ArticlesHarrah's will get rid of IGT's participation slots
- By Johanes Tarbut
- Published 08/18/2008
- Las Vegas , Casinos , Gambling
-
Rating:
Johanes Tarbut
Johanes Tarbut is a Staff writer for Las Vegas, Poker and Rakeback.
View all articles by Johanes TarbutHarrah’s has decided to
retire certain slot machines from its properties, a movement that for some people
could create an irreparable fracture between the two companies. However, some observers
don’t necessarily see Harrah’s action as a cause of friction or conflict
between the Las Vegas hotel and casino Operator and slot machine maker
International Game Technology, for them, it is all about money, and as we know,
a company such Harrah’s need billions to remain profitable and solid enough to
keep attracting potential investors. But even when Harrah's spokesman Gary
Thompson confirmed the decision, he didn't mention exactly how many slots had
been removed from Harrah’s properties, including some
Harrah’s will only retire
its participation slot machines and games in which the casino operator has to
share, sometimes up to 20% of the winnings, with the slot manufacturer. Several
sources have mentioned that Harrah's, which reported a net loss of almost $100
million in the second quarter, wanted to reduce the percentage of revenues shared
with slot makers and other partners.
During the last few weeks many
participation slot machines have vanished from Harrah's-controlled casino
floors, including the Paris Las Vegas, Imperial Palace Hotel and Casino,
Flamingo Las Vegas and especially at Bally's Hotel and Casino. The games
and games withdrawn are all owned by International Game Technology, including the
popular Wheel of Fortune game. Harrah's has replaced all the slots with
nonparticipation slot machines as a way to increase the gaming revenue in the
next quarter.
"We try to offer our
customers the games they like to play, which we determine through volume of
play and regular surveys of our guests" said Gary Thompson.
Analysts believe that Harrah's would negotiate a revenue share reduction with IGT, however, IGT's earnings depend directly from the participation slots revenue; a situation that has taken several analysts to think that IGT and other slot companies can get in trouble if other casino operators start taking the same direction as Harrah's.
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2 Responses to "Harrah's will get rid of IGT's participation slots " 
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said this on 27 Aug 2008 6:24:43 AM ADT
I've started a petition to save some of these slots, because it's downright ridiculous they are getting rid of them. If anyone is interested, I've included the link in this comment. Hopefully you'll sign it if you want to save these slots (particularly the WOF slots)!
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said this on 01 Feb 2009 11:19:13 PM ADT
I am a 7 Star Player at Harrahs. However, this past year, the economy has kicked our butts and the last thing I consider doing is going out to gamble. Many others are feeling the pinch too, therefore, the casinos are hurting. Harrah's decision is good business sense at this time. I rather see them get rid of the "share" slots, than workers who are desperately trying to hold onto their jobs. As for Wheel of Fortune, they are the poorest paying slots in any casino. I never play them, and will not miss them. The actual bottom line though is we must be very careful with our money these days. Instead of losing $20,000 at Harrah's, I rather hold on to it as we do not know when our economy will get better. kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk
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