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Getty Images. Each game, Ambrose says, has a set hold percentage and a pay table that details how often and how much games will pay back. We will never share your email address with third parties without your permission. David G. So how do slot machines decide who wins and who loses? Please help us continue to provide you with free, quality journalism by turning off your ad blocker on our site. That's how I got interested in studying casinos, gambling, games, and tourism. Not really. I grew up in Atlantic City, New Jersey, and worked in casinos there, catching bad guys and selling nuts not simultaneously. So I study gaming. Forbes takes privacy seriously and is committed to transparency. A modern slot machine is simple to play. Slot machines are deceptively simple to play, with four steps from "want to play" to "cashing out. The chance aspect of slot machines is what makes them so appealing to so many people. Can a player get an edge on a slot which relies on pure chance? Pressing spin activates the random number generator, which is an algorithm that determines whether each spin is a win or a loss, and how big a win is. Even slots with physical reels use sophisticated software and circuitry. Truth is, the game was rigged from the start. All Rights Reserved.{/INSERTKEYS}{/PARAGRAPH} My Ph. But the player can benefit from one thing: if slot machines never paid out anything, players would stop playing, and casinos would go out of business. Every day, players put millions of dollars into slot machines. When casinos look at how a slot machine is performing, the most basic number they look at is the drop. Slot machines remain the most important money-making part of casinos in the United States. Edit Story. And that is the appeal of slots, to casino manager and jackpot hunter alike. In many states, casinos make between 65 and 80 percent of their gambling income from slots. How can a player bet more money than she puts in? I'd like to receive the Forbes Daily Dozen newsletter to get the top 12 headlines every morning. This is a BETA experience. I agree to receive occasional updates and announcements about Forbes products and services. {PARAGRAPH}{INSERTKEYS}If this is your first time registering, please check your inbox for more information about the benefits of your Forbes account and what you can do next! Video poker is a special variant of video slot in which players can use some skill in holding the most advantageous cards. All other slot machines, whatever their branding, are games of pure chance. Thank you for signing in. To explain why they are so reliable for casinos, I talked to Bob Ambrose, who broke into the industry at the Tropicana Atlantic City in the early s and is today a gaming consultant and casino management instructor at Fairleigh Dickinson University. Read Less. Have fun playing slots, but remember, they don't build all this by giving money away. That is the money deposited by the player in the machines. Video poker games, which have elements of skill, often return more to players than other slot Games with low volatility, like video poker , pay back more frequently but in smaller amounts, while high volatility games, like the Megabucks progressive, have fewer, bigger think several million dollars at most hits. Slot machines appeal to casinos because they are, as long as enough people play them, stable money-makers. In Las Vegas, the percentage varies from 88 percent in casinos that cater primarily to locals to 50 percent on the Las Vegas Strip, where high rollers betting tens of thousands a dollar a hand skews the results in favor of table games. So while the potential payoff from a high volatility game can be bigger, your money will usually buy you more time playing on a low volatility game. That's how I got interested in studying…. You may opt out at any time. Most jurisdictions mandate that slots return a set minimum amount to players 85 percent is the magic number in Nevada, though most machines return more than that on average. Another number you might hear is handle , which Ambrose defines as the total amount bet by a player. Something to remember, because no matter how lucky you feel, eventually the casino will get luckier. Never failed to get at least a smile in return. Players insert currency, decide on their bet amount, press spin, and hope for the best. In the end, it all comes down to luck.