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Introduction to How Slot Machines Work

In these series of posts, I continue to answer the most common questions about slot machines asked via Google searches. This post explains the simple question of how slot machines work.

In this post, I will discuss the operational components of a slot machine from the point-of-view of a slots player. Meaning, the various interface areas on the front of a slot machine. These player interface areas include:

Service Light
Bonus Display (Optional)
Pay Table
Players Club
Results
Play Console
Ticket In, Ticket Out (TITO)

Additional relatively minor interface areas are not listed or shown below. These areas are the locations audio speakers, audio volume control (optional), display lights, lever arm, and a hearing aid jack to accommodate those with a hearing disability.

Keep Reading … or Listen Instead!

Service Light

A slot machine’s service light is generally located at the very top of a slot machine to be easily visible to casino employees. Because of this uppermost location, it’s also known as the candle within slots terminology.

Slots players can switch on the service light by activating the service button on the player console. Or, it will enable by itself if the player wins a hand pay jackpot or the slot machine develops a service fault. Faults might include lack of paper, a full cash-in condition, mechanical or electronic tampering, or an internal electronic failure such as CPU overheating, etc.

Modern casinos have a slot attendant call/dispatcher communication system using a headset and microphone. This setup is helpful for spotting problems on the casino floor. An activated service light automatically notifies the casino operating system. The casino dispatcher then informs the slot attendant responsible for that section of the casino.

Once the notification is sent out, a lit candle is of little practical use. At best, it guides the responding slot attendant the last few feet to the customer needing attention and, also, provides some reassurance to the waiting customer.

Slots players may activate the candle for a multitude of reasons. In general, they do so to deliberately call a slot attendant to their location, for any of a host of reasons only limited by imagination.

Pro-Tip #1: Service Light

Sometimes slots players need to leave a slot machine briefly but don’t want to give it up to someone else. If this break is relatively brief, say 10-15 minutes, use the service button to call over a slot attendant. The slot attendant can temporarily lock up the slot machine at the request of the player.

The slot machine can be unlocked later by the player via insertion of only their service card … or after 10-15 minutes when the temporary lockout automatically expires. For the specific length of lockout times, ask any slot attendant at your casino.

Bonus Display Area

If a specific slot machine has a bonus round available, then it will often have a second display area. Video slots may use the same primary display screen but abruptly display the bonus round game theme instead. However, video slots most often have a secondary display screen available for bonus rounds.

The Bonus Display area is optional and dependent upon the specific slot machine model. The location of this bonus display varies. More often than not, it is high up on the slot machine to be viewable by other players from a distance.

Casinos offset their losses by offering slot machines with bonus round display visible from a distance. Frankly, wins on these highly visible and usually loud bonus displays are seen by many. This obvious win encourages other casino patrons to play slot machines.

Pro-Tip #2: Bonus Round

Bonus rounds generally cannot be activated unless that slot machine’s maximum credits are bet. By not betting maximum credits, the player automatically lowers their odds of winning.

If betting maximum credits on a specific denomination slot machine is not affordable, pick another affordable slot machine. I discuss this approach in detail at Choosing Slot Machines.

Pay Table Area

The Pay Table area lists information on the jackpot amounts for specific reel combinations. It can also display some or all of the game theme rules. This area may be permanently displayed on the slot machine, or possibly only available through an interactive series of images available by touchscreen.

In either case, all possible wins may or may not be displayed. Sometimes the list is highly abbreviated, and displays only the highest jackpots, due to space limitations. Other times, mainly with touchscreen displays, a series of images can be switched between to view every possible winning combination.

However, pay tables typically provide the highest value jackpot. Slot machine game themes with multipliers or “wild” reel symbols have their most top value jackpots being the result of these reel symbols. Alternatively, it may not show all multipliers or “wild” symbols in the tabulated list of win-reel combinations. Instead, they may be in writing along the edge of the paytable interface area.

But, with large touchscreens has come the capability to provide full paytable information along with game theme rules. Some slot machines now have this feature and, perhaps, more will have it in the future.

Many paytables show the number of credits that would be won for a specific combination of reel symbols. Or, they may show a monetary amount. In either case, these tables have separate columns for winning combinations dependent upon how many credits are bet. The far–right column typically shows the winning jackpots available when betting maximum credits.

Some examples of credit and denomination combinations are:

1-credit slot machines having a $100 denomination
3-credit slot machines having a $5 denomination
5-credit “quarter slots” having a $0.25 denomination
300-credit “penny slots” have a $0.01 denomination

Pro-Tip #3: Pay Tables

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Frankly, learning the paytable of any slot machines played is a relatively easy way to improve the odds of winning at slots. Many typical slots players believe there is no skill involved in winning at slot machines. Casinos gently foster this misunderstanding, as it is to their benefit. Don’t fall for it.

