The Slot Machine Meets the Video Game

In the new The Lord of the Rings game from WMS Industries (WMS), players follow a map through Middle-Earth scoring points and bonus rounds. Lightning bolts flash and strike the earth on screen while speakers under the seat produce a thunderous rumble. Typing in a user name and password, players can store their scores. There's one difference from an arcade game, though: This machine can pay out tens of thousands of dollars to casino patrons.

The traditional one-armed bandit is being replaced these days with more sophisticated slot machines that incorporate 70-inch video monitors, 3D graphics, and group competition— all borrowed from the video-game and movie businesses. While the payouts are still based on chance, your game skills help you move to new levels. It's a textbook example of a mature industry making a gutsy bid to reach beyond its core customer—women 55 years old and up—to a younger demographic. By awarding fictional medals and incorporating video and sound effects, slot makers hope to bring more gamblers back to the casinos, which have seen a 6% decline in revenue this year.