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International Game Technology
IndustryGaming Technology
FateAcquired by Gtech
SuccessorInternational Game Technology
Founded1975
FounderWilliam Redd
Defunct2015
HeadquartersLas Vegas, Nevada
ProductsSlot machines, Online gambling

International Game Technology (IGT) was an American gaming company based in Las Vegas that manufactured and distributed slot machines and other gaming technology. It was acquired in 2015 by Gtech, which then adopted the IGT name for itself.

History[edit]

1975–1990[edit]

IGT was founded as A-1 Supply by William 'Si' Redd in 1975.[1] It changed its name to Sircoma in 1978, and then to International Game Technology in 1981.[1] The company went public in 1981.[2] A deciding factor in IGT's decision to go public occurred a few years earlier with the success of its video poker machine gaming product.[3] This product served as a 'foot in the door' for the company into several gaming arenas.

In 1984, IGT acquired Electronic Data Technologies making the company one of the first to use the computerized player tracking concept and later instrumental in the proliferation of 'frequent-player rewards' programs, which remain popular in casinos to this day. This initial system gave casinos a new marketing tool in player management. Over time, the tracking system evolved into the company's IGT Advantage[4] and sbX[5] systems.

After IGT's initial public offering and listing on NASDAQ, the company debuted many new technologies over several years. A number of products resulted from this process including the S-Slot, which marked the company's entrance into the microprocessor-driven spinning-reel slot market; and the Player's Edge video poker machine. In addition, the company introduced the Nevada Megabucks slot machine, the world's first wide area progressive slot machine system. With an initial base top jackpot of $1 million, this new game allowed for million-dollar player payouts for casinos on the system. During this time, IGT also established an Australian office to focus on the country's club market.

IGT's Las Vegas office
IGT's Reno office

1991–2000[edit]

In January 1991,[6] a decade after its initial public offering, IGT was listed on the New York Stock Exchange (NYSE). The following year IGT Europe was established to service casinos across the continent. In 1994, international expansion continued with the opening of new sales and service offices in Argentina and South Africa. The NYSE[6] also listed IGT as a top-performing stock that year.

Late in 1996, IGT debuted the Wheel of Fortune progressive slot.[7] This game continues to be one of the most popular gaming machines of all time. The Game King video product[8] featuring multi-denomination technology also was introduced during this time.

Two key acquisitions were made in 1998. They included Barcrest Gaming, located in the United Kingdom, and Sodak Gaming, IGT's gaming distributor for the Native American market.

In 1998, IGT introduced Triple Play Draw Poker through its partnership with Action Gaming;[9] and the Elvis themed slot machine. The new S2000 spinning reel slot machine system was brought to market in 1999.[10]

2001–2012[edit]

In 2001, IGT became a member of Standard & Poor's 500 list. The company also continued to acquire gaming companies including Silicon Gaming and Anchor Gaming. The acquisition of Anchor Gaming resulted in doubling gaming operations revenue.[11]

During 2003, IGT acquired Acres Gaming. The company's bonusing and systems technology were a significant addition to IGT's games and systems products.[11] In 2004, the company introduced its central determination system (CDS) as well as its Class II bingo games and systems to the Native American market. IGT Canada was established to serve the emerging Canadian lottery and gaming markets.[12]

In 2005, IGT celebrated its 25th anniversary as a publicly traded company and also acquired WagerWorks for its online gaming technology.[13] It was also the year the company unveiled its first multi-level progressive MegaJackpots product, Fort Knox.[14] In an effort to take advantage of emerging markets, new IGT offices were opened in Macau, Mexico and Russia.

Group play and community bonus games were introduced to the marketplace in 2006 with the debut of Wheel of Fortune Special Edition.[14] The company also celebrated the 10th anniversary of the most popular gaming machines ever made, Wheel of Fortune slots,[15] and the 20th anniversary of the Megabucks wide area progressive game.

