Are Airborne Slots Machines Big Gamble? Memphis Company Putting Video Terminals In Singapore Airlines 747s

The seat-belt light is on and you’re braced for a long, boring flight. How about a little blackjack or a go at the slot machine?

Those options could soon be available on some of Singapore Airlines’ international flights.

“Let’s face it, every airline is now flying pretty much the same planes with the same seats and the same flight attendants and the same food. So what can you do to say, ‘We’ve got something different for you?”’ asked Gordon Stevenson, president of Interactive Entertainment Limited.

The Memphis-based company has a contract with Singapore Airlines to put video gambling terminals aboard 38 747s. Installation will begin by the end of the year, Stevenson said, though it has not been determined when gambling will be offered on flights.

Using credit cards, Singapore passengers will be able to place bets on computer terminals attached to their seats. Bets on blackjack, poker or slots will range from 25 cents to $5.

Wagering will be limited to $350 per credit card, with winnings posted directly to a card holder’s account. Receipts can be printed out at the gambling terminals.

The airline will act as the house, as a casino does, and split the take with Interactive Entertainment.

The company estimates gambling revenue per plane at $600,000 to $1.5 million a year.

While Interactive Entertainment’s first contract is with Singapore Airlines, the company also is talking with other international air carriers, and looking for business with cruise ships and passenger railroads in Europe, Stevenson said.

In-flight gambling is illegal aboard U.S. airlines and for any international flights to or from the United States.

But the rest of the world is pretty much open for business.

“Just 10 years ago, the major points of differentiation between airlines were food, beverage and service,” Stevenson said. “Now, the major points of differentiation are comfort, space and entertainment.”

In a report to Congress last year, the Department of Transportation said U.S. airlines may find themselves at a financial disadvantage if gambling is allowed by their international competitors.

The report estimated U.S. airlines could bring in up to $300 million a year from gambling on international flights.

The department did not recommend changes in federal gambling laws to allow such activity, saying more study is needed. Questions about regulation and supervision are as yet unanswered and it also is unclear if gambling might lead to unruly behavior by airline passengers.

Candace Browning, an airline industry analyst for Merrill Lynch, said gambling has not stirred much talk among U.S. airlines but that could change if competitors start making big money.

Now, “it’s a nice little bell and whistle,” she said.

Stevenson said his company, 35 percent of which is owned by Memphis-based casino operator Harrah’s Entertainment Inc., focused first on Singapore because the airline tried in-flight gambling in the 1980s.

That venture used banks of small, lightweight slot machines that had passengers clogging the aisles to play.

“They had to take them out because they were too successful,” he said.