Introduction

Should you decide you want to try them anyway and find you lose a quick $100, be prepared to either walk away or drop to penny slots with the rest of the money. Slot machines don’t give player the opportunity to make multiple bets in combinations like craps or roulette, or to take advantage of ever-shifting odds as card counters do in. Always Understand What You’re Getting Into – Especially With Penny Slots. The name alone is what. The odds of getting this combination are 1 in 8000. For a 5-reel slot machine the chances are even less: 20 x 20 x 20 x 20 x 20 = 1/ 3,200,000 (1 in 3,200,000). The slots probabilities are usually shown as a percentage, so for 3-reel and 5-reel slot machine with 20 symbols on each reel we have these probabilities. 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. Attempting to pinpoint the odds for slot machines is a daunting task. With such a variety of machines and games available, the odds can vary a great deal. Generally slots odds are expressed in the form of a payback percentage. The closer to 100%, the better for players.

When it comes to gambling, the easier a game is to understand the worse the odds usually are. This is certainly the case with slot machines. Playing them is as easy as pressing a button. However, between the high house edge and fast rate of play, there is no quicker way to lose your money in a casino.

How They Work

Whether you're playing a 3-reel single-line game or a 5-reel 25-line game, the outcome of every bet is ultimately determined by random numbers. The game will choose one random number for each reel, map that number onto a position on the reel, stop the reel in the appointed place, and score whatever the outcome is. In other words, the outcome is predestined the moment you press the button; the rest is just for show. There are no hot and cold cycles; your odds are the same for every spin on a given machine.

Slot machines are just about the only game in the casino where the odds are not quantifiable. In other words, the player doesn't know how the game was designed, so it is difficult to look at an actual game to use as an example. So, to help explain how they work, I created the Atkins Diet slot machine (link). It is a simple, five-reel game with a free spin bonus round, much like IGT's Cleopatra game.

For information on how it works and all the odds, please visit my Atkins Diet par sheet.

For a more complicated example, featuring sticky wilds in the bonus, please try my Vamos a Las Vegas slot machine.

For information on how it works and all the odds, please visit my Vamos a Las Vegas par sheet (PDF).

Odds

The following table shows the casino win for Clark County Nevada (where Las Vegas is) for all slots for calendar year 2012. They define 'slot' as any electronic game, including video poker and video keno. I've found video keno to be about equally as tight as reeled slots, but video poker has a much higher return. So, the return for reeled slots should be higher than these figures.

Clark County Slot Win 2012

Source: Nevada Gaming Control Board, Gaming Revenue Report for December 2012 (PDF, see page 6).

Most players play penny video slots. Based on past research, I find the house edge on those to usually be set from 6% to 15%. In general, the nicer the casino, the tighter the slots.

Advice

While there is no skill to playing slots, there is some skill in selecting which machine to play and ways you can maximize your return. What follows is my advice, if you must play slots at all.

• Always use a player card. Slots may be a lousy bet, but the casinos treat slot players very well. A $1 slot player will probably get comped better than a $100 blackjack player. Of course, don't play for the reason of getting comps. You'll give them a lot more than they'll give you.
• The simpler the game, the better the odds. The fancy games with big signs and video screens tend to not pay as well as the simple games. However, slot players always tell me the fancy games are more fun.
• The higher the denomination, the better the odds. For that reason, it is better to play one coin per line on a 5-cent game than five coins per line on a 1-cent game.
• Don't forget to cash out and take your ticket when you leave. It is easy to forget after hitting a jackpot.
• Try to play slowly and as little as possible to get your fix.
• In some games there is a skill feature, like Top Dollar. In such games, advice is usually offered, which you should take.

Myths and Facts

Just about everything that players believe about slots is untrue. Here are the most common myths and facts.

• Myth: Slot machines are programmed to go through a cycle of payoffs. Although the cycle can span thousands of spins, once it reaches the end the outcomes will repeat themselves in exactly the same order as the last cycle.

  Fact: This is not true at all. Every spin is random and independent of all past spins.

• Myth: Slot machines are programmed to pay off a particular percentage of money bet. Thus, after a jackpot is hit the machine will tighten up to get back in balance. On the other hand, when a jackpot has not been hit for a long time it is overdue and more likely to hit.

  Fact: As just mentioned, each spin is independent of all past spins. That means that for a given machine game, the odds are always the same. It makes no difference when the last jackpot was hit or how much the game paid out in the last hour, day, week, or any period of time.

• Myth: Machines pay more if a player card is not used.