During the Global Gaming Expo in Las Vegas in 2006, IGT unveiled the M-P Series. The new multi-player concept focused on roulette and baccarat and was the first of the company's electronic multi-player table game products.[16]

In 2007, IGT worked to grow their Mexican gaming operation and product sales in the Japanese and Asian markets. In addition, a new IGT office was opened in China. Two intellectual property arrangements were also announced, these included an arrangement with Austrian-based Novomatic focusing on IGT's M-P Series multi-player product[17] and with PureDepth, Inc. for its 3D-like, Multi-Layer Display (MLD) technology.[18]

IGT opened the Global Technology & Interoperability Center in Reno, Nevada early in 2008. This first-of-its-kind research and testing center encompasses a 6,500-square-foot (600 m2) facility, which is available for use by gaming manufacturers, customers and third-party gaming products manufacturers. The collaborative center focuses on product testing in a true-to-life casino atmosphere prior to market release.[19] In an effort to diversify business and market opportunities in the United Kingdom, the company acquired Cyberview Technology, Inc.[20]

The company opened IGT Technology Development (Beijing) Co., Ltd. in Beijing, China in March 2009. The office was established to research and develop gaming, application and systems in addition to providing support, technical services and training.[21]

In 2009, Patti S. Hart was named IGT's new president and CEO.[22] That year also saw the release of sbX Tier One package by IGT Network Systems.[23] The sbX system offers a bank-by-bank solution, which gives casino operators the ability to implement server-based technology without the need to commit the entire casino floor.

Sex and the City Slots were introduced in fall 2009 in the United States.[24] This game features entertaining game play, bonus rounds on a multi-level progressive jackpots platform.

The year ended with IGT's sbX Experience Management System being installed at ARIA Resort & Casino at CityCenter in Las Vegas.[25] ARIA's casino floor opened with a first-of-its-kind combination of IGT systems on the server-based network, including IGT Advantage and sbX.

IGT started 2010 with a repeat win at the International Gaming Awards as Best Slot Manufacturer of the Year[26] and continued to win awards throughout the year. These included 16 awards in Casino Player magazine's Best of Gaming for 2010, top honors in Global Gaming Business' 8th Annual Gaming and Technology Awards, wins in the inaugural Casino Enterprise Management Hospitality Operations Technology Awards, and 35 awards in Strictly Slots Best of Slots Awards.[27]

In the spring of 2010, IGT's sbX Experience Management System was installed in the first European locations as sbX went live at Casino d'Evian in France.[28] This was followed by a number of additional European installations including Casino di Venezia in Italy[29] and Grand Casino Helsinki in Finland.[30]

In November 2010, the Company celebrated the production of its two millionth slot machine.[31]

Late 2010 also saw the creation of an Interactive division within IGT dedicated to further building its online and mobile gaming presence.[32] IGT's WagerWorks and Million-2-1 groups merged into a single global division headquartered in San Francisco, California. This new division provides gaming products to online and mobile markets in regulated, legal markets globally.

The year ended with a substantial go-live for both IGT's network systems products and games. The brand new casino resort The Cosmopolitan of Las Vegas opened floor-wide in sbX; the majority floor share of games; plus, an entire suite of IGT Advantage system products.[33]

IGT acquired Entraction in 2011. A poker network with headquarters in Stockholm, Sweden. It also acquired Double Down in 2012, a Facebook game company with its headquarters in Seattle.

2013–present[edit]

In January 2013, IGT filed its preliminary proxy materials and indicated that it had received a Notice of Intent to Nominate four director candidates for election to the IGT Board at the Company's 2013 Annual Meeting through The Ader Group, run by Jason Ader. The intent of the notice was to inform IGT and its shareholders of a proxy battle that was going to take place, and that the Ader group's nominees include the slot-machine maker's former chief executive Charles Mathewson, and Jason Ader himself.[34][35]

Following the initial release by IGT, The Ader Group issued a statement claiming that IGT relayed inaccurate information concerning Jason Ader and the Ader Group's proxy fight.[36] The initial filing with the Securities and Exchange Commission by IGT suggested that Ader's group seeks election to the board, as Ader and Mathewson control 3 percent of IGT, (8.05 million shares), and they are seeking additional proxies for the company's 2013 annual shareholder meeting to put Mathewson back on the board IGT.[36][37] IGT maintained its original statement.[36]

On January 11, 2013, the Ader Group filed its proxy indicating that it had nominated three people for the IGT board, of which Jason Ader was not one of the candidates. The proxy statement charged IGT has lost value as a result of the decisions and direction of its leadership.[38]

The Ader Group filed its action letter outlining its reasons for the proxy fight and urging stockholders to vote for the Gold slate on January 28, 2013.[39][40]

In July 2014, Italian gaming equipment company Gtech agreed to acquire IGT for a total of $6.4 billion, including $4.7 billion in cash and $1.7 billion in assumed debt. The companies would be combined under a new holding company based in the United Kingdom and the Gtech name would be dropped.[41]

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On April 7, 2015, Gtech completed its merger with IGT, and the new combined company's name is International Game Technology PLC.

