- Slot Machines Versus Digital Cameras
- Slot Machines Versus Digital Signature
- Slot Machines Versus Digital Printing
- Slot Machines Versus Digital Radiography
- Slot Machines Versus Digital Advertising
The gaming industry is big business in the US, contributing an estimated $240 billion to the economy each year while generating $38 billion in tax revenues and supporting 17 million jobs.
Winning At Slots - What Are My Odds? First of all you should know that slot machines, as with many casino games, are a type of game for which there is no “winning strategy” - technically speaking they are a negative equity game, or –EV game for short. Unlike a game such as poker (against real opponents, not vs. The house) where proper application of skill can make a game profitable in. Oct 06, 2020 Number of slot global gaming machines by region 2015-2016 Number of slot machines in casinos in Macao 2009-2019 Number of table games worldwide 2018-2020, by property type.
What people may not realize is that slot machines, video poker machines, and other electronic gaming devices make up the bulk of all that economic activity. At casinos in Iowa and South Dakota, for example, such devices have contributed up to 89 percent of annual gaming revenue.
Spinning-reel slots, in particular, are profit juggernauts for most casinos, outperforming table games like blackjack, video poker machines, and other forms of gambling.
What about slot machines makes them such reliable money makers? In part, it has something to do with casinos’ ability to hide their true price from even the savviest of gamblers.
The Price of a Slot
An important economic theory holds that when the price of something goes up, demand for it tends to fall.
But that depends on price transparency, which exists for most of the day-to-day purchases we make. That is, other than visits to the doctor’s office and possibly the auto mechanic, we know the price of most products and services before we decide to pay for them.
Slots may be even worse than the doctor’s office, in that most of us will never know the true price of our wagers. Which means the law of supply and demand breaks down.
Casino operators usually think of price in terms of what is known as the average or expected house advantage on each bet placed by players. Basically, it’s the long-term edge that is built into the game. For an individual player, his or her limited interaction with the game will result in a “price” that looks a lot different.
For example, consider a game with a 10-percent house advantage — which is fairly typical. This means that over the long run, the game will return 10 percent of all wagers it accepts to the casino that owns it. So if it accepts $1 million in wagers over 2 million spins, it would be expected to pay out $900,000, resulting in a casino gain of $100,000. Thus, from the management’s perspective, the “price” it charges is the 10 percent it expects to collect from gamblers over time.
Individual players, however, will likely define price as the cost of the spin. For example, if a player bets $1, spins the reels, and receives no payout, that’ll be the price — not 10 cents.
So who is correct? Both, in a way. While the game has certainly collected $1 from the player, management knows that eventually 90 cents of that will be dispensed to other players.
A player could never know this, however, given he will only be playing for an hour or two, during which he may hope a large payout will make up for his many losses and then some. And at this rate of play, it could take years of playing a single slot machine for the casino’s long-term advantage to become evident.
Short-Term vs. Long-Term
This difference in price perspective is rooted in the gap between the short-term view of the players and the long-term view of management. This is one of the lessons I’ve learned in my more than three decades in the gambling industry analyzing the performance of casino games and as a researcher studying them.
Let’s consider George, who just got his paycheck and heads to the casino with $80 to spend over an hour on a Tuesday night. There are basically three outcomes: He loses everything, hits a considerable jackpot and wins big, or makes or loses a little but manages to walk away before the odds turn decidedly against him.
Of course, the first outcome is far more common than the other two — it has to be for the casino to maintain its house advantage. The funds to pay big jackpots come from frequent losers (who get wiped out). Without all these losers, there can be no big winners — which is why so many people play in the first place.
Specifically, the sum of all the individual losses is used to fund the big jackpots. Therefore, to provide enticing jackpots, many players must lose all of their Tuesday night bankroll.
What is less obvious to many is that the long-term experience rarely occurs at the player level. That is, players rarely lose their $80 in a uniform manner (that is, a rate of 10 percent per spin). If this were the typical slot experience, it would be predictably disappointing. But it would make it very easy for a player to identify the price he’s paying.
Raising the Price
Ultimately, the casino is selling excitement, which is comprised of hope and variance. Even though a slot may have a modest house advantage from management’s perspective, such as four percent, it can and often does win all of George’s Tuesday night bankroll in short order.
This is primarily due to the variance in the slot machine’s pay table — which lists all the winning symbol combinations and the number of credits awarded for each one. While the pay table is visible to the player, the probability of producing each winning symbol combination remains hidden. Of course, these probabilities are a critical determinant of the house advantage — that is, the long-term price of the wager.
