Do High Denomination Video Poker Games Have Higher Returns?

22 April 2023

By Jerry Stickman

From Dan:

Hi Stickman,

I am new to playing video poker. Slot machines have been my mainstay since I started going to casinos in my area. I read lots of articles saying that video poker is better than slot machines. So, I am thinking about giving them a try.

It is my understanding that higher denomination slot machines have better returns than lower denomination machines. I guess this makes sense. A lower denomination game takes up the same amount of space as a higher denomination game. It also takes the same amount of power to run. So, if the casino likes to win the same amount per square foot and operating cost, the percentage of player loss has to be higher for low denomination machines.

My question is, does the same thing hold true for video poker games? Does this mean that higher denomination video poker games have a higher return to the player?

Dan from Baraboo

Hi Dan,

You bring up some interesting points.

Yes, it is true that video poker machines are grouped together with slot machines for casino’s financial reports. But there are significant differences between slot machines and video poker machines when it comes to return.

Slot Machines:

Let us look at slot machines first since that is what you are currently playing.

The return of a slot machine is based on both the frequency of occurrence of specific symbols and what specific combinations of symbols pay.

There is no way for a slot machine player to determine the long-term return of any slot machine. This is because the player does not have all the information that is required to calculate the return. The player does know what specific combinations of symbols that occur on the pay line/lines of a slot machine pay. There is no way to determine, however, how often the winning combination of symbols occur.

To calculate return, both the frequency of occurrence and the amount paid for each winning combination must be known.

Video Poker:

What about video poker?
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The return from a video poker game is also based on both the frequency of occurrence and what the combinations that produce winning hands are paid. That much is true of both video poker and slot machines.

The huge difference, however, is the information displayed in the pay table of a video poker game gives the player all the information required to determine the return.

Well, that and the fact that the cards must be dealt randomly.

Video poker games are based on a single deck of 52 cards (plus one or possible two jokers). All video poker games must produce random** results as verified by the gaming commission for the jurisdiction.

• There are no perfectly random functions in a gaming machine. Instead, “quasi-random” routines have been developed that very closely conform to truly random routines. They are close enough that gaming commissions are satisfied that they can be considered random.

Unlike slot machines where the frequency of winning combinations is unavailable, the frequency of five-card hands in a random game can be calculated. For example, the math of poker tells us that 2,598,960 different 5-card hands can be dealt from a single 52-card deck.

The math can also calculate how often each winning hand will occur. Combining that information with the amount paid for each winning hand allows a strategy for the highest return to be calculated. The return when playing the strategy is then calculated based on the player holding the cards from the initial hand that will win the most money.

Conclusion:

With standard slot machines, we can only talk generally about returns because we do not have all the information. With video poker, all the information necessary to calculate the return for each different game and pay table is available.

Now to specifically answer your question, Dan. When talking slot machines, it is a general rule that higher denomination games have higher return rates. However, the return of each game cannot be determined.

Returns from video poker games, also, tend to have higher returns for higher denomination games. The difference, however, is the return can be calculated. The video poker player can actually know the long-term return from the specific game being played. This is one of the reasons for the popularity of video poker.

As always, may all your wins be swift and large, and your losses be slow and small.

Jerry “Stickman”

Jerry “Stickman” is an expert in craps, blackjack and video poker and advantage slot machine play. He is a regular contributor to top gaming magazines. He authored the video poker section of “Everything Casino Poker: Get the Edge at Video Poker, Texas Hold'em, Omaha Hi-Lo, and Pai Gow Poker!” You can contact Jerry “Stickman” at stickmanjerryg@gmail.com