10.2 Slot machines
...and video poker
It is not
accidental that two-thirds of every casino is
littered with row-upon-row of slot machines of
every type imaginable. The reason is that they
provide the most profit to a casino ...and
billions of dollars in tax revenue to the
state. (The state of Nevada collects a $250
annual tax plus a $20 quarterly license fee per
slot machine plus a percentage - about 5%
- of gaming revenue.)
Slots account for more revenue to a
casino than all other gambling games
combined. Their formula for success is simple.
They make money by paying out less than they
take in. They are popular because players don't
need any gambling knowledge and slots require
only a very small bet. There are more than
200,000 slot machines in Las
Vegas.
 |
Most slot
machines work the same way. The player
pulls a handle or presses a button to
spin a series of reels (typically three)
that have pictures printed on them. You
win when certain combinations of pictures
line up with a pay line in the middle of
a viewing window. The payout depends on
which pictures land along the pay line.
Some machines have multiple pay lines. A
pay table (chart) tells you the amount of
the payout. It is usually found on the
front of the machine, above or below the
area containing the wheels. While you can
lose your money faster, the payout
percentages are always better if you bet
the maximum amount of coins on each
“pull.”
All slot machines in use today in
casinos are electronic
(computerized) rather than mechanical. As
a general rule, reels, handles, sound
effects and other attributes are there to
make them appear to be like older, more
familiar, mechanical
machines. |
Themed
slot machines that require the manufacturer to
pay a license fee (such as one named after a
movie star, cartoon character, TV show, etc.)
generally have lower payouts since the
additional cost must be recouped. So
stick with the traditional machines (such as
the Double Diamond, Blazing 7s, and Red, White
and Blue) that pay back more.
As a general
rule, slot managers place their most popular -
and best paying - machines in areas that
generate excitement - such as near the front
entrance and other high traffic areas.
Some popular slots - such as nickel machines -
are placed in the rear of the casino to get
people to walk to the back. High payback
machines are also sprinkled throught the casino
floor.
Be aware that
the higher the cost per "handle pull," the
higher the payout. According to one
industry insider, the so-called "hold
percentage" on the Las Vegas Strip averages 11%
for nickels (that is, 89% is paid back), 6.5%
for quarters, 4.5% for dollars, and 3.5% for
five dollars and above. (The Nevada
Gaming Control Board has a slighty different
figure. See below.)
The payback
percentage for Las Vegas (and all Nevada) slot
machines are a known factor. Because
they are taxed, all machines are strictly
controlled and keep track of "coin in" and
"coin out" which, overall, is a matter of
public record. Manufacturers program each
machine to payback a
specific percentage which is based on
a span of ten million handle pulls! Any
slot can (and does) pay out more or less over a
shorter period. It might pay out 400%
today ...or 20% for a week.
A good website
on slot machine gambling
is located here ... and
they have no advertising whatsoever.
The newest wrinkle in slot machines is coinless
slots. They use bar-coded paper tickets instead
of coins and are known as “ticket
in/ticket out” ("TITO") machines. The
traveling coin gal (and coin cups) are fast
becoming a thing of the past. You feed bills
and get paid in vouchers which are redeemed at
the cashier’s cage. Don't forget to
redeem the tickets! Some have expiration
dates on them.
Video poker
Although poker machines have been around since
1964, video poker did not become popular until
1979 when International Game Technology
(IGT) introduced its electronic “Draw
Poker” machine. Video poker adds the
element of skill and players are given
decision-making options that regular slots
don’t offer.
Video poker slots work the same way as regular
rotating wheel machines. Instead of a reel,
they have changing playing card images. They
are generally based on five-card draw
poker.
|
A series
of five cards are generated from a
freshly shuffled 52 card deck for each
play and shown on the screen. The
player discards some (or all of the
cards) and replacements for the
remaining cards are drawn. While
you are deciding which cards you want
to hold, the remaining 47 cards are
constantly shuffling. After you
decide and hit the button again, the
cards stop shuffling and the x-number
of cards you need to fill your draw
hand come off the top and occupy the
vacated positions.The objective is to
get the best poker hand. Again a
chart indicates the amount of the
payout.
|
Typical
Video Poker screen
 The most basic version pays on two
jacks or better, but there are
variations, such as “wild”
cards.
|
All video
poker is not alike. Be certain you are
playing a “full pay” game which
pays out 99.5% of incoming
coin. They are known as a “9/6
JoB” machines – which stand for a
payout of 9 coins for a full house and 6 coins
for a flush with one coin inserted. (JoB
stands for “Jacks or
Better.”) The paytable for a
full-pay or 9/6 JoB machine looks like
this:
| Royal Flush
250 |
Straight Flush
50 |
Four of a Kind
25 |
| Full House
9 |
Flush
6 |
Straight
4 |
| Three of a Kind
3 |
Two Pair
2 |
Jacks or Better
1 |
A casino can tighten a
Jacks-or-better video poker machine by simply
paying out less for a full house and
flush. The most common way that a casino
increases it's win is to pay only 8 for the
Full House and 5 for the Flush. This is a
short-pay 8/5 machine. The casino keeps an
extra 2.2% on these machines.
