Nevada approves legislation allowing skill-based, arcade-style slot machines

nevada-brian-sandovalNevada Gov. Brian Sandoval (pictured) has signed a bill that will eventually allow state casinos to offer slot machines that feature a skill-based, arcade-style element and variable payback ratios.

State legislators unanimously approved Senate Bill 9 last week at the behest of the Association of Gaming Equipment Manufacturers (AGEM). The bill calls for the Nevada Gaming Commission to develop regulations on how slots makers can gamify their offering, which they claim is necessary to attract younger generations brought up on interactive video games.

At the time the bill was approved, AGEM executive director Marcus Prater called it a “monumental moment” in the industry’s “overall evolution.” Prater said the slots floor wouldn’t transform overnight but it would give AGEM members the opportunity to “capitalize on radical new gaming concepts and technologies.”

The legislation was the result of a committee study that looked into how technology was changing the face of gaming. Casino operators have been struggling to fill the seats in front of their thousands of slot machines due to older gamblers dying off and younger gamblers finding traditional slots too passive.

The bill’s authors envisioned scenarios in which a slot machine could be set at an 88% payback rate, but this could be boosted to 98% if a player excelled at a videogame-style bonus round.

On Thursday, Sandoval said the bill allowed gaming manufacturers to “meet the challenges prompted by a younger, more technologically engaged visitor demographic.” Sandoval said the bill would ensure that his state remains “the global epicenter for gaming innovation and development.”

American Gaming Association CEO Geoff Freeman applauded Nevada taking the lead on this technological front and expressed hope that other gaming states will follow Nevada into this brave new world.