Should casinos substitute 'true odds' rooms for 'high limit' slot rooms?

Session Title

Session 1-3-E: Gambling and Risk Taking

Presentation Type

Paper Presentation

Location

Park MGM, Las Vegas, NV

Start Date

23-5-2023 1:45 PM

End Date

23-5-2023 3:15 PM

Disciplines

Economics

Abstract

This paper examines the merits of a "true odds" room within casinos, in which casinos would offer games that pay true odds (i.e., there is no house advantage) on various games, including slots and table games, to patrons who pay an entry fee. High limit slot rooms are rarely used spaces. A novel idea would be casino games that pay "true odds"; patrons may gamble more if they realize the games are "fair." A fee would be associated with each level of betting. For example, for $XX a player can get $YYY worth of play in the true odds room. The paper discusses a potential experiment to test whether such an option would be mutually beneficial to casino operators and customers.

The addition of a “true odds” room would represent a relatively cheap change that could lead to a significant increase in revenues, relative to existing high limit slot areas. Such a room could also be seen by customers as a new version of games, leading to new interest.

Keywords

high limit slots, free odds, true odds, house advantage

Author Bios

Doug Walker is a professor of economics at the College of Charleston.

David Ahnen is a law student at the University of Virginia. He received his bachelor's degree in economics from the College of Charleston. This project is based on his senior-year project.

Funding Sources

Center for Public Choice and Market Process, College of Charleston [Provided funding for Walker; had no involvement in the project.]

Competing Interests

n/a

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May 23rd, 1:45 PM May 23rd, 3:15 PM

Should casinos substitute 'true odds' rooms for 'high limit' slot rooms?

Park MGM, Las Vegas, NV

This paper examines the merits of a "true odds" room within casinos, in which casinos would offer games that pay true odds (i.e., there is no house advantage) on various games, including slots and table games, to patrons who pay an entry fee. High limit slot rooms are rarely used spaces. A novel idea would be casino games that pay "true odds"; patrons may gamble more if they realize the games are "fair." A fee would be associated with each level of betting. For example, for $XX a player can get $YYY worth of play in the true odds room. The paper discusses a potential experiment to test whether such an option would be mutually beneficial to casino operators and customers.

The addition of a “true odds” room would represent a relatively cheap change that could lead to a significant increase in revenues, relative to existing high limit slot areas. Such a room could also be seen by customers as a new version of games, leading to new interest.