Everybody Loses When Slot Machine Revenue Falls

With many states putting bans on smoking, it was just a matter of time before it would affect slot machines and the revenue that owners and operators get from them. With Nevada passing a law that says you cannot smoke in a public place, except for a casino, many convenience and grocery stores are starting to feel the pinch in their slot machine revenue. They say people are playing the slot machines at the casinos instead of their places of business because they don’t want to be inconvenienced by the new law.

The bigger slot machine manufacturers such as Bally and IGT say that they are not concerned with the bans yet – they say they are just going to wait and see how it ultimately breaks down. They say that slot machines are just one part of their business, and whatever happens they won’t be going out of business just yet.

The smaller convenience stores are concerned about their slot machine revenue however. They say that when the slot machines stop bringing in the money, it affects the ultimate payout to them as well. They say that they might currently get a 50/50 split from the slot machine revenue – but if the machines start bringing in less money that could easily change to a 70/30 or even a 90/10 split.

Many believe that with things going the way they are it will not eventually be cost effective for them to have the slot machines at all – and they think this is exactly what the state and the casinos want. They think that the little man is the one who will pay for the new law, while the casinos will continue to make money hand over fist.

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