  Fact: The mechanism that determines the outcome of each play does not consider whether a card is used or not. The odds are the same with or without one.

• Myth: Using a player card enables the casino to report my winnings to the IRS.

  Fact: That makes no difference. If you win $1,200 or more they will report it either way. If you have a net losing year, which you probably will, at least the casino will have evidence of it. Such annual win/loss statements may be used as evidence to declare offsetting loses to jackpot wins.

• Myth: The slot department can tighten my game with the press of a button remotely. Thus, you better be nice to the staff and tip them well, or they will use a remote control to have the machine take you down in a hurry.

  Fact: There is now some truth to the myth that the odds of a machine can be changed remotely. Such 'server-based slots' are still experimental and in a minority. Even with server-based slots, there are regulations in place to protect the player from the perceived abuses that could accompany them. For example, in Nevada a machine can not be altered remotely unless it has been idle for at least four minutes. Even then, the game will display a notice that it is being serviced during such changes. (source) Meanwhile, for the vast majority of slots, somebody would physically need to open the machine and change a computer chip, known as an EPROM chip, to make any changes.

• Myth: The machines by the doors and heavy traffic flow areas tend to be loose while those hidden in quiet corners tend to be tight.

  Fact: I've studied the relationship between slot placement and return and found no correlation. Every slot director I've asked about this laughs it off as just another player myth.

• Myth: Slots tend to be looser during slow hours on slow days of the week. However, when the casino is busy they tighten them up.

  Fact: Nobody would take the trouble to do this, even if he could. The fact of the matter is the casinos are trying to find a good balance between winning some money while letting the player leave happy. That is best achieved by slots loose enough to give the player a sufficiently long 'time on device,' as they call it in the industry, with a reasonable chance of winning so he will return to the same casino next time. If the slots are too tight, the players will sense it and be unlikely to return.

  The kind of place you're likely to find tight slots are those with a captive audience, like the Las Vegas airport. So, if the slot manager feels that 92% is the right return for a penny game, for example, he is likely to set every penny game all that way, and keep them that way for years.

Play

Reviews

• Dazzle Me (NetEnt)
• Mr. Vegas (Betsoft)
• Sparks (NetEnt)

Internal Links

• Appendix 1 shows the details and analysis of almost 4000 actual spins on a Reno slot machine.
• Appendix 2 shows an example of the virtual reels behind a hypothetical slot machine and how the average return is calculated.
• Appendix 3A: 2003 Las Vegas slot machine rankings.
• Appendix 3B: 2002 Jean/Primm slot machine rankings.
• Appendix 3C: 2002 Tunica slot machine rankings.
• Appendix 3D: 2002 Henderson/Lake Mead slot machine rankings.
• Appendix 3E: 2002 Quarter and dollar returns for Las Vegas slots
• Appendix 4 shows how the return is calculated for my Wizard's Fruit Slot Machine.
• Appendix 5 analysis of the 21 Bell Slot Machine.
• Appendix 6 Analysis of Red, White, & Blue Slot Machine.
• Lock and Roll analysis of the skill-based slot machine found in North Carolina.
• Deconstructing Jackpot Party analysis of the video slot machine.
• Deconstructing Lion's Share analysis of the classic MGM progressive game.
• Deconstructing Megabucks.
• Deconstructing the Atkins Diet slot machine.
• Analysis of Lucky Larry's Lobstermania.
• Deconstructing Hexbreaker.
• Deconstructing Blazing Sevens.
• Deconstructing Lionfish.
• Deconstructing Hot Roll.
• Mystery progressives on Ainsworth slots.
• Mystery progressives on WMS slots.
• Baltimore Sun article, in which I am quoted.
• 100% Rebate on Slot Losses Promotions: When to quit playing when all losses are refunded.

External Links

• For a simplified explanation of slots, please see my companion site Wizard of Vegas
• German translation of this page is available at richtigspielen.com
• Another decent overview of how slots work and some practical advice for playing them is How Slot Machines Work at VegasClick.com.
• PAR Sheets, probabilities, and slot machine play: Implications for problem and non-problem gambling by Kevin A. Harrigan and Mike Dixon, University of Waterloo, Waterloo, Ontario, Canada. This is an outstanding academic paper that details how some popular slot machines were designed.
• PAR Sheets, probabilities, and slot machine play: Implications for problem and non-problem gambling - Academic paper based on the par sheets for some modern slot machines

Casino floors used to be filled with nickel and quarter slot machines. And casinos made healthy slots profits with these coin denominations for decades.

But nowadays, penny slot machines are the dominant game. These slot machines are enticing because they only require players to bet one cent on each payline.

