Penny slot machines, which practically disappeared decades ago, are making a big comeback.
But today's machines are a far cry from those of yesteryear.
Equipped with sophisticated technology, the new penny slots deliver more return than their humble name would suggest, making their continued popularity a sure bet.
"Casinos love them, and players love them, too," says Maria Rickert, vice president of Gaming and Leisure Equity Research for Jefferies & Co.
Inc.
in New York.
Advanced video and ticket-in, ticketout technologies have made the trend possible.
"Pay outs are made in tickets, not in buckets of penny coins," says Rick Sorensen, public relations manager of International Game Technology in Reno.
The penny slot comeback is part of a shift in the gaming industry to multidenomination machines, which include small-denomination bets of nickels or pennies and give flexibility to players.
With a multi-denomination feature on a penny slot, for instance, players can bet anywhere from a penny on up to $5 or more.
"Demand is driven by players who want a smaller denomination bet, and by casinos, which like to offer their players the multi-coin betting option without the headaches that come with coin handling," Sorensen says.
Casino win for multi-denomination machines was $1 billion in the year ending Nov.
30, up 52 percent from the previous year, according to the latest figures available from the Nevada Gaming Control Board.
The win for quarter machines was $1.9 billion, down 4.5 percent and for nickel machines $1.4 billion, down 6.4 percent.
The trend began two years ago.
The Eldorado Hotel and Casino in downtown Reno introduced penny slots in February last year.
"We hesitated because we didn't really know if they would be successful," says John Hanson, Eldorado's director of slot operations.
"The terminology, 'penny slot,' worried us.We thought, man, we're going to have people coming with piggy banks.'"
But penny slots have proven so popular, the Eldorado has devoted 10 percent of its floor space to them.
The younger crowd immediately accepted the new machines, which have a video game feel, and a growing number of traditional slot players are gravitating toward them, Hanson says.
Players like the flexibility and interactive features.
"A player has a sense of control in the game," says Steve McCauley, director of slot operations at the Silver Legacy in Reno.
"They feel like they get real value for their money.
If you put a $10 bill in the machine, you've got 1,000 credits, and you feel like you have a lot of ammunition."
And with the multiple-line bet feature, it's possible to win a huge jackpot on a penny slot.
James Lashua, a U.S.
Navy electronic tech senior chief stationed at Fallon Naval Air Base, won $1 million last month on one of IGT's two-cent progressive M*A*S*H slot machines at the Atlantis Casino Resort in Reno.
Lashua played $1.50 to win the jackpot.
About 10 percent of the Silver Legacy's slots are penny-based now, and McCauley expects popularity of the penny-based machines to grow.
"We have not by any means hit the ceiling here." IGT introduced The Beverly Hillbillies as a penny MegaJackpots game and M*A*S*H as a 2-cent MegaJackpots game.
"We've installed penny slots in casinos in Nevada, Mississippi, the Midwest and New Jersey, and player response has been positive everywhere," Sorensen said.
Sorensen said IGT plans to introduce a multi-denomination touch pad on its spinning reel slots, which will allow players to choose one of four denominations on a single standard slot machine.
The growing popularity of multidenomination slots means more machines will feature the ticket-in, ticket-out technology.
So will that mean the end of coins in the hopper? McCauley doesn't think so.
The happy clatter of cash is part of the casino ambience, and he says he thinks there will always be place for coin-operated slots.
