How Do Casino Slot Machines Work

Slot machines work the same way. Slots usually have three reels but sometimes also have five reels. The reel is the image that spins in the front of the machine. It has multiple symbols on it, and if you line up certain combinations of symbols, you win money. Casinos don’t want to lose their players. Thus the change towards skill-based slot machines has started – but how do they work? What are Skill-Based Slots. These new slot machines are not like the RNG luck-based games that we know from yesteryear. These are new and improved, practically being redesigned from the ground up. To answer how do the casino slot machines work, you should start with the original machines. Here's a look at slot machines over time. How Mechanical Slot Machines Work Slot machines came to life in the late-1800s when a pair from New York created a machine that used playing cards to create hands.

The word “comp” is short for “complimentary.” In the gambling industry, comps are free stuff you get from casinos and other gambling companies to incentivize you to gamble with them. Generally, you get more comps based on how much you’re gambling.

When discussing comps, it helps to understand the expression “action.” Being “in action” just means that you have money riding on a bet of any kind.

But “action” also refers to the amount of money you have wagered. It can refer to the amount of money you wager over a period of time, too.

For example, if you’re playing slot machines and betting $1 every time you spin the reels, you’re putting $1 into action every time you spin. If you make 600 spins per hour, then you’ve put $600/hour into action.

Based on the odds behind the game and the payout odds, casinos can estimate the long-term expected losses based on your hourly action. They can then calculate a percentage of that to return to you in the form of comps.

When you’re dealing with traditional land casinos, if you bring much action to the casino at all, you’ll be assigned a casino host. This is the person at the casino responsible for keeping you happy so that you don’t take your action elsewhere. Comps are the main tool a host uses to keep you happy.

Of course, not everyone has a host. You can also get comps almost automatically by signing up for the players’ club and inserting the card into the machines as you play. Pit bosses also have the authority to reward you with comps when you’re playing table games. In fact, the simplest and most common type of comp is the free drink. As long as you look like you’re playing a slot machine, a cocktail waitress will bring you free drinks all night. (She’ll be more attentive if you tip her well, though.)

This post explains the different kinds of gambling comps and what they mean to you as a gambler.

The Different Kinds of Comps Available

Comps are awarded in a hierarchy based on your value to the casino. The most basic comp is the free drink. Casinos have multiple motivations for gving you free drinks.

For one thing, a gambler who’s inebriated has lower inhibitions. He’s more likely to gamble more money longer. And the #1 factor affecting how much profit a casino makes from a gambler is the amount of time he spends playing.

That’s because casino games have an innate mathematical edge. This edge doesn’t have a huge effect in the short term, because in the short term, anything can happen. But the law of large numbers suggests that the more bets you make, the closer your actual results become to the theoretical results.

Here’s an example:

The mathematical expectation at blackjack is for you to lose roughly 1% of each bet you make on average over time. (This assumes you’re using basic strategy while you play.) That means the casino expects you to lose an average of $1 every time you place a $100 bet.

In the short run, that’s impossible. If you place a single bet at blackjack—which is the ultimate example of the short term—it’s impossible to lose $1 on a single $100 bet. You’ll lose $100, win $100, or win $150 most of the time. If you double down or split, you might win more–$200, $300, or even $400 wins are possible. You might also face a “push,” which is a tie. Your bet is returned, but you don’t win any money… that’s a loss or win of $0.

None of those outcomes come even close to a loss of $1.

That $1 loss is an average over time–over a huge number of bets. If you make 10,000 bets at $100 each, you’re likely to lose close to $10,000. Even with that many bets, it’s possible to deviate wildly from the mathematical expectation.

If you’re the casino, you want to get into the large number range as soon and as often as possible. This ensures your profit. The way to do this is to get players to make lots of bets for lots of money.

And providing free alcohol helps with that. In fact, it’s a small price to pay for the extra action they see.

You can expect more than just free drinks, though. Free food is a small step up from free drinks. At a casino of any respectable size, you’ll find multiple restaurants on site. The 2^nd most common type of comp is free food at one of the on-site restaurants.

The free food comp is usually awarded in the form of a coupon. You might have to put more money into action than you think to be awarded free food, but it sometimes depends on the generosity of the pit boss. It can also depend on what kind of rapport you have with the casino staff.

I once got into a spirited conversation with the cardroom manager at Planet Hollywood Casino in Las Vegas. They had a hot dog joint there called Pinks—I guess it’s popular on the West Coast. Anyway, I was trying to convince the cardroom manager that he should buy everyone at the table hot dogs.

Apparently, at the limits I play, you don’t get free hot dogs.

If you qualify for free food and free drinks, you’re not far from qualifying for free lodging, too. Most casinos are also hotels, but even casinos which don’t have attached hotels will get you lodging nearby—if you’re gambling enough.

