There are many myths and theories about the nature and profitability of slot machines. The slot machine is being criticized due to growing awareness about gambling addiction. In fact, the Ontario Problem Gambling Research Centre released a January 2009 report stating that problem gamblers make up only 3.2% of all gambling addicts in Canada. Stats Canada published its August 2010 report estimating that Canada’s total gambling revenue was $13.75 billion. The 3.2% problem gamblers, when compared to the total gambling revenue in Canada, is quite small.
Since 1891, slot machines have existed. The best poker hand was awarded with beer and cigars. Two men named Sittman & Pitt came up with the first idea of this gambling phenomenon in Brooklyn, New York. Charles Fey, the famous inventor of the first commercial machine, created it shortly after. It was called “The One Arm Bandit” in 1895. Fey’s machine featured three reels and five symbols. The largest jackpot paid out was ten nickels. This is why the phrase was coined. Fey’s invention allowed for 1,000 combinations before a winning combination was found. It was very difficult to find the right combination, so players lost a lot of their money trying to win it. The public called the machine a Bandit because it took so long to win the jackpot. Fey’s invention was so popular that he couldn’t keep up with the public demand. The Money Honey, the first fully electronic slot machine, was invented in 1964.
While slot machines have been a popular choice for gamblers all through history, they were also considered a poor man’s game in many bars across North America. Since the introduction of Microgaming (and Random Number Generation Technology, RNG), slot machines have gained popularity. RNG predicts which symbols will appear next on the slot machine screen. It also dictates how much money can be won and what weights can be placed on each reel. This is a benefit to the casino rather than to the player. RNG has made it possible for players to win more money and spend less. As new players deposit their money and then move on to the next machine, the casino still makes a profit.
Today’s slot machines have payout percentages ranging from 80 to 98%. They are pre-programmed using Microgaming to increase their payout rates. Although casinos can change the payout rate of their slot machines, most do not because of the complexity and high cost of replacing a chip. Payout rates for slot machines that have wagering amounts between a penny and a quarter are lower than those with wagering amounts greater than one dollar. Five dollar machines have an average payout rate of 98%.
Can you win at slot machines with chip technology today? Absolutely! It is important to be familiar with the RNG technology used in slot machines. It is possible to make a steady, but slow income stream by using simple strategies and tips. Many slot players make the mistake of continuing to invest large amounts of money in a slot machine with the hope of winning a huge jackpot. A player who understands RNG and uses low-risk betting strategies will have a better chance of building a steady income stream than the occasional large jackpot.
Consider RNG when you next hit the online or land casinos. Don’t wait for the big jackpot! You can take small wins and go to the next machine to begin it all again. A key factor to winning at the slot machines is good money management. You can contact me via email if you enjoyed this article or if you would like to receive more information about slot machine technology.