A “10/7
DB” video poker machine (Full House=10
coins, Flush=7 coins) is better yet
Payout (when played perfectly and max-credits)
is 100.1%. Double Bonus Poker (DB) is a
variation on video poker in which the payout
for two pair is reduced from two to one in
exchange for greatly increased payouts for
other hands ...like a payout of 4000 for a
Royal Flush.
The best place
to play video poker is downtown or at such
off-strip properties as Sam’s Town.
A great video poker
website is
VideoPokerReview.com.
A couple of playing hints: Never
keep a high card kicker with a pair; draw three
cards. Hint No. 2: Always go for the Royal
Flush if you have four of the five needed
...even if it means giving up a high pair. The
odds are one in 52 that you will hit the needed
card ...and Royal Flushes pay up to 4,000 to
one if you put in the maximum number of
coins.
Slot machines and the
law
All slot and video poker machine models are
tested by the state of Nevada to be certain
that all results are based on a random number
generator (RNG.) A new machine can’t be
introduced until it meets all state regulations
and technical standards. Because gross revenue
is taxed, every machine keeps track of the
money paid in and the winnings paid out.
Winning at slot machines is pure luck. And
there is no such thing as a machine being
“ready to hit.” The chances of
winning never change whether it is the first or
one hundredth pull. And a machine that hasn't
paid recently is not due to win.
While winning combinations are determined on a
totally random basis, the overall payback
percentage is set on a standard machine. A
casino tells the slot machine manufacturer what
percentages it wants specific machines to pay
back and that amount is programmed in. So, some
machines are “looser” than others
over the long haul.
The payback percentage is determined by
state-approved computer chips which are
installed by the manufacturer. The RNG in these
microchips continuously generate hundreds of
randomly chosen numbers every second the
machine is on ...even when not being played.
Each number corresponds to a set of symbols on
the wheel. There are many approved chips for
every machine type and the chip can be changed
by casino technicians to “tighten”
or “loosen” the machine payout. But
this is hardly ever the case. It is easier just
to change out the machine programmed by the
manufacturer.
The state of Nevada requires that every machine
pay out a minimum of 75 percent of the money it
takes in. Due to competitive pressures,
however, the overall payout percentage is much
higher. Slot machines are typically programmed
to pay out around 82 to 98 percent of the money
that goes into them as winnings. Most pay
around 92 to 96 percent ...certainly not the
worst bet in the house. (Don’t be taken
in by casinos that advertise winnings of
“up to 99 percent.” They might only
have one machine out of 2,000 set to pay that
rate.) Hint: Playing the maximum coins always
pays more per “coin-in” and reduces
the house advantage.
Where are the “loose”
slots?
According to the Nevada Gaming Control Board,
$1 slots pay out an average of 95 percent of
receipts. (25 cent slots pay back an average of
93 percent, 5 cent machines: 90 percent.) And
where you play the slots makes a difference.
The payout on machines located on the Strip is
about one or two percent lower than downtown or
other off-strip properties ...a fact well known
by the locals. Hotel-casinos frequented by
Nevada residents on a regular basis (such as
Sam’s Town) pay better than tourist
hotels whose guests are there for only three
days.
The newer and more luxurious hotels, have the
poorest overall slot payout ...especially on
under $1 machines. The poorest then would be
the Bellagio, Venetian, Mandalay Bay and new
Wynn Las Vegas. The best paying slots on the
Strip are the older properties on the North
Strip. Generally, avoid slots at the airport,
convenience stores, restaurants and
“restricted” operations ...that is,
those with less than 15 machines.
Many veteran slot players believe that the
loosest (best paying) machines are located in
high traffic areas, such as near elevators,
buffets, aisles, showrooms, registration areas,
etc. Theoretically, frequent payouts are good
advertising and entice others nearby to play.
Typically, slot machines with a similar payout
percentage are grouped together in the same
area. In any event, the payback
percentages on Nevada slot machines are the
highest of any state ...and probably the
highest of any country in the world.
