AboutC.J. Expertise If you would like to understand spinning reel slot machines, video poker and multi-line video slot machines, I can help. Can answer most questions on odds, math, trends, myths and realities related to gaming devices at licensed casinos in the US. I have no winning "systems" to offer. Please limit questions to slot machines in licensed casinos. Please do not ask about table games, or how to fix a machine!
Experience Work for a major manufacturer of gaming/slot machines, which are sold strictly to licensed casinos.
Question In regard to gaming regulations, casinos are required to meet a payout percentage each month, correct? I understand the myths about slots but that they only pay
according to random number generator combinations. Just like computers in an office building, each has its own processor and the data is computed independently from the other computers and servers on a network.
My question is aimed more toward behind-the-scenes management and regulation of all money coming in and out of the slots. Are the slots also networked and is the money flow mangaged from a central location - server in a secure room that does the accounting transactions for each slot (or group of slots)? If so, can this be tweaked by the casino to pay more or less on a given day or time?
The reason for this question is: my favorite indian casino, here in Oklahoma, is opening a new location at the end of this month and will be closing down the old building. The rumor is that all month they have tightened down slots paying out so they can loosen up again to promote the new opening - catch up paying out the required amount. As long as they meet regulation, do casinos have control over this? My friends and I call it the "win-o-meter" - the hypothetical control in a secret room where the casino turns it up and down as they choose to.
Answer Hi Patrick,
Each state has its own regulations as to minimum and maximum payback percentage on slot machines. (Typically 80%-99.9%) Those percentages are the theoretical percentages unique to the computer program or chip residing on that machine. (Or in the case of Class II machines, the collective payback percentage on a central server playing a bingo game.) Obviously, in anything random, there is a difference between theoretical and actual payback. So the answer is no to your assumption that casinos are required to meet an ACTUAL payout percentage in a calendar month. They are required to maintain their theoretical payout percentages, and report extreme variances to the gaming regulators. One month is a mere snapshot in the life of a slot machine's possible random combinations.
Look at it this way: A 3 coin $1 machine goes on to the casino floor with a theoretical payback percentage of 96%. The very 1st player puts in $3, and wins nothing. He does it again. Nothing. He does it again. Nothing. The player has now put in $9.00. The theoretical payback on that machine is still 96%, but for that player,if he cashes out, the ACTUAL payback percentage is zero. Conversely, let's say the very 1st player on another 3 coin $1 machine with a theoretical payback percentage of 96% puts in $3 and wins $3.00 on that pull. The theoretical payback percentage is still 96% for the machine, but for that player, if he cashes out, the ACTUAL payback is 100%.
I hope this illustrates the wide swings that can happen when you have a Random Number Generator. The confidence level of most theoretical and actual payback percentages don't tend to merge until at least 100,000 plays of the game.
It would be simply stupid for a casino to change payback percentages for a month, and then change again. Particularly since they don't have to "catch up" on actual vs. theoretical payback with gaming regulators on a monthly basis.
Rumors and myths are crazy. People will always believe them.