You can also get upgraded to a nicer room by virtue of the action you bring the casino. (You might also be able to get upgraded to a suite or a nicer room by tipping the desk person $20 when you check in, but that’s not really related to comps.)

In fact, these 3 comps—room, food, and beverage—are so common that they have an abbreviation for it. Bettors who qualify for all 3 are called “RFB” customers.

Notice something about all these comps, too. You’re getting comps that seem to have a certain value. A drink is probably $5 at the bar at a casino. A meal is usually $15 or $20. A room can vary wildly in price, but is often at least $50, $100, or more.

But those are the retail prices for these comps. The casino doesn’t pay $5 when they mix you a drink. Their cost for that shot of Crown on the rocks is probably closer to $1. The meal at the buffet that the public pays $15 for probably only cost the restaurant $5 to make.

And a hotel room that’s sitting empty generates no money for the casino at all, so they might as well give it away. In fact, the Winstar in Oklahoma has such low occupancy rates during the week that almost anybody can get a comped room. You don’t have to bring them much action at all, really.

Those are just the standard comps for regular down-to-earth players like you and me. High rollers, or “whales,” as the industry calls them, are eligible for all kinds of free stuff. Many of these comps are customized based on what the host knows about the gambler’s interests.

It’s not unusual for a casino to pay for airfare and transportation to and from the airport for a big player. In fact, that’s expected for any high roller.

But entertainment is another popular comp. If you like golf, shows, or sporting events, you can usually get a “free” ride from the casino to go to those outings, too.

Rebates are common, too, even if you’re not a high roller. For low rollers, rebates are often awarded in the form of coupons or free play. High rollers can receive cash or a check as part of their rebate.

The comps program is part of the casino’s marketing plan. Most casinos make heavy use of direct mail to entice gamblers to return to their casino and play. If you’re a member of the players’ club at the casino, you’ll inevitably receive standard comps in the mail.

Based on your interests and betting tendencies, you’ll also get free offers for other perks in the mail, too.

Even low rollers can get free transport to and from the casino. I see buses taking groups of gamblers to the Winstar all the time. Many of the people riding those buses pay nothing for the ride, although they lose enough money at the casino to more than make up for that cost.

But calling these comps “free” is inaccurate. You pay for these comps in the form of gambling losses, even when you’re winning.

How Gambling Companies Do the Math That Makes Their Comps Program Profitable

Other than the free drinks and occasional free coupons sent in the mail, most casinos award comps based on your actual time spent playing. They account for how many bets per hour you make and at what amount when deciding how much to award you and when.

But comps aren’t based on how much you actually lose. Instead, casinos calculate your comps based on your theoretical expected loss. This is a function of the house edge for the games you’re playing, the time you spend playing, and how many bets per hour you’re making.

Over the long run—and casinos serve thousands of customers per day—the casino has an excellent idea of how much your play is worth. If you’re on a winning streak, you still get comps based on your action. The calculations are based on your expected losses, not your actual losses.

Here’s how the casino calculates this:

You play slots exclusively, but you bet $3 per spin. You’re an average player, so you’re making 600 spins per hour. That’s $1800 per hour you’re putting into action.

If the casino knows you like the machines with a 95% payback percentage, they figure that in the long run they’re going to make 5% of your hourly action—or $90 per hour. (5% of $1800 is $90.)

If you spend an average of 4 hours a day playing slots, the casino assumes you’re going to lose $360 a day while you’re there.

They then award you comps based on a percentage of that $360 per day.

How Can You Best Take Advantage of the Casinos’ Comps Programs?

If you’ve heard of the books The Frugal Gambler by Jean Scott or Comp City by Max Rubin, you probably already know a little bit about becoming a “comp hustler” or “comp wizard.” These are players who learn to maximize the amount of comps they receive in exchange for their action.

One way to maximize the comps you get for the money you lose is to play a game with a tiny house edge. If you can play blackjack with perfect basic strategy, you can get the edge in the game down to 0.5%. The average player loses about 4% at blackjack, because the average player doesn’t know perfect basic strategy.

When the casinos calculate your expected loss at the blackjack table, they assume you’re an average player losing 3% or 4%. Since you’re only expected to lose 0.5%, you’re getting comps based on a theoretical loss that’s actually overstated by a factor of between 5 and 10.

Another way to maximize the comps you get is to bet big when you’re being rated by the dealer and the pit boss. “Rating” players is how they estimate your hourly action. Fooling the pit boss is harder than you think.

I was playing blackjack in Kansas City for between $10 and $100 per hand, depending on the count. They rated me as a $10/hand player, even though I was betting more than that on a lot of hands. I complained, but I’m sure they realized I was counting. The last thing they were going to do is rate me higher when they knew I was counting cards.

