Casino loyalty and technology developer Acres Manufacturing Company has unveiled a case study shedding light on the significant losses incurred by casinos due to highly skilled video poker players, commonly known as Advantage Players (APs). The study, powered by Acres’ Video Poker Analyzer (VPA) product, unveils the extent of profit erosion caused by a small yet formidable population of APs.
Based on an exhaustive analysis of over three million hands played by more than a thousand identified carded players, the case study underscores the adverse impact of APs on casino revenues. According to the findings, APs, comprising about 1% of a Las Vegas locals casino’s player base, were responsible for a staggering 25.64% loss in carded win on video poker during the study period.
Furthermore, over two-thirds of the APs profited from their play during the period. Because the group accounted for 26% of video poker coin-in, the casino’s loyalty program rewarded each AP significantly more than higher margin players.
Video Poker Analyzer is powered by Acres’ Foundation hardware, which is compatible with any modern slot machine and any casino management system, the company said in a statement.
In each game of video poker, a 5-card hand is dealt. The player then strategically decides which cards to hold and which to discard, with the goal of making a winning hand. VPA compares each player’s decision against the mathematically optimal strategy for any hand dealt. With each player error identified and assigned a dollar value, a skill rating can be assigned to help predict the casino’s profit and loss each time the carded player returns.
“Our Video Poker Analyzer case study reveals the true threat APs impose on casino profitability and their impact on the efficacy of player reinvestment through the casino’s loyalty program,” said Noah Acres. “By clearly identifying APs, Acres enables casinos to restrict their marketing offers and redeploy them to earn incremental play from more profitable lower-skilled players.”
As Acres’ latest case study demonstrates, a casino operator deploying VPA may see more than a 45% upside to its video poker profits through a combination of excluding and reducing unprofitable APs from the active player base and through the redeployment of valuable marketing dollars to those players with the highest upside potential.
Operators looking to learn more can download Acres’ case study here.