☰
Do you think casinos will change their VP pay tables to $1,999 for hitting a royal at the $0.50 level, considering the new tax law?
As we discussed in yesterday's QoD, we don't think casinos will widely change video poker paytables to cap the royal flush payout at $1,999 for 50-cent denominations due to the new $2,000 IRS reporting threshold. Some might, but most won't.
Historically, some VP games capped royals at just under $1,200, paying 1,199 credits on a max-bet quarter machine. This avoided hand pays and W-2Gs. But it was never widespread. After all, the royal for a max bet on a quarter machine is $1,000, so the extra $199 increased the cost to the casino. Also, capping a quarter progressive at $1,199 actually discouraged play from knowledgeable gamblers, who had no way of knowing what the progressive should be based on total coin-in since the last time it hit.
That said, reducing the 50-cent royal payout on non-progressive VP machines by $1 or so might tempt quarter players to go up one denom and double their max bet, along with attracting gamblers wanting to avoid W-2Gs. But we doubt that too many will bother with the hassle of doing so for those players.
What do you think?