Expert: C.J. - 10/13/2004

Question
Hello C.J.
I would appreciate your help with my question.  When A casino advertises a 95% payout rate, does it mean that over time, the machines in that Casino keep back 5% of all cash inserted into their machines   or    does it mean the machines keep back 5% of all credits wagered in their machines, (credits wagered meaning all cash inserted and all prizes given to players while playing these machines) over time?
I look forward to hearing from you soon and thank you for your time on this matter
Gisele

Answer
Hi Gisele,
When a casino advertises a 95% payout (or payback) rate for a particular machine, it means that 95% of all wagers are returned over time (tens and tens of thousands of wagers). Even the frequent, small wins (like 2 or 4 credits) are factored into that payback percentage.

Suprisingly, the top award does not impact payback % in the vast majority of cases. The odds to the top award are identical for a "tight" machine or a "loose" machine (assuming it's the same game theme with the same paytable.) There are some rare exceptions, but really not worth considering. The payback % manifests itself in the frequency of non-top award wins.

For example: Let's assume 2 casinos purchase an identical game theme, with the same # of reel stops. If one casino chooses a 90% payback, and another casino chooses a 95% payback, the odds to the top award are almost always identical. However, on a "looser" machine, over a period of time, the 40-200 credit paybacks are more frequent.  The "looser" machines really give you more "time on machine", and make your gambling dollar last longer, but are rarely any indicator that you have a better shot at the top jackpot.  

So, if there is any "secret" to winning at slots, it is to find those machines that advertise higher paybacks, and be satisfied with hitting a few extra mid-range wins.... and then walking away.

I hope this helps!  Good luck, and have fun.  CJ