1. Slot Machine Profit Margin Template
2. Slot Machine Profit Margin Template
3. Slot Machine Profit Margin Software
4. Profit Margin Formula

Games available in most casinos are commonly called casino games. In a casino game, the players gamble cash or casino chips on various possible random outcomes or combinations of outcomes. Casino games are also available in online casinos, where permitted by law. Casino games can also be played outside casinos for entertainment purposes like in parties or in school competitions, some on machines that simulate gambling.

Categories[edit]

Sep 29, 2018 After expenses and upkeep, the average profit margin for vending machines is around 2.4% — but your mileage will vary. For more information on earning a profit with vending machines, plus information on where to buy or lease one, see below. Mar 20, 2017 Some years ago I went to Las Vegas and gambled $32,000. You may be thinking I’m some kind of high-roller. I only took $1,000 to gamble with. So where did I get $32,000 from?

There are three general categories of casino games: gaming machines, table games, and random number games. Gaming machines, such as slot machines and pachinko, are usually played by one player at a time and do not require the involvement of casino employees to play. Tables games, such as blackjack or craps, involve one or more players who are competing against the house (the casino itself) rather than each other. Table games are usually conducted by casino employees known as croupiers or dealers. Random number games are based upon the selection of random numbers, either from a computerized random number generator or from other gaming equipment. Random number games may be played at a table or through the purchase of paper tickets or cards, such as keno or bingo.

Some casino games combine multiple of the above aspects; for example, roulette is a table game conducted by a dealer, which involves random numbers. Casinos may also offer other type of gaming, such as hosting poker games or tournaments, where players compete against each other.

Common casino games[edit]

Notable games that are commonly found at casinos include:

House advantage[edit]

Casino games typically provide a predictable long-term advantage to the casino, or 'house', while offering the players the possibility of a short-term gain that in some cases can be large. Some casino games have a skill element, where the players' decisions have an impact on the results. Players possessing sufficient skills to eliminate the inherent long-term disadvantage (the house edge or vigorish) in a casino game are referred to as advantage players.

The players' disadvantage is a result of the casino not paying winning wagers according to the game's 'true odds', which are the payouts that would be expected considering the odds of a wager either winning or losing. For example, if a game is played by wagering on the number that would result from the roll of one die, true odds would be 5 times the amount wagered since there is a 1 in 6 chance of any single number appearing, assuming that the player gets the original amount wagered back. However, the casino may only pay 4 times the amount wagered for a winning wager.

The house edge or vigorish is defined as the casino profit expressed as the percentage of the player's original bet. (In games such as blackjack or Spanish 21, the final bet may be several times the original bet, if the player double and splits.)

In American roulette, there are two 'zeroes' (0, 00) and 36 non-zero numbers (18 red and 18 black). This leads to a higher house edge compared to European roulette. The chances of a player, who bets 1 unit on red, winning is 18/38 and his chances of losing 1 unit is 20/38. The player's expected value is EV = (18/38 × 1) + (20/38 × (−1)) = 18/38 − 20/38 = −2/38 = −5.26%. Therefore, the house edge is 5.26%. After 10 spins, betting 1 unit per spin, the average house profit will be 10 × 1 × 5.26% = 0.53 units. European roulette wheels have only one 'zero' and therefore the house advantage (ignoring the en prison rule) is equal to 1/37 = 2.7%.

The house edge of casino games varies greatly with the game, with some games having an edge as low as 0.3%. Keno can have house edges up to 25%, slot machines having up to 15%.

The calculation of the roulette house edge was a trivial exercise; for other games, this is not usually the case. Combinatorial analysis and/or computer simulation is necessary to complete the task.

In games which have a skill element, such as blackjack or Spanish 21, the house edge is defined as the house advantage from optimal play (without the use of advanced techniques such as card counting), on the first hand of the shoe (the container that holds the cards). The set of the optimal plays for all possible hands is known as 'basic strategy' and is highly dependent on the specific rules and even the number of decks used. Good blackjack and Spanish 21 games have house edges below 0.5%.