Traditionally, slots players find it acceptable to play slot machines with visual succinct paytables. Frankly, casinos would instead have their customers spend their time playing a game they don’t understand.

The casino isn’t making money if a player spends time studying or reading until they do understand rather than playing the machine.

One easy-to-learn skill to improve the odds of winning at slots is choosing which slots to play based on their paytables. I discuss this in detail at Choosing Slot Machines.

Players Club Area

The Players Club area contains a card reader, numbered keypad, and a small display. A security feature of players club cards is for players to choose a PIN to enter when they wish to access their player account.

Newer-style slot machines have a touchscreen display, which removes the need for a physical keypad. Meaning, it’s part of the touchscreen display.

Bets can be made on a slot machine without a players’ club card. At most casinos, it typically is not required. Neither is the PIN needed to play the device or view basic information. For example, a running total of reward points earned during the current play session is generally on display.

The PIN is required, however, to:

access certain portions of player’s casino account
transfer banked funds
activate “free play” provided by the casino as a complimentary gift

Results Area

The Results interface area is where the reel combinations are seen after making a bet. Whether a video slot machine or a slot machine with physical reel, this is where the results of a bet are provided.

Interpreting whether a reel combination is a winner requires an understanding of the paytable. This result is fundamental to how slot machines work.

Of course, the slot machine will immediately display the results. A small display beneath the reels shows:

the total amount of money or credits available in the machine
how many credits most recently bet
the jackpot amount won if any

Jackpots are usually in credits, where each credit equals the denomination of the machine rather than the amount bet, as well as a monetary amount.

Player Console

The Play Console typically has physical buttons, a cash/ticket reader, and a ticket printer. The buttons include:

Cash Out for requesting the removal of any player funds in the machine
Service to request a casino attendant
A Series of Buttons for selecting the number of credits to bet, or placing the maximum possible bet
Cash Out for removing any remaining bankroll
Repeat to making another bet for the same credit(s)
Denomination to select a specific bet denomination (optional)

The player console may have several possible button configurations, dependent upon the model of the slot machine. Given how often game themes are switched to maintain the interest of players over time, it is common for player consoles to be standardized over many machines within a casino.

Also, it is becoming common for consoles to have embedded displays visible through their semi-transparent button covers. This array of small screens are linked together to show visually stunning composite images displayed across the entire array of buttons.

Ticket In, Ticket Out (TITO)

By the beginning of the 21st Century, the use of coins was removed from casinos. This removal was for the sake of convenience of both the casino and customers. Both had issues with handling so many coins. Customers because of the difficulties inherent with carrying so much weight, but also gambling delays due to full (or empty) slot machine coin hoppers.

Casinos had issues with coins as well, including customer complaints due to delays caused by a full (or empty) slot machine coin hopper. This inconvenience was a coin logistics issue, which also included higher costs of maintaining a larger vault space and coin processing equipment and services. As casinos became more popular, coins became more difficult for everyone.

As a result, Ticket-In, Ticket-Out technology was pulled into casinos. They are now integral to how slot machines work. This automation is the same technology that was beginning to be seen in Automated Teller Machines (ATMs). Once proven out, this slot machine technology was here to stay like so many others.

Summary of How Slot Machines Work

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I’ve discussed the operational components of a slot machine from the point-of-view of a slots player. This explanation of how slot machines work included the various player interface areas on the front of a typical slot machine.

There are additional relatively minor interface areas. These areas include audio speakers, audio volume control (optional), display lights, lever arm, and a hearing aid jack to accommodate those with a hearing disability.

1. Slot placement isn’t random

Although casinos would like you to think that everything on the floor is placed in a completely random way for ease of access and aesthetics, this certainly isn’t the case.

Every square foot of the casino is analyzed, measured, and reported on by the casino gaming department. Traffic patterns are monitored and value is placed on certain areas of the casino to determine which slots or games to place in that area.

Usually, the highest yield slots are placed in the most popular locations in the casino. On top of this, the most popular slots are also placed in these areas to attract players into the casino to play.

So now you know that those slots that are most prominent and visible are the ones that make the most money for the casino, which means they’re also the most disadvantageous for the player. Head towards the back of the casino next time you want to play slot machines to find a better value.

2. Some slots pay out more than others

Not all slot machines are created equal, and this means they all don’t pay out at the same rate.

Generally speaking, video slots pay out less than classic reel slots. This is because reel slots are cheaper to run and maintain, and aren’t as appealing to the player as the video slot.

Video slots are now extravagant and have pop-culture themes, which attracts more players. Because of this, the casinos can dial down the payout rate.

