G2E panelists tackle 6:5 blackjack payout

A blackjack table is shown at G2E Tuesday, Oct. 4, 2011.

Nothing raises the ire of a loyal casino customer up like changing odds of a game to increase the house’s hold percentage.

Read a few casino player forum comments online and you’ll know that changing the blackjack payout from 3:2 to 6:5 — that is, paying $6 for every $5 wagered instead of $3 for every $2 bet on natural 21s — is heresy.

But casino companies say they have to do something to meet rising costs, so they tweak the odds on slot machines, play roulette with a wheel that has a 00 as well as a 0 and change the blackjack payoff to 6:5 from 3:2.

But a panel explored ways casinos could increase hold percentages without losing players — and one of those strategies was as simple as installing cup holders at the blackjack table.

Todd Haushalter, director of product development for Las Vegas-based Shuffle Master and a former executive at Wynn Resorts, explained that the more hands that were played per hour, the more the casino should win. If a player accidentally knocks over a drink celebrating a win at the table, the clean-up will cut into the time that revenue can be generated. Cup holders, he said, could be a wise investment to increase hold without irritating players.

Hausehalter also suggested increasing the number of side bets in common games, trying new variations on blackjack, like Spanish 21 or Blackjack Switch, setting up progressive jackpots on table games and developing revenue management systems when setting table minimums. And, of course, as a Shuffle Master representative, he also suggested installing shuffling machines that increase the speed of play and revenue generation.

While many experienced gamblers view side bets and game variations as “sucker bets,” the promise of a big payout makes them popular additions. Hausehalter said knowing when to raise minimum bets at tables is a strategy similar to those used by airlines and hotels, charging more when demand is high.

Panelist Debi Nutton, senior vice president of casino operations at the MGM Grand, said while players complain about 6:5 blackjack payouts, people still play them.

“If you listen to what people say, you’d pull them out,” she said. “But if you watch what people do instead of listen to what they say, you’ll know it’s smart to keep them there.”

Panelists suggested that casinos should give players something for the poorer payouts, like paying 6:5 only on single-deck games or developing a party-pit atmosphere at 6:5 tables.

Panelist Dawn Clayton, vice president of casino operations at California’s Thunder Valley Casino Resort, said varying hold strategies are received differently by players in various regions of the country. What works in one casino may not necessarily work somewhere else, she said.

Panelists agreed another way to increase casino hold without angering players is to keep a closer watch on potential cheaters.

While security software has been developed to detect subtle cheating methods, there’s no substitute for good training of dealers to watch out for the property’s interests.

“The best defense is always a good staff,” Nutton said.

Gaming

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