Traditionally, the majority of casinos have refused to reveal the house edge information for their slots games and due to the unknown number of symbols and weightings of the reels, in most cases it is much more difficult to calculate the house edge than that in other casino games. However, due to some online properties revealing this information and some independent research conducted by Michael Shackleford in the offline sector, this pattern is slowly changing.^[1]

In games where players are not competing against the house, such as poker, the casino usually earns money via a commission, known as a 'rake'.

Standard deviation[edit]

The luck factor in a casino game is quantified using standard deviations (SD).^[2] The standard deviation of a simple game like roulette can be calculated using the binomial distribution. In the binomial distribution, SD = √npq, where n = number of rounds played, p = probability of winning, and q = probability of losing. The binomial distribution assumes a result of 1 unit for a win, and 0 units for a loss, rather than −1 units for a loss, which doubles the range of possible outcomes. Furthermore, if we flat bet at 10 units per round instead of 1 unit, the range of possible outcomes increases 10 fold.^[3]

SD (roulette, even-money bet) = 2b√npq, where b = flat bet per round, n = number of rounds, p = 18/38, and q = 20/38.

For example, after 10 rounds at 1 unit per round, the standard deviation will be 2 × 1 × √10 × 18/38 × 20/38 = 3.16 units. After 10 rounds, the expected loss will be 10 × 1 × 5.26% = 0.53. As you can see, standard deviation is many times the magnitude of the expected loss.^[4]

The standard deviation for pai gow poker is the lowest out of all common casino games. Many casino games, particularly slot machines, have extremely high standard deviations. The bigger size of the potential payouts, the more the standard deviation may increase.

As the number of rounds increases, eventually, the expected loss will exceed the standard deviation, many times over. From the formula, we can see the standard deviation is proportional to the square root of the number of rounds played, while the expected loss is proportional to the number of rounds played. As the number of rounds increases, the expected loss increases at a much faster rate. This is why it is impossible for a gambler to win in the long term. It is the high ratio of short-term standard deviation to expected loss that fools gamblers into thinking that they can win.

It is important for a casino to know both the house edge and variance for all of their games. The house edge tells them what kind of profit they will make as percentage of turnover, and the variance tells them how much they need in the way of cash reserves. The mathematicians and computer programmers that do this kind of work are called gaming mathematicians and gaming analysts. Casinos do not have in-house expertise in this field, so outsource their requirements to experts in the gaming analysis field.

See also[edit]

References[edit]

1. ^'Michael Shackleford is the wizard of odds'. Observer. Retrieved 13 October 2015.
2. ^Hagan, general editor, Julian Harris, Harris (2012). Gaming law : jurisdictional comparisons (1st ed.). London: European Lawyer Reference Series/Thomson Reuters. ISBN978-0414024861.
3. ^Gao, J.Z.; Fong, D.; Liu, X. (April 2011). 'Mathematical analyses of casino rebate systems for VIP gambling'. International Gambling Studies. 11 (1): 93–106. doi:10.1080/14459795.2011.552575. S2CID144540412.
4. ^Andrew, Siegel (2011). Practical Business Statistics. Academic Press. ISBN978-0123877178. Retrieved 13 October 2015.

Introduction to High Roller Slots Tricks

This blog continues our journey of winning strategies for slot machine casino gambling. Here, I’ll be explaining to you three easy high roller slots tricks. Now, please understand I’m not trying to turn you into a full-time high-limit slot machine gambler! Not at all!

As I’ll explain, there are some very inexpensive slots winning strategies which can be applied to more than just low limit slots. They can also be rather cheaply used, with only a few bets, on a $1 to $5 denomination high limit slot machine.

The three tricks you should know about involve applying a few of the winning strategies I’ve already discussed, as well as a new slots strategy, winning strategy #6, I’ll be explaining in full momentarily. Here goes!

