What Must Be The Payout Odds For Slot Machines

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All slot machines are not created equal, just as Canadian casinos do not all represent the same payout percentages on their slots. However, the inner mechanisms that make a slot machine tick are comparably orchestrated, in the same way that Canada’s gambling facilities all abide by the same regulatory framework.

Attempting to pinpoint the odds for slot machines is a daunting task. With such a variety of machines and games available, the odds can vary a great deal. Generally slots odds are expressed in the form of a payback percentage. The closer to 100%, the better for players.

Confused yet? You probably answered yes, and that’s exactly what most gambling venues would prefer. The less their patrons know about what makes slot machines tick, the more likely the casino is to make more money off of their clientele.

Most slots players walk onto the gaming floor with the predisposed notion that the games are based entirely on luck, which would effectively eliminate the need to wisely choose a particular casino or slot machine to play. That’s not exactly the case. In fact, we’re going to dispel a few myths here, and reveal just what goes on within the mechanizations of slot machines.

Who Determines the Payout Percentage?

There are three parties that weigh in on the payout percentage of any Canadian casino’s slot machines.

First, the respective provincial government sets a minimal payout standard. In Ontario, for example, the OLG requires a minimum 85% payout on all slot machines. All manufacturers and casinos in the region must maintain a percentage at or above that level.

Next is the game’s developer, who sets the percentage requested by the casino installing the device.

Third is the casino itself. While it’s not normal practice for a casino to adjust the payout percentage of its slot machines, it can be accomplished by altering the EPROM chip. However, a casino must request and receive permission to do so from regulators, with approved adjustments performed by a licensed slots technician under the direct supervision of a regulatory agent.

Can Casinos Control a Slot’s Precise Payouts?

No. A random number generator (RNG) decides with each spin of the reels what will occur, and how much will be paid out. Casinos can only choose the long-term payout percentage, but cannot regulate when the payouts will occur. Thus there is no better time (day or night) to play slot machines, and no predicting when a progressive jackpot will strike.

The actual weekly and monthly payout percentages may be higher or lower than a machine is set to pay, but in the long-term, the exact chosen percentage will be achieved. The RNG integrates genuine unpredictability into every slot machine. For this reason, a progressive could strike only once in a 10 year span, or three times in a single week.

Do Payout Percentages Apply to Individual or Collective Slots?

Odds On A Slot Machine

Every slot machine in a casino must be individually set to comply with the region’s payout standard. You will not find one slot machine set to pay 70%, with its neighbor set at 105% to offset the difference. All slots must meet the minimum 85% or higher payout percentages.

Slot Machine Odds Settings

What Slot Machines have the Highest Payouts?

Slots that require higher coin denominations generally have higher payouts, even compared to cheaper slots with a max-coin multiplier.

For example, a $0.05 slot might take up to 3 coins, paying 1,000x for a jackpot on a 1-coin bet, 2,000 for a 2-coing bet, and 4,000x for a max 3-coin bet. On this type of machine, the 3-coin, $0.15 bet has the best payout percentage. However, a $1 slot machine that requires a minimum $1 bet per coin is likely to have a higher payout percentage for a single-coin bet than wagering the max 3 coins on a nickel slot.

What about Tribal Casinos?

All casinos in Canada, whether run by their respective provincial government or by a tribal organization, must abide by the same slot machine laws of their province, and that of the national standard. There’s no reason to expect the slots at a tribal casino or Canadian-run casino to be any higher or lower than the next.

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What Must Be The Payout Odds For Slot Machines

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There are dozens of different payout systems used in slot machines. In one of the simplest designs, a jackpot is detected by measuring the depth of notches in the discs that drive the reels. For simplicity's sake, we'll look at this sort of payout system in a bare-bones slot machine. The machine only accepts one kind of coin, and there is only one winning combination of images.

When you put a coin in this machine, it falls into a transparent case. The bottom of the case is a movable shutter that is connected to a metal linkage, as you can see in the diagram. Normally, the linkage holds the shutter closed. But when the machine hits the jackpot, the third stopper shifts the linkage up, opening the shutter so the coins fall out of the machine.

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Each of the three discs has notches for each stop position of the reel. The notch for the jackpot stop is deeper than the other stops. Consequently, when the first reel lands on the jackpot stop, the first stopper moves farther to the left than it would for any other stopper. If the second reel stops on the jackpot as well, the second stopper also moves farther left. Same goes for the third reel and stopper.

But if only the second reel stops on the jackpot, the second stopper will not move all the way into the notch. The first stopper has a catch that keeps the second stopper from moving past it. The second stopper, in turn, has a catch that holds the third stopper back. For the third stopper to lock all the way into the jackpot notch, then, the first and second reels would have to have landed on the jackpot image. When this happens, the shutter opens to dump all of the coins that have been played since the last jackpot.

Typically, slot machines will have more elaborate versions of this design in order to pay out partially on certain combinations of images and pay out completely on the jackpot combination.

In another popular system used in some electrical machines, the discs have a series of metal contacts attached to them. When the reels stop, one of the contacts engages a stationary contact wired to a circuit board. In this way, every stop on each reel will close a different switch in the electrical system. Certain combinations of closed switches (jackpot winners) will configure the machine's electrical circuit to operate the payout mechanism.

A more advanced system uses photoelectric cells (also known as photo diodes), devices that generate a current when exposed to light, to detect the position. In this system, a series of holes are drilled through the rotating discs, all around their outer edges. The photo diode is positioned on one side of the disc, and a light source is positioned on the other side. As the disc turns, the light shines through the holes onto the photo diode. The pattern of holes in the disc causes the photo diode to generate a similar pattern of pulses of electricity. Based on this pattern, an electronic circuit can determine the position of the reel.

Newer slot machines use computers instead of gears. We'll take a look at those next.

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