Question of the Day - 13 September 2020

Despite the fact that most of Las Vegas’ slot and video poker machines use coin-less TITO (ticket-in-ticket-out) systems, a nationwide coin shortage is causing problems for those casinos that still have old-style coin-operated machines.

From what we could find out, which admittedly wasn't much, it really depends on the casino and, in particular, its size. For instance, all MGM Resorts International properties long ago went to TITO machines.

Deana Scott, president of Raving Consulting, reports hearing nothing about any problems from the tribal quarter (pun intended) and a friend of ours in Oklahoma says all the major tribal casinos there are TITO-only.

“As businesses shuttered their doors and the local economy went into full shutdown mode in March, fewer in-person transactions have meant coins aren’t readily available,” reported the Las Vegas Review-Journal. Coronavirus has made consumers leery of using paper money and coinage.

A few properties in Las Vegas, like Circus Circus, continue to maintain arcades of coin-in machines, but these are few and far between. Still, the magnitude of the problem for the small operator is illustrated by the following information gleaned from @LasVegasLocally and Fox Business: The El Cortez, which still has roughly 100 coin-operated slots, ordered $30,000 worth of coins from Brinks. They got $500.

Says Boyd Gaming spokesman David Strow, “We have about three dozen quarter-operated slots at the California casino, but we have more than enough quarters in reserve to keep those well supplied.”

At The D, owner Derek Stevens has taken a creative approach (as he often does) to the crisis. He's using the coin shortage to promote the casino’s cult-favorite Sigma Derby game. If you bring a pound of 25-cent pieces with which to play Sigma Derby, The D will give you a souvenir Sigma Derby hat. Three pounds of quarters gets you the hat and a T-shirt. 

Back to Boyd, which has three Downtown casinos (including the presently closed Main Street Station) is also trying to be ingenious. “From our perspective, the most significant impact comes at the ticket-redemption kiosks and making sure we have enough change to pay the full amount on the ticket at the kiosk,” says Strow. “We’ve addressed this challenge by promoting free change redemption at most of our Las Vegas properties. This promotion has been very successful so far and as a result, we’re one of the few operators in Las Vegas that is still paying out change at ticket-redemption kiosks (as opposed to sending customers to the cashier’s cage if they want their change).” 

The El Cortez has made the same move, waiving fees. Its CoinMax counting machines are now emptied daily, instead of the old once-a-week schedule, which tells you how urgent the problem is, although it’s sure to make great promotional material for manufacturers pushing TITO on the few remaining casino holdouts. (The EC is preparing contingency measures if the coin shortage worsens.)

Help may be on the way. Fox reports that the U.S. Mint has set a goal of minting 1.65 billion coins a month through December 31 (a 65% increase in production) and banks are trying to entice customers to bring in their spare change. Too bad: We’re taking our quarters out to play Sigma Derby at The D.