Alternatively, the classic slots aren’t as popular or appealing anymore so the casinos will dial up the payout rate to attract more players, and subsequently keep you at the slot longer. I suggest you do a bit of searching on the internet about slot payout rates as this information is widely available, particularly for popular gaming locations.

3. The slots club doesn’t exist to reward you

This is one of the biggest cons in the gambling industry. You know how the casinos promote themselves as giving back to the player and rewarding you for your play? This is all a lie.

Now, I’m not saying you won’t get some free play credits, access to promotions, and other comps for being a part of the slot or player’s club, but this isn’t why it exists. It exists to provide the casino marketing department with player data so that they can attract and retain you as a customer.

Yes, that’s right, all the free money and comps you get out of the casino are from the marketing department. They will analyze your play, movement, likes, dislikes, and betting patterns to determine how best to market themselves to you so that you return.

The slots club is a powerful marketing tool, and while it’s always a good idea to join and use your card whenever you play, don’t fool yourself into thinking that this is all done to reward you.

4. You can’t win at slots in the long run

People do win at slots all the time. They have big wins and small wins; the problem is that on a long enough timeline it’s impossible to win.

Slots are manufactured and programmed in a way to ensure that they only pay back a certain percentage of the money that’s placed into them by players. Usually, this is in the range of 70-90% but it can be far worse or better depending on where you’re playing.

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No one would ever play if you didn’t win from time to time, so this is also built into the machines. Some casinos don’t want you to know this and in some US states, they don’t even have to tell you what the payout rate is. Fortunately, there are many states that do provide it to players, and I highly recommend taking advantage of that information.

Although it’s pretty common these days for players to know that you can’t win in the long run, some still don’t know, and those that are oblivious to this fact are loved by casinos.

5. Max betting is the best option

This one may seem counter-intuitive but it’s true. On most slots, max betting activates all the bonuses and jackpots and increases your odds of getting lucky and winning, which makes it the best option for players.

Although it doesn’t make too much of a difference, it still creates more favorable conditions for the player. The casinos don’t want you to know this because they want you to bet small and more often at a worse payout rate, which makes them more money in the long run.

One thing you certainly don’t want to do though is max-bet above your bankroll and burn through more money than you intended to. Playing more than you can afford to lose is playing right into the casino’s hands. If you can’t afford the max bet on a slot then drop down in denominations or move to a machine where the max bet is smaller and works within your bankroll.

6. Class 2 slots aren’t really slots at all

Sometimes you’ll come across slot machines that are classified as class 2 slots. These are usually found on native Indian reservations or racinos in the United States.

These aren’t traditional slots like what you would find in Las Vegas. Vegas slots are Class 3 slots and are proper slot machine games.

Class 2 slots are actually pre-programmed bingo games which present a slot face for entertainment purposes. Class 3 slots are usually illegal in the jurisdictions that have these slots bingo games, so game manufacturers and casinos combined their forces to come up with this alternative.

Sometimes you’ll see a small bingo card on the bottom corner of the screen which will straight away tell you that this is a class 2 slot machine. So, be warned, these machines are not slots at all and you’ll be effectively playing computer bingo when you start spinning on these.

7. Video slots pay out less than classic slots

Big fancy video slots will almost always pay out less than classic reel slots. This is because of the fact they’re more entertaining, draw more players and action, and cost the casinos a lot more to run and maintain.

These big machines often take up two to three times the amount of space compared to classic slots and tend to cost the casinos a lot more to keep them running. In order to maximize profits, the casinos will then dial down the payout rate on these machines so they still make enough money on them.

Immersive video slots are a huge moneymaker for the casino, so don’t go in thinking you have the same chance of winning on these compared to traditional old school slots. If you’re looking for better chances to win on slot machines, then stick to the classic slots.

8. Slots are completely random

Casinos don’t want you to know this, but slot machines are completely random in nature. Although they are weighted to pay out at a certain rate, this is still in line with the randomness of results that a slot will produce.

Each spin is completely independent of the previous spin. As an example, if you were to win the jackpot on one spin, then the likelihood of winning the jackpot on the next spin is exactly the same. No previous events impact future events. This isn’t how they work.

Casinos don’t want you to know this because they want you to think slots are “hot” or “cold”, because that will cloud your judgment in respect to how much you play and gamble. This works out better for them in the long run so they are happy for these myths to grow and spread.

9. All of your play is tracked

From the moment you sit down at a slot and enter your player card and cash, every movement you make is tracked automatically by the casino. Slot machines are now networked and have sophisticated hardware and software to track everything you do.

This information is collected, analyzed, and insight reports are developed and delivered to the casino marketing department so they can work out the best possible way to market their casino and slots to you so that you keep coming back and play more. If you don’t want your play tracked then simply don’t use your player’s card, but then you won’t get any casino comps.