IGT games[edit]

Slots[edit]

  • Top Dollar
  • Double Diamond
  • Red, White & Blue
  • Super Times Pay
  • Wolf Run
  • Cleopatra
  • Cats
  • White Orchid
  • Siberian Storm
  • Golden Goddess
  • Black Widow
  • Pharaohs Fortune
  • Hexbreaker

Video poker[edit]

  • Triple/Five/Ten Play
  • Triple Chance Poker
  • 100 Play
  • All Star Poker
  • Super Times Pay
  • Spin Poker
  • Multi-Strike Poker
  • Ultimate X
  • Quick Quads

Interactive wagering[edit]

In 2005, IGT purchased the UK focused online gaming supplier Wagerworks for $90 million.[42] Wagerworks supplies casino and slot games to various online gaming sites, including Paddy Power, William Hill and Betfair. The company provides over 100 real money wagering options for customers in legalized jurisdictions. Currently online gaming is prohibited in the US, due to the Unlawful Internet Gambling Enforcement Act of 2006. With an increasing focus on New Media and online distribution channels IGT announced the appointment of Gideon Bierer in January 2010 to head up the division, based in San Francisco.[43] The interactive division also has offices in Paddington, London.

When the new Interactive division debuted in late 2010, IGT's separate mobile- and internet-based gaming groups, known as Million-2-1 and WagerWorks, merged and formed one team with 18 years combined experience.[44] IGT Interactive provides regulatory-compliant casino games content and platform solutions including the wide area progressive MegaJackpots series. IGT Interactive's mobile portfolio includes mobile slot, table, lottery and SMS games, mobile marketing, and platform products across all major mobile technologies including Apple and Android.

In March 2011, the IGT Interactive division moved to 405 Howard Street, Suite 600, in San Francisco, California and announced plans to add 75 positions to their staff. The new Interactive division headquarters, located at the corner of First and Howard in the heart of SOMA, is home to 100 employees today with the ability to accommodate more than 250. The new 45,884-square-foot (4,262.8 m2) office triples IGT's total office space in San Francisco, allowing IGT to consolidate employees from two different locations in San Francisco, while also allowing for additional growth.[45]

IGT online game titles include:

Slots games[edit]

  • 3 Reel Hold up
  • Arabian Riches
  • Back To The Future
  • Banana Rama Deluxe
  • Battleship Search and Destroy
  • Bitten
  • Captain Quid's Treasure Quest
  • Captain Jackpot's Cash Ahoy
  • Cats
  • Cleopatra
  • Cleopatra 2
  • Cluedo Who Won It
  • Coyote Moon
  • DaVinci Diamonds
  • Davinci Diamonds Dual Play
  • Deal or No Deal
  • Diamond Queen
  • Double Diamond
  • Dungeons and Dragons Crystal Cavern
  • Dungeons and Dragons Fortress of Fortune
  • Elvis A Little More Action
  • Elvis Multi Strike
  • Elvis Top 20
  • Enchanted Unicorn
  • Fire Opals
  • Five Times Pay
  • Grand Monarch
  • Jackpot Jewels
  • Kitty Glitter
  • Lil' Lady
  • Monopoly Here and Now
  • Monopoly Multiplier
  • Monopoly Pass Go
  • Monopoly You're In the Money
  • Multi-Slot Jackpot Extreme
  • Noah's Ark
  • Pet's Pay Day
  • Pharaoh's Fortune
  • Pixies of the Forest
  • Rainbow Riches Win Big Shindig
  • Siberian Storm
  • Star Trek Against All Odds
  • Super Hoot Loot
  • Texas Tea
  • The 50000 Pyramid
  • The 100000 Pyramid
  • Transformers Ultimate Payback
  • Treasures of Troy
  • Triple Fortune Dragon
  • Vacation USA
  • Vegas, Baby
  • Wheel of Fortune Hollywood Edition
  • Wheel of Fortune Triple Action Frenzy
  • White Orchid
  • Wild Wolf
  • Wolf Run

