This is an interesting concept. Although, wouldn't there have to be some binding contract so that, let's say Stern or JJP, would actually get their money? And what happens if there is very little revenue while the game is on location and the manufacturer can't cover the cost of manufacturing the game?

At that point I also think it wouldn't be an even three-way share. I think the location owner would have to get 50% and the manufacturer and operator would somehow split the other 50% or something like that. The location owner isn't going to care who owns the machine, they're just going to care that they get their money. And the operator would probably be OK with getting less of the revenue because they also have significantly less upfront investment.

I'm playing devil's advocate but I do like the idea and there's probably some way that it could be worked out!

Derek

as a hobby operator I love the idea, but it would take forever to make any money haha. The manufacturer would go out of business. Lets raise the prices to play pinball to 2.00

The casino model works because of volume - coins / bills run through the machine.

Even in the best location for pins, the cash "volume" through the machine is going to pale in comparison. Nice idea in theory, but just don't see how it could be practical.

I like the idea, this would be a great model to get more beercade style businesses going. 2 way splits are already somewhat thin in my opinion of any small business. The 3 way split would be almost undoable unless you have a highly populated city location where the game is earning big time consistently.

This is true. The revenue is not nearly as significant as what would occur for a slot machine. Plus, the cost of manufacturing a pinball is a lot more than a slot machine. A slot machine gets a ton of revenue and costs, what, $500-$1000 new? A pinball gets very, very little revenue on location and costs $4500 new.

Again, just thoughts!

You want to at least 10 times that one. For the new slots.

LTG : )™

Really? I honestly didn't know.
Of course now they have all this fandangle-razzle-dazzle video slot stuff. I'm just used to the $1000 slots that are old and have the handle on the right side and the three spinny wheels.

Derek

Yeah, volume is king - which is why this model is bleak for pinball. Look at unique traffic in casinos in high density areas (LV, AC).

Now, if you want to talk about manufacturers marketing to casinos...I'm all for that.

That model did not work too well for Astro's Black Sheep Squadron, and that was in pinball's heyday.

***No.***
Jack initially proposed this type of plan about 3 years ago.
Jack has game, has credit card reader on it,
location gets cut, Jack gets his cut and operator gets cut for support,
this didn't come to pass...

With 4 games on route currently, IMHO it would never work. It is just barely worth the effort now. Add someone else with their hand in the split and it is not an option.

The only thing that could actually make it work is IF a game miraculously pulls in 2-3 times the coins without taking them out of the surrounding games. In my limited experience, all properly working games make a very similar amount of coin drop and that is just enough to pay taxes, fees, licenses, insurance, plus less than minimum wage for the effort.

Operating pinballs seems to still be a labor of love or because the gambling, darts, pool can only get in the door when also providing the lone pin to keep the bar owner happy.

Like Flanker proposed, I could see it working for the barcade model when the owner/operator would then be willing to give up a small split in order to a get a new game in the door for cheaper.

I talked with Jack about it early in 2012. A few emails were exchanged after I watched his speech at the Texas show where he specifically mentions a revenue sharing/lease option for operators (the only possible way I saw myself getting a WoZ on location).

Nothing more was ever said. I sent him a follow up email 6 months later, and never got a reply.

Jack has enough on his plate right now just trying to fill prepaid orders from 3 years ago.

That would be a whole lot of money sitting around not making any money.