Tuesday, June 2, 2015

Are Skills-Based Slots Coming to the Southeast?

Nevada governor Brian Sandoval recently signed a bill enabling regulators to adopt rules allowing slot machines to add a skill-based element. The bill was proposed by the Association of Gaming Equipment Manufacturers following a study examining the effect of technology on gaming. Sandoval believes the games could appeal to a new generation of visitors.  

Attracting Millennial gamblers was a very hot topic at the Southern Gaming Summit earlier this month. At a panel on Millennials, panelists agreed that adding a skills-based element to slot machines could attract those who are more familiar with video games or, more importantly, social gaming such as Candy Crush. With Millennials spending an estimated 12 hours per week on average on social gaming, it is widely expected that introducing aspects of social gaming to slots would be highly attractive to the newest generation of gamblers.

Earlier this year, the Borgata in New Jersey offered a free throw-shooting competition. It was the first skills-based game to pass under the New Jersey First law, which encourages the development of casino games featuring social and skills-based elements. It was seen as highly successful, bringing unique visitors to the Borgata from across the US.


Will we see skills-based games in our region anytime soon? Not likely. Basically, each state determines whether to allow skills-based competitions for cash prizes, and determines whether a game is based on skills or chance with one of several tests. Of the 40 states that allow gambling, only 3 states allow games of chance – Nevada, Delaware, and New Jersey. 

In southeastern states, where the demographic skews more conservative, politicians are unlikely to risk supporting, much less introducing, a bill to expand gambling. The southeastern region will not lead the way -- however, if skills-based gaming becomes more widely accepted across the US, look for the southeast to follow suit.  

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