Marketing New Casino Games

Last update: March 23, 2006

Part of my income is generated doing math analysis for individuals, casinos, or gaming companies trying to introduce new games to the casinos. Although the gaming companies generally know the risks involved in such a venture individuals usually do not. The purpose of this letter is to inform the inexperienced game inventor of what they are in for.

In my experience most casino game inventors are extremely optimistic about their chances of success. The perception of those new to the business is that casino management will fall all over themselves trying to get your game into their casino. What is closer to reality is that game inventors fall all over themselves trying to get their games into a casino. Also, the greater the level of confidence of a game inventor the worse his game generally is.

Trying to introduce a new game, whether machine or table game, to the Nevada casinos is a very expensive venture and the probability of ever showing the first cent in profit is very small. To make an analogy marketing new casino games is like throwing wet paper towels at a wall. 99% will fall off and make no money, however 1% will stick and do well. Of course every new game inventor thinks that his or own game is in that 1%, which is not realistic. Without knowing anything about it I can predict that a new game idea is too complicated, too ridiculous, or is already taken.

The first major step in marketing a new casino game, at least in Nevada, is to get a casino to perform a field trial on it. What you are asking a casino to do is take out a profitable game, likely blackjack, and put in something that has never been proven to make a dime. Casino staff will have to be trained to deal the game and it will have to be monitored carefully by supervision. The casino will get to keep all profits the game makes and you will have to pay for all custom-made game equipment and signage. You also must pay $3000 for a permit from the Gaming Control Board, fill out lots of forms, and wait about a year for your application to be reviewed. Few casinos accept field trial games and those that do get asked all the time. Despite the investment of thousands of dollars most new games never see the inside of a casino.

Unless you have connections in the business it takes about $50,000 to market a new game past the trial. This $50,000 will be spent on licenses from the Nevada Gaming Control Board, patent attorneys, table cloth, signage, rule cards, game literature, gaming show and travel expenses, and a math analysis from someone like me. For a list of recommendations please visit Recommended Businesses for Casino Game Developers.

Even if you do get through the trial period phase chances are your game will be played but compared to the average game it will make about the same or less money. A frequent problem with new game is they attract recreational players who tend to bet small amounts. Meanwhile the traditional games are more likely to attract experienced players who bet more. So the question isn't whether your game will make money but whether it will make MORE money than whatever game is replaces.

I have done math analysis on about 200 games and side bets for those trying to get into the U.S. market and the number of games that have made it past the trial period and can be found at more than five casinos is zero. What few games that have had limited success were for gaming companies, who have good connections and lots of salespeople. Even so new games are generally rented to casinos for about $300-$500 per month per table. So if you were thinking you get a percentage of the profit I'm afraid it doesn't work that way.

For the low-budget game developer there are other options. Taking the game to a rural jurisdiction outside of Nevada is the most common alternative to Nevada, preferably one with less competition like many Indian casinos, or a state that recently legalized gambling, like Washington State. However the feeling in Nevada is that in other parts of the country players will play anything and success elsewhere is not good evidence a game will make it in Las Vegas.

Even in the best case scenario that your game is a success the large gaming companies will parse all their numerous patents in search of anything similar. Then they will proceed into trying to sue you into submission. Your choice may be to spend millions in legal expenses or sell your game at a fire-sale price. The gaming business is very litigious and the big fish in the pond are not always friendly competitors.

In conclusion marketing new casino games is a very, VERY, risky business. I hate to see private individuals invest a large portion of their savings into a new casino game because I know the probability of them ever recouping that money is about 1%. This business is better suited for those who are experienced and are well financed. So please consider yourself warned.

For further information on the business of marketing new games I recommend the Article "Game Masters: Caribbean Stud, Three Card Poker, Let it Ride - New card games pop up in casinos every day. Meet the maverick inventors behind the latest gambling craze." in the August 2004 issue of Playboy.

The Wizard's other sites: Wizard of Macau, Sweat the Money, Math Problems