How Does Slot Machine Work

(I was also a little drunk, so I didn’t notice immediately when they started shuffling the deck after every hand. Counting cards does you no good if the dealers shuffle after every hand.)

How Do Casino Slot Machines Work

Taking lots of breaks can result in fewer hands per hour than the casino estimates, which reduces your expected hourly loss by a lot. If you’re at a blackjack table dealing 60 hands per hour, you could realistically only play 45 hands per hour by taking frequent bathroom breaks.

What effect does that have on your expected hourly loss?

It reduces it by another 25% or so. Instead of losing $10/hour, you might only be losing $7.50/hour. The casino might be estimating that you’ll be losing an average of $40/hour and base your comps on that.

Expert video poker play can also result in smaller expected losses per hour. In fact, with certain video poker games, the combinations of comps with the tiny house edge can result in an overall positive expected value for the player. That’s an advantage gambling technique, but it’s not one you can realistically make a living at. The edge is too small, and games with those pay tables are usually only available for small stakes. You’d be lucky to make minimum wage playing video poker for comps.

How much of your expected losses can you expect back in comps?

It varies, but the casino calculates that they can afford to give you back 40% of your expected loss in the form of comps. You’ll more often see 20% through the players’ program if you’re a low roller, but you can even increase that amount by taking advantage of coupons and “happy hour” type promotions where you get 2X or 3X your standard comp rate.

How Do Online Casino Bonuses Work? Isn’t That Another Form of Comp?

Online casinos can’t serve you drinks or free food. They can’t really provide you with a free room for the night, either. And since you’re playing from home, they’re unlikely to offer you free show tickets, either.

Instead, online casinos offer you sign up bonuses and ongoing deposit bonuses. These amount to free amounts of money awarded to your account just for making a deposit—either as a new player or as an existing player.

Bonus hustlers used to take advantage of these offers to generate almost guaranteed profits. A friend of mine once bought a jukebox by taking advantage of casino bonuses at a dozen different casinos and cashing out his winnings.

Online casinos have responded to this by instituting wagering requirements that make it almost mathematically impossible to come out ahead when taking advantage of a bonus. They also watch player behavior closely, and if that behavior resembles that of known bonus hustlers, the casino might refuse to pay you based on “bonus abuse.”

The concept of wagering requirement seems more complicated than it is. Here’s how it works:

How Do Casino Slot Machines Work At Home

You sign up at a casino that offers you a 200% matching bonus on your first deposit of $1000. You deposit $1000, input your bonus code, and the casino adds $2000 to your balance.

You now have $3000 to play with.

But the casino requires you to wager this amount 35 times before cashing out. They also restrict your play to slot machines. You can play blackjack, too, but only 10% of your blackjack wagers count toward fulfilling your wagering requirements.

And you can’t cash out before fulfilling these wagering requirements.

Let’s assume you want to play the slots. A good ballpark estimate for the house edge on a slot machine game is 6%, but who knows? (The casino does, but you don’t.)

To wager $3000 35 times means you must put $105,000 into action.

The expected loss on that much action is 6% multiplied by $105,000, which is $6300.

How Electronic Slot Machines Work

Since you started with $3000, the mathematical expectation is for you to go broke before fulfilling your wagering requirements.

On the other hand, if you play blackjack, the house edge is only 0.5%. But since the casino only counts 10% of those wagers toward your wagering requirements, you need to make $1,050,000 in wagers before cashing out.

0.5% of $1,050,000 is still over $5000.

Again, that’s more than your starting bankroll, so it’s unlikely that you’ll have money left over after fulfilling your wagering requirement.

You can, of course, get lucky and win more than you’re expected to. I claimed a bonus at an online casino once for $1000, and I hit a $6000 jackpot on my 5^th spin of the reels on a slot machine game.

I was able to fulfill my wagering requirements and still have $2000 in profits.

But that’s because I got lucky—not because I took advantage of a mathematical edge given me by the bonus.

In fact, had I eschewed the signup bonus, I could have cashed out the entire $6000. I wouldn’t have been required to finish fulfilling the wagering requirements.

Conclusion

Casino and gambling comps are really cool, but they’re also a tool that casinos use to get you to lose more money than you’d otherwise lose. Understanding how those comps work is the first step in making sure you don’t get taken advantage of.

Some people learn how to take advantage of the comps system in such a way that they gamble practically for free. It’s even theoretically possible to come out ahead because of the comps program. That’s too much work for most people, but it’s nice to know that it’s possible.

The bottom line about comps is that the casino doesn’t have your best interest at heart. They want your money.

