to charge the same amount that it would cost the customer to play and win the tickets and still retain your overall 25% cost of sales goal.

For those of you that operate on a ¾ cent ticket value, the AEM formula that has proven itself to work over the past 15 years is:

Should game price/play be shown in dollars/cents or in points?
Most FEC’s keep it simple and offer per play pricing in dollars and cents. Yes, we know that some FECs have a point system that is purposely confusing because they believe that the customers will spend more and spend it faster. All AEM clients and all Alpha’s revenue-share partners use the dollars and cents method.  We start with a basic 25 cent unit credit and then we show all of the discounts to VIP customers and any off peak reduced pricing to all customers. At the end of the week our average unit credit value is close to 21 cents (ranging from 20 cents to 22 cents), depending on how many discount programs were in effect and utilized that week.

Our philosophy has always been to limit per capita spending to be the same as our other local/regional out of home leisure competitors and focus on getting a higher frequency of repeat customers. We have even given locals a favorable discount over tourists in some markets and the locals have helped us stay open year round which is a thing of beauty. I have recently consulted for a large FEC where customers would receive points on their cards for purchasing certain packages. Limits were not put into place for any of the individual attractions so a customer could easily use up all of their points by going on a high point attraction a couple of times and not realize it.  It took me a few hours to figure out their point system because even management and staff did not always follow it. They had lost many customers over the years and were wondering why?  The main reason was that a large majority of the customers felt they were being ripped off. This should have been easily spotted by noting that there was a very low percentage of repeat customers. AEM believes that ‘customer trust’ is a key part of the foundation in developing a repeat customer base.

Here’s the Ticket!

SB 268, an amendment to Florida Amusement Machine Law of 2013, passed both Florida legislative houses and is on its way to Gov. Scott for signature. As reported in the trade press, SB 268 had already passed the Regulated Industries, the Finance and Tax, and Appropriations (on April 16th) committees. “It was expected to pass its last hurdle, the Senate, before heading for a signature by Gov. Scott. If signed, as expected, it is scheduled to take effect July 1, 2015.”  The amendment better defines and undoes several of the flaws and some of the unforeseen problems that the 2013 hastily passed gaming law inadvertently imposed on Florida’s amusement game industry.

Key elements of the proposed law include :  [My comments are in red]

• Defining an amusement game:  “Amusement game or machine is defined as a game or machine operated only for the bona fide entertainment of the general public which a person activates by inserting or using currency or a coin, card, coupon, slug, token, or similar device, and, by the application of skill, with no material element of chance inherent in the game or machine, the person playing or operating the game or machine controls the outcome of the game.” [This permits games to be operated by bills and/or debit card systems which is illegal under the current law.]
• Equipment can offer free or bonus play but number of additional plays is limited to 15 and player cannot redeem or exchange free or bonus plays for anything of value. The language states, “A free replay is not a separate game played.”  [For example, this last sentence makes free plays on pinball games illegal because the free game is a separate new game starting at zero, but would permit free balls extended play or extended play on all amusement games as long as there was a limit of 15. I wonder what would happen if a player did not win on his 16th attempt on a ‘play to win’ crane? The new law states that the game cannot keep track of free or bonus plays so this section is still confusing as debit card systems do keep track of bonus plays on each game (as opposed to paid plays) but the actual amusement game does not know the difference. The proposed law also states that a debit card must be prefunded and the value diminished by the price/play each time a game is activated. Again debit cards can have a cash balance, a bonus play balance, and even be operated on time play so all of this could be in violation. Perhaps all of this is mute because intent may be that the legislators were only thinking about video games when they wrote this section.]
• Amusement games that issue tickets, points, or coupons (Type 1-redemption), must have winnings be redeemed only onsite [and not on-line or at any other physical location] for merchandise. Maximum award per play is limited to $5.25 wholesale. The maximum value of a redemption prize redeemed is limited to 100 times the price/play limit or $525.
• Amusement games that offer a prize internally (Type 2-a crane or merchandiser), that prize is limited to a wholesale value of 10 times the $5.25 or $52.50. Gift cards and anything that can be converted to cash or activate an amusement machine are prohibited. [This means that a debit card with a game play value or bags of tokens cannot be used as prizes in a merchandisers or as a redeemable prize but as I interpret it, a debit card with only redeemable points would be permitted. Technically the language states that gift cards are specifically prohibited lumped in with ‘anything that can be converted to cash, perhaps reasoning that most gift cards can be converted to cash. Very confusing as gift cards can be sold between members of the general public for cash as can any prize won.]
• The above limits can increase annually starting in 2017 based on a formula applied to the Consumer Price Index to account for inflation.
• Expansion of the locations that Type 1 games are permitted. Listed are arcade amusement centers, truck stops, bowling centers, time share facilities, public lodgings, and licensed public food services.  Type 2 games are permitted in the same locations as Type 1 plus retail locations,and veterans’ service organizations or divisions with an alcoholic beverage license. [This obviously does not cover many locations that currently have Type1 or Type 2 games.]
• “Arcade amusement center” means a place of business having at least 50 amusement games or machines on premises which is operated for the entertainment of the general public and tourists as a bona fide amusement facility.” [This permits Type 1 and Type 2 games in FEC’s as long as there are a minimum of 50 games.]
• We have been told: The 50 game minimum still applies to operate Type 1 games (redemption), but the 50 game minimum no longer applies to bowling centers with a liquor license. [I did not see any language in the proposed bill that actually stated that the 50 game minimum had location type exemptions or what these exemptions are. Perhaps they will be introduced in the final amendment phase?]

