A recent study found that a small group of video poker gamblers known as advantage players (APs) possess the abilities to hurt casino profitability.
Using its Video Poker Analyzer tool, Acres Manufacturing Company, a company that provides next-generation customer loyalty technology and services to casino owners, looked at how APs can consistently beat the house while earning a disproportionate amount of loyalty points.
"Collectively, these players caused a loss to the casino equivalent to 25.64% of its carded win on video poker during the period of the study,” according to Acres. “Furthermore, over two-thirds of the APs profited from their play during the period. Because the group accounted for 26% of video poker coin-in, the casino’s loyalty program rewarded each AP significantly more than higher margin players.”
Luckily for casino owners, just 1% of patrons are this type of player. Three million hands were played by 1,000 APs in the Las Vegas locals' market, according to the Acres survey.
Video Poker Remains a Lucrative Fix for Casinos
As is typically the case, slots and other gaming machines, which include video poker, made up a significant portion of the gross gaming revenue (GGR) side of the ledger in fiscal 2023, with about $30 billion coming from Nevada casinos' sales.
Compared to table games, gaming gadgets require less manpower and overhead, which makes them more profitable for casino operators. These are some of the explanations for why the industry has expanded its selection of gaming devices—including video poker machines—in recent years, occasionally to the detriment of table games.
Video poker is a mainstay in local casinos in Las Vegas. Operators are aware of this, and while if 99% of players do not have an edge, "the house" may benefit from lessening the impact of certain individuals receiving an excessive amount of tier credits and points. Ultimately, those points can be exchanged for freebies on other revenue-generating items, such as lodging and food and drink.
Technology Is Vital for Recognizing Video Poker APs
Similar to almost all other industries, the casino gaming sector is becoming more and more reliant on technology. This is especially true when it comes to operators trying to level the playing field with extremely proficient video poker players.
According to Acres, their video poker analyzer compares player choices to the best course of action for every hand that is dealt. After that, it recognizes player faults and gives them a monetary value, which enables operators to more accurately forecast the profit and loss generated by a specific bettor.
“A casino operator deploying Video Poker Analyzer may see more than a 45% upside to its video poker profits through a combination of excluding and reducing unprofitable APs from the active player base and through the redeployment of valuable marketing dollars to those players with the highest upside potential,” concluded Acres.