In the near future, if it’s not being used already, casino marketing departments will start using security infrastructure to monitor and track your play irrespective of whether you use your card or not. Facial recognition programs will detect you, associate you with a player’s card or create a new player account and track everything you do on a video feed.

This is a bit scary and it shows the lengths casinos will go to. If you play online, everything is tracked under your player account, so it’s easier for online casinos to monitor what you do in this respect.

10. Payout tickets are more likely to be put back into a machine

Over the past 20 years, casinos have slowly phased out cash payouts at slots. These days you’ll likely receive a ticket when you cash out, which you then must take to a cash-out machine or the cage to exchange for cash.

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While the casinos will claim this is for your convenience, one of the main reasons they’ve made this change is to disassociate you from the fact you’re holding money. This is similar to what they do with chips on table games.

Psychological studies have proven that people are far more likely to gamble more with a ticket or chips, as opposed to cash. So don’t be fooled into placing your ticket into another slot on the way to cashing out, they’ve done this on purpose. I’d recommend that you always cash the tickets out for cash every time, instead of keeping it for play later.

11. Slot arms don’t exist as much anymore because they slow down play

Back in the day, pretty much every slot machine had an arm, or lever, that you pull to activate the spin. These days it’s much harder to find machines that have these.

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While there are a few reasons for this, the main reason and the one the casinos don’t want you to know is because using a lever is much slower when compared to pressing a button. Casinos want you to be playing as quickly as possible when it comes to slots because the more you spin the more the odds move in their favor.

So by having buttons instead of levers the game moves a lot faster. Some may even say they’ve removed the lever so people don’t refer to slot machines as one-armed bandits anymore, but that may just be here-say.

12. Games are designed to be played as fast as possible

As we touched on in the previous secret, casinos want you to play whatever game you’re on as quickly as possible. While one of the main measurements on a slot is the time spent playing, they also want you to play as quickly as possible.

This increases the yield on the machine for the casino, meaning they make more money. Consider this, if you have a bank of widely popular slots which many people want to play, and it takes 20 seconds per spin, that’s quite a lot of time.

If a spin takes five seconds then you’re getting four times the amount of play on that machine which results in much more money passing through. So, all the time the casinos are trying to think of ways to make games happen much faster. They don’t want you playing slowly, so make sure you take your time next time you sit down at a slot. After all, the more time you play the more entertainment value you get.

13. Slot sounds and graphics are designed to make you feel happy

One thing that casinos certainly don’t want you to know about is the fact that slot machine manufacturers have teams of psychologists and researchers that provide advice on what sounds, colors, movements and graphics to use in games in order to make the player feel as happy as possible.

This is both good and bad. Firstly, it’s good if you’re playing for entertainment’s sake and know your limits when it comes to how much money you’re willing to play with. If this is the case then why not play a game that’s designed to make you feel happy.

Secondly, it’s bad when it comes to problem gamblers who don’t know when to stop and are chasing that happy feeling that the games give them. So this is a two-way street; that’s for sure. Casinos probably don’t want you to know this because it isn’t a great look.

14. Sometimes a win isn’t a win

One recent trend on slots is to play a jingle and show an animation showing that a player has had a win; this used to be a good thing and it meant you were making a profit, but not so much these days.

Much to the ire of lawmakers and the regulators, slot machines now play this jingle and imply a win, even when the spin results in less money won than you actually wagered on that spin in the first place. So this is essentially a loss and it’s trying to trick the player into thinking that they won.

Regulators are trying to have this outlawed but it will take some time. So, next time you’re playing don’t be fooled by the animation and sounds and the on-screen advice that says you’ve had a win. Make sure you check how much you ‘won’ when compared to how much you bet, before you celebrate.

15. Major progressive jackpots are played across multiple venues

Have you ever walked past a progressive jackpot slot machine and stared in awe at the huge jackpot which is currently available and is running into the millions of dollars?

If so, then you may not be aware that these slots are actually linked nationwide and the jackpot is played across thousands and thousands of machines and the casinos actually have no part in this prize.

Casinos don’t want you to know this of course; they want you to think that it’s just that machine so that you sit down and play and spin away thinking that you’re the only person who could possibly win that prize at that time.

These major progressive jackpot machines actually take a small cut from each bet you make and divert it to the major jackpot. So you should never play on one of these unless your ultimate goal is to win the life-changing money, and there’s certainly nothing wrong with that.

Conclusion

Casinos are designed to make money just like any business. The slot machines are a big piece of the profit puzzle so the casinos do everything they can to make them more profitable.

Now that you know these 15 slot machine secrets the casinos don’t want you to know you can gamble as an informed player. If you love slots there’s no reason to stop playing, but you should know these secrets before you play again.

Electricgol