Question of the Day - 21 January 2024

[Editor's Note: This answer is written by Andrew Uyal, who recently moved up in the casino world after leaving the Cromwell.]

The short answer is yes, it's based on revenue streams. Isn't everything? But a lot of other factors are involved as well. 

First, the majority of machines you see in Vegas or anywhere else aren't owned by the casino. Rather, they are leased from machine manufacturers and vendors.

Second, there are a lot of options for slot machines these days, with tons of vendors and tons of different machines. They're getting bigger, louder, and brighter. Because of this competition, it can be tough for the vendors to get their machines on casino floors. So they offer trial periods with low introductory lease rates or sometimes no rate at all, hoping to get their foot in the door and their machines on the floor. 

Trial periods and short-term contracts are part of the reason you see a lot of movement with slots. Some contracts come with placement terms, stipulating the machines must be in order to produce the most income. The head of the slot department (a vice president or director) has the most say in the placement, though sometimes it goes the next step up (the general manager or something equivalent). 

If you're a fan of some of the newer machines, it may be hard to keep up with their placement . They might move around a bit, as their contracts change and others enter the picture. 

Fans of older machines should consider a third issue. Sometimes manufacturers stop making replacement parts for older machines when they phase them out. (A good example is the beloved Sigma Derby horse-racing machine.) So when they break down or wear out, there's no way to replace or repair them and they're removed in favor of a newer machine. 

Another unfortunate issue (with questionable morality and legality) is the kickback situation. Sometimes department heads are paid off to get certain products on the floor. Games (slots and tables) are worth a ton of money, so much that it can be worth a fee (bribe) to get them on the floor of a casino and generating passive income. It's a sad truth of the industry that the best product isn't always the one that ends up on the floor. Sometimes a kickback gets an inferior product placed. Sometimes the department head has a friend at the vendor office and will place their inferior product. It happens and could be another reason that some of your favorite machines have moved around or disappeared.