What this could mean?  In addition to my comments in red above, I want to point out that several industry associations have independently and individually provided valuable and good input to Florida legislators to get the proposed amendment to its current state. These include AMOA, AAMA, IAAPA, BPAA and I can only assume Disney, Chuck E Cheese, and Dave & Busters also provided input.  There probably were more individuals and experts, but it can also be assumed that each had a different agenda with different concerns. Much more could have been accomplished had the entire amusement industry worked together as a solid coalition on this important amendment. 

However, it should be obvious that small and medium sized FECs were not well represented or not represented at all.  A large majority of FECs do not have the traffic volume or the space to have a minimum of 50 games (about 2500 sq. ft.) and are not in the business of selling alcohol.  If they want to operate redemption games, they will need to add more games to reach the 50 game limit.  We can assume that some may choose to install a dozen, two dozen or more very old non-revenue generating games in order to not be in violation of this new law. Perhaps they can stack them if they do not have the space and use ladders or stack them on the outsides of softplay units or ropes courses. We will surely see some ‘creative’ approaches. That is one way to find a use for salvaged games (and protect the environment) so operators in or near Florida, don’t be destroying any games right now!  If bowling centers are forced to have at least 50 games, they could put a bill acceptor at each lane and give bowlers an option to pay to bowl each game so each lane would then count as an amusement game.

All kidding aside, this proposed law is certainly good for the larger FECs as it means there will be less chance of smaller FECs (and trampoline parks with limited space for games) surviving in their market and therefore less competition.  The new law is certainly good for Disney, Chuck E Cheese, and Dave & Busters as well as amusement parks, but not so good for game operators and street locations that want to have redemption games.

There does not seem to be any logic in tying all of the prize limits together under one arbitrary starting number of $5.25.  It may have had something to do with the incorrect assumption that the standard price/play of redemption games and cranes is 50 cents and 10 times that amount is close to $5.25?  However, redemption price/play amounts currently range from 20 cents (a discount from a quarter) to $2/play. In order to keep it exciting for the players, the point values (ticket values) will need to be of multiple values and greatly reduced so players can win thousands of points for a higher level win on a redemption game that is priced at $2/play as opposed to winning a far lesser amount of points but more frequently on a 20 cent/play game, and with either priced game not ever exceeding the same $5.25 maximum win value.  It is ironic that this last sentence I wrote now seems just as confusing as the proposed new Florida law is to interpret.

In all fairness, the new amendment does have a lot of good language that well defines and clarifies some of the current law.  I have only brought to your attention the aspects that I am most familiar with. There are others, such as Tom Fricke, who can better interpret some of the other clauses and language that are still vague, too broad, or too restrictive and offer a different interpretation from mine.  I have come to the conclusion that it is ‘hopeless’ to attempt to define in writing the differences between gambling machines and amusement machines, even though most of us can easily tell the difference just by seeing and playing a game. The laws always lag far behind technology and most of the gaming laws still on the books in most states are from more than a half century to a century old. At least Florida is doing its best to bring its laws current.

I do not know why the legislators did not get rid of the 50 game minimum law. I had originally hoped that bowling centers, FECs, and any licensed public businesses (even colleges) would be permitted to have even 1 redemption game or merchandiser if they so desired, just like they could have even one video game. My prediction is that it is going to be a big mess even after this proposed law is passed, which all indications show are favorable. The large FEC’s and other Florida groups will still be crying ‘selective enforcement’ and Florida authorities will be forced to enforce more of the provisions of the new law than they desired to in the past. We all await the outcome of the few pending lawsuits against Chuck E Cheese and Dave & Busters. What a waste of time, effort, and money!
 
Other than the 50 game minimum limit, I must end with saying that the Florida legislators did a pretty good job in trying to right a wrong and they should be commended. And so the cycle continues. Maybe someday technology will be so advanced that there would be an app so a cell phone can be placed in front of a game and by watching game play can tell instantly if the game is a gaming device or an amusement game. But then again, I would not bet on that happening any time soon.