14
During normal times machine operating
is an interesting and busy job. We find, of
course, under the gambling law, that Jack
Pot Bells are the favorite with the opera
tors, for pin games and similar skill games
are not “ fast” enough to satisfy the pub
lic.
Nevada has long since been without a
state Prohibition law and together with its
six weeks divorce laws and legalized gam
bling the money spending class of people is
attracted there for their week ends and
pleasure excursions.
All operators are aware that psychology
plays an important part in getting machine
play. Machines located where people have
no time or inclination to play get little at
tention, but in a locality where the general
atmosphere is “ spend,” machines in all lo
cations come in for their share.
No trade checks or tokens—no sir! All
is real hard cash in all machines from one
cent to one dollar play and many of the
jackpots on the machines contain either a
five or ten dollar bill or gold piece as addi
tional inducement to play.
Don’t Stand in Line
Don’t visualize a picture of players, stand
ing in line to play though for remember
that along with the machines go poker,
roulette, craps, keno, twenty-one, and all
varieties of gambling. These of course are
found only in the licensed gambling halls
but they take the best play, with the ma
chines running second.
I have been connected with the machine
business in Las Vegas for the past three
years and found it a very interesting and
lively business. To get a clear picture of
present conditions amongst operators in
Las Vegas let us. look back over the past
few years.
Prior to 1931 gambling was illegal in all
forms except poker and machines operated
with trade checks and all machines were
controlled by operators. Almost simultane
ously with the passage of the bill legalizing
gambling the Federal Government com
menced operations at Boulder Dam. A boom
was on! People in all walks of life flooded
into southern Nevada, concentrating in Las
Vegas. With this influx of population was
carried many “ fly by night” operators and
machine owners who were in search of an
open territory. They poured in expecting
huge returns on no investment and, as any
one could understand, had little success.
Only recently has this class of operators
© International Arcade Museum
August, 1933
AUTOMATIC AGE
ceased their activities but the effects of their
visit has. been ruinous to the local operators.
In the north, in Reno, the operators were
a solid group, cooperating— and were strong
enough to repel the undesirable operators
and prevent them from getting a foothold
— staying a year or two and then leaving.
Competition
Not~so in Las Vegas. Here, as so often
happens, the local operators were busy com
peting with one another, so busy in fact,
that the result of course was that many
outsiders got a foothold. The complexities
of machine operating are manifold and the
local operators troubles had just begun.
Soon the transient operators found that
there was no hundred dollars a day profit,
or close to it as they had imagined, so, in
dividually, they made plans for leaving.
Their machines were cumbersome baggage
so what better to do than sell them at a
small profit to the location. Many, many
choice locations were permanently lost
through just such a procedure.
The situation today stands with the ma
jority of the choice locations owning and
operating their own equipment. The seed
had been sown and' the results are still
spreading for these “ location owners” of
course tell their business men friends of
their income and they follow suit. This
means that although the gross returns from
machines is nearly the same, the operators
profit has decreased extensively.
This is a clear and graphic example of
cooperation versus competition for opera
tors like any class of business men can prof
it through cooperation and gain nothing by
tolerating cut-throat methods. By working
together a friendless relationship is estab
lished which surely, as we can see, is also
more remunerative.
Boost Commission
But still the ball kept rolling and bad
conditions changed for worse. Next the
percentage was attacked. While it had been
a 50-50 basis after expenses had been set
tled (including license), the operators, in
their headlong jump for new locations to
revive business offered even more commis-
son in order to compete with their neigh
bor. We see machines operating at SO
SO with operators paying all expense out
of their “ cut” . This shows a different re
action on the profit and loss sheet for which
eleven dollars per month license, each ma
chine must gross twenty-two dollars to pay
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