When All Chips are Down

When will the last refuge for analog technology come to an end?

• By Jeff Brummet
• Oct 01, 2006

FOR years, the gaming industry has enjoyed a reputation of employing state-of-the-art surveillance technology and protocol. For years, that reputation was well-earned and quite true. There are a number of floating stories of how the all-seeing "eye in the sky" has been used to correct wrongs and thwart would-be schemers.

People are intrigued with the surveillance capabilities found in the gaming industry. Casino surveillance is so fascinating documentaries air regularly, touting the sophistication behind advanced casino surveillance systems.

People are intrigued with the surveillance capabilities found in the gaming industry. Casino surveillance is so fascinating documentaries air regularly, touting the sophistication behind advanced casino surveillance systems. So compelling is the drama with casino security departments that NBC has developed a weekly, hour-long drama now entering its fourth season called what else, but Las Vegas.

While the gaming industry enjoys the reputation of state-of-the-art surveillance technology, the reality is that more than 90 percent of all gaming facilities in the United States today still operate under 25-year-old, analog technology. In light of this stark reality, the obvious question is: In a security industry replete with technological windfall improvements, what deters casinos, prized security clients, from embracing the benefits this technology offers? The answer is more complex than one might think.

Finding Answers
Millions of dollars have been spent by the gaming industry on what only five years ago was considered the most reliable surveillance technology available. The truth is, as in the case of most developing technologies first-generation breakthroughs are risky investments. This is true when existing technologies are perceived effective. The old adage applies: "If it's not broken, why fix it?"

Casino surveillance, right or wrong, is still seen as one of the most sophisticated and effective environments for commercial video surveillance. Management corporations who oversee day-to-day gaming operations see what they feel are adequately effective, loss prevention security systems at work, while those on the marketing side of the industry see enormous opportunity for improvement. Those on the buying side (casino management corporation) see an existing product that is functional.

The gaming industry's slow progression to digital systems has confounded and frustrated many in the security business. After all, money is no object with these guys. Right? And they have to have the very best of the best. Don't they?

One thing is absolutely true. Gaming is driven by profit, just like every other corporation. Even though enormous effort is expended creating an image of opulence, these companies are not driven by egos intent on one-upping their neighbor.

People tend to think casino management firms are flush with profits. The average person sees the lavish features offered by gaming resorts and casinos, but fail to relize the billions of dollars it cost to create it. Moreover, it takes billions of dollars to maintain it.

At the end of the day, net margins are relative to the amount of money it takes to generate and sustain day-to-day operations. The cost of doing business, relatively speaking, for a lucrative casino property is enormous. Consequently, large sums of money must be reserved for maintaining the image of opulence that its high-profit patrons have come to expect. While video surveillance is an important part of day-to-day business, it is not what brings patrons to the table.

To this day, video surveillance is viewed by most in the gaming industry as simply, and perhaps only, an asset protection, crime detection and liability product. Therefore, "if it's not broken, why fix it?" becomes a formidable argument for maintaining status quo.

Going Digital
While technology has improved, many perceive digital to still be in its infancy. Had casino properties invested in digital technology even two years ago, what they would have purchased then would have paled in comparison to what is available today. However, even today's technology, though more advanced than current analog systems, is not designed to do some of the most basic functions available with analog systems. For example, most casino surveillance departments can matrix several hundred, to as many as several thousand cameras, all in one system. This feature is perceived by most directors of video surveillance within the gaming industry as essential.

Even the most advance digital systems fall short of this ability -- at least in the context it is currently used by the gaming industry.

Then, there is the challenge of recording multiple cameras at real-time frame rates. Certainly, there are many systems that claim this ability. However, the truth is that doing it across several hundred cameras, and at a resolution that can easily been reviewed, is a different story altogether. Surveillance officials within the gaming industry are hesitant to trade viewing full-screen video clips, for 2 CIF, baseball card-size video clips, which is what is available with most real-time digital systems today. Who can blame them?

Not only do digital systems need to capture and record video at real-time 30 fps, they also need to be able to be reviewed at comparable 4 CIF image sizes. Few digital systems today can perform at this level. Familiarity and past performance may be a barrier for the gaming industry. It might have to consider this reliance in the near future.

In addition, the justification of price, and more specifically, return on investment is a major barrier. Why should the gaming industry spend billions of dollars on improved technology that can't do what some of its older, obsolete technology can do today?

This is a very real and valid concern served up by gaming industry management.

That is where manufactures of digital systems miss the boat. While it is true, current digital technology may not be in every case, or every way, superior to existing protocols for analog systems used in the gaming industry; though it is still far more capable of delivering the all-important ROI, so critical to every business acquisition decision. This is particularly true in certain areas of casino properties where conventional loss prevention and management tools are needed.

Other Applications
While casino floors might present unique applications and/or challenges for video surveillance, other areas of the property function as normally as many other businesses. Restaurants, gift shops, hotel floors, customer service counters and parking lots are all areas replete with common challenges seen by any number of conventional businesses. Management tools available today with state-of-the-art digital video surveillance systems, complete with technology that integrates access control and point of sale systems fully, can benefit casino management firms greatly.

These areas are just like any other business. They have theft from both employees and patrons. They have customer service issues, employee training, vendor theft, productivity and even armed robbery concerns. These are issues that plague casino properties just as much as any other business. These also are areas that conventional businesses with digital technology are quite successful at preventing or controlling losses, returning big dollars to the bottom line, something that casinos still struggle with.

The benefits available only with digital technologies are improving productivity. For the gaming industry not employing the full benefit of digital video surveillance technology is analogous to high rollers throwing money down for the elusive thrill of beating the house: a losing proposition.