I received some emails from a player, call him “Sam,” who was trying to talk himself into playing 8/5 Double Double Bonus Poker Multi Strike, a game that returns 97.07% when played well. It returns far less than that for most players because the game requires four separate strategies to play correctly.
As most of you know, Multi Strike is a game where you pay 20 coins for four lines before you start. If you get no score on the bottom line, the hand is over. You’re out 20 coins.
Should you at least get your money back on the bottom line, you get to play the second line at double stakes “for free.” It’s not actually free. It’s simply that you’ve already paid for it. Five of the coins you initially paid go for playing the second line, which happens about half the time, at double payoffs.
Score on this line and you get to play the third line at 4x. Score on the bottom three lines and you get to play the top line at 8x. Each of these two lines were pre-paid, five coins at a time. Periodically, to make the math work, you get a free ride on one or more of the lines which allows you to move up to the next higher line whether you score on the current line or not.
Sam had read enough of my writings to know that I would not be a fan of a game that paid so little. You can play it if you want, but for me, the game plus the slot club, plus the various promotions must exceed 100% to be playable.
However, Sam argued, if he hit a royal on the second line, he’d get $2,000. On the third line this was worth $4,000. And on the top line, the royal was worth $8,000. Surely, he argued, those big numbers would boost the 97.07% payout. Couldn’t that boost be enough to make the game worthwhile?
The answer is ‘no.’ Those rare hits are already included in the 97.07% figure. One or more of those jackpots could make you a winner today, but when you don’t hit them (which is far more likely), you’re going to be losing at a much faster rate than you’re used to. It’s not 97.07% PLUS the royals. It’s 97.07% INCLUDING the royals.
Another factor is taxes. The tax law is different today than it was a few years ago. W2Gs are the same now as they used to be, but for many recreational players who used to itemize, the standard deduction is now high enough so that itemization doesn’t make financial sense. And if you are in that category, W2Gs are taxable.
The only time you can “write them off” is if you itemize, and there are so many things that are no longer deductible. The math behind itemization has totally changed. The first $20,000 or so worth of W2Gs each year are far more taxable than they were a few years ago.
Therefore, playing a game that generates extra W2Gs is a game to be avoided unless you play enough that you’re going to get a lot those jackpots. So, a quarter Multi Strike game should be less desirable this year than last. The same conclusion applies to Ultimate X and other games involving multipliers.
Keep in mind that I’m not a tax expert and my explanations here are simplified. See your tax professional for guidance.