Original Article

OR Insight (2009) 22, 31–44. doi:10.1057/ori.2008.4

Bitz & Pizzas: Optimal stopping strategy for a slot machine bonus game

Noelia Osesa

aNOF Consulting, Zorroaga pasealekua 23, 20011 Donostia, Euskal Herria, Spain. E-mail: Noelia@nofcon.com Website: http://www.nofcon.com/

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Abstract

Slot machine games used to be very simple, often limited to just one spin of the reels, but have evolved to accommodate a variety of features that provide added excitement and the potential for greater wins. They also engage the players more by, quite often, requiring them to make choices. This paper presents one of these games, Bitz & Pizzas. This case study introduces a novel application of Operational Research (OR) and serves as evidence that as slot games, and their corresponding models, are becoming more sophisticated, the role of a well-trained OR professional is becoming more important and necessary in this industry. It also shows that OR practitioners are in touch with the needs of the gambling industry and understand current practices and legislation.

Keywords:

dynamic programming, gaming, optimal stopping of a finite-horizon Markov chain, slot machines

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