Travel and Entertainment

Well, the inevitable has begun to happen. When the recession first hit and credit dried up, everyone predicted the casinos would lose out. If the banks squeeze credit, people cannot maintain their levels of discretionary spending and, sadly, gambling is always going to be one of the choices made less often. The prediction then ran on: if fewer people go into casinos and those that do go spend less, the casinos will find their profits under pressure. At this point, the forecasters would take a deep breath. This will not be a problem so long as the casinos hold their nerve. The economy will slowly pick up. Confidence will return as consumers save less and spend more. In three to five years time, casino revenues will be back to their normal levels. But, and this is where the forecasters would look grim, if the casinos try to suck extra dollars of profit out of fewer players, they risk killing the golden goose. So which way have casinos played their hands?

In most states, blackjack has always been the biggest table game. But in 2009, casinos across the US lost an average 20% of their annual revenue from the tables. When you lose such a big slice of your revenue from just one game, this puts pressure on the casino operators. Unfortunately, they have tended to move in the wrong direction. Most states regulate on the basis of a 3:2 payout on blackjack (i.e. if you bet $10 and win, the casino pays $15). In Colorado, operators have applied for an increase in table odds to 6:5 (i.e. a winning $10 bet pays out only $12). For those of you who like the math, this lifts the house edge from 1.5% to 2.9%. In Nevada, the table odds moved to 6:5 months ago, closely followed by a general raise in the table minimums. This drove away the casual players and, not surprisingly, the high rollers followed. The casinos shot themselves in the foot by both tightening the rules and reducing the payouts.

Where has the business gone? Well, the hard core gamblers have decided they don’t like the deck being so obviously stacked against them. There’s no reason why should they tolerate low payouts when online casinos have kept their table odds at a fair level and not changed their table minimums. Online, you can still play at $1 or $5 tables if that’s all you want to risk. The higher table minimums are there if you want them but there’s no pressure. In the real world, slightly stressed staff are trying to encourage you to spend more. Sitting in the peace of your own home, you can pull a beer out of the fridge and take life easy. There are so many good online casinos where you can play blackjack with many different styles of online blackjack to choose from. If the mood takes you, there are tournaments to play. If the money runs out, you can always play for free. This is one time when the greed of the real world operators has worked against them. In the good old days before the internet, it was a real world casino or nothing. Now that the internet has come of age and the quality of the casino software has improved, the real world casinos have a real fight on their hands if they want to remain relevant.

Comments (0) Mar 27 2010

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Comments (0) Mar 26 2010

The world never stands still too long. If it does, this may mean it’s dying and has nowhere else to go. The eternal question for every business lucky enough to hit a winning formula is whether to change it and, if so, by how much and how quickly. In one shape or form, casinos have been around for centuries. They were gambling in Ancient China and Rome long before anyone thought of building in the Nevada desert. Yet, the basic idea has remained the same. If your luck is in, a small bet will win you a fortune. It’s a remarkably seductive temptation. Just think. All you need is for the dice to fall just so, or the next card to be the 8. The games may change their appearance, but the principle of betting on the outcome of random events remains the same. To that extent, gambling never changes and probably never will change significantly. If there is change, it’s superficial. Say, from the one-armed bandit invented by Charles Fey to the video slots version you start by the press of a button. This makes the arrival of online casinos the first real revolution for at least a century. People have always gathered together to gamble. It could be in a friend’s home, a private club or a place with public access. The internet does away with the requirement for a “place”. Now people can stay home and still enjoy the pure experience of gambling. It avoids the inconvenience and expense of travel, buying food and drinks in more impressive surroundings and, in many cases, finding somewhere to stay overnight. All you have to tolerate is the quality of the animation and the annoying soundtrack of “live” players and the games. Over the last decade, real world casinos have come under real competitive pressure. They are not doing too well. But, before you all celebrate, this means the states take less in revenue and, as their deficits rise, tax hikes may have to fill in the gap.

This article brings two “back-to-basics” gambits by the competing forms. Let’s start in Atlantic City. There has been a significant drop in the number of players in all venues and for all games. The recession is biting hard. So, albeit only on a trial basis, the management has gone back to the $2 game at two blackjack tables. The thinking is easy to explain. High table minimums frighten away the learners and the more conservative gamblers. People want the maximum gambling experience for the least possible outlay. The casino assures us that, if the trial is a success, more tables will go back to the $2 minimum. Except there’s a twist. If you only bet in the range $2 to $5, you pay a fee of 25 cents per hand as a “contribution toward the operating costs”. It seems casino managements cannot resist biting gamblers in the ass.

Going to online blackjack, Microgaming is introducing a live dealer version. You will be able to interact with the no doubt sexy dealer through the wonder of streamed video. Better still, it makes the online experience more obviously “fair”. Although we have all come to trust the RNG, it’s always more reassuring to see someone deal real cards. Others can also Bet Behind on the seated players and you can book a seat with your favorite dealer. It will be interesting to see whether live dealers represent a new nail in the real world casinos’ coffin.

Comments (0) Mar 25 2010

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Comments (0) Mar 24 2010

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Comments (0) Mar 22 2010

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Comments (0) Mar 18 2010

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Comments (0) Mar 17 2010

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Comments (0) Mar 17 2010

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Comments (0) Mar 16 2010

In modern world depression is something as common as having a headache or a hangover after a rough night out, but only few people realize how serious this problem really is. Try to find a person who has never shown signs of depression and you will realize that it’s almost impossible. Almost, but not definitely. Recent studies have shown that there is a group of people in the modern world who don’t even know what depression is all about. And surprisingly, these people are generally very poor and far from what most people would consider as good wellbeing.

While this statement will seem ridiculous to most of us, this is true and can be proven even using simple logics. You won’t see a poor man or woman worrying about their lost success, or craving for a new car they want to get so bad. The only thing they worry about is getting food and having a place to spend a cold night. These people are free from aspirations and stresses most middle and upper class individuals have to deal with. If put simple, poor people are in a dream-like state of full mental harmony with their physiological needs. They aren’t troubled by their spiritual or emotional desires, they aren’t troubled by things others might think or say about them. Of course, living below the line of poverty has its stresses and burdens but they are always stripped down to simple bodily needs. No psychological worries, no stress, no depression.

In contrast, you will find the majority of extremely rich and upper class individual taking Xanax, Prozac or Valium to calm down and get them through. Having much money or being in the spotlight has its price tag, which usually comes in the form of certain limits, responsibilities and things to worry about. People from middle and upper classes pay too much attention to they way others see them and this alone is a rich source of mental stress. And what happens when something goes slightly wrong? A homeless individual won’t bother if his or her new Bentley gets stolen, because they don’t have it. A rich mogul will hire dozens of professionals to protect his private house and spend hours (and tons of valium)on worrying about the latest news from stock exchange. And isn’t it ironic that in such a situation the poor are actually richer than the rich, if you know from what point of view to look?

Comments (0) Mar 12 2010