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Table games[edit]

  • Texas Hold 'Em Bonus
  • Texas Hold 'Em Shootout
  • Three Card Second Chance
  • Wan Doy Pairs Poker
  • 21+3 Blackjack
  • European Blackjack
  • Hot Streak Blackjack
  • Power Blackjack
  • Vegas Blackjack with 21+ Bonus
  • Three Wheel Roulette
  • Double Bonus Spin Roulette
  • Grande Roulette
  • Hot Streak Roulette
  • Pinball Roulette
  • Triple Bonus Spin Roulette

Power Blackjack and Three Card Second Chance are unique to IGT online casinos. Three Card Second Chance was developed by gaming consultant and casino game analyst Michael Shackleford[46] also known as The Wizard of Odds.

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References[edit]

  1. ^ abBill O'Driscoll (July 17, 2014). 'Timeline: The IGT story'. Reno Gazette-Journal. Retrieved 2016-06-26.
  2. ^Mick Roemer, 'The Slot Machine Kings.' Roemer Gaming LLC. May 2008. Web. 01 July 2010
  3. ^Al Moe, 'International Game Technology' About.com. Web.
  4. ^'IGT Advantage SystemsArchived 2008-04-30 at the Wayback Machine.' In 1988 IGT formed a strategic partnership with Edward G. Stevenson to acquire and operate regional casinos. International Game Technology. 2008-2010. Web. 01 July 2010
  5. ^'sbX[permanent dead link].' International Game Technology. 2008-2010. Web. 01 July 2010
  6. ^ ab'International Game Technology.' New York Stock Exchange. 01 July 2010. Web. 01 July 2010
  7. ^'Wheel of FortuneArchived 2008-03-08 at the Wayback Machine.' International Game Technology. 2008-2010. Web. 01 July 2010
  8. ^'Game King Video PokerArchived 2008-06-15 at the Wayback Machine.' International Game Technology. 2008-2010. Web. 01 July 2010
  9. ^'Action GamingArchived 2008-05-08 at the Wayback Machine.' International Game Technology. 2008-2010. Web. 01 July 2010
  10. ^'S2000 SlotsArchived 2008-05-08 at the Wayback Machine.' International Game Technology. 2008-2010. Web. 01 July 2010
  11. ^ abInternational Game Technology Announces Filing of Articles of Merger With Anchor Gaming for Consummation of the Merger on December 30, 2001. IGT.com. International Game Technology, 26 Dec. 2001. Web. 01 July 2010
  12. ^International Game Technology Offices. International Game Technology. 2001-1010. Web. 01 July 2010.
  13. ^International Game Technology Completes Acquisition of WagerWorks, Inc. IGT.com. International Game Technology, 25 Aug. 2005. Web. 01 July 2010
  14. ^ abIGT Launches Its 25th Anniversary With Impressive Lineup of New Games and Products at Global Gaming Expo. IGT.com. International Game Technology. 07 Sept. 2005. Web. 01 July 2010
  15. ^Wheel of Fortune Slots. Penny-Slot-Machines.com. Web. 14 March 2011
  16. ^IGT Focuses in on 'The Big Picture' at Global Gaming Expo. IGT.com. International Game Technology. 06 Nov. 2006. Web. 01 July 2010
  17. ^IGT Acquires Novomatic Intellectual Property for Multi-Station Games. IGT.com. International Game Technology. 23 Nov. 2006. Web. 01 July 2010
  18. ^IGT and PureDepth Launch World's First MLD-Based Product. IGT.com. International Game Technology. 31 Dec. 2007. Web. 01 July 2010
  19. ^Schneider, Rich. 'CEM's Networked Gaming Guide Volume 1 Issue 2', Casino Enterprise Management, 30 June 2009. Web. 01 July 2010
  20. ^International Game Technology Completes Acquisition of Cyberview Technology, Inc. IGT.com. International Game Technology. 08 July 2008. Web. 01 July 2010
  21. ^'Locations.' International Game Technology. 2008-2010. 01 July 2010
  22. ^Patti S. Hart Named New IGT President and CEO. IGT.com. International Game Technology. 29 March 2009. Web. 01 July 2010
  23. ^IGT Announces Sale of sbX(TM) Tier One to Imperial Palace Biloxi. IGT.com. International Game Technology. 08 May 2009. Web. 01 July 2010