This rare ability to hide the price of a good or service offers an opportunity for casino management to raise the price without notifying the players — if they can get away with it.
Casino managers are under tremendous pressure to maximize their all-important slot revenue, but they do not want to kill the golden goose by raising the “price” too much. If players are able to detect these concealed price increases simply by playing the games, then they may choose to play at another casino.
This terrifies casino operators, as it is difficult and expensive to recover from perceptions of a high-priced slot product.
Getting Away With It
Consequently, many operators resist increasing the house advantages of their slot machines, believing that players can detect these price shocks.
Our new research, however, has found that increases in the casino advantage have produced significant gains in revenue with no signs of detection even by savvy players. In multiple comparisons of two otherwise identical reel games, the high-priced games produced significantly greater revenue for the casino. These findings were confirmed in a second study.
Further analysis revealed no evidence of play migration from the high-priced games, despite the fact their low-priced counterparts were located a mere three feet away.
Importantly, these results occurred in spite of the egregious economic disincentive to play the high-priced games. That is, the visible pay tables were identical on both the high- and low-priced games, within each of the two-game pairings. The only difference was the concealed probabilities of each payout.
Armed with this knowledge, management may be more willing to increase prices. And for price-sensitive gamblers, reel slot machines may become something to avoid.
This article was originally published on The Conversation by Anthony Frederick Lucas. Read the original article here.
Video poker and slot machines are the most-popular forms of machine based
gaming. That said, these two games are often compared in a variety of aspects.
Many players who take a beating on slots become curious about video poker due
to its strategic element.
Likewise, those who don’t want to bother with video poker strategy become
interested in slot machines due to their simplicity.
If you fit into either of these categories, or you’d just like to know how
slots and video poker compare, keep reading as we break down all of the
important aspects.
Later, we’ll also discuss how video poker and pull tab machines compare since
the latter is also a popular machine game.
Difference Between Video Poker and Slot Machines
# 1 Difference: Video Poker has More Strategy than Slots
One key difference between slot machines and video poker is that the latter
involves intricate strategy.
You begin every video poker hand with 5 cards, and you decide what to keep
and discard. Each decision you make has a long-term impact on pay back.
Let’s look at an example:
- You’re playing 9 / 6 Jacks or Better
- You’re dealt: 10c, Js, 9c, 4s, 6s
- The correct move is to keep Js and discard everything else.
In the situation above, the only correct strategy decision is to keep the
jack of spades. Anything else results in a higher house edge and lowers your
chances of winning.
Contrast this to slot machines, where the biggest strategy aspects involve
bankroll management and choosing games with high pay back.
Once you accomplish these two goals, there’s literally nothing else to do
besides hitting the spin button.
Some of the newer slot machines feature skill-based bonus rounds. But these
bonuses only account for around 5% of overall pay back.
Video poker contains far more skill than this, and there’s no comparison to a
skill-based slot.
# 2 Difference: Slots Offer Bigger Progressive Jackpots
Slot machines are well known for offering progressive jackpots worth millions
of dollars.
Of course, only a small percentage of slots offer this much money. But the
point is that you can make a fortune by winning a slots jackpot.
Below you can see some historic online and land-based slots jackpots.
- $39.71 million
Won
by a 25-year-old software engineer at Las Vegas’ Excalibur Casino. - $34.56 million
Won
by cocktail waitress Cynthia Jay-Brennan at Vegas’ Desert Inn. - €17.88 million
(approx. $22m)Won by British soldier Jon Heywood at an online casino.
- $22.62 million
Won
by Johanna Huendl on her way to breakfast at Bally’s Las Vegas. - €17.86 million ($22m)
Won by a Finnish player at an online casino.
These are just a few examples of the massive jackpots that slot machines
offer. But they show you the type of fortunes that are available when a
progressive prize grows large enough.
Most video poker games offer a royal flush payout worth 4,000 coins, although
some have progressive jackpots too.
The largest progressive video poker jackpot that we’ve seen is a $670,000
payout. Poker pro Huck Seed won this prize in 2011 while betting $500 per hand.
This is definitely a big payout, but it doesn’t come anywhere close to the
largest progressive slots.
# 3 Difference: Video Poker Offers Higher Pay back
While video poker machines don’t give you the opportunity to get rich, they
do offer much higher pay back than slots.
