A table games expert said casinos are running the risk of chasing off blackjack players by their push for more revenue.
During a panel discussion Tuesday on how to evaluate and value table games during a seminar at the University of Nevada Las Vegas, AGS Senior Vice President of Table Game Products John Hemberger said casinos are in “a dangerous area right now” because of the growing use of 6:5 payouts on blackjack, as compared to 3:2 blackjack payouts.
John Hemberger of AGS
In 6:5 blackjack, a winning hand is paid $6 for every $5 bet or 1.2:1 odds. In 3:2 blackjack, the $3 payout for every $2 bet is 1.5:1 odds.
“In my opinion, long term it has to stop,” Hemberger said. “I understand where it comes from. The reality is so many casinos are publicly traded, and there’s an incredible amount of pressure on operators to keep growing revenue.”
Hemberger said he understands casino’s reluctance for 3:2 blackjack because the better players take advantage of it. He added there’s a place on the floor for low-limit 6:5 blackjack and that’s a tradeoff for players sacrificing those odds for experience in playing the game.
“I was back east a few weeks ago and saw $50 games on the floor for 6:5 and to me that is chasing people off people,” Hemberger said. “There’s a danger where it hurts a certain experience.”
Hemberger said the move by casinos to 6:5 blackjack was like that of Las Vegas casinos going to paid parking in that everyone followed suit. Local residents may now make decisions on going to casinos based on parking fees, he said. Those properties that don’t charge for parking can have an advantage when people decide it matters, he said.
Casino consultant Vic Taucer, president of Casino Creations, said the popularity of 6:5 games is rising, but “the old-school people will say it runs out the good players” that might beat the casino.
Taucer said the game’s payouts are favored among younger players who aren’t thinking about the odds but are looking for a good time.
“Companies I work for are moving toward 6:5 to get more bang for the buck and along with the side bets on the game,” Taucer said.
London Swinney, vice president of casino operations for MGM Grand Las Vegas, said when the Flamingo started 6:5 blackjack on the Strip in 1999, many in the business thought players wouldn’t play it and the game wouldn’t last. Instead, it shows players don’t worry about the odds in games they like, she said.
“I was wrong,” Swinney said. “Not everyone who walks into the casino thinks like we do. They are there to be entertained.”
In addressing Hemberger, Swinney said she’d be concerned if they started running people off blackjack games, but that’s not happening. It’s still the most popular game, and there’s growth on side bets.
Swinney said it’s not they are getting picker with people who are (savvy) gamblers, but those players are more difficult to deal with. They require more scrutiny to make sure they remain profitable for the casino, she said.
Colin Skidmore director of table games for Harrah’s Southern California, said their 6:5 games with lower minimums are growing in popularity. Las Vegas is a different market than regional casinos, and they will continue to evaluate their volume and head count and make an adjustment if there was a decline, he said.
The panelists said side bets, once unheard of, are increasing in popularity with players because it adds to the entertainment value and keeps them at the table longer with the social aspect with more bets on the table. For casinos, that brings up hold percentages on the game.
“Some people think we’re trying to get every dime or take tip money, but it’s really intended to enhance experience on the game and drive our revenue,” Swinney said.
Even players who know the odds enjoy a side bet, and it keeps them in the game longer Swinney said.
Taucer said the casino industry has gone too far when it comes to compensating players and giving back to much. There may be value in the comp less casino, he said.
The casino panelists said comps for table games are an important part of their marketing strategy, even for lower-limit players. That view, however, wasn’t shared by Taucer. Casinos are giving value in their games, restaurants, service and other amenities they offer to the customers, he said.
“We have gone way too far with comps and need to reevaluate that, especially with table games,” Taucer said.
