Many of us have heard that dollar slot machines pay out more than the nickel ones. Why do the casinos want to do that?
The reason behind that idea is really very simple. Nickel machines require the same amount of floor space, the same amount of maintenance and support people to service them as dollar machines do. However, the higher denomination machines have a bigger profit margin for the house because the overhead costs are the same for the machines regardless of their denomination. Therefore, the house then can afford to pay out at a higher rate for the larger denomination machines.
A higher denomination is ultimately making more money from players, so the house can afford to offer higher payouts.
For example, playing one coin per line on a nickel game offers you better odds than playing five coins per line on a penny slot, even though you're wagering the same amount of money on both.
The hold percentage averages (the casinos win rate) for the Las Vegas Strip are generally in the range of 11% for nickels, 6.5% for quarters, 4.5% for dollars, and 3.5% for five dollars and above.
These are not iron clad numbers but are considered average for the casinos in that area. (These numbers can be validated based on casino reports to the Nevada Gaming Commission).
BET YOU DIDN'T KNOW
• The average annual income for casinos on slot machines ranges from $4,000 for penny slots to $38,250 for $1 slots.
• Australia, with only .03% of the world’s population, has 20% of the world’s slot machines.
• McCarran International Airport in Las Vegas is unique in that it has more than 1,200 (1,228 currently) slot machines throughout the airport terminals.
• Today, electronic gaming machines (i.e. slot machines, VLT’s) continue to be one of the most popular forms of gaming entertainment with more than 900,000 machines across the U.S.
• Montana has one operating casino the Best Western Kwataknuk. Located on the south shore of the Flathead Lake in Polson. The hotel-casino is operated by members of the Confederated Salish and Kootenai Tribes. The hotel has 112 rooms and a small casino with 46 slot machines.
• It’s been reported that at any given time, 68% of gamblers in Las Vegas play slot machines.
• Little Caesars Casino on Las Vegas Blvd (originally located between today’s Planet Hollywood and Paris) operated from 1970 to 1994. Just before it closed it had a few unique slot machines that no other casino in town had; old penny machines.
• “Loose” is a common word seen on casino marquees addressing their slot machines. Nevada law prohibits the word "loosest" to be used, because there is no way to prove that a casino's slots are actually the loosest in the area.
