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Leased Vs. Owned

Leased Vs. Owned

It sounds like a consideration about buying a car, but slot machines can also be a lot like automobiles. From the days of Megabucks, the first wide-area progressive slot machines (WAP), casinos have shared the profits earned by the slot machine in their casino with the manufacturers, but also share in the liability (with other casinos in the “wide area”) once someone hits a jackpot. So when a player wins million on a WAP, the casino is only on the hook for a specified percentage, depending upon the play in their particular casino.

Slots that have lower jackpots, but popular—and expensive—themes are also frequently leased games because, again, the manufacturer and the casino share the costs, risks and rewards.

So the discussion about the benefits between casino-owned slot machines and leased machines is ongoing. It also plays a role in the payback percentage discussion because most leased slots have a higher hold percentage than do casino-owned slots. The charts are from the Fantini-Eilers Slot Survey for the second quarter of 2016.

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