  24. ^World Premiere: Sex and the City(TM) Slots. IGT completes debut installs of new slot machine based on award-winning HBO(R) series at nine Nevada casinos. IGT.com. International Game Technology. 04 Dec. 2009. Web. 01 July 2010
  25. ^IGT's sbX(TM) System Now Live at ARIA Resort & Casino. Next generation casino floor sets new standard for operator flexibility and player experience. IGT.com. International Game Technology. 21 Dec. 2009. Web. 01 July 2010
  26. ^IGT Wins Best Slot Manufacturer at 2010 International Gaming Awards. IGT.com. International Game Technology. 27 Jan 2010. Web. 01 January 2010
  27. ^IGT Named Favorite by Industry and Players Alike. IGT.com. International Game Technology. 2 Dec 2010. Web. 01 Dec 2010
  28. ^IGT's First sbX System in Europe Live at Casino d'Evian in France. IGT.com. International Game Technology. 25 May 2010. Web. 01 May 2010
  29. ^Italy's Casino di Venezia installs sbX Casino Management System. IGT.com. International Game Technology. 29 June 2010. Web. 01 June 2010
  30. ^IGT's sbX Casino Management System Goes Live in Finland IGT.com. International Game Technology. 24 June 2010. Web. 01 June 2010
  31. ^IGT Celebrates 2 Millionth Machine. International Game Technology. 15 Nov 2010. Web. 01 Nov 2010
  32. ^IGT Announces Online and Mobile Gaming Division. International Game Technology. 10 Nov 2010. Web. 01 Nov 2010
  33. ^IGT Partners with The Cosmopolitan of Las Vegas to provide integrated casino network. International Game Technology. 10 June 2010. Web. 01 June 2010
  34. ^'International Game Technology Files Preliminary Proxy Materials'. Bloomberg News. 7 January 2013. Retrieved 11 January 2013.
  35. ^'IGT says Ader Investment seeks to nominate former CEO to board'. Reuters. 7 January 2013. Retrieved 11 January 2013.
  36. ^ abcStutz, Howard. 'Ader disputes statement from IGT in proxy fight'. Las Vegas Review Journal. Retrieved 11 January 2013.
  37. ^Palmeri, Chris (11 January 2013). 'IGT Reports Dissident Ader Withdraws From Proposed Slate'. Bloomberg. Retrieved 11 January 2013.
  38. ^Stutz, Howard (11 January 2013). 'Investor files preliminary proxy, says IGT has lost value'. Las Vegas Review Journal. Retrieved 11 January 2013.
  39. ^BERZON, ALEXANDRA (27 January 2013). 'Investor Seeks IGT Board, Management Changes'. Wall Street Journal. Retrieved 28 January 2013.
  40. ^Stutz, Howard (28 January 2013). 'Shareholder group challenges IGT management, seeks seats on board'. Las Vegas Review Journal. Retrieved 28 January 2013.
  41. ^Howard Stutz (July 15, 2014). 'IGT sold in $6.4 billion deal with lottery giant GTECH'. Las Vegas Review-Journal. Retrieved 2014-07-16.
  42. ^27/07/2005 (2005-07-27). 'IGT buys WagerWorks for US&#38'90m cash | eGaming Review'. Egrmagazine.com. Archived from the original on 2011-07-10. Retrieved 2011-05-27.CS1 maint: numeric names: authors list (link)
  43. ^'Gideon Bierer Named IGT Executive Vice President of New Media'. redOrbit. Retrieved 24 July 2011.
  44. ^iGaming Business. IGT merging online and mobile divisions. Web. 14 March 2011
  45. ^Casino Enterprise Management. IGT Expands Interactive Division, Takes New Space in San Francisco, Adding 75 Staff. 10 March 2011. Web. 14 March 2011
  46. ^Michael Shackleford. 'Three Card 2nd Chance Poker'. Wizardofodds.com. Retrieved 17 September 2014.
Retrieved from 'https://en.wikipedia.org/w/index.php?title=International_Game_Technology_(1975–2015)&oldid=989142544'

Remember the movie National Lampoon’s Vegas Vacation, when gambling fever consumes Chevy Chase’s character, Clark W. Griswold? He goes on a losing streak to beat all losing streaks while his son, Rusty, wins four cars by playing the slot machines. Maybe Clark would have done better if he had read Probability For Dummies! In this article, you discover the basic ideas behind slot machines and how they work, so that you can get past the myths and develop a strategy based on sound probability.

