A pachinko machine in it's natural habitat, a parlor, works simply as an upright pinball/slot machine combo. You fire balls into the playfield using the right hand control knob and aim for the reward pockets.

When you walk through any casino in the world – from Las Vegas to London and anywhere in between – you’ll find one game spread in more abundance than all the others combined: slot machines.

One-armed bandits, fruit machines, pokies – whatever you call them, slots are the lifeblood of the gambling industry. Millions of players every year sit down to take a spin, hoping to parlay a few coins into a fortune if the stars align.

Slot machines are also one of the oldest casino games out there today, tracing their roots all the way back to 1895.

And the slots are a quintessentially American way to gamble, offering any and everybody who has a penny to spare the opportunity to cash in big. Nobody has an advantage while playing slots, you don’t have to beat the dealer, and when the symbols line up perfectly, those progressive jackpot paydays are unrivaled.

Indeed, slot machines are an intriguing choice for gamblers who are just beginning their introduction to the casino industry. They’re abundant, inexpensive, and easy to play, making slots the perfect way to place your first casino wager.

But with that said, slot machines do offer a definitive set of drawbacks as well. You can’t use skill or strategy to give yourself better odds, and as a result, those odds are typically quite terrible.

Depending on who you ask, slots are either the most wonderful way to spend a day at the casino, or the devil’s invention designed to separate suckers from their bankroll.

On that note, I’d like to present a fair and objective analysis of slot machines from both sides of the proverbial coin. First, you’ll learn about the three main reasons that experienced gamblers tend to avoid the slots. After that, I’ll cover three benefits that slots offer for casino beginners, and even veterans who know how to extract every ounce of value from the house.

3 Reasons You Should Never Play Slot Machines

Slots have a poor reputation within the casino gambling world, and many longtime players wouldn’t be caught dead spinning the reels. Whether or not the games deserve that level of derision is a matter of perspective of course, but considering the three drawbacks listed below, informed players have good reason to bring their bets elsewhere.

1. They’re Bad Bets

Most people recognize that slot machines aren’t exactly the best bet in the house, but many players don’t realize just how bad they can be.

And that’s by design. The casino industry was built on a concept known as house edge, which reflects the statistical advantage held by the house on a particular wager or game over the long run.

In blackjack, for example, a good player who uses basic strategy faces a house edge of only 0.50 percent on average. In other words, for every $100 this player bets over the infinite long run, the casino can expect to win $0.50 – paying the player back $99.50 in return.

Now, that’s still a loss after all, but dropping fifty cents for every hundred bucks you bet is one of the best situations you’ll find on the casino floor. Remember, the house isn’t out to spread games where players hold the edge, so they’ll always have a leg up.

How much of a leg up, however, depends on what game you play. For slot specialists, the average house edge comes out to around 6-8 percent, depending on factors like coin denomination, payline count, progressive or preset jackpots, bonus features, and other gameplay elements.

In the slot world, house edge gets flipped on its head to arrive at a figure known as payback percentage. In the blackjack example above, the payback percentage stands at 99.50 percent -or the house edge figure subtracted from 100.

Take a look below to see how the slots stack up at the two major casinos in Connecticut – Foxwoods Resort and the Mohegan Sun:

Foxwoods

Coin	Payback
1¢	89.45 percent
2¢	91.42 percent
5¢	90.33 percent
25¢	91.84 percent
50¢	90.94 percent
$1	93.26 percent
$5	93.79 percent
$10	94.74 percent
$25	94.43 percent
$100	94.75 percent

Mohegan Sun

Coin	Payback
1/4¢	86.06 percent
1/2¢	85.83 percent
1¢	89.13 percent
2¢	89.58 percent
5¢	88.16 percent
25¢	91.76 percent
50¢	92.45 percent
$1	93.36 percent
$5	93.87 percent
$10	96.46 percent
$25	94.15 percent
$100	94.77 percent

As you can see, the payback percentage rates vary wildly across the board, based largely on the size of the coin you’re wagering. Penny slot players face the steepest uphill climb, with the house holding an obscene edge of more than 10 percent. And even if you’re betting a dollar per spin, the house’s edge is still nearly 7 percent.

