The landscape of baccarat is undergoing a profound transformation due to recent advancements in gaming technology. Las Vegas Sands (LVS) has shed light on how the introduction of smart tables and new side bets is significantly impacting the game’s theoretical hold percentages.
The Impact of Smart Tables and Side Bets on Baccarat
In its recent 2Q24 earnings call, LVS addressed a notable shift in baccarat’s dynamics, primarily driven by the rollout of smart table technology and the emergence of new side bet opportunities. These developments have raised concerns about whether operators need to adjust their theoretical hold percentages to better reflect the changing gaming environment.
Record-Breaking Hold Percentages
LVS’s Marina Bay Sands property in Singapore has experienced a series of high hold percentages over recent quarters. The casino reported a positive hold impact of US$64 million in Q2 2024, following similar impressive figures of US$77 million in Q1 2024, US$71 million in 4Q23, and US$34 million in 3Q23. This trend has drawn attention to the need for a potential revision in the theoretical win percentage for baccarat.
Chairman and CEO Insights
LVS Chairman and CEO Robert Goldstein highlighted that the strong hold percentages observed were likely not merely due to luck. He suggested that the advent of smart tables and new side bets is contributing to this trend. According to Goldstein, the company’s theoretical rolling chip win percentage for baccarat stands at 3.30%, but this may no longer be accurate given the recent changes.
Goldstein elaborated on the transformative impact of smart tables, which offer more precise data on game outcomes and player behavior. He noted that the introduction of side bets, such as those found in Singapore, is altering the game’s dynamics, leading to higher per-way bets and potentially skewing traditional hold percentages.
The Role of New Side Bets
New side bets, including the Tiger baccarat variant, have been particularly influential. These bets offer players additional ways to wager, which can significantly affect the game’s hold percentage. Dumont explained that while LVS is not ready to adjust its theoretical win percentage immediately, the company is closely monitoring the impact of these new bets.
Empirical Observations and Future Adjustments
LVS President and COO Patrick Dumont emphasized the need for more empirical data before making any changes to the theoretical hold percentage. The company is keen on observing betting patterns and the effects of smart tables over time. Dumont acknowledged that the introduction of high-volume prop bets and side bets is reshaping the game’s structure and win metrics.
He underscored that while the current theoretical hold percentage might be understated, LVS is committed to making necessary adjustments based on thorough analysis and data collection.
The integration of smart table technology and innovative side bets is revolutionizing baccarat, challenging traditional understandings of game hold percentages. As LVS continues to observe and analyze these changes, the industry may see adjustments in theoretical hold percentages to better align with the evolving gaming environment. This shift underscores the need for operators to stay adaptable and informed about technological advancements and their implications for game performance.