Sigma Game Inc. is doing its part to repair a growing rift between casino operators and gaming manufacturers who are feuding over leased machines that require operators to share the profits with slot makers.
Sigma recently announced an industry first pricing model for the Hasbro, Inc. brand GAME OF LIFE slot product line scheduled to launch this spring.
Sigma’s “brand for purchase” model allows operators to purchase the machine, pay a daily fee for the brand license, and retain all of the game’s profits.
Until now, premium brand name gaming products have only been available on a participation, or revenue sharing basis, with the manufacturer keeping title to the machine and collecting a percentage of the daily winnings.
That arrangement hasn’t sat well with some casino operators, especially some of the giants on the Las Vegas Strip.
“For some time casino operators have been asking the manufacturers for an opportunity to own branded slot games,” said Sigma President and CEO Jim Jackson said. “Until now, they’ve really had no other choice but the straight participation arrangement. We’re excited to be the first to offer this innovative pricing model to our customers.”
Bruce Rowe, Harrah’s Entertainment’s Corporate Vice President of Slot Operations Research and Development, welcomed the news.
“We are thrilled with Sigma’s and Hasbro’s willingness to listen to the industry and provide this exceptional game with this new price model,” Rowe said.
Jackson concluded by saying: “The operators appreciate the higher profit margin potential that this pricing model offers. With the unique combination of a first-class brand, strong interactive game play and a favorable pricing model, we are confident that the GAME OF LIFE will earn a premium place on the operators’ floors.”
In 1960, Milton Bradley company introduced the GAME OF LIFE board game to celebrate the 100th anniversary of the company. The game was inspired by a “Checkered Game of Life” game board that was in the company’s archives. The GAME OF LIFE board game is played all over the world in some 20 different languages.
Next week, GamingToday will report on the issue of “participation slot machines,” and how they are affecting casino operators’ bottom line.