Understanding average payout

When casinos advertise that their slot machines pay out an average of 90 percent, the fine print they don’t want you to read says that you lose 10 cents from each dollar you put into the machines in the long term. (In probability terms, this advertisement means that your expected winnings are minus 10 cents on every dollar you spend every time the money goes through the machines.)

Suppose you start with $100 and bet a dollar at a time, for example. After inserting all $100 into the slot, 100 pulls later you’ll end up on average with $90, because you lose 10 percent of your money. If you run the $90 back through the machine, you’ll end up with 90 percent of it back, which is 0.90 x 90 = $81. If you run that amount through in 81 pulls, you’ll have $72.90 afterward (0.90 x 81 = 72.90). If you keep going for 44 rounds, on average, the money will be gone, unless you have the luck of Rusty Griswold!

How many pulls on the machine does your $100 give you at this rate? Each time you have less money to run through the machine, so you have fewer pulls left. If you insert $1 at a time, you can expect 972 total pulls in the long term with these average payouts (that’s the total pulls in 44 rounds). But keep in mind that casinos are designing slot machines to go faster and faster between spins. Some are even doing away with the handles and tokens by using digital readouts on gaming cards that you put into the machines. The faster machines can play up to 25 spins per hour, and 972 spins divided by 25 spins per minute is 38.88 minutes. You don’t have a very long time to enjoy your $100 before it’s gone!

The worst part? Casinos often advertise that their “average payouts” are even as high as 95 percent. But beware: That number applies only to certain machines, and the casinos don’t rush to tell you which ones. You really need to read or ask about the fine print before playing. You can also try to check the information on the machine to see if it lists its payouts. (Don’t expect this information to be front and center.)

Implementing a simple strategy for slots

Advice varies regarding whether you should play nickel, quarter, or dollar slot machines and whether you should max out the number of coins you bet or not (you usually get to choose between one and five coins to bet on a standard slot machine). In this section, you’ll find a few tips for getting the most bang for your buck (or nickel) when playing slot machines.

Basically, when it comes to slot machines, strategy boils down to this: Know the rules, your probability of winning, and the expected payouts; dispel any myths; and quit while you’re ahead. If you win $100, cash out $50 and play with the rest, for example. After you lose a certain amount (determined by you in advance), don’t hesitate to quit. Go to the all-you-can-eat buffet and try your luck with the casino food; odds are it’s pretty good!

Choosing among nickel, quarter, and dollar machines

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The machines that have the higher denominations usually give the best payouts. So, between the nickel and quarter slots, for example, the quarter slots generally give better payouts. However, you run the risk of getting in way over your head in a hurry, so don’t bet more than you can afford to lose. The bottom line: Always choose a level that you have fun playing at and that allows you to play for your full set time limit.

Deciding how many coins to play at a time

When deciding on the number of coins you should play per spin, keep in mind that more is sometimes better. If the slot machine gives you more than two times the payout when you put in two times the number of coins, for example, you should max it out instead of playing single coins because you increase your chances of winning a bigger pot, and the expected value is higher. If the machine just gives you k times the payout for k coins, it doesn’t matter if you use the maximum number of coins. You may as well play one at a time until you can make some money and leave so your money lasts a little longer.

For example, say a quarter machine pays 10 credits for the outcome 777 when you play only a single quarter, but if you play two quarters, it gives you 25 credits for the same outcome. And if you play the maximum number of quarters (say, four), a 777 results in 1,000 credits. You can see that playing four quarters at a time gives you a better chance of winning a bigger pot in the long run (if you win, that is) compared to playing a single quarter at a time for four consecutive tries.

The latest slot machine sweeping the nation is the so-called “penny slot machine.” Although it professes to require only a penny for a spin, you get this rate only if you want to bet one penny at a time. The machines entice you to bet way more than one penny at a time; in fact, on some machines, you can bet more than 1,000 coins (called lines) on each spin — $10 a shot here, folks. Because these machines take any denomination of paper bill, as well as credit cards, your money can go faster on penny machines than on dollar machines because you can quickly lose track of your spendings. Pinching pennies may not be worth it after all!