A gaming industry legend just dropped some truth bombs on Vegas casinos, and he's the guy who literally invented the systems they use to track (and squeeze) players.

John Acres, founder of Acres Technology and the inventor of player tracking, progressive jackpots, and instant bonuses, told a group of industry insiders this week that casinos have "lost their bravery" and need to stop nickel-and-diming customers if they want to return to real profitability.

When the guy who built the tracking system says the industry has gone too far, maybe it's time to listen.

The Quick Hit

• Who: John Acres, inventor of player tracking and progressive jackpots
• What he said: Vegas casinos have "lost their bravery" by nickel-and-diming customers
• His argument: Casinos forgot they sell "self-esteem," not just gambling
• Bonus take: Nevada should embrace prediction markets and "tax the hell out of them"

The "Old Vegas" Argument

Acres made his comments at a meeting of the Bob Maheu "First Wednesday" group at the Ahern Hotel. His core message: casinos used to understand something they've forgotten.

"In the old Vegas ways, casino operators didn't nickel-and-dime their customers — they created an environment in which the customer felt special," Acres said.

The parking fees. The resort fees. The worse comps. The tighter slot machines. The death of free drinks unless you're actively playing. All of it adds up to an experience that feels less generous than it used to.

Acres' insight cuts deeper: "Players gamble to escape everyday life, to be for a moment someone beyond what they are, to take a risk, to feel like a winner. Ultimately, what we sell, that we've forgotten we sell, is self-esteem."

When you charge $15 for parking and reduce comp multipliers and program slots to hold 12% instead of 8%, you're not just taking more money — you're destroying the experience that brought people in.

The Math Problem

Here's the thing: casinos are making money. Record hold percentages. Improved margins. Wall Street is happy.

But Acres is talking about a different kind of profitability — the sustainable kind that comes from loyal customers who want to return rather than tourists who feel fleeced and never come back.

The Las Vegas visitor drop in 2025 and the record sportsbook hold rates crushing bettors are symptoms of an industry that's optimized for extraction rather than experience.

The house always wins. Everyone knows that. But there's a difference between the house winning and the house making you feel like a mark.

His Take on Prediction Markets

Acres didn't just criticize — he offered a perspective on the hottest regulatory battle in gambling: prediction markets.

"I think that one of the first problems we have is that we as an industry see every new idea as a threat," he said.

His suggestion for Nevada's ongoing fight against prediction market operators like Kalshi? "If I were Nevada and I was fighting against prediction markets, I would be preparing a way to tax the hell out of it if I can't get rid of it."

Pragmatic advice from a guy who's been in the industry for decades. If you can't beat them, tax them.

He also praised new Nevada Gaming Control Board Chairman Mike Dreitzer as an innovator who might bring needed regulatory reform.

Why This Matters

John Acres isn't some random critic. This is the guy whose inventions — player tracking, progressives, instant bonuses — are the foundation of modern casino marketing. He understands better than almost anyone how casinos make money.

And he's saying they're doing it wrong.

The new gambling tax rules that took effect January 1 already squeeze players harder. The 90% cap on gambling loss deductions is creating phantom taxable income for recreational gamblers who actually lost money.

If casinos continue nickel-and-diming on top of that, the gambling experience becomes a worse deal for everyone except shareholders.

The Bottom Line

The inventor of player tracking just told Vegas casinos they've forgotten what business they're in. They're not selling gambling — they're selling a feeling. And every resort fee, parking charge, and reduced comp chips away at that feeling.

Will anyone listen? Probably not in the short term. The quarterly numbers look fine.

But Acres has been right before. He invented the systems that run the industry. When he says casinos have lost their way, it might be worth paying attention.

Or we can all just keep paying $20 to park at casinos that used to validate. Your call, Vegas.