Here’s the Ticket!

Video game skills as well as skills developed by playing redemption and other amusement games, may very soon help players gain an edge while playing future casino games. The new Nevada law permits the introduction of arcade-game skill elements to casino gaming machines. According to AGEM (Association of Gaming Equipment Manufacturers), “This will be the first time that players will know they can have a material financial impact on the outcome of a [legal gambling] game.”

The ‘hold’ requirements for the gaming machines have been increased and also now permitted to be variable, depending on a player’s skill. Many of the new skill elements will most likely be borrowed or licensed from the amusement game and home video game industries, but also include completely new technologies. The law was heavily supported to attract a new generation of young casino players to Nevada casinos in the 21-40 age range. The gaming industry is expected to lobby for similar laws in other states where casino gambling exists and in other states where there is potential.

What this could mean? At first look, it appears that the gaming industry has taken an important step forward in preparing for new ways to attract the younger generation and more of the population that has grown up honing their skills playing video games and traditional amusement games and give them an ‘edge’ to gamble. I have learned a lot of great concepts from the casino industry and am impressed by the research and hard work it took to head in this direction.

For the amusement industry this new law could be rather helpful. Some of the amusement game manufacturers will get involved with gaming manufacturers and have a new source of revenue and access to new ideas and concepts from the gaming industry that will help them create improved amusement games. The FEC’s and street operators will continue to attract a strong base of under 21 age players who are looking forward to ‘going to the big league’ when they reach age 21. The amusement industry will pay closer attention to new skill based innovations introduced by the gaming industry and perhaps be able to transfer it to the amusement industry.

Another plus for the amusement industry is that the casino industry now must be very concerned about existing amusement game regulations and those being proposed in the different states. Adversely worded amusement game legislation could very well hamper the gaming industry’s approach to what type of skill based elements can be incorporated. The laws in different states will have to be rewritten and a new way to define the differences between gaming and amusement games may be required. Perhaps the gaming industry will become more closely aligned with the amusement industry as their fates are now more co-mingled instead of being on opposite sides of the competitive spectrum.

Looking at the potential downside as well, the younger generation’s job earning potential is not very high, considering that almost half of new college graduates are having a hard time finding good paying jobs and many companies are keeping salaries low for starting employees. Perhaps this, and that the edge that their game skills gives them is not enough for the casino industry to retain their frequent visitation. Also, let’s be fair to the older generations who do not possess the playing skills of the younger. If their winning chances are perceived as ‘less’, would not the appeal of gambling be decreased? It is after all, the older generations who currently possess a large majority of the wealth and currently fund the gaming industry. I am not sure how the casino industry can favor one group over the other and maintain the loyalty of both. But they know what they are doing and perhaps they already have a way.

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