Measuring Slot Handle Performance
One of the most often used measures of casino business volume is Slot Handle. Often examined on a daily basis, “Slot Handle” or “Coin In” is the amount of money played through all of the electronic gaming devices on the casino floor. The general assumption is that slot handle, multiplied by the casino floor’s aggregate hold percentage, will yield a fairly accurate measure of daily slot performance. Unfortunately, not all slot handle is the same. In fact, in most casinos there is both good slot handle and bad slot handle and failing to fully appreciate how they differ can have a significant effect on a casino’s overall profitability.
Good handle is slot handle that is generated by people wagering on traditional reel slot machines, multi-line video slot machines as well as video poker machines with conservative pay tables. They appeal to players that seek gaming entertainment and are not under any allusion that they can make a living gambling in a casino. The hold percentage of these games is high enough to allow the casino to offer cash back allowances, complimentary dining privileges, mail offers and other perks in order to reward loyalty. Bad handle is generated by gamers wagering on video poker machines that have very generous pay tables and therefore inordinately low hold percentages. Individually, these machines are characterized by high wagering volume (slot handle) and at the end of the day have favorable win per unit per day (WPUPD) averages. However, despite their acceptable WPUPD averages, they often generate bad handle. For this discussion, bad handle is coin handle generated by players who are consistently not profitable to the casino. The total amount of money won from these players, if any, is eclipsed by the perks provided to those players.View Full Article