Slot Yield Presentation 2015

DiCentric Solutions, LLC

Presents

“Slot / Patron Yield Management”

DiCentric Solutions Founder

• Rich Lehman has over 35+ years in the hospitality / gaming industry specializing

in all facets of executive management as a former General Manager, Vice President of

Casino Operations, Vice President of Slot Operations, and Executive Committee

member for the industries top gaming organizations which include:

• Caesars Palace,

• Boyd Gaming,

• Circus Circus Corporation,

• Park Place Entertainment, and

• Horseshoe Gaming.

• His areas of expertise cover all aspects of Slot Operations, Table Game

Operations, Game Development, Player Tracking Systems Design and Operation,

Casino Floor Design, Analytics, Database Development, Data Mining, Business

Planning, and Casino Marketing.

Who We Are

DiCentric Solutions was founded on the principle that gaming

patrons seek a memorable visit while engaging in gambling

activities and gaming companies competitively seek methods

to provide exceptional guest experiences for each of their

patrons creating a positive attitudinal behavior.

We provide in-depth analysis of hospitality / gaming facilities,

floor product, marketing initiatives and patron preferences

through our consulting and online analytic software engineered

to create awareness of changes in revenue opportunities

supporting yield management.

Product Suite

• EGD DNA Analysis – Creating a unique code for each gaming device that provides in-depth detail of

patron and game performance while establishing the game speed for each

device to determine its true and exact hourly revenue capabilities.

• Free Play Analyzer and Analysis– Analysis of the true and exact cost of free play in both monetary and time

reviews. This analyzer also provides investigative results on the variance

between Actual and Theoretical Hold as required by many jurisdictions, Free Play

expected pseudo coin-in, and expected reduction in revenue.

• Casino Marketing Campaign Analyzer– The true and exact cost of marketing campaigns and patron re-investment

• Patron ADT Analyze– This analyzer projects the exact value of campaign free play to issue patrons

based on their game(s) of choice.

Data Mining

“Wrong Data = Wrong Results”

Patron Coin-in x Weighted Game(s) hold% / Days Played = ADT ?

Define coin-in

*Actual

*Pseudo

*Per Minute

*Hourly

*Daily

What do we know about

the physical time spent

each day (Gaming

versus non-gaming)

Data Mining

“Wrong Data = Wrong Results”

$45

$40

$36

$30$27

$26$24

$22$21 $20 $19 $18 $17 $16 $16 $15

$25

$20

$16

$10$7

$6$4

$2$1 $0 -$1 -$2 -$3 -$4 -$4 -$5

-$10

$0

$10

$20

$30

$40

$50

4 4.5 5 6 6.6 7 7.5 8 8.5 9 9.5 10 10.5 11 11.5 12

How Game Speed Affects Hourly Slot WinHold % = 8.74 , Average Wager = $.57 Free Play = $20

W/O Free Play Theo Win

Free Play Win Diff

Game speed in seconds

Data Mining

“Wrong Data = Wrong Results”

900

800

720

600545

514480

450424

400 379 360 343 327 313 300

499

399

319

199144

11379

4922

-1 -23 -41 -59 -74 -88 -101

-200

0

200

400

600

800

1000

4 4.5 5 6 6.6 7 7.5 8 8.5 9 9.5 10 10.5 11 11.5 12

$20 Free Play Effect on Wagering Handle Pulls

Handle

T Handle Diff

Reel Spin Time (sec)

Customer Profiles

• On the surface system generated – segmentation

valuation

– Locals, tourist, day trippers, leisure, wholesale, age, ADT,

etc., etc.,

• CRM

– increases awareness and communication with patrons

• Psychographic

– Behavioral messages

Electronic Gaming Device Profiles

• Standard Game Configuration

– Manufacturer

– PAR

– Game Theme

– Game Model

– Cabinet

– Progressive or not

– Denomination, ticket printer, bill validator, etc., etc.

***What’s missing?

Current Slot Yield analysis relies on set standards

Patron Gaming Device Profiles

***What’s missing?

Patron Preference!

Minimum Wager

Maximum Wager

Bonus Free Spins

Multiplier Pays

Pay Lines

Progressives

Top Jackpot

Location – aesthetics and placement on bank.

What we don’t know can impact our patrons visit

EGD DNA ANALYSIS

• Our DNA (DiCentric Nanometric Analyzer) is a unique forensic

method defining game characteristic, functionality, and added

peripheral device as a single code which ARE NOT currently

reportable characteristics in today’s tracking and reporting

systems.

• The software identifies specific characteristics customers seek out

when visiting the casino and reports on the true value of the

combination of game characteristics. This is valuable when

making future decisions on game acquisitions before purchasing

as well as to note what game characteristics your target market is

seeking as in their entertainment device.

EGD DNA ANALYSIS

• Collecting game characteristic data is the first step.

• Taking the first step towards engineering an attitudinal

gaming profile.

EGD DNA ANALYSIS

Why game characteristics?

Each game characteristic plays an important

role in recognizing the true potential of the gaming

patron and gaming floor.

When properly reviewed, characteristics such

as Paylines, Entertainment Free Spins, Minimum

Wager , Maximum Wager, and PAR play a role in

the gaming devices expected revenue per hour

which alters the gaming patrons expected ADT and

subsequently future marketing campaigns.

EGD DNA ANALYSISTime-at-Device vs Time-on-Device

Our Free Play Analyzer recognizes both Bonus

Round Free Spins and Free Play Free Spins.

EGD DNA ANALYSIS

What’s the solution?

First we identify the true value of TIME for each

gaming device and recommend changes

necessary to reduce non-gaming time-at-device

replacing it with time-on-device.

Second we analyze the optimum hold for each

gaming device in comparison to its game

characteristics and patron preference.

Third we match the key game characteristics your

patrons seek that provide the highest earning

potential and compare to current product offerings

with recommended areas of improvement.

GAME OPTIMIZINGANALYZING TIME

ADT Handle Pulls Hold % Spin Time (sec) Coin-In ADT NEW Hold Bonus Round

$ 101.50 1800 7% 4 $ 1,440.00 $ 101.50 7% 0

Wager 1440 7% 5 $ 1,152.00 $ 101.50 9% 14

$ 0.80 1200 7% 6 $ 960.00 $ 101.50 11% 12

Seconds 1029 7% 7 $ 822.86 $ 101.50 12% 10

7200 900 7% 8 $ 720.00 $ 101.50 14% 9

800 7% 9 $ 640.00 $ 101.50 16% 8

The process of optimizing the gaming floor is a

complex process requiring careful analysis of the

speed of the casino to determine the correct Hold%

with emphasis on maintaining the expected patron

ADT.

*As hold percent increases...coin-in, handle pulls, and

number of bonus rounds decreases.

In this example, we analyze adjustments in the games hold

percent to aid the patrons ADT over a 2 hour period.

“Spin time is the timing between handle pulls with added

bonus free spins added into the equation”

GAME OPTIMIZINGANALYZING BONUS TIME WITH FREE PLAY

• Time Competition affecting Patron Hourly

Performance

– Slot Operations

• New Game Acquisitions

– Bonus Free Spins

– Line Pays

– Marketing

• Campaigns

– Free Play

“Pre-bonus games, all slot reel games operated at 4

seconds between handle pulls and video poker at 3

seconds.” Today…all games that include a bonus

feature vary in their time between handle pulls.

FREE PLAY OPTIMIZINGANALYZING BONUS TIME WITH FREE PLAY

• Time Competition affecting Patron Hourly Performance

DiCentric Solutions ADT Analyzer - MYPLAYERSCARD.COM

Free Play vs Game Spin TimeInsert the customers ADT, Average Wager, and Expected minutes of play to analyze feasibility based on changing game timing and hold percent

ADT 80 Avg Wager $ 0.80

Time

(min) 124 Time (Hrs) 2.06667

How much Free Play to Award to Maintain expected Time-at-Device (Guest Experience)

Added Free PlayGame Timing (Seconds) per DNA Analyzer

4 4.5 5 5.5 6 6.5 7 7.5 8 8.5 9 9.5 10 10.5 11 11.5 12

Hold

Percen

t

6.0% 9 -1 -9 -15 -20 -25 -29 -32 -35 -38 -40 -42 -44 -46 -48 -49 -50

6.5% 17 6 -3 -10 -16 -20 -25 -28 -32 -34 -37 -39 -41 -43 -45 -46 -48

7.0% 24 13 3 -4 -11 -16 -20 -24 -28 -31 -34 -36 -38 -40 -42 -44 -45

7.5% 32 19 9 1 -6 -11 -16 -20 -24 -27 -30 -33 -35 -37 -39 -41 -43

8.0% 39 26 15 7 -1 -7 -12 -17 -20 -24 -27 -30 -32 -35 -37 -39 -40

8.5% 46 32 21 12 4 -2 -8 -13 -17 -20 -24 -27 -29 -32 -34 -36 -38

9.0% 54 39 27 17 9 2 -3 -9 -13 -17 -20 -24 -26 -29 -31 -33 -35

9.5% 61 46 33 23 14 7 1 -5 -9 -13 -17 -20 -23 -26 -29 -31 -33

10.0% 69 52 39 28 19 12 5 -1 -6 -10 -14 -17 -20 -23 -26 -28 -30

10.5% 76 59 45 34 24 16 9 3 -2 -6 -11 -14 -18 -20 -23 -26 -28

11.0% 84 65 51 39 29 21 14 7 2 -3 -7 -11 -15 -18 -20 -23 -25

11.5% 91 72 57 44 34 25 18 11 6 1 -4 -8 -12 -15 -18 -20 -23

12.0% 99 79 63 50 39 30 22 15 9 4 -1 -5 -9 -12 -15 -18 -20

When Free Play is offered…not knowing your patrons gaming preference can

erode their normal wallet spend. A player that plays a game with average 7.5

seconds between handle pulls and hold percent of 8% without free play has over 2

hours of time-on-device playing through their normal $80 wallet. In this example,

Free Play of any amount erodes their normal wallet spend replacing patron dollars

with non-monetary free play dollars. Game reel spin time is too high reducing

marketing’s efforts in increasing visitation through behavioral marketing tools.

Results

• What results should be expected?

– Insightful knowledge of patron preferred game

characteristics

– Increased wagering through the reduction of time-at-device

replaced with time-on-device.

– Increased Handle pulls

– Increased Top Jackpots

– Improved revenues coinciding with Increased wagering

– Increased Patron ADT while reducing excessive free spins

– Reduced variance between PAR and Actual Win

– Reduced free play exposure

– Reduction in average time between handle pulls

– Optimized gaming floor