To put those numbers in perspective, even a notorious “sucker” game like American roulette with two zeroes on the wheel offers a 5.26 percent house edge. In other words, you can be twice as well off in terms of win probability simply by ditching the slots for roulette – another game of chance based on spinning and hoping.

All things considered, with so many low house edge skill games to choose from, you really don’t have any incentive to grind slot machines. Blackjack offers a fraction of the house edge, and if you don’t like the idea of playing with other people and a dealer, video poker is a machine-based game that runs house edges of less than 1 percent for most variants.

2. They’re Boring

Another common complaint about slot machines is that they don’t offer much in the way of a challenge – or even entertainment.

This criticism is largely rooted in the old days, when slot machines featured nothing but three spinning reels, basic card rank or fruit symbols, and static prizes. I’ll be the first to admit that slots have evolved since then, with the advent of video screen technology turning them into something straight out of the arcade.

Today’s modern video slots definitely do offer a ton of extra features to keep you busy – see the first entry of the next section for more on this – but for my money anyway, they’re still boring as all get out.

Just take a look at the slot area the next time you’re strolling through the casino. You’ll see a scene straight out of “The Walking Dead,” with zombified players staring into the ether, only moving to push the “SPIN” button over and over again. That’s not my idea of fun, not in the slightest.

And even with the newer video slots, once you strip away the trappings of a themed game, sound effects, and movie clips – the gameplay always follows the exact same model. You choose your coin size, push “SPIN,” then sit back and see what the reels have in store.

Wash, rinse, and repeat.

I may be partial here, as I spent a fair chunk of my adult life playing skill-based casino games for a living. But when I go and gamble, I’m looking to challenge myself, to test my intellect and insight in a battle against the odds.

Blackjack lets me analyze my hand in relation to the dealer’s up card, before offering a series of decisions (stand, hit, double down, split) that allow me to directly influence the outcome. On a video poker machine, my memorization skills are tested over and over again, and unless I can recall the correct play given five starting cards, I’ll be at the mercy of the machine.

Even games of chance like roulette and craps offer a wide variety of bets to choose from, turning the random draw into a different experience each time you play.

But at the slot machine, you have reel symbols spinning and paylines you hope to connect, along with a random number generator (RNG) determining what happens next. The outcome is out of your hands as soon as you click “SPIN,” and the whole experience lasts for only a few seconds at most.

Unless you get your kicks entering data into a spreadsheet, or tapping away at a calculator, slot machine gameplay will quickly become quite boring for most players.

3. They’re Inconsistent

This one gets my goat more than any other, perhaps because I’m accustomed to standardization within my own favorite games.

Simply put, slot machines – even identical games – vary wildly in terms of the odds offered, payouts produced, and most importantly, the house edge.

Let’s say you’re visiting the fabulous Strip in Las Vegas for your very first casino excursion. Naturally, you want to test the waters with an easy game like the slots, so you pull up a seat at a flashy new Wheel of Fortune game and take a shot. A half hour or so later, and your $100 stake has evaporated like it was never there at all.

Later on in the trip, a local pal decides to take you to the Downtown district, where decades old casinos like the Golden Nugget line Fremont Street. You see another Wheel of Fortune slot bank and decide to try one last time, only to find this game plays much differently than it did on The Strip.

Here, amidst the rundown carpets and smoky rooms that define Downtown Vegas, you seem to have a much better chance to win. You’re not a millionaire or anything, but you’re collecting many more small winners, and even a few hefty line pays that fill your bucket of coins to the brim (and yes, the old Downtown casinos still use coin buckets).

Later on that night, you’re wondering why the same slot seemed to be so much more generous a few miles down the road. A few minutes of research later, and you find the following slot machine payback percentage data compiled by the Nevada Gaming Control Board (NGCB):

Las Vegas Slot Machine Paybacks by Location

1¢ Slot Machines

• The Strip – 88.45 percent
• Downtown – 88.66 percent
• Boulder Strip – 90.42 percent
• Las Vegas – 90.71 percent

5¢ Slot Machines

• The Strip – 91.84 percent
• Downtown – 92.08 percent
• Boulder Strip – 95.73 percent
• Las Vegas – 95.38 percent