This article has the following sections:

• Introduction
• 1st Trick: Use Winning Strategy 1 in a High Limit Slots Area
• 2nd Trick: Combining Winning Strategies #1 and #7
• 3rd Trick: If a Slot Machine Shows a Win, BET ONCE
• How Long Does a Slot Machine Need to be Idle?
• Play High Limit Slot Machines When Appropriate – Carefully!
• Summary

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1st Trick: Use Winning Strategy #1 in a High Limit Slots Area

One interesting pattern I’d noticed at a relatively medium-sized casino had to do with a simple observation. At this local casino, I saw that I would win once when I first sit down, but not win again for some time.

This pattern recognition is a slots strategy I’ve mentioned before, explicitly Winning Strategy 1: Only Win Immediately and my Professor Slots podcast episode #23.

By using this approach, we can take advantage of a common practice found at many casinos, where they provide an initial winning taste.

The first dozen times I visited the high limit slots area at this small, local casino, I found it odd that I would win a jackpot during the first few pushes of the button. But, then, I would spend thousands of dollars without so much as another hit.

I don’t mean I wouldn’t have another taxable jackpot, but that I wouldn’t win anything whatsoever. It just seemed odd. Or, put another way, it was statistically unlikely to be randomly happening so consistently and often, visit after visit after visit.

As an aside, don’t worry too much about all the money I was spending. Unbeknownst to me at the time, each $100 spent these three months earned one more entry for the drawing of a car – which I would end up winning. I tell that story in:

As a second aside, the money I was spending was significant slots winnings from another local casino where I was consistently making quite a profit using Winning Strategy 7, the topic of my next blog article.

2nd Trick: Combining Winning Strategies #1 and #7

Let’s back to the story of what I learned and how I learned it. At the time, I even struck up a conversation with one of the slot operators. In that helpful interview, I asked them when were people winning jackpots and on which machines were they doing it?

This slot attendant helpfully told me about a slots player who had recently gone from one machine to another winning about eight total jackpots in a row in the high limit slots area.

I found this other slots player’s approach very intriguing, to say the least, and have since tried to employ my Winning Strategy 7 alongside playing each machine up to 5 times. By doing so, I’ve found that my annual return for this strategy alone resulted in a 150% profit over my original bankroll.

However, I’d only been using this strategy for four months since this casino opened, and felt I’d need to continue doing it for about a year to be convinced that it wasn’t either temporary or due to having limited data.

Today, I see this as an error on my part, and probably a severe loss of winnings. Winning slots strategies exist, and you can find them yourself – if you can believe your own eyes.

The area most people get stuck on is this: They don’t believe these strategies are possible, and it’s hard to try it yourself they do when you’ve already convinced yourself it’s impossible.

It doesn’t help that most winning strategies are relatively new, and based on the latest casino technologies that started being installed in new casinos since 2012.

Getting down off my usual soapbox, and back on topic, I have found this combination of winning strategies to be the cheapest approach yet to slot machine gambling, while resulting in the highest profit margin.

Using it at my local casino required only $500 per visit and $250 in return on most visits without a taxable jackpot. But then there are the taxable jackpots won, which are more than a few of the typical jackpot winnings on high limit slot machines.

As I’m sure you understand, a single $4,000 taxable jackpot pays for many subsequent visits.

Again, so far, this is all further storytelling about the experiences which resulted in my discovery of Winning Strategy 1 and how to best use it in conjunction with another winning strategy I knew. But, next, I learned a strategy I didn’t already know.

3rd Trick: If a Slot Machine Shows a Win, BET ONCE

By using these known strategies, yet another approach grew out of them. It’s easy, simple, and quite inexpensive. And, it’s completely counter-intuitive to what most slots players will tell you to do. But, because they feel this way is the reason why it works.

Slots players will tell you it is essential to check the machine’s last play. If it shows a winner then, in general, skip that machine. Don’t play it, is the general advice. I say phooey, but with a small caveat I’ll pull from Winning Strategy 1.

My third trick is this: If a slot machine is showing a win, BET ONCE. However, avoid that machine if it’s been played recently.

