Riddle me this, QoD. A slot machine has a sign that says it pays off at 98%. Right? On the other hand, the chances of hitting any jackpot on that slot are random. Right? How can a machine that pays off at a certain percentage be random?
And, Does a slot machine know when to start paying, because it's paying less than the minimum of 75%?
The answer to the first question also, perhaps indirectly, answers the second. The direct answer to the second is that the slot machine doesn't "know" anything and it can pay off at zero percent in the short run (think 20 spins without any payoffs). But in the long run, it will return more than 75%, the minimum allowed, at least in Nevada.
Now, though slots can't know anything, certain things can be known about them. That's because "random" doesn't also mean completely "unpredictable."
Consider, for example, drawing from a deck of cards. We know we can draw a king of hearts. We also know we can never draw a jack of livers or a queen of spleens. We know that those cards aren't in the deck.
What’s random about drawing from a deck of cards is which available card you’ll draw next. Now, despite this randomness, we know all sorts of things about the cards you might draw. For instance, one-quarter of the time, you'll draw a club, one-quarter of the time a diamond, one-quarter a spade, one-quarter a heart, and never a liver or spleen. We also know that 1-13th of the time, you'll draw an ace, one-thirteenth of the time a deuce, and so on. How can we know these things? Because we know all the cards that populate the deck from which you’re drawing.
A slot machine works in exactly the same way. There's a "population" of possible outcomes and the random number generator is used to select one of those outcomes as the result of a spin.
We don't know what result will appear next, but we (meaning the manufacturer and the casino) know how many times each combination appears in the total population and, therefore, how likely it is for any combination to land on the payline. With that information and the paytable, we can calculate the long-term payback for the machine.
Note the use of "long-term" to qualify "payback." Over the short-term, anything can happen. But as the machine gets more and more play, its actual payback will get closer and closer to its long-term expected value.
Number of spins, incidentally, is how time is measured on a slot machine. Given the number of spins, we can calculate the range in which the actual payback on a machine should fall with a given degree of certainty. The actual payback on most machines is within a percentage point of the machine's long-term payback after a million or so spins.
So the answer to your question is, a casino can honestly and accurately claim that a slot will pay back 98%, but no one knows where the returns will show up to make up that percentage.
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