25¢ Slot Machines

• The Strip – 90.59 percent
• Downtown – 94.48 percent
• Boulder Strip – 96.39 percent
• Las Vegas – 96.58 percent

$1 Slot Machines

• The Strip – 93.03 percent
• Downtown – 94.78 percent
• Boulder Strip – 95.60 percent
• Las Vegas – 95.74 percent

$1 Megabucks Machines

• The Strip – 87.10 percent
• Downtown – 87.55 percent
• Boulder Strip – 88.91 percent
• Las Vegas – 87.53 percent

All Slot Machines

• The Strip – 92.12 percent
• Downtown – 92.87 percent
• Boulder Strip – 94.42 percent
• Las Vegas – 93.62 percent

As it turns out, that intuition about Downtown slots being more playable – and payable – was spot on.

According to the NGCB, a survey of ever slot machine in Las Vegas shows games on The Strip hold an average house edge of 7.88 percent. Meanwhile, the exact same slots in the Downtown District offer a lower house edge of 7.13 percent.

That goes for all slots, but as you can see by sorting through the numbers above, coin denomination differences can exacerbate the issue even further.

Most players stick to the $0.25 quarter slots, and when you play those on The Strip, you’re up against a house edge of 9.41 percent. Head over to Downtown, however, and the house edge drops dramatically to just 5.52 percent. And if you make your way to North Las Vegas, the house edge dips even further to 3.42 percent.

That’s right, you can cut your house edge nearly in half by relocating from The Strip to Downtown casinos.

Knowing this information is incredibly useful of course, but I’m not a fan shopping around town for the best games. In my view, games should be standardized across the board, with one Wheel of Fortune slot paying out at the exact same rate as any other.

3 Reasons You Should Play Slot Machines

Now that you know about the drawbacks associated with slot machines, let’s take a look at the main reasons why so many people consider them their favorite game.

Free Slot Machine

1. They’re Fun to Play

Just ask your grandparents if the slots are fun, and when you see their smile light up, you’ll know why these games are so popular.

They may not be for me, but I can surely see why slots hold such widespread appeal.

First off, you’re playing comfortably by yourself, with no tablemates hectoring you to play faster or make certain plays. This turns the typical slot machine into your own personal bubble, protected from the pressures associated with more intense skill-based gambling.

And like I alluded to above, today’s slot machines are more like full-fledged entertainment venues than simple reel-spinning diversions. These games are interactive in nature, sprucing up the standard spin with expanded gameplay features like bonus rounds that incorporate skill-based elements. I’m talking about target shooting, memorization challenges, and other add-ons that give the player something more to do.

Throw in the proliferation of themed games that hold licenses from major pop culture properties – everything from “Sex and the City” to “Game of Thrones” can be found in slot form today – and you’ll never lack for fun grinding slots in 2018.

Buy Slot Machine

2. They’re Easy to Learn

This is perhaps the most important factor in understanding why slots are so popular worldwide.

Casinos can be an intimidating environment for the uninitiated, with grizzled gamblers lording over their table games, and stern dealers directing the action. Just take a look at any craps table to find a frenzy of yelling, dice tumbling, and chip splashing to see what I mean.

If you’re walking into that sort of scene for the first time, ponying up a few bucks and placing your bet can might seem like a nonstarter. Best to stand a few feet away and observe the action, rather than dive right in and risk embarrassment.

But with the slots, anybody who has a buck to spare can sit down by themselves and try things out. No dealers pestering you with commands, no tablemates complaining about your pace of play – just you and the game.

With that maiden voyage now out of the way, casino novices don’t need much in the way of teaching to learn how to play slots. You bet, you spin, and if you’re lucky, you win. That really is the extent of it when it comes to slot gameplay instruction.

Of course, it’s not that easy, and players need to learn about paylines, coin denominations, house edge rates, game selection, and bonus features. But all of that information is readily available on the machine’s help menu, and anybody who can read will soon find themselves mastering the ins and outs of any given machine.

3. They’re Potentially Lucrative

Ask any slot player what brings them back to the machines, and invariably the word “jackpot” will come up.

Recreational gamblers are enamored by the idea of turning rags into riches, scoring a life-changing sum simply because their small risk was rewarded in a major way.

