The slot machine has been the backbone of any casino since the early 20th century. For decades, players have pumped endless coins into these games of pure chance, hoping to line up the right symbols and hit a big jackpot. But in recent years, slot revenues have declined industry-wide. Millennials in particular are seeking out more engaging, skill-based games, like those at Stake Casino.
Innovation Matters
Slot machines make up the majority of most casinos’ gaming revenue. In 2023, over 64% of total U.S. casino gaming revenue came from slots. However, growth has stagnated, with slot revenues declining an average of 2-3% annually since 2007. Compare this to sports betting, where revenues have grown over 159% in just the past three years.
Several factors drive this slowdown:
- Millennial engagement – Younger demographics are seeking out more interactive, skill-based games rather than pure games of chance.
- Increased competition – Players now have access to endless entertainment options on their mobile devices.
- Lack of innovation – The slot model has remained relatively unchanged over decades, failing to keep up with modern expectations.
These trends signal an urgent need for casinos to develop innovative slot products that can re-engage players.
Skill-Based Elements
Incorporating skill-based elements into slot games presents a massive opportunity to revitalize the slot floor. These hybrid games blend elements of skill with traditional slot features:
- Decision-making – Players may need to choose optimal times to stop reels or pursue bonus rounds
- Strategic choices – Games feature decision points or choices that influence payouts
- Reflex challenges – Quick time events and mini-games test players’ reflexes
- Knowledge application – Trivia or memorization comes into play
By adding these skill elements, players feel more control and involvement in outcomes. This increased engagement leads to longer play sessions – a key metric for casinos.
Key Benefits for Casinos
Beyond declining slot revenues, skill-based slots provide several other key benefits:
Attract Younger Players
Surveys show over 90% of millennials would prefer skill-based casino games. These hybrid slots present a new proposition to draw underserved markets into casinos.
Rejuvenate Slot Floors
Skill-based slots can be placed alongside traditional games to create new excitement and variety across the floor. Their interactive features stand out, pulling players from older slots.
Increase Time-on-Device
Testing shows players spend 2-4x longer on slots with skill elements. Longer sessions drive higher revenue.
Support Responsible Gaming
Skill puts more control into players’ hands. Features like session timers give players better visibility into their gameplay as well.
Best Slots with Skill-Based Elements
| Slot Game | Developer | Theme | Skill-Based Feature |
| Danger Arena | GameCo | Futuristic/Sci-Fi | First-person shooter with skill-based scoring |
| Pharaoh’s Secret Temple | Gamblit Gaming | Ancient Egypt | Match-3 puzzle gameplay for bonuses |
| Cannonbeard’s Treasure | Gamblit Gaming | Pirate/Adventure | Card-based strategy game |
| The Godfather | IGT | Crime/Mafia | Interactive shooting mini-games |
| Justice League | Playtech | Superhero | Skill-based battle feature |
| Arcade Blast | IGT | Retro/Arcade | Arcade-style shooting for rewards |
| Texas Tea Pinball | IGT | Western/Adventure | Pinball game for bonus rounds |
| Asteroids | IGT | Space/Arcade | Classic arcade-style shooting |
Future of Slot Gaming
While still an emerging category, skill-based slots represent the future of casino gaming. Major gaming giants like IGT, Scientific Games, and Aristocrat are investing heavily in new skill/chance hybrid games. As casinos compete for younger demographics in the era of mobile gaming, skill elements provide a path to reinvigorate slot floors with innovation and engagement. Regulators are also establishing new frameworks to accommodate these games.
Early movers who adopt these products will attract new markets of players seeking more strategic gambling experiences. Other casinos will need to follow up quickly with their deployments to provide guests with compelling reasons to visit. For an industry built on slots, skill-based games promise to revolutionize the next era of casino gaming.