Below you can see some of the highest-paying variations in video poker:
- Full-pay Deuces Wild =
100.76% pay back - Full-pay Joker Poker =
100.64% pay back - 10 / 7 Double Bonus =
100.17% pay back - 10 / 6 Double Double
Bonus = 100.07% pay back - 9 / 6 Jacks or Better
= 99.54% pay back - 8 / 5 Bonus Poker =
99.17% pay back
Even if you play 8 / 5 Bonus Poker, you’ll earn higher pay back than any slot
machine can offer.
The best slots pay back is typically found in online casinos, including the
following games:
- Mega Joker – 99% pay
back - Jackpot 6000 – 98.8%
pay back - Blood Suckers – 98.0%
pay back - Megaspin Break Da Bank
– 98.0% pay back - Fishy Fortune – 97.90%
pay back - Kings of Chicago –
97.80% pay back - Hot Ink – 97.50% pay
back
These games offer a far better return than what you’ll find in
brick-and-mortar casinos. But they still don’t offer as high of pay back as
video poker games.
If you want a better chance of winning, then video poker is your best bet.
# 4 Difference: Slots are More Relaxing to Play
Earlier we discussed how video poker features a lot more strategy than slots.
But on the reverse side, slot machines are more relaxing for people who don’t
care about strategy or a higher return.
To illustrate this point, let’s look at the process for playing both slots
and video poker:
Slots
- You select your bet size.
- You spin the reels.
- Sometimes you’ll trigger a bonus round or free spins.
Video Poker
- You select your bet size.
- You receive a 5-card hand.
- You decide what cards to keep and discard.
- You click Draw to complete your hand.
Even if we include free spins or a bonus round, which only happen
occasionally, the slots playing process features one less step. Compare this to
video poker, where you may spend 5-10 seconds thinking during the draw round
(third step).
Again, if you’re just a casual gamer who wants to relax and play some casino
games, then slot machines are a good choice.
# 5 Difference: Video Poker Pay back Is Easier to Figure Out
You can find pay back for plenty of online and land-based slot machines
through research. But what if you can’t find pay back for the particular game
you’re playing?
This would involve looking at the paytable, playing countless spins, and
trying to figure out the frequency of each payout.
Obviously nobody wants to do this because it would cost a fortune and require
endless hours.
Video poker paytables, on the other hand, are much easier to understand. You
just need to know what payouts change the pay back for specific video poker
variations.
With Jacks or Better, you need to concentrate on the full house and flush
payouts. Here are some examples:
| Game | Pay back | Coins for Full House | Coins for Flush |
|---|---|---|---|
| 9 / 6 Jacks or Better | 99.54% | 9 | 6 |
| 9 / 5 Jacks or Better | 98.44% | 9 | 5 |
| 8 / 6 Jacks or Better | 98.39% | 8 | 6 |
| 8 / 5 Jacks or Better | 97.30% | 8 | 5 |
| 7 / 5 Jacks or Better | 96.15% | 7 | 5 |
Some video poker variations have more than two differing payouts on the
paytable. But as long as you know what payouts to look for with any given game,
there’s no mystery involved in the pay back.
# 6 Difference: Slots Offer More Comps
The big downside to slot machines is that you’re dealing with a larger house
edge. But the upside is that slots offer you more comps too.
Let’s illustrate this point with comp examples for both slot machines and
video poker:
Slots Comps
- You earn a 2% comp rate on losses.
- You’re playing a slot with a 5% house edge.
- You bet $2,000.
- Your theoretical losses are $100 (2,000 x 0.05).
- You’d receive $2 in comps.
Video Poker Comps
- You earn a 2% comp rate.
- You’re playing 8 / 5 Bonus Poker (0.83% house edge).
- You bet $2,000.
- Your theoretical losses are $16.60 (2,000 x 0.0083).
- You’d receive $0.33 in comps.
A common casino gaming tip is to never play strictly for comps. After all,
you can see that your video poker losses would be $83.40 less than slots under
these circumstances.
But the good news is that you’ll at least receive more comps to soften the
blow.
# 7 Difference: You can Win Long-Term Profits in Video Poker
It’s not easy to find video poker machines that offer positive expectation
(+EV). But you can still find +EV video poker in certain parts of Las Vegas.
Contrast this to slot machines, where you won’t find a single game anywhere
that offers over 100% pay back.
As for +EV video poker games, let’s review the four that were mentioned
earlier:
- Full-pay Deuces Wild =
100.76% pay back - Full-pay Joker Poker =
100.64% pay back - 10 / 7 Double Bonus =
100.17% pay back - 10 / 6 Double Double
Bonus = 100.07% pay back
Double Bonus and Double Double Bonus don’t offer a very big edge, even with
perfect strategy. But full-pay Deuces Wild and Joker Poker offer noticeable
profits to skilled players.