Some might think of these games as mindless entertainment due to how you’re merely spinning the reels over and over. But I’ve actually learned some important lessons from playing penny slots.

Here are the 5 biggest lessons I learned from penny slot machines, including things I’ve applied to both gambling and real-life situations.

1. Always Understand What You’re Getting Into – Especially With Penny Slots

The name alone is what draws many players to penny slot machines. The term penny slots creates the idea that you can play for as little as one cent per spin.

But this isn’t the case at all, because most penny slots force you to play a fixed number of paylines. If you’re on a 50-line penny slot machine, then you’ll need to wager a minimum of $0.50 per turn.

This isn’t exactly what beginning gamblers have in mind when they sit down to a penny slots game. The same players are often shocked when their money quickly vanishes.

I myself fell for this the first time I played a penny slot machine. I automatically assumed that the game was going to be really cheap, but it drained my funds faster than a nickel or quarter machine.

I’m not saying that casinos are evil for putting these games on their floors. But you need to be aware of what you’re getting into with these games, just like anything else in life.

Here’s a dramatic comparison. You should always read through a contract before signing it, because failing to read a contract before signing could loop you into a bad deal. Likewise, you shouldn’t play a penny slot machine without first reading the help screen.

I realize that there’s more at stake when you sign a bad contract without reading through. But I want to stress that some penny slot machines are like bad contracts of the gambling world.

This explains how many lines you need to play along with minimum bets for specific bonus features and the jackpot.

For example, Aristocrat’s Game of Thrones slot machine requires that you make a 100-credit wager to active the Fire & Blood Bonus.

You can risk less than this on Game of Thrones. But most slots players don’t want to play a game where they don’t qualify for the best bonus features.

Some slot machines require that you play up to 300 credits, or $3 per spin for certain bonuses and/or the progressive jackpot, and $3 is hardly what players expect to wager on a penny slot machine.

Again, read the help screen to find out how much you need to bet to be eligible for every feature. This prevents you from being shocked when having to risk $1-$3 per spin to play.

The good news is that you can find cheaper penny slot machines in land-based casinos. Some of these games only require that you play 20 lines or less to qualify for everything.

2. Prepare Your Bankroll for the Worst

Continuing off the last point, many penny slots can be expensive. And this taught me both a life and gambling lesson in that you should always prepare for the worst.

Sometimes unexpected things happen that can rock you financially.

Nobody expects their heater to go out. But when it does, and the heater needs replaced, you’re staring at a $1,200 bill.

Hopefully no slot machine ever becomes this expensive for you. But on a smaller scale, you should always plan for the worst with slots.

This is especially the case with penny games that require playing 100-300 credits to unlock every feature. You’re risking between $1 and $3 per spin in this case.

Slot machines are already volatile, meaning they produce very unpredictable short-term results. Adding expensive bets on top of this volatility can create a bankroll nightmare.

How do you avoid this nightmare and plan for the worst? The best way is to do some simple bankroll calculations.

Here’s an example for a land-based penny slot machine.

• The average land-based penny slots player loses 350 bets (units) per hour
• You have a $500 bankroll
• You choose a penny slot with 50 lines ($0.50 minimum bet)
• 500 / 0.5 = 1,000 units
• 1,000 / 350 = 2.86
• You can expect your bankroll to last for 2.86 hours on this 50-line game

Keep in mind that this is only an average estimate, and you should have enough money to cover an even-worse scenario. As long as you only bring money to the casino that you’re fine with losing, then this won’t bother you.

3. Don’t Let Colorful Themes and Small Payouts Trick You

We all know that companies use clever marketing campaigns to get us to buy the products.

I accept this fact because businesses are out to increase their profit margins. And marketing is one of the best tools to make this happen.

But on the same note, I don’t want to be a slave to clever marketing and buy a bunch of things I don’t need.

Slot machines are similar in that gaming companies use colorful themes, 3D graphics, music, bonuses, and more to attract your attention. Slots makers know that their products will be placed in more casinos if they draw a large share of players.

I have no problem with people choosing slot machines based on the themes and surrounding entertainment. After all, the point of playing slots is to have fun.

But don’t get so sucked into the theme, graphics, and alluring music that you lose all sense of time and money. Instead, realize that these elements are designed to keep you playing longer than you initially planned for.

Another trick to avoid involves the numerous small payouts that modern slot machines offer.

Multiple studies have shown that a psychological effect kicks in when players receive small rewards after each spin. These frequent payouts convince players that they’re winning, even when they’re losing money overall.

