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

Abstract

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.