But while blackjack specialists have to win hundreds of hands in a session to squeeze out a small profit, slot enthusiasts can turn a single spin into millions.

Slot Machine Games

Don’t take my word for it, just ask the NGCB, which keeps a running count of jackpots paid out by the Megabucks machine, the Silver State’s largest progressive jackpot slot network:

Megabucks Jackpot History (2010 – 2017)

DATE	CASINO	CITY, STATE	JACKPOT AMOUNT
8/8/2017	Fremont	Las Vegas, NV	$11,809,407.24
3/22/2016	Gold Dust West	Elko, NV	$12,515,708.83
3/14/2015	Westgate Hotel & Casino	Las Vegas, NV	$10,744,293.40
11/30/2014	Rampart Casino	Las Vegas, NV	$14,282,544.21
12/5/2013	MGM Grand Casino	Las Vegas, NV	$10,337,637.92
11/4/2013	MGM Grand Casino	Las Vegas, NV	$12,463,147.70
4/10/2013	Bonanza Casino	Reno, NV	$11,798,514.65
12/14/2012	M Resort	Las Vegas, NV	$17,329,817.67
6/15/2011	Grand Sierra Resort	Reno, NV	$10,379,294.92
4/22/2011	Aria Hotel & Casino	Las Vegas, NV	$10,636,897.78
1/21/2011	Aria Hotel and Casino	Las Vegas, NV	$12,769,933.87
2/21/2010	Reno Airport	Reno, NV	$10,422,754.08

For the relatively affordable price of $3 per spin, dozens of lucky players have parlayed their Megabucks slot session into a lottery-like jackpot.

Now, don’t get me wrong here, hitting the Megabucks jackpot is a true longshot, coming in at 1 in 49,836,032 odds. When you realize that being struck by lightning is only a 1 in 700,000 shot, the sheer scope of Megabucks’ jackpot odds become crystal clear.

Even so, the allure of these enormous jackpot payouts keeps players coming back to the casino in droves. The Megabucks game is an outlier, after all, and the lower-level progressive games offer six-figure jackpots at much better odds.

No matter what game you prefer, the main goal when you press the “SPIN” button is always bagging the machine’s top prize. After all, somebody’s got to win it eventually, so why not you?

With that said, playing the progressive jackpot games like Megabucks and its ilk does incur an increased level of risk.

Perfectly Good Slot Machine Jackpots

Check out the payback percentage rates for standard, non-progressive slots and how the compare to their progressive cousins below:

$1 Standard Slot Machines

• The Strip – 93.03 percent
• Downtown – 94.78 percent
• Boulder Strip – 95.60 percent
• N. Las Vegas – 95.74 percent

Perfectly Good Slot Machine Slot

$1 Megabucks Progressive Machines

• The Strip – 87.10 percent
• Downtown – 87.55 percent
• Boulder Strip – 88.91 percent
• N. Las Vegas – 87.53 percent

The price you pay for chasing progressive jackpots stands right around 7-8 percent in terms of house edge. For most players, that price is well worth it though, because you just can’t win a million bucks by putting a few dollars on the line anywhere else.

If you don’t mind going up against long odds, and you have expendable income, hunting for big-time jackpots on the slots is a bona fide American tradition.

Conclusion

Like any other form of gambling, deciding whether or not to play slots is a completely personal choice – and I hope the balanced examination found on this page helps make that choice much easier going forward.

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by John Robison
Do the slot machines on the ends of aisles pay better than the machines in the middle? How about the machines near the table games? They’retight, right? And are the machines near the coin redemption booths loose? Join us on our journey for finding loose slot machines.
The loose slot machine is the slot player’s Holy Grail. Much as King Arthur’s Knights of the Round Table searched Britain for the Holy Grail of myth, slot players search casinos for loosemachines. Slot players have formulated many theories about where casinos place their loose machines to aid them in their quest.

Before we can figure out where the loose machines are, we have to figure out what they are. There is no U.S.D.A. system for grading the looseness of machines and no national orinternational standard that determines whether a machine is tight or loose.

So, what is a loose slot machine?

