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It’s been a buzz-phrase in the casino industry for a while – but is there a case for server-based gaming in the world of amusements too? Jon Bruford investigates
Half a dozen years ago, server-based gaming (SBG) was believed to be the magic bullet for casino gaming, the way to drive growth for both operators and suppliers. For operators, it would allow sophisticated use of and gathering of business intelligence data in ways previously impossible; it would create a tailored universe for their customers at the slot machine and, tied in with other available technologies, allow real-time marketing to the player’s hand.
For suppliers, it was a dream come true, and huge investment followed, with slot manufacturers investing in proprietary SBG systems, enhancing their management software, and waiting for the customers to come to them, because SBG meant one very important thing – wholesale replacement of existing slots.
There are many reasons why this hasn’t yet happened, but the main factors are simple. First, there was no overwhelming return-on-investment (ROI) benefit that made SBG indispensable for a casino, not when it meant replacing 3000 slots and overhauling the casino floor. Second, it demanded a big commitment from the outset: SBG needs, it is estimated, to occupy at least 20 percent of a slot floor for any real benefits to be realised. And then, of course, the gaming industry discovered that it is not recession-proof, and the funds to invest in a new floor just were not there.
Marcus Prater, executive director of the Association of Gaming Equipment Manufacturers, explains: “The Holy Grail of server-based gaming has not taken hold because suppliers have not given operators a compelling reason to change their entire floor. With the recession it’s too expensive, casinos can barely afford replacement machines never mind rip up the floor, rewire it with high-speed cables, then replace all the boxes on top of that.”
But he adds: “There are pockets of success, though. Suppliers have changed the focus of server-based technology and there are products which represent facets of what the industry thought the technology might be, which are not the whole package. There’s good product out there now where the server is tied to the player-management system, for example, to offer different rewards and bonusing events based on the player’s worth to the casino. That’s an element of SBG that is alive and kicking and doing very well for operators.”
Customers first
This shift in focus is allowing gaming venues to benefit from arguably the most powerful part of server-based gaming – looking after the customer. You know the player, you know their average spend, you know the kind of games they like right down to the volatility, you may even know how they like to spend their non-gaming leisure time. It means your staff can look after customers and hopefully increase customer loyalty and retention as a direct result.
As BetStone’s head of business development and marketing Marzia Turrini says, “for some gaming providers, the biggest challenge will be consistently delivering quality gaming content to meet demand. Operators need to be able to scale to meet future demand. SBG games provide something for everyone because each machine is really a window into the overall network.”
Of course, for new gaming venues which don’t have investment sunk into existing machines, SBG makes a lot of sense. For example, at the recently-opened Aria casino in Las Vegas, the slot floor is close to 100 percent SBG, unusual even in the western world’s gambling capital. SBG allows the Aria to do some interesting things, like take advantage of new games as soon as they become available without having to wait for a slot machine to turn up; a disc arrives in the post, it’s uploaded to the server and it’s ready for the customer at the slot the same day.
It also allows for marketing right to the player at the playing location, as Mike Volkert, VP of slot marketing and operations at Aria, explains: “SBG will provide us with great marketing opportunities. In the near future we will be communicating with players directly through the service window [a small LCD screen built in to the slot machine], a communication portal to the customer which allows us to offer marketing messages and different sorts of bonuses to customers based on that customer’s demographics or the information we have. It’s about the right message at the right time.”
Technology tends to drip down from the wealthier, larger-scale early adopters – in this case, the casinos, though lottery systems have been using the same technology for many years – and other sectors discover their own relevance in the technology as and when they can. SBG is finding customers in many areas of the leisure industry thanks to the huge strengths in terms of customisation and branding for each venue or operator, quick updates of technology (both firmware and gaming software), and improved management and reporting. For example, Taylormade Betting in the UK has more than 60 Nevada cabinets provided by Scientific Games subsidiary The Global Draw in its 22 betting shops, using Playtech’s Videobet software platform.
Steve Taylor, Taylormade’s managing director, says: “The system will provide even more flexibility and the ability to run promotional activity. The information we can gather about customer play will prove invaluable and we will be able to tailor our promotions to each store, or even each machine. We can mix and match elements to offer bespoke services in each shop and maximise the potential for both customer satisfaction and machine revenue.”
Good to know
Luke Alvarez, CEO of Inspired Gaming Group, agrees that there is great potential for SBG in smaller venues such as those on UK high streets – even without a player loyalty scheme. “With a server-based system we can do all sorts of clever analytics where the players are anonymised and we can identify sessions, and segment sessions into different player types. You don’t need a loyalty system to do that, you can do player tracking and analysis without identifying players. It’s more about business intelligence than the loyalty card as such.”
Alvarez adds that if a loyalty scheme is added too, which some UK operators are looking at, then the potential takes a great leap forward: “A big Las Vegas casino might know everything about you when you put your loyalty card into the machine but there’s not that much they can do to enhance your experience at the machine other than flash up a couple of messages in a little peripheral window – they can’t change the game, materially. In a server-based world that we live in, in the UK, which is technologically a generation ahead of what you can see in Las Vegas – and Italy is probably two generations ahead – if we know who the player is when they put their card in we can dramatically change the menu presentation, their favourite games, preferred staking patterns, based on who they are. We can completely customise their experience.”
Alvarez points to the possibility of a new £2 stake coming to UK slots, which underlines the benefits of a server-based system: “If the expected stake review comes to the UK in the next few months, and we get £2 stake games, all of the country’s analogue estates will have to wait for someone to go into the venue and sort the machines out. But all the server-based estates will be up and running as soon as the decision comes through, as the machines will be changed remotely. It’s a very clear and real benefit of server-based gaming and its relevance even to a smaller venue.”
