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Cornell Hospitality Quarterly, Vol. 49, No. 2, 122-133 (2008)
DOI: 10.1177/1938965508315368

Decreases in a Slot Machine's Coefficient of Variation Lead to Increases in Customer Play Time

Anthony F. Lucas

William F. Harrah College of Hotel Administration at the University of Nevada, Las Vegas, AFL2{at}cox.net

A.K. Singh

William F. Harrah College of Hotel Administration at the University of Nevada, Las Vegas, aksingh{at}unlv.nevada.edu

Profits generated from slot operations are critical to the success of all casinos, yet little research has addressed the nature of the customer experience regarding game interaction. The relationship between a reel slot player's time on device and the pay table's coefficient of variation (CV) is examined via computer simulation. The pay table CV is found to be inversely related to the player's expected time on device, as measured by pulls per losing player (PPLP). Findings confound the popular notion that par alone (i.e., house advantage) serves as a legitimate proxy for play time and bolster the research suggesting that standard deviation is the dominant force behind time on device, at the single-trip grain.

Key Words: casino management • time on device • slot machine volatility


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