Say we have two 94% payback machines. Are they loose? I bet some people say yes and some say no. Why isn’t there agreement? Let me add a little more information to thescenario to see if it gives you an idea of why one person calls a 94% payback machine loose and another calls it tight. What if I told you that one machine was a nickel machine and theother a dollar machine? For most people who play nickel machines, a 94% machine is among the best-paying machines in their area. For most people who play dollar machines, on theother hand, a 94% machine is among the worst-paying machines in their area. The person who called 94% loose probably plays lower-denomination machines, while the person who called 94%tight probably plays higher-denomination machines.
Let me add one more piece of information. The dollar machine is a video poker machine. Dollar video poker players would rather have root canals onall their teeth with no anesthesia while their fingernails and toenails are ripped off than play a 94% payback machine. They have many adjectives for a 94% payback machine, but loose isnot one of them.
You see, loose isn’t an absolute. Looseness depends on your frame of reference. Looseness is actually a comparison. We shouldn’t say “loose.” We should really say“looser”. We should really be asking where the looser machines are. But let’s bow to common usage and continue using the term loose machine.

So, what is a loose machine?

Quite simply, a loose machine is a machine that has a higher long-term payback percentage than another machine. The loose machines in acasino are those machines that have the highest paybacks. These are the machines that will take the smallest bites out of your bankroll in the long run. No wonder slot players areconstantly searching for them.
Over the years, players have developed a number of theories about finding loose slot machines. Casinos place loose machines near the entrances, for example, so passersby can see playerswinning and are enticed to enter the casino and try their luck. The loose machines are also at the ends of the aisles to draw players into the aisle, where the tight machinesare.
And, of course, a loose machine is always surrounded by tight machines. You never have two loose machines side by side. That’s done for players who like to play more than onemachine at a time. If they should happen to stumble upon one of the loose machines, they’ll be pumping their winnings from it into the tight machines around it.
More theories. The machines near the table games are tight because table games players don’t want to hear a lot of bells and buzzers going off and happy slot players whooping it up aftera big win. Another reason the machines near the table games are tight is because table games players will occasionally drop a few coins into a slot machine and they don’t expect to winanything, so why give them a high payback.
Similarly, the machines near the buffet and show lines are tight. People waiting in line are just killing time and getting rid of their spare change. They’re not going to play for along time or develop a relationship with those machines, so the machines can be like piggy banks – for the casino! Money goes in and rarely comes back out.
The machines near the coin redemption booths, on the other hand, are loose. Players waiting in line for coin redemption are slot players and the casino wants them to see other playerswinning. Seeing all those players winning will make them anxious to get back on the slot floor to try their luck again.
Finally, finding loose machines in highly visible locations is most likely. Again, casinos want players to see players winning and be enticed into trying to get a piece of the casino’sbankroll themselves.
These are the theories I can think of off the top of my head. Maybe you know of some others. Most of the theories have a basis in psychology. When we see others winning, we’llwant to play too because 1) we’re greedy, 2) we’re envious, or 3) we see that at least some machines really do pay off and if we keep trying we might find one too.
Based on my own discussions with slot directors, interviews with slot directors, and seminars I’ve attended, I don’t think these theories are relevant in today’s slot world. To see why,we have to look at how slot machines and slot floors have changed.
Picture a slot floor of 10-20 years ago. Even if you don’t go back that far, I’m sure you’ve seen pictures on TV or in books. The slot machines on a casino floor in that era arearranged in long rows, much like products out for sale in a supermarket aisle. There’s no imagination used in placing the machines on the floor. The machines are placed using cold,mechanical precision.
On page 193 in Slot Machines: A Pictorial History of the First 100 Years by Marshall Fey, there’s a great picture of Bally’s casino floor in Atlantic City that illustrates my point. Thepicture shows hundreds of slot machines all lined up in perfect rows like little soldiers. The caption reads, “Like a Nebraska cornfield, rows upon rows of Bally slots extend as far asthe eye can see.”