Here’s an example to illustrate this phenomenon.

• You’re playing 100 lines on a penny slot ($1 bet)
• You win a $0.20 payout on one line
• While the win is nice, you’ve technically lost $0.80 overall

Stepping back, anybody can logically see that this is a losing long-term proposition. And $0.20 payouts don’t make up for the loss of $0.80.

But it’s tougher to think in these terms when you’re engrossed in a game while making span after spin. This is another area where you need to be consciously aware of what game manufacturers are doing.

While it’s great to net lots of wins in each session, you also need to keep your overall winnings and bankroll in mind.

4. Playing Lots of Lines Is Entertaining

I’ve already discussed how expensive penny slot machines can be. But one of the greatest benefits is that you can also win lots of payouts thanks to the numerous lines.

Every payline that’s in play gives you a chance to win. And while the odds of winning with each line aren’t great, it’s still fun knowing that you have 50 or more chances to win on each turn.

The same lesson can be applied to life in that people are sometimes willing to pay more for certain forms of entertainment.

One example is how you can race Ferraris and Lamborghinis around the SPEEDVEGAS track for anywhere between $50 and $80 per lap.

Driving go-karts is cheaper and also entertaining. But go-karts don’t give adults the same thrills as driving a Ferrari around a race track.

Playing penny slot machines with lots of lines doesn’t have to comparatively be so expensive either.

Instead, you can choose games with lower volatility that increase your hit frequency, or the odds of winning with each individual payline. Doing so boosts the chances that you’ll net frequent wins and better sustain your bankroll.

A small number of slot machines actually offer a volatility rating in the help screen. For example, you might see between 1 and 5 lightning bolts to indicate how much variance is involved.

Unfortunately, most penny slots don’t have volatility ratings. You have to look for specific factors in this case to determine the game’s volatility.

Here are 3 factors that can help you out.

• Jackpot size
• Number of large payouts
• Number of small payouts

Low-volatility penny slots feature a smaller jackpot, fewer large payouts, and more small prizes than the average game.

A smaller jackpot combined with fewer large prizes means that a slot machine doesn’t need to make up for the top-heavy payout structure. In turn, the game can offer more small payouts on a frequent basis.

Of course, some players are only interested in playing for big jackpots and other prizes. This is perfectly fine if you don’t mind dealing with the chance that your bankroll will quickly disappear.

But if you want to extend your entertainment on a penny slot with 100 or more lines, then look for signs of low volatility.

5. Cheaper Penny Slots Alternatives Exist

Many of the lessons that I’ve learned regarding penny slots came in land-based casinos. But one more lesson I learned comes from the world of online penny slots.

When people can’t afford a specific item or form of entertainment, they seek out companies that can provide them for a cheaper rate.

Not everybody can purchase expensive Gucci or Chanel clothing. But almost everybody can afford clothes at Walmart or on Amazon.com.

And you can look at online penny slots as the Amazon or Walmart of the gambling world.

I’m not saying that the value from online penny slot machines comes entirely from how cheap they are. In fact, a great deal of people play these games just because they’re more convenient than going to the casino.

But it should also be noted that internet penny slots are perfect for anybody who finds land-based slot machines to be too expensive.

Some online penny slots truly embody the name, because the minimum bet is $0.01 (one cent on a single line). This is what many gamblers have in mind when they first hear the words penny slots.

Other games require you to play between 20-50 fixed paylines. While this is expensive for some players, it’s still cheaper than what’s seen in land-based casinos.

On these games, I usually play anywhere from 20-30 lines at a penny apiece.

Also note that many online penny slot machines see you qualify for bonuses and the jackpot no matter how much you wager. This is good for anybody who cringes at being forced to play 100-300 lines for the features.

Slot Machine Odds By State

That said, check out online casinos if you don’t like the prospect of spending $0.50 or more on the average penny slot machine.

Conclusion

The main lesson worth noting about penny slot machines is that they’re not what the name implies. As long as you understand this fact going in, you’ll be perfectly fine with these games.

You should note that penny slots in land-based casinos have fixed payline amounts.

Brick-and-mortar casinos have more expenses to pay than online casinos. Therefore, they need to win back a greater rate from slot machine players.

Remember that casinos are businesses like anything else. And their goal is to earn enough money to make profits. That said, requiring 50+ pay lines and using entertaining themes to keep people playing doesn’t make them corrupt.

Penny Slot Machine Odds Genesis Open

On the other hand, you want to know this all right away. By knowing this info, you’ll avoid having to learn the same lessons that I did through penny slot machines.

Best Penny Slots In Casino