Progressive slot
machines
Progressive slots are exactly what their name
implies; with each bet made, the jackpot grows.
Progressive jackpots (such as Nevada's
“Megabucks”) can pay astronomical
amounts ...always in the millions of dollars.
Their payout system is different from a
standard machine and steadily increases as
players put more money into it. To get the high
jackpot, multiple machines and casinos are
linked together to form one giant payout. Just
about every Las Vegas casino participates in
Megabucks.
The cardinal rule is to always play maximum
coins at a progressive machine since they only
pay the top jackpot if you bet max. Megabucks
is a $1 slot so you must play 3 coins ($3.00)
to hit the jackpot. When someone wins, the
jackpot is reset to a starting value ...$7
million for Megabucks.
In the long run, the chances of winning a
progressive jackpot are very, very remote and
the overall payback is much lower than the
standard $1 machine. Statistically, they are a
very poor bet. In the short run, however,
anything can happen and the
“Megabucks” jackpot does get hit by
someone about twice a year. (The odds of
winning are one in 50 million.) The payout
averages more than $10 million each time it
does. It might be worth one $3 play.
Slot clubs and
“comps”
Most casinos offer free memberships in
“slot clubs.” They exist to
attract, reward, and ultimately retain slot
players. You join at the casinos slot booth and
get a membership card - otherwise known as a
“comp card” (as in
“complimentary.”) It looks like a
plastic credit card. The purpose of these clubs
is to keep players from wandering from one
casino to another. The card tracks your play
and are the Vegas equivalent of frequent flier
miles.
Whenever you sit down at a slot machine, insert
the card in the slot at the top of the machine.
At a table game, you give it to the dealer or
the floorman. The machine (slots) or casino
personnel (table games) then keeps track of how
much you bet and how long you have played. A
word to the wise! Never place your handbag on
the floor when you are playing the slots. Keep
it in sight at all times.
There are two schools of thought about applying
for slot card membership. One is to apply for
as many as you can because you will get a
sign-up bonus prize on the spot for enrolling
...sometimes even a little free "match play"
gambling money to get you started. Joining a
player’s club also identifies you as a
gambler and gets you on their mailing list of
upcoming offers. There are dozens of different
slot clubs in Las Vegas.
The second theory is to concentrate your
gambling - even if it is conservative - on one
casino. You won’t get any
“comps” (free meals, rooms,
upgrades, shows or other offers) with just a
few points at a dozen casinos. But they will
add up when you gamble using a single slot
card.
My recommendation is, at the minimum, to apply
for Players Club membership at the two largest
Las Vegas casino operations: MGM Mirage and
Harrahs Entertainment. This way you can gamble
at many of their owned casinos and still
receive credit toward on your card. MGM Mirage
recently merged with the Mandalay Bay Group.
And Harrahs recently acquired Caesars
Entertainment, Inc. These two companies will
soon control nearly two dozen of the largest
hotel-casinos ...about half the hotel rooms on
the Strip.
Slot tournaments
Slot tournaments can be fun, take no skill to
play and are offered at many casinos to their
slot club members ...some by invitation only.
The idea is to get the most
“credits” by continually pushing
the slot’s spin button. Sometimes the
contest is free to enter ...but usually there
is a small ($10 to $25) entry fee. The people
who get the top scores wins a prize
...sometimes hundreds or thousands of dollars.
Participants frequently get freebies and offers
(sometimes worth more than the entry fee) just
for entering the tournament.
The rules are simple. Generally you are
assigned a certain machine, a time to play and
a beginning amount of “credits”
which must be played during a specified time
period. For example: you might get to play a
beginning 1000 credits in 15 or 20 minutes. The
tournament is managed by casino personnel and
there can be several tournament sessions to
accommodate all who want to play. Many
tournaments have hundreds of
participants.
You just keep tapping the maximum bet button as
fast as you can. Three credits are deducted
each time. The machine has a special meter that
keeps track of winning credits which can not be
replayed. At the end of the time period, the
machine locks up and play is over. An important
objective is to use all your credits since they
are lost if you do not. After you finish
playing, you wait at your machine until a
tournament official comes by and records your
score. The scores on the winning meters
determines the winners. It is that
simple.
Slot tournaments are held in certain designated
casino areas on specially programmed and
outfitted machines that generate many more
jackpot combinations than normally the
case.
One advantage of a slot tournament is that you
know ahead of time that your maximum loss will
be the amount of the entry fee. (You should
probably avoid the slot tournaments that have
large entry fees ...those more than $100!)
Winning them is totally pure luck ...the only
skill needed is to be able to push the spin
button quickly.
