Do the Machines in the High-Limit Areas Pay off Better?

Concerning the high-limit slot-play area, the Nevada Gaming Control Board sets the minimum rate of return on slot machines. Does the same machine in the high-limit room pay off at the same percentage rate as the same machine on the general floor? Do the machines in the high-limit room pay off at a better, same, or less of a percentage rate as opposed to the machines on the general floor?

It's well-known that the higher the denomination of slot machine, the higher the return percentage. This makes mathematical sense; since these machines handle much larger action, they can be set at a lower hold. Look at it this way: It takes 20% of a quarter wager to return the same as 5% of a dollar wager.

Also, the slot payback statistics bear this out. For fiscal year 2018 in downtown Las Vegas, penny slots paid back on average 89.15%, nickel slots 93.40%, quarter slots 94.25%, and dollar slots 94.63%.

The same is true for the machines in the high-limit rooms. Between March and May 2019, statewide, $100 slots paid back 95.69%.

According to Michael Shackleford, The Wizard of Odds, "The machines in the high-limit areas have higher payback percentages than those on the floor."

We'd be inclined to agree, although comparisons are tough, since you won't find too many $25, $100, or $500 slot machines in the main casinos.

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Jackie Sep-08-2019

Hmmm

So the payback from a dollar slot is only 1.05% less than a $100 slot, but the $100 slot pays that back faster.  Now I know why Dancer loves to play $100 slots, quicker and bigger pays.

Kevin Rough Sep-08-2019

Except

Video poker machines are considered slot machines as far as Gaming is concerned.  So video poker statistics are counted in slot holds.  Now most of know that video poker has a higher payback than standard slot machines.  There are very few penny video poker machines so of course their paybacks will be lower.  There are a few nickel video poker machines but their payback schedules tend to be bad.  Once you get to quarters and dollars where video poker machines tend to dominate, especially downtown where these stats where taken, the rates are the highest.

Sep-08-2019

Loss per hour

I would've thought that someone else would've mentioned this by now (9pm PST), but since no one has, I will.  The fact that the high-limit slots pay back a higher percentage than low-denom slots is almost immaterial because the net loss per hour will be higher with the former.  The difference between $0.25 (a quarter) and $100 is a factor of 400.  Let's say at the $0.25 level you play $1,000 per hour.  At the same rate of spins per hour, at the $100 level you will play $240,000 per hour.  Because the payback for the quarter slots is 94.25%, the loss rate is 5.75%, and thus the loss per hour (on average) is [$1,000 x 5.75%] or $57.50.  Because the payback for the $100 slots is 95.69%, the loss rate is 4.31%, and thus the loss per hour (on average) is [$240,000 x 4.31%] or $10,344.  When you compare a loss of $57.50 to a loss of $10,344, why would you choose the loss that is about 200 times as great?  (And there would be a ton of more times at the $100 level that you would get a W2G.)

taxman Sep-10-2019

New QOD

I remember Foxwoods had slots with a maximum payback of $1,195, so they would not have to issue a W-2G.  Think they were $5 slots.  One day, I won a bit at BJ and put a $100 bill in the bill receiver.  Almost immediately, won the $1,195 Jackput.  This was before Ticket In-Ticket Out.  While waiting, I hit another $1,195.  Are there similar jackpots in Vegas?

Question of the Day - 08 September 2019

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