Here are win rate examples when perfect strategy is used on the following
games:
Slot Machines Versus Digital Cameras
- Deuces Wild
You’d
win $7.60 for every 1,000 hands played. - Joker Poker
You’d
win $6.40 for every 1,000 hands played. - Double Bonus
You’d
win $1.70 for every 1,000 hands played. - Double Double Bonus
You’d win $0.70 for every 1,000 hands played.
None of these win rates will earn you a full-time living. But pro players can
make a living with Deuces Wild and Joker Poker when they take advantage of
double and triple point promotions.
Assuming you don’t care about being a video poker pro, then you can earn
profits through Double Bonus and Double Double Bonus while also entertaining
yourself.
# 8 Difference: Slots Pay More Online than in Land-based Casinos
In point #3, we mentioned how online slots normally pay more than those in
brick-and-mortar casinos.
While there aren’t any uniform figures on these differences, here are some
estimates:
- Online slots = 96%
return to player (RTP) on average. - Land-based slot
machines = 93-94% RTP on average.
Compare this to video poker, which doesn’t change when moving from online to
land-based casinos.
If you’re playing a 9 / 6 Jacks or Better game, it’s going to offer 99.54%
pay back in both online and brick-and-mortar casinos. If you’re playing a 9 / 7
Double Bonus game, it’ll pay back 99.55% anywhere.
The one caveat is that you’re more likely to find 9 / 6 JoB in online casinos
than in land-based venues. The reason why is because internet operators don’t
have to cover as many overhead costs, and they can offer more high-paying games
like 9 / 6 JoB.
# 9 Difference: Video Poker Requires Max Bets for Top Pay back
The golden rule of video poker is that if you want max pay back, then you
need to make the max bet (5 coins). The reason why is because you’re eligible
for a much-larger royal flush payout when you wager 5 coins.
You can see this below:
- 5-coin bet =
4,000-coin royal flush - 4-coin bet =
1,000-coin royal flush - 3-coin bet = 750-coin
royal flush - 2-coin bet = 500-coin
royal flush - 1-coin bet = 250-coin
royal flush
The 3,000-coin jump in the top royal flush payout is why you should bet 5
coins on every hand.
Some slot machines also require that you make specific bets to quality for
the jackpot and / or bonus rounds. Here’s an example: you’re playing a
50-payline game and you need to play all 50 lines in order to qualify for the
progressive jackpot.
But this is the exception, rather than the norm. You’re not required to make
qualifying bets on most slots – especially online – to qualify for bonuses and
jackpots.
Similarities Between Video Poker and Slot Machines
# 1 Similarity: Both Operate through a Random Number Generator
Random number generation involves creating a sequence of numbers that can’t
be predicted. And both slot and video poker machines use a random number
generator (RNG) to ensure that every round is based on random chance.
Many video poker and slots myths arise because players don’t understand how
an RNG works. Certain players think there’s a pattern or strategy that will
result in guaranteed profits.
But the RNG ensures that every outcome is totally independent of the last.
# 2 Similarity: Video Poker and Slots are Good Alternatives to Table Games
Picture this scenario:
- You visit a casino and you’re new to table games.
- You sit down to a blackjack table because you’ve heard it has a low house edge.
- You touch your cards on the first hand, and the dealer warns you not to touch them.
- You make a few strategy mistakes and are lectured by the player next to you.
- You take too long to make decisions on most hands, drawing groans from the table.
Based on this experience, chances are that you won’t be thrilled to play any
more table games. Of course, you may also be too intimidated from the beginning
and avoid the tables altogether.
This is where video poker and slots become perfect alternatives in land-based
casinos. If you don’t want to deal with the pressures of learning table games,
you can sit down to a video poker or slot machine and play at your own pace.
# 3 Similarity: The Same Video Poker and Slots Games can Offer Different Pay
back
Earlier, we covered how the same video poker variant has different pay back
based on the paytable. Slot machines are also this way because casinos can order
different pay back for a specific game.
This is mostly the case in land-based casinos, where the same slot machine
might offer 92% pay back at one casino, and 89% pay back at another.
Online slotsmakers normally offer a uniform payout percentage with each
individual game, no matter the casino. But some internet slots can also feature
different pay back as you move between casinos.
One example is Microgaming’s Mega Moolah, which can offer anywhere from
88.12% to 95% pay back.