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Compare that image with the slot floor layout at a casino that was designed in the last five or so years. Studies have shown that players feel very uncomfortable playing in longaisles. They feel trapped when they’re playing in the middle of a long aisle, particularly if the casino is crowded. As a result, modern casinos have shorter aisles and when a long aislecan’t be avoided, it will be wider than others so players won’t feel like they can’t get out.
One of the finding loose machines theories has casinos placing loose machines at the ends of aisles to draw people into the aisles. Having shorter aisles means having more machinesat the ends of those aisles. Can all of these machines be loose?
In addition to being uncomfortable in long aisles, players are also uncomfortable being put out on display for the other players. Perhaps they feel like they might become a target iftheir good luck is too visible.
One slot director I heard speak said that he tried to create “comfortable niches” for his players. Instead of being in a fish bowl, visible to most of the slot floor, players in hisniches can be easily seen by only the other players in that niche.
Another theory about loose machine placement is that casinos place them in highly visible areas. Modern casinos still have highly visible areas, but the areas are visible to a smallernumber of players. A loose machine in this area will influence fewer players than before.
The last change in the slot floor that I want to mention is perhaps the biggest change of all. Casinos used to have hundreds of slot machines. Now they have thousands. Oneslot director in Las Vegas said in an interview a few years ago that with so many machines on his floor, he didn’t have time to micro-manage them. He and his management decided the holdpercentage they wanted for each denomination and he ordered payback programs close to that percentage for his machines. Furthermore, he said this was the common practice in LasVegas.
As much as the slot floor has changed, the changes on the floor are dwarfed by the changes in the slot machines themselves. One thing that struck me about that picture of Bally’s is howall the machines look alike. They really do look like soldiers being inspecting, all standing at attention and in identical uniforms, or like rows of indistinguishable corn plants. In fact, it looks like there are only three different games in the 10 machines in the first row in the picture. Granted, the majority of the machines in Bally’s casino were Ballymachines. Still I’m surprised by the lack of variety in the machines in the front row in the picture.
I heard that one theory why Americans have gotten heavier is that we have access to a wider variety of foods today than we had before. When meals consisted of the same thing time aftertime, it was easy to pass up second helpings of gruel and eat just enough to no longer be hungry. But now we have Chinese one night, Mexican the next, followed by Thai, burgers, pizza,and pasta -- it’s easy to overeat on our culinary trip around the world.
Just as variety in food creates desire, so does variety in slot machines. “Hey, I used to watch The Munsters all the time. I’ll try that machine.” “I never miss TheApprentice. I’ll give that machine a go.” “I played Monopoly all the time as a kid.” “I have a cat and a dog and a chainsaw and a toaster.”
Not only is there more variety in themes on machines, there’s also more variety in paytables. Back in the 1920s, a revolutionary change in slot machine design was paying an extra coin fora certain combination. Adding a hopper to the machine in the electro-mechanical era made it possible for the machine to pay larger jackpots itself instead of requiring a handpay from ajackpot girl. Adding a computer to the slot machine made it possible for today’s machines to pay modest jackpots of a few thousand coins all the way up to life-changing jackpots ofmillions of dollars.
The computer also makes it possible to add more gimmicks to machines. Gimmicks like “spin-til-you win,” symbols that nudge up or down to the payline, haywire repeat-pays, and double spinall add more variety and interest to the games.
Today’s machines are immeasurably more interesting and fun to play than those of even just a decade ago. Each new generation of machines has crisper graphics and better sound than theprior generation. Slot designers are working overtime to devise compelling bonus rounds that will keep players playing for just one more crack at the round. How many people playingWheel of Fortune are trying to win the jackpot? Not many. Most people keep playing to get one more spin of the wheel.
Slot directors today don’t need to pepper their slot floors with loose machines to stimulate play. Today’s machines themselves generate more desire to play than seeing a player doingwell.
Now I'll finish our discussion of where slot directors place loose machines with some additional thoughts, with a few anecdotes I've heard at slot seminars, and with what I think will be thefinal nail in the coffin of loose machine placement philosophies.
One of the placement theories says that tight machines should be placed near the table games because the table games players don’t like a lot of noise while they’re playing. Have the peopleputting forth this theory ever been near a craps table? A craps table with a shooter on a hot roll has to be one of the loudest places -- if not the loudest place -- in the casino. Crapsplayers can be a boisterous lot even when the table isn’t hot. Okay, I can see players needing peace and quiet at blackjack tables (It’s difficult to count cards even in a quiet casino.), butnot at craps, roulette, Let It Ride, and other tables. In any case, the casino can adjust the volume level on a machine. The slot director can put a very quiet, loose machine near the tablesand not disturb a single table games player.
