Skill-Based Gaming: Why Some Locations Fail & How to Fix It

Skill-based gaming is rapidly growing, but not all businesses succeed in making it profitable. Many locations may try to invest in skill-based gaming machines, expecting quick returns, only to struggle with low player engagement, poor retention, or municipal challenges.

So, why do some locations thrive while others fail? More importantly, what can businesses do to turn things around?

In this blog, we’ll break down the most common reasons skill-based gaming locations fail and provide actionable strategies to fix them. Whether you run a bar, restaurant, truck stop, or convenience store, these insights will help you optimize your gaming revenue.

Why Some Skill-Based Gaming Locations Struggle

While skill games offer a unique experience compared to traditional gambling, success depends on several factors. Here’s where locations often go wrong:

1. Poor Location Choice

Skill-based gaming thrives in high-traffic locations. Yet, some businesses set up machines in areas where foot traffic is too low or where players don’t have time to engage.

Fix:

• Place machines in high-visibility spots, such as near the entrance or close to seating areas.
• Install them in places where customers already spend time, such as bars, lounges, or waiting areas.
• Leverage existing business traffic—if you run a restaurant, bar, or convenience store, position machines where they naturally attract attention without disrupting customer flow.

2. Not Understanding the Target Audience

Some locations fail because they don’t align their skill-based games with the right audience. Players in a bar setting may prefer quick-play, competitive games, while customers at a truck stop might enjoy longer, strategy-based skill games.

Fix:

• Research demographics and preferences of your typical customer base.
• Test different game types to see what resonates with your audience.
• Offer incentives, such as exclusive tournaments or bonus credits, to encourage regular play.

For insights into how different age groups engage with skill games, check out our guide on How Age Impacts Player Behavior in Skill-Based Games.

3. Lack of Player Incentives or Rewards

Customers are more likely to return if there’s a clear incentive. However, many businesses fail to offer loyalty rewards, leaderboards, or bonuses, which makes playing less appealing.

Fix:

• Introduce loyalty programs where players earn rewards for frequent play.
• Set up daily, weekly, or monthly challenges to keep players engaged.
• Create a competitive edge with leaderboards or multiplayer tournaments.
• Ensure snacks are plentiful. Chips, drinks, nutrient & candy bars keep players engaged.

Adding well-designed incentives can significantly boost player retention and revenue.

4. Inadequate Promotion or Awareness

One of the biggest reasons locations fail is that players don’t even know the games exist. Skill-based gaming requires marketing and engagement—yet many locations rely solely on walk-in traffic without proper promotion.

Fix:

• Install the games in a high traffic area that customers can see immediately upon entry.
• Offer first-time play bonuses to encourage customers to try the games.
• Train staff to educate customers on how the games work and why they’re fun.

If no one knows about your games, they won’t play—simple as that.

5. Poor Machine Placement & Game Selection

A common mistake is placing machines in hidden corners where players don’t notice them. Another issue is offering the wrong game mix for the audience.

Fix:

• Position machines near high-traffic areas (but not blocking exits).
• Test a few different game themes—some locations succeed with puzzle-based games, while others perform better with strategy or action games.
• Rotate games every few months to keep the experience fresh.

A well-placed gaming area with the right selection can turn a struggling setup into a profitable one.

6. Ignoring Compliance & Licensing Issues

Skill-based gaming laws vary by state, and some businesses struggle with unclear regulations. Non-compliance can lead to legal fines, shutdowns, or loss of gaming privileges.

Fix:

• Understand Texas gaming laws and ensure your business is fully compliant.
• Work with trusted gaming providers who offer regulatory guidance.
• Stay updated with changing regulations to avoid unnecessary risks.

If you operate skill games in Texas, check out our guide on Skill-Based Gaming in Texas: A Rising Opportunity.

How to Make Skill-Based Gaming Work for Your Location

Now that we’ve covered the mistakes, here’s how to turn things around:

1. Choose the Right Gaming Provider

Your choice of gaming provider can determine your success. Not all providers offer reliable machines, support, or marketing tools.

Look for a provider that:

• Offers high-quality, engaging skill games.
• Provides ongoing support & machine maintenance.
• Helps with location strategy and compliance.

2. Focus on Player Engagement

Customers should feel invested in playing. The more engaged they are, the more likely they are to return.

Ways to boost engagement:

• Introduce multiplayer games to encourage friendly competition.
• Personalize gaming experiences with loyalty programs.
• Use interactive displays to grab attention.

3. Improve the Overall Customer Experience

Your skill-based gaming setup should enhance the customer experience, not just serve as an add-on.

Consider:

• Offering food & drink discounts for players.
• Creating a comfortable gaming area with seating.
• Running special gaming nights to attract more visitors.

If your entertainment experience is fun, comfortable, and rewarding, customers will stay longer and return more often.

4. Optimize Your Marketing Strategy

Many locations struggle because they fail to market their gaming options properly.

Smart marketing strategies include:

• Social media campaigns to highlight skill-based game experiences.
• Email marketing to update customers on promotions and tournaments.
• Partnerships with influencers or local businesses to reach new audiences.

A strong marketing plan will set you apart from locations that fail due to low visibility.

Conclusion: Turn Failures Into Success

Skill-based gaming has huge profit potential, but success isn’t guaranteed. Many locations fail due to poor planning, lack of marketing, or bad game selection—but these mistakes can be fixed.

By choosing the right games, optimizing placement, engaging players, and promoting effectively, your location can transform skill-based gaming into a reliable revenue stream.

Interested in setting up or improving your skill-based gaming experience? Contact Peak Entertainment for expert gaming solutions tailored to your business.

FAQs

1. Why do some locations struggle with skill-based gaming?

Many locations fail due to poor game placement, lack of marketing, or not offering the right incentives to keep players engaged.

2. What type of businesses benefit most from skill-based games?

Bars, taverns, truck stops, and restaurants see the best results as they already have high foot traffic and customers who stay longer.

3. How do I know if my location is good for skill-based gaming?

Check if your customer base enjoys interactive experiences. If they stay long enough to play, it’s a great fit.

4. What’s the best way to promote skill-based gaming?

Use in-store promotions, social media ads, and first-time play bonuses to increase awareness and encourage participation.

5. Can skill-based gaming increase my business revenue?

Yes! Properly managed skill games attract new customers, keep existing ones engaged, and generate additional revenue