# 4 Similarity: Both Games Have Betting Options
You can change betting options to your preferences in both video poker and
slot machines.
Let’s check out some wagering options that you’ll see in video poker:
- Bet 1 to 5 coins per
hand. - In online casinos, you
can change the coin denomination (ex. $0.05 to $0.25). - Play multiple hands
per turn (in triple play). - Make side bets for
multipliers (special video poker variations).
Now let’s look at slot machine betting options:
- Change coin size (ex.
$0.01 to $1.00). - Adjust paylines (ex. 1
to 20). - Change coins per line
(ex. 1 to 5). - Use double-up option
after wins (in certain games).
Some betting options in video poker and slot machines are nearly the same,
including the coin denomination and coins per hand / pay line.
Video Poker vs. Pull Tab Machines
What are Pull Tab Machines?
Pull tabs are special gaming tickets that involve pulling open perforated
windows on the ticket’s backside. The goal is to pull open symbols that match
the winning combinations listed on the frontside.
Most pull tabs cost $0.25, $0.50, $1, $2, $3, or $5 per ticket.
Pull tab tickets can either be sold by hand or through machines. The latter
is similar to video poker or slots because you put money into a machine, then
receive your ticket.
Electronic pull tabs are another option, allowing you to play through a
tablet device. Electronic pull tabs offer everything that physical tickets have,
except that you don’t physicallypull the tabs – you merely swipe them.
What are the Similarities between Video Poker & Pull Tabs?
- Machine-based
Play – Both video poker and pull tabs are played through machines.
Pull tabs can also be distributed physically by vendors (normally through
charities). - Transparent
Odds of Winning – Video poker paytables are transparent and allow
you to easily figure out pay back. Pull tab players can see how many
available prizes (predetermined) and tickets are left through a tally sheet
or electronic display. - Varying Prizes
– Video poker and pull tabs feature varying payouts, with the royal flush or
highest-symbol combination (pull tabs) offering the biggest prize
What are the Differences between Video Poker & Pull Tab Machines?
- Pull Tab
Payouts are Predetermined – Each pull tab game is released with a
set number of payouts and tickets (ex. 5k prizes for 50k tickets). When the
prizes are all won, distributors can either offer another round, or get rid
of the game completely. - Video Poker
Payouts are Totally Random – Each video poker payout offers
specific odds of winning, just like a pull tab game. But the key difference
is that video poker prizes aren’t predetermined. Even though a royal flush
payout (4,000 coins) happens roughly 1 in 40,000 hands, it could
theoretically happen 4 in 40,000 hands. - Pull Tab Games
Don’t Involve Much Strategy – The biggest strategy to pull tab
machines is finding out how many prizes are left versus tickets. This gives
you an indication of whether or not you should play based on the odds. Video
poker strategy, as covered before, is far more involved. - Every Video
Poker Outcome is Independent of the Last – Given that video poker
payouts are based on an RNG, past results never determine future hands.
Contrast this to pull tabs, where every loss removes one losing ticket from
circulation, thus improving your future odds. - Pull Tab
Machines Play More Like Slots than Video Poker – Considering that
pull tab machines involve matching symbols with winning combinations,
they’re similar to slot machines. Meanwhile, video poker is an
electronic-based version of draw poker.
Conclusion
While video poker and slot machines share similarities, they’re also
different in a variety of aspects too.
Slot Machines Versus Digital Signature
We highlighted nine differences, but the key ones that stand out include the
following:
- Video poker has far more strategy.
- Slots offer bigger jackpots.
- Video poker offers higher pay back.
- Slots deliver more comps (due to high house edge).
- Video poker has +EV games.
Slot Machines Versus Digital Printing
These differences define each game and make them appeal to specific crowds.
Those who enjoy using skill to improve their chances of winning will
appreciate video poker. Meanwhile, players who want to chase big jackpots and /
or play without considering strategy will like slot machines.
These comparisons don’t prove that one game is superior to the other.
Instead, they highlight the aspects you want to consider when deciding what to
play in casinos.
Slot Machines Versus Digital Radiography
The same goes when pitting video poker and pull tab machines against each
other.
Slot Machines Versus Digital Advertising
Pull tabs are like a hybrid between slots and the lottery because you buy
tickets and try to match symbols. This offers another luck-based game that
appeals to a different crowd than video poker lovers.
Of course, nothing is stopping you from dividing your play up between video
poker, slots, and / or pull tab machines. We find that this is a fun way to
enjoy a variety of gaming experiences.