Slot machines have an allure that many casino-goers find irresistible. With flashy graphics, heart-pounding music and the prospect of landing a giant jackpot with just the push of a button, these machines seem to offer some of the best odds of winning big money quickly. However, looks can be deceiving when it comes to slots. Underneath the flashy exterior lies an intricate system for controlling payouts that may surprise many players.
How Slot Payouts Work
In its most basic form, the payout percentage for a slot machine determines how much money the machine pays out over time compared to how much it takes in. A slot programmed to pay out 95% will, over 10,000 spins, pay back 9,500 coins for every 10,000 wagered, keeping the remaining 500 for the house. Payout percentages are therefore a measure of how much the machine expects to earn over time.
Slot payout percentages on such websites as FatFruit Casino are calculated based on thousands and sometimes millions of spins. No player will ever play a slot machine long enough by themselves to actually experience the payout percentage as advertised by the casino. It’s an overall average that provides insight into the potential payback of a machine over a near-infinite number of spins.
Who Determines the Payout Percentages?
Slot machine manufacturers work closely with gaming mathematicians and computer programmers to design slots with appealing payout structures. They sell these pre-programmed machines to casinos, which can then adjust payout settings to meet their business needs. However, they generally cannot exceed legal payout percentage requirements, which vary by jurisdiction:
| Jurisdiction | Minimum Payback % |
| Nevada | 75% |
| New Jersey | 83% |
| Mississippi | 80% |
| Canada | 85% |
So a slot in Las Vegas could be set by the casino to pay back as little as 75% over time, while one just across the border in New Jersey would need to average at least 83%.
Factors That Influence Payout Rates
Casinos have to balance attracting players with maximizing profits. Setting payout rates too low risks driving away business, while setting them too high cuts into revenue. As such, they often utilize the flexibility in payout regulations to incentivize play time or target specific demographics. Some key factors that influence their configuration decisions include:
Location
Higher payout slots tend to be placed in high-visibility areas around casinos to attract players. The sound and flashing lights are what bring people in. Payout rates can decrease as you get further inside the casino floors away from these prime spots.
Bet Size
Slots that allow bigger bets per spin will have higher payout rates to accommodate the increased risk. Quarter and dollar slots generally pay out better than penny games as a result.
Casino Traffic
More popular casinos can get away with tighter machines, since players will keep coming regardless. Meanwhile, newer or struggling facilities may loosen slots to drive more visitors through positive word-of-mouth.
Game Type
Simpler, classic-style slots tend to have higher payout rates compared to slots with more detailed themes and features. The more a slot tries to stand out, the more flexibility programmers have to adjust rates.
Regulating and Reporting Payouts
Gaming control boards in most jurisdictions perform routine audits on slots to confirm they contain only approved software and meet minimum payout percentage regulations. Nevada, New Jersey and some tribal casinos also publicly report or certify average monthly payout rates by casino. However, exact hold percentages for individual games are not released to the public.
Players can access reported payout info to compare overall casino averages, but will not know exactly how much any given machine on the gaming floor expects to pay back. The proprietary nature of these specifics adds to casinos’ competitive edges.
Slot machine payout percentages involve a careful balance of profit, player experience and regulations that slot manufacturers and casinos must constantly evaluate. While the flashy graphics may draw in players with dreams of a quick jackpot, the games’ math underlying the spins ultimately controls how much anyone can expect to win or lose on average. Doing one’s homework by checking published payout reports can help make more informed choices. But in the end, slots will always favor the house in the long run.