For this to work, if it is going to work, a slot machine showing a win needs to be idle for a while, and probably hasn’t been idle if its chair is still pulled out. That the chair is even pulled out is a beautiful clue it was used relatively recently.

Why does this work? At some casinos that set up their slot machines to offer an initial taste, the first push of the button of a high limit slot machine will win either a “small” nontaxable jackpot worth several hundred dollars or a more massive taxable jackpot over $1,200.

For example, I happened to be in the casino one Saturday evening, to take care of some tax paperwork having to do with winning a car the night before, and noticed that one of the $100 high limit slot machines was showing a $1,000 win. I didn’t think much of such a small jackpot, as it was not even taxable, but it was something I noticed.

When I went back to the casino the next morning, I noticed that that same machine had the identical winning reel combination showing on it. To me, this indicated that no one had played that machine for just over one day.

At first, I didn’t think much of it. But then, standing there looking at it, I got to thinking about my strategies. And, standing there thinking it through, I learned something.

Previously, my strategy was not to play any slot machine if it showed a win. But, I started to think, what if I was winning at one push of a button on machines that hadn’t been played for some time? Was this perhaps a refinement of a known strategy?

As usual, theory metaphorically in hand, I decided to test it. I walked over to the $100 machine showing the $1,000 win, placed my player’s card along with $100 in the machine, pressed the bet button, and immediately won a $5,000 taxable jackpot.

To date, this is the only time when I’ve won any taxable jackpot on a $100-denomination slot machine. Although, using this strategy at the same casino, shortly later I did win $500 with a single 1-credit bet on another $100 slot machine.

How Long Does a Slot Machine Need to be Idle?

Slot Machine Profit Margin Template

One loose end with using this strategy is the question of how long does a slot machine need to be idle for it to turn into a winning slot machine via this strategy? The honest and straightforward answer is: I don’t know. But, consider my observations.

I’ve found more slot machines are winners with this strategy if I attend the casino on a Saturday morning (especially after a busy Friday night) or mid-afternoon on Sundays.

That’s because these are typically the most extended times when slot machines aren’t played, and being idle for some time matters. But, how long does it need to be inactive, you ask? I’m still piecing together clues about this.

Another clue comes from Eric Rosenthal, from whom I have second-hand information. He knows someone he trusts from within a slots manufacturer who told him that slot machines reset whenever a voucher is printed.

That’s interesting. If true, it means idle means no time at all. So, that information alone may be enough to tell you how long idle is – but I don’t think so.

Why? Because I’ve seen 30 minutes work when an immediate next player did not. Other times, I’ve seen it work after it’s been idle for hours only. Another area of uncertainty is maybe, more like probably, different casinos are set up differently.

But, I have put some effort into trying to figure this out. After some thought, one week later I went back to the casino and took handwritten notes of all the current spin reels showing on all the high limit slot machines at that casino.

Slightly over a day later, I went back to that casino with the intent of executing the usual strategy but brought extra cash with which to push the button once on any high limit slot machine still showing the same reel spin from the previous day.

Unfortunately, that day was a beautiful day in January with moderately high temperatures not seen in months. Somehow, for this reason, the casino and high limit slot machine room were incredibly busy.

I mention this because, when checking the reel spins on each slot machine, I found that ALL slot machines had been played. I then went ahead playing my usual strategy and, to my slight dismay, I didn’t win a single time despite four immediately prior visits where I made 50-60% over the bankroll I’d brought.

What I learned from this confirmation, such as it was, was that it was the wins I had seen when using my unrefined strategy of 5 pulls then stop was occurring on slot machines which had not been played for a while. That is to say, I had been winning on idle slot machines.

So, during busy periods in the high limit slot room which, by the way, isn’t necessarily the same times when the overall casino itself is active, I learned that I shouldn’t use this strategy. Not then, anyway.

All I can say is, where casinos have set up this winning strategy, winning slot machines need to be idle for a while. This bit of information may not seem like much – but it’s something once considered impossible which evidence now suggests isn’t any longer.

And, being the savvy slots enthusiast I know you are