For BetMGM's casino games, should development resources be allocated to creating more slots with frequent small wins or fewer games with larger, less frequent jackpots?

Introduction

The trade-off we're examining today is whether BetMGM's casino games should allocate development resources to creating more slots with frequent small wins or fewer games with larger, less frequent jackpots. This decision is crucial for BetMGM's product strategy and user engagement in the competitive online casino market. I'll analyze this trade-off by considering user behavior, business impact, and technical feasibility to provide a strategic recommendation.

Step 1

Clarifying Questions (3 minutes)

• Based on the current market trends, I'm thinking user retention might be a key challenge. Could you share any data on our current user churn rates for slot games versus jackpot games?

Why it matters: Helps identify which game type is more effective at retaining users Expected answer: Slot games have lower churn rates but also lower average revenue per user Impact on approach: Would influence the balance between user retention and revenue maximization strategies

• Considering our revenue model, I assume we're operating on a house edge basis. What's our current revenue split between slots and jackpot games?

Why it matters: Determines the financial impact of shifting resources Expected answer: Slots contribute 60-70% of revenue, jackpots 30-40% Impact on approach: Would affect resource allocation and risk assessment in the trade-off

• From a user behavior perspective, do we have data on the average session length for slots versus jackpot games?

Why it matters: Indicates user engagement levels for different game types Expected answer: Slot sessions are shorter but more frequent Impact on approach: Would influence game design and feature prioritization

• Regarding technical feasibility, what's our current capacity for developing and maintaining new games?

Why it matters: Determines the realistic scope of expansion for either option Expected answer: Limited capacity, can develop 2-3 new games per quarter Impact on approach: Would constrain the scale of new game development and influence the trade-off decision

• Looking at our strategic priorities, how does this align with our current business goals for the next fiscal year?

Why it matters: Ensures alignment with overall company strategy Expected answer: Focus on increasing market share and average revenue per user Impact on approach: Would guide the balance between user acquisition and monetization in the recommendation