Another problem with following a loose machine placement philosophy is that it limits the flexibility slot directors have in moving their machines around on the slot floor. If the directors aregoing to give up a little bit in payback on some machines, they certainly will want to get their money’s worth and ensure that these machines are in locations where they’ll be played, be seenbeing played, and entice other players to play. Slot floors have only a limited number of high visibility areas. Slot directors won’t want to waste any of their high-paying machines in the morenumerous less visible areas, where the machines won’t be encouraging other players.
Now I’d like to share some anecdotes I’ve heard at panel discussions during the big gaming show (first the World Gaming Congress, then the Global Gaming Expo) that’s held in Las Vegas eachyear.
First, one slot director described an experiment he conducted in his casino. He had a carousel of 5 Times Pay machines that all had the same long-term payback. He ordered new chips to lower thepayback percentages on a couple of the machines to see if anyone would notice. The machines with the lower long-term paybacks received just as much play as the higher-paying machines. Noplayer, furthermore, ever complained that some of the machines in the carousel were tighter than others.
In another seminar, a slot director shared the philosophy he used to place some machines that he had inherited from another property. These machines, he said, had lower long-term paybacks thanthe payback he usually ordered for machines on his slot floor. He said, 'I read the same books that the players read. I put these lower payback machines in the spots that the books said shouldhave the high payback machines.'
My last anecdote is about a decision made by the slot director at the MGM Grand in Las Vegas many years ago. He was ordering 10 Times Pay machines for his slot floor and he was concerned aboutthe low hit frequencies available for those machines. (Machines with multiplying symbols tend to have low hit frequencies, and usually the higher the multiplier, the lower the hit frequency.)The slot director was afraid that his players would think the machines were very tight because they hit so infrequently. He said that he ordered higher paybacks than he usually does for thosemachines in an attempt to offset the low hit frequency. The machines would still have a low hit frequency, but at least the average value of a hit would be a little higher than if he hadordered a payback percentage nearer the percentage he usually ordered. He hoped that would be enough to keep his players from thinking these were tighter than the other machines on his slotfloor.
Although I think these anecdotes are the exceptions that prove the rule that some casinos at least order the same long-term paybacks for machines of a particular denomination, there is evidencethat some casinos may not. In the first edition of Casino Operations Management, for example, Kilby and Fox list a number of “general philosophies that influence specific slot placement”including: “low hold (loose) machines should be placed in busy walkways to create an atmosphere of activity” and “loose machines are normally placed at the beginning and end of trafficpatterns.”
They then say that “high hit frequency machines located around the casino pit area will create an atmosphere of slot activity.” I’m not sure whether they’re saying high hit frequencyshould or shouldn’t be placed near the pit. In any case, note that one philosophy said that loose machines create an atmosphere of activity and another said that high hit frequency machinesalso create an atmosphere of activity. This is the perfect segue into what I think puts the final nail in the coffin about loose machine placement theories.
There is no correlation between long-term payback and hit frequency. A low hit frequency machine can have a high long-term payback. High hit frequency machines, in addition, can have lowlong-term paybacks. Larry Mak, author of Secrets of Modern Slot Playing, recently queried the Nevada Gaming Control Board to find out the payback reported on penny machines. The Board said itwas 90.167%. Most of the penny video slots have very high hit frequencies, yet the overall average long-term payback is very low.
The usual reasoning behind putting loose machines in highly visible areas is so slot players can see other players winning. Maybe we should be more precise here and say that players will seeother players hitting and assume that they are winning because they are playing loose machines. But because there’s no correlation between hit frequency and long-term payback, these players canactually be playing machines with low long-term paybacks.
I don’t put much stock in loose machine placement theories, but I do believe slot directors may follow a hit frequency placement philosophy. Slot directors may try to place high hit frequencymachines in visible areas to encourage play. This philosophy says and implies nothing about the long-term payback of the machines.

John Robison is the author of 'The Slot Expert's Guide
to Playing Slots.' His website iswww.slotexpert.com