Casinos generate GGR (Gross Gambling Revenue) through bets placed by players, resort fees, shows, hotel and accommodation charges, food and beverage, promotional offers, et al. The lion’s share of their revenues is derived from gambling take on games.
Like any for-profit business, casinos rely on the patronage of their customers to generate positive returns. Players are willing to risk money in exchange for the prospect of winning a much greater amount, while enjoying an entertainment experience par excellence. With that in mind, we turn our attention to the most popular casino games of them all – slot machine games.
How Do Slot Machines Work and Can they Be Trusted
Consider that the Nevada Gaming Control Board Gaming Revenue Reports routinely indicate that the total gaming win of Las Vegas, Reno and other casinos in the Silver State is largely the result of slot online simpleplay machine games.
As a case in point, in 2017, the Las Vegas Review Journal indicated that the Las Vegas Strip paid out 8.04% slot win, meaning that players receive 91.96% of what they wagered, on average. These figures can be a little confusing to casino players. We’re going to take you deep into the inner mechanics of RNGs (Random Number Generators), odds and probabilities, to evaluate the credibility, transparency, and reliability of slot machine mechanics. Can they be trusted? Let’s find out.
Complex Computerized Consoles
Imagine the shock and horror if players found out that slot machines were rigged? Slot games are designed to be as random as possible. It is somewhat of a paradox that anything which is programmed by humans can truly have random outcomes, given that the program itself operates within a predefined set of parameters.
The objective is not true randomness, it is as random as is humanly possible. That’s our starting point. All slot machine games are designed with a specific payback percentage. This is known as the house edge. For example, a slot game with a 97.5% payback percentage invariably has a 2.5% house edge. The higher the house edge, the lower the payback percentage, and the lower the house edge, the higher the payback percentage. An example will clarify house edge and payback percentage for players.
97% RTP – SLOT MACHINE A
This slot machine game pays back $97 on every $100 that is wagered over the long term. The casino has a 3% house edge, indicating that it generates $3 for every $100 bet over the long term.
98.5% RTP – SLOT MACHINE B
This slot machine game pays back $98.50 on every $100 that is wagered over the long-term. The casino has a 1.5% house edge, indicating that it generates $1.50 for every $100 bet over the long term.
It’s important to emphasize that the figures are based on long-term projections. Over the short term, it is entirely possible for players to lose their entire bankroll, or even win a life-changing jackpot with a $100 bet.
When random number generators (the computer programs that calculate payback percentages) and payback percentages are determined, they are done over millions of spins. The preprogrammed percentages will not necessarily hold true for small bet amounts over the short term, but they might. The short and sweet of it is that slot machine games can certainly have a fixed payback percentage and provide randomness of outcomes.