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Question of the Day - 02 February 2024

Q:

Just coming off a cruise and  I’m wandering who regulates the gambling on cruise ships. I have never heard of anyone winning big on a ship. Seems to me the odds of winning are slim to none.

A:

We get this question a lot. Here's the latest.

United States cruise ships have offered gambling since 1991’s Cruise Ship Competitiveness Act. This allows U.S. ships to open the doors to their casinos as soon as they hit international waters.

But once they’re outside U.S. jurisdiction, casino regulation gets a bit muddy. An organization called the International Council of Cruise Lines (ICCL) claims some regulatory control, though a lot less than land-based casinos are subjected to, and enforcement of the regs is spotty at best. For example, you won’t find a Council representative on board your cruise ship in the event of a dispute with the casino.

As far as slots go, the ICCL mandates that cruise ships “meet the regulatory standards of the Nevada Gaming Control Board or other licensed jurisdiction for payback and internal software.”

That’s fine in theory, but our understanding is that cruise ships, especially those flagged in foreign countries, don’t have to release their payout percentages, so who would know for sure what they are?

And it doesn’t take an PhD economist to know that not only does a cruise-ship casino have no competition, it also has a captive audience. The casino isn’t unaware on any level that it’s the only game "in town" and its clientele are on vacation, looking for a good time, and have pockets full of cash to blow.

Also, though cruise-ship casino patrons are onboard for a week or so and the casino would like them to spend all their nights therein, they’re not exactly repeat customers. Once they disembark, it’s highly unlikely they’ll be back, ever. So the casino has every incentive to slaughter, rather than shear, its sheep.

That’s why cruise-ship casinos are notorious for their dismal payback percentages. We’re sure there are some exceptions, but as gaming writer Mark Pilarski eloquently puts it, “Plan on a bruising when cruising.”

 

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Comments

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  • Cyclone99 Feb-02-2024
    house edge
    At least with video poker and table games, you can determine the house edge yourself (unless the games are rigged). Most people aren't going to do that though.

  • Kevin Lewis Feb-02-2024
    Money overboard
    It's not just crappy payback percentages. Myriad times, cruise ship casinos have been caught cheating red-handed. I remember one quickly-hushed scandal where a player somehow got hold of a shoe that still had all the decks in it, counted it down, and found that twelve face cards had been removed (extra 2% advantage for the house). One dealer was surreptitiously filmed cheating, and not all that skillfully, either--he was dealing seconds from a handheld double deck, which unless done very expertly, can be detected audibly though not visually. Yet another dealer was caught shorting payoffs and the player who detected it and complained was forced to debark at the next port and not complete the cruise.
    
    Only a complete idiot would gamble aboard a cruise ship, with its utter lack of regulation, oversight, and accountability. They don't fly the Jolly Roger, but they should.

  • Jeff Feb-02-2024
    Cruisers *are* repeat customers.
    "They’re not exactly repeat customers. Once they disembark,it’s highly unlikely they’ll be back, ever. Casinos have every incentive to slaughter rather than shear its sheep"
    
    That's wrong. Onboard their current cruise & continuing after they've returned home, cruisers are bombarded with special deals to entice them to be frequent flyers.
    
    Many people who cruise (especially the older crowd) go on multiple cruises a year, and cruise lines do everything they can to establish brand loyalty, just like Vegas casinos.
    
    In addition to discounted fares, frequent cruisers are offered special perks like "exclusive" onboard parties & gifts found in their staterooms on arrival.
    
    The dirty little secret about a cruise, though, is that it can be pretty boring. You can only eat so much or ride a water slide so many times. Like the raccoon who knows a trap with KFC inside is a bad bet, the lure of the slots to counter boredom, even with a 25% hold, like the fried chicken, becomes irresistible.

  • David Sabo Feb-02-2024
    W2G's
    I was recently on the Celebrity Summit. I hit the Grand on a Rich Little Piggies and was surprised to be issued a W2G despite being in international waters.

  • Roger Gallizzi Feb-02-2024
    Slots a Fun
    My husband and I cruise once or twice a year.  Always on Celebrity.  I play video poker weekly at Southpoint.  On a cruise I never have an expectation of winning and wouldn't touch video poker.  So, for shits and giggles we play stupid slot machines, but only with the onboard credit we're given.  A cruise last summer had $1,000 in onboard credit.  We churned it through some slots enough times to be given a free cruise.  But yes, I would not gamble out of my own wallet.  

  • ssherman68 Feb-02-2024
    Blackjack on RC
    I was on a Royal Caribbean cruise last year. I actually saw a halfway decent blackjack game. $25 3:2 6 deck shoe. Pen wasn't great but not awful either. Seemed to be about 4.5/6 from what I saw. I was rusty and didn't have bankroll so I didn't play. The only other cruise I've been on was Carnival and they just had CSM games. 

  • Kenneth Mytinger Feb-02-2024
    Even Worse
    ... although a while ago, and it's long since been fixed.
    
    The random number generator algorithm in today's games are "free running"; i.e., they're continuously making new numbers.  As been discussed here often, what you get when you pull the handle, hit the deal button, etc. is really random (or as close as they can make it; today's machines have more than one RNG running simultaneously).
    
    The algorithms are fairly simple -- start with a seed number, add something to it, multiply it, divide it, massage it somehow, and get a new seed.  Power up a machine, and the RNG(s) immediately start screaming away, generating a new seed (or seeds).  When the game layer asks for 52 cards, or a number of reel stops, etc., That huge random # gets mapped down to what the game needs.

  • Kenneth Mytinger Feb-02-2024
    Worse (ct'd)
    Well, we're talking now ... back then, the cruise ship machines had a "seed" that was programmed into the firmware.  And they powered off the machines as the ship returned to port.
    
    The next cruise, power on, and the same sequence of game results would show.  Of course, some players quickly noticed ...

  • Raymond Feb-04-2024
    Nearly a decade ago...
    ...I was on a cruise and was playing craps.  I noticed that the pit boss would call for "new dice" every time the shooter got "hot", and he would almost immediately seven-out.  If the players caught on and started playing Don't, they'd call "new dice" and suddenly seven just wouldn't come up.  I was down, switched to playing whatever the house was trying to produce, won my losses back, and quit craps for the rest of the cruise.  I played blackjack instead and lost slowly.  Lesson learned.
    
    Later in the cruise, two guys much worse for wear, got into a brawl in the casino.  To their credit, the casino employees quickly broke it up.  Our question was how you "trespass" someone on a cruise ship, in this case on the two day run back to our port.

  • David Goshorn Jun-14-2024
    "notorious for their dismal payback percentages"
    I think it is more that they are rumored to have dismal payback percentages because, as stated, they don't release them. 
    I've been on half a dozen cruises during the past two years and I am in may cruise and Las Vegas groups on FB. I have seen just as many winners and losers on cruises as I do in Vegas.
    As with just about everything the losses and bad streaks get more attention because people like to confirm their negative experiences.
    It would be nice to get the actual data from cruise ships.
    I know that I've been surprised by the details in the Las Vegas data.
    For example, according to the article below, blackjack (which has a relatively low house-edge when played with even the most basic strategy that Anthony and Andrew have covered in their videos) players lost 14.82% of their money to the casinos. Compare that to nickel slots where players only lost 5.36%.
    https://www.reviewjournal.com/business/casinos-gaming/what-casino-games-give-players-the-best-odds-at-winning-3006955/