Monday, September 22, 2003
Copyright © Las Vegas Review-Journal

CASINO TECHNOLOGY: 2020 Vision

Casino changes trail most technology-driven businesses

Gary Shoraga of Casino Data Imaging explains Casino CAD, a graphical analysis and report writing interface for a slot accounting system. Participants at this year's Global Gaming Expo agreed new technology like CDI's will reshape casinos although it often takes several years to show up in casinos. Photo by John Gurzinski. Dollar bill validators were widely used in many areas before they showed up in coinless slot machines. ASSOCIATED PRESS FILE PHOTO

The casinos of 2020 are going to be very different from those around today, but you won't find George and Jane Jetson-style technology.

Instead, their design and development likely will be driven by five- to 10-year-old technology and economics, Green Valley Ranch general manager Scott Kreeger told industry insiders at the recently concluded Global Gaming Expo.

Bruce Rowe, founder of Renaissance Casino Solutions and until recently Harrah's vice president of slots, told attendees at G2E that casinos adopt new technology as soon as it is economically affordable.

"Many of the things we are (just) using today were available a decade ago, but we couldn't afford (them)," he said.

Such dynamics will continue to drive development of casinos and slot floors, he said.

Rowe and other slot machine experts speaking at G2E said to expect big changes but changes that lag behind most technology-driven businesses.

Bob Luciano, president of Reno-based Sierra Design Group, said casino companies are risk-averse. As an example, he cited bill validators that were on soft-drink dispensers 10 to 15 years before they became widespread in casinos.

"We lag for two reasons, generally by five to 10 years, because economics rule (casinos) and we live in a regulated environment that didn't anticipate these changes," he said.

As for specific changes, more than three-quarters of the initial respondents in the American Gaming Association's Future Watch Series said multistate progressive games that allow for larger payouts are likely.

And nearly two-thirds of respondents in the survey, an informal poll of industry executives and leaders released at G2E, said the future will bring games downloaded directly from game creators and suppliers, thus eliminating the need to physically replace machines on the slot floor.

Nevertheless, a majority of the industry insiders said traditional reel slot machines will always have a future and will even maintain their current market share.

But almost half of the survey respondents said table game revenue will slip from today's levels although the games will continue to have a role.

About 85 percent said they have heard about new table games coming to market overseas. More than half said the integration of table games and technology will resurrect the games.

Also, 85 percent of those surveyed said player tracking will evolve to the point where systems cover the entire property, including retail locations, restaurants and shows.

While 75 percent of these respondents believe it will either be very or somewhat challenging to implement such a system, they also feel it is inevitable.

How different will all this make the casino floor in 15 years? Nearly half of the industry experts surveyed said "totally different." Another 31 percent said "quite a bit different."

However, Rowe said the technology will "trickle down" from other businesses as casinos mimic outside technology.

"Customers will (already) be comfortable with the technology," he said. "The question is does the technology belong in gaming."

But there will be one change not driven by technology, Rowe said.

He predicted gaming proliferation will mean future customers will go to their own locals casinos once or twice a week rather than coming to Las Vegas three or four times a year.

"They will want machines that are less volatile. They'll come in and want to play $75 for two hours. People are going to want (the equivalent) of their two-hour movie for the $9," Rowe said.

Jim Morrow, Alliance Gaming vice president for advanced development, said casinos want greater profits, and they will achieve it by satisfying existing customers, bringing in additional customers and making properties more efficient.

Survey respondents agreed. Some 85 percent said there will be a major change over the next 15 years with casinos targeting more specific market segments.

Nearly two-thirds also said games will need to be radically different to appeal to diverse market segments. Almost 40 percent said the "graying of America" will mark a major shift in the way games are designed, produced and marketed.