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Las Vegas slot machines are known by a variety of names around the world. Slot machines in Australia are generally referred to as video poker, poker machines or pokies. In Japan it is known as pachisuro. In Britain, they are usually known as Fruit machines, Bandits and AWP (Amusement with Prizes)

Traditional slot machines are coin-operated machines with three or more reels, which spin when a lever on the side of the machine is pulled.

Las Vegas slot machines which are considered modern slot machines are designed to look and feel like the old mechanical models, but they work on a completely different principle. The outcome of each pull is actually controlled by a central computer inside the machine, not by the motion of the reels.

The positions the reels will come to rest on are chosen by a Random Number Generator (RNG) contained in the machine's software. The RNG is constantly generating random numbers, at a rate of hundreds or maybe thousands per second. As soon as the lever is pulled or the 'Play' button is pressed, the most recent random number is used to determine the result. This means that the result varies depending on exactly when the game is played. A fraction of a second earlier or later, and the result would be different.

What does all this mean, you ask? It means,
Las Vegas slot machines have one of the worst House Advantage. That means the odds are always in the slot machine's favor.
There is no reward for playing longer. Each play is an independent event with the same odds of winning or losing as every other play on that game.
Persistence doesn't pay off. The result of your previous play or series of plays doesn't determine what happens on your next play.
There is no way to tell which slots are wining machines. Slots are never 'due for a win' and they don't 'go cold' after a win.
The location of the slot machine, whether it's on the Strip, off the Strip or Downtown affects the outcome of a game.

Now, here is the news you don't to hear. There is really no strategy to out smart the slot machine. However what we can show you are some wining tips on playing slot machines.

One of the questions visitors to Las Vegas ask is, where are the loose slots. Loose slots are Slot machines with above-average pay outs.

It's a fact that Las Vegas Slots differ in their payouts. Generally the odds of wining any prize on Las Vegas Slot Machines are approximately 1 in 5. However the odds to wining a top prize on a red, white and blue slot machine, for example, are only 1 in 373,248.

Some slot games pay smaller prizes more frequently and offer more bonus games (Loose Slots). Other machines pay out more often in the middle and top prize categories. It's important to mention that the chances of winning smaller prizes on slots are greater than the chances of winning top prizes.

Tips for Wining Big on Slot Machines

Use your Player's club card
Play two-coin, three reel, one payline slot machines.
Stay away from three-coin machines unless they are progressive machines.
Don't play more than one machine at a time.
Always play the maximum coins.
Always play machines that show double up symbols.
Don't play nickel slot machines. (check the house advantage here)

The Slot Expert's Guide to Winning at Slots

The Best Number of Coins to Play in Slots

Type of Machine	Rules and Reasons
Progressives	Play maximum coins. If you play don't play maximumcoins, you're only increasing the jackpot for someone else with nochance of winning it yourself.
Straight Multipliers	Play one coin at a time. The payback and hitfrequency are the same regardless of the number of coins you play.
Bonus Multipliers	Play one coin at a time. The chances of hitting apayout with a bonus are so small, it's not worth the extra risk.
Buy-A-Pays	Play maximum coins. The increase in payback andhit frequency purchased by the additional coins can turn a terriblemachine into a good one.
Hybrids	Play just enough coins to activate all winningcombinations. Extra coins are rarely worth playing in amultiplier, and hybrids are multipliers when you're in themultiplying section of the paytable.
Hidden Buy-A-Pays	Play maximum coins. The feature activated byplaying the last coin frequently makes the last coin pay back over100%.
Multilines	Play one coin or maximum coins. Play maximum coinsif having winning combinations land on paylines you didn't activatebothers you, otherwise play one coin.
Multicoin/Multilines	Play one coin each on as many lines as you like. Play one coin on each line if having winning combinations land onpaylines you didn't activate bothers you, otherwise play one coin.If there's a Hidden Buy-A-Pay, play enough coins to activate it.

Source: John Robison - www.Robison.CasinoCityTimes.com

Slots Machines House Advantage and Expected Lose

House Advantage	For Every $100 bet, the player can expect to lose
Penny Slots	8%-12%	$8 - $12
Nickel Slots	6%-12%	$6 - $12
Quarter Slots	5%-10%	$5 -$10
Dollar Slots	2.5%-6%	$2.50 -$6

Take a different twist on the increasingly popular game of poker and play your favorite video reel games at most Las Vegas Casinos. Choose from the hottest Vegas video reel games and slot machines. You'll find all your favorites, plus progressives and video poker in a wide range of denominations. Video poker provides all the strategy of poker but at your own pace.

Did you know...
The largest Las Vegas slot machine jackpot ever, was paid on a Megabucks machine at the Excalibur Hotel, for $39,713,982.25 on March 21, 2003. More Las Vegas Facts.

Do you know ... your chances of hitting a winning combination are the same on every spin.