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2 KPIs to Optimize Slot Floor Decisions

Jan 12, 2023

Choice! Everyone wants lots of it, however, few can sort through it all. 

Simply walk into your grocery store and take a look at the mustard section. For those who are just looking, it can be a very overwhelming experience. Not only that, it takes time to sift through all the options. 

This problem is similar to what slot operators and analysts have to deal with on their gaming floor. 

When it comes to making decisions on changing the slots floor, there is an overwhelming abundance of data and metrics. How do you provide insights promptly? 

In this post, we will explore how Average Wager and Peak Time Utilization, two well-known KPIs, can be used to help make better and faster decisions to improve your slots performance. These will help answer questions such as:

  • Should we increase or decrease the number of units?
  • Should there be more or less leased products?
  • Should I increase the denom? 

A picture says it all: Peak Time Utilization

In the scatter plot below, the peak time utilization and average wager of a hypothetical casino’s games are plotted, where the bubble size indicates the theoretical win per day for each unit, which of course, will take into consideration RTP/PAR settings. 

By including the median lines, we can separate the plot into four quadrants to broadly measure game performance.

Now, let’s review each quadrant and discuss the best opportunities for improvement.

A. Add Units: 

Games in Quadrant A are highly utilized and have a high average wager. Clearly, these games are the casino’s top performers – they consistently have the largest theoretical win of the four quadrants and will be the units that an operator may want to add more of to the floor. 

B. Increase Popularity per Unit: 

Games in Quadrant B are not highly utilized but have a high average wager. Operators may want to consider why the games have inferior utilization - is it through poor placement or is it simply an unpopular game?  This will form the basis of the decisions on what to do with the product - move, reduce or remove.

                              The key will be found in the analysis of your top patron data to ensure that high-quality                               customers are always able to get a seat on their favorite game

C. Remove Games: 

Games in Quadrant C are not highly utilized and have a low average wager driving low win. These games are great candidates to remove from the floor. Before removal, operators should consider the loyalty of customers to that product - are the customers likely to move to different machines?

D. Increase Denomination: 

Games in Quadrant D are highly utilized but have a low average wager, which may be limiting revenue optimization. To increase the revenue bubbles, consider increasing the average wager by installing higher denominations of the same game or decreasing RTP/PAR settings on (some                             of) these machines where possible.

The utilization vs average wager plot can provide a new view on understanding your slot floor and provide strategic direction for optimizing it for your patrons. Not only that, this type of plot can be broken down for each of your floor segments providing more insightful and location-based decision-making. 

Conclusion

This BCG style matrix is commonly used by businesses to evaluate product performance, and there are numerous other KPIs that could be added to further increase analytics insight, such as the growth rate on the x-axis and revenue on the y-axis.  Having the right data insights in a timely fashion where you can act on them quickly, could be the difference between making your target revenue in a given quarter or missing it. This slot performance overview provides a guide to questions we sought to answer, what is the right number and type of units that your floor needs and at the right price? Answering these questions can help move your slots floor towards what your patrons want most.

The choices are yours! Coincidentally, we both prefer the traditional yellow mustard.

At Tangam, we are at the core of prescriptive analytics to transform how operators get the most out of their gaming floor, blending a wealth of knowledge in software development, data science, machine learning, visualization, and casino operations best practices. At the time of writing this blog, our slot optimization product, SODA, has more than 300+ different metrics to choose from, and that list is still growing.


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Author

David Croft

As SVP of Gaming Optimisation & Strategy, David Croft brings over 15 years of expertise in leading gaming strategy, analytics, and innovation across table games, slots, and ETGs. Before joining Tangam, David oversaw gaming product optimization at some of the largest chain operators in Australia including Crown Resorts and The Star Entertainment Group. At Tangam David's vision is to help partners drive gaming performance improvements by utilizing best practices in organizational structure and business intelligence tools for a better guest experience and increased profitability.

Nicole Wood

Nicole Wood is one of our data analysts who works to deliver a strategy and ensures that our partners benefit the most from our actionable software recommendations.

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Caesars Entertainment

“[Tangam’s] real-time data gives us a deeper insight that allows us to quickly adjust to customer needs, while also establishing new business goals and tracking the success of our strategy.”

Melissa Price

,

SVP of Corporate Gaming

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Mohegan Sun

“Reporting alone doesn't provide answers. We chose SODA for its highly differentiated offering that provides a clear set of actionable recommendations, which maximize gaming performance and the guest experience.”

Jeff Hamilton

,

President and General Manager

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Sycuan Casino Resort

“During our initial trial, it was amazing to see how quickly we were able to get to the answers in our data through the lens of SODA. This truly made analytics available to anyone - with intelligent recommendations, intuitive visualizations and seamless drill-downs. We are equally excited about the product roadmap over the coming months.”

Sierra Weyer

,

Director of Enterprise Analytics

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Mohegan Sun

"Extending our partnership with Tangam to our full gaming operation, including tables and slots, was a no-brainer given Tangam's proven track record of business support."

Jeff Hamilton

,

President and General Manager at Mohegan Sun

View Press Release

Sycuan Casino Resort

"Sycuan is dedicated to providing an enhanced gaming experience for our patrons. By deploying powerful prescriptive analytics tools such as TYM and SODA, our operations and analytics teams are able to get data-driven insights at the right times to drive value to our business."

Douglas Vogelei

,

Senior Vice President of Casino Operations

View Press Release

The Star - Sydney

“Due to our ongoing success with Tangam at Sydney, we’re able to deliver the right product at the right time, leading to improvements in efficiency, transparency, decision-making and our bottom line.”

David Croft

,

General Manager Product & Strategy

View Press Release

The Star - Sydney

“Due to our ongoing success with Tangam at Sydney, we’re able to deliver the right product at the right time, leading to improvements in efficiency, transparency, decision-making and our bottom line.”

David Croft

,

General Manager Product & Strategy

View Press Release

Mohegan Sun

“We’d like to thank the exceptional team at Tangam Systems for what has been a very successful implementation that we undertook together. We immediately saw positive returns and an improved guest experience. Our team is very much looking forward to continue leveraging Tangam and all it has to offer from a floor optimization standpoint.”

Kevin Lowry

,

Vice President and CFO

View Press Release
Read All Testimonials

What Clients Say About Us

Caesars Entertainment

“[Tangam’s] real-time data gives us a deeper insight that allows us to quickly adjust to customer needs, while also establishing new business goals and tracking the success of our strategy.”

Melissa Price

,

SVP of Corporate Gaming

View Press Release

Mohegan Sun

“Reporting alone doesn't provide answers. We chose SODA for its highly differentiated offering that provides a clear set of actionable recommendations, which maximize gaming performance and the guest experience.”

Jeff Hamilton

,

President and General Manager

View Press Release

Sycuan Casino Resort

“During our initial trial, it was amazing to see how quickly we were able to get to the answers in our data through the lens of SODA. This truly made analytics available to anyone - with intelligent recommendations, intuitive visualizations and seamless drill-downs. We are equally excited about the product roadmap over the coming months.”

Sierra Weyer

,

Director of Enterprise Analytics

View Press Release

Mohegan Sun

"Extending our partnership with Tangam to our full gaming operation, including tables and slots, was a no-brainer given Tangam's proven track record of business support."

Jeff Hamilton

,

President and General Manager at Mohegan Sun

View Press Release

Sycuan Casino Resort

"Sycuan is dedicated to providing an enhanced gaming experience for our patrons. By deploying powerful prescriptive analytics tools such as TYM and SODA, our operations and analytics teams are able to get data-driven insights at the right times to drive value to our business."

Douglas Vogelei

,

Senior Vice President of Casino Operations

View Press Release

The Star - Sydney

“Due to our ongoing success with Tangam at Sydney, we’re able to deliver the right product at the right time, leading to improvements in efficiency, transparency, decision-making and our bottom line.”

David Croft

,

General Manager Product & Strategy

View Press Release

Mohegan Sun

“We’d like to thank the exceptional team at Tangam Systems for what has been a very successful implementation that we undertook together. We immediately saw positive returns and an improved guest experience. Our team is very much looking forward to continue leveraging Tangam and all it has to offer from a floor optimization standpoint.”

Kevin Lowry

,

Vice President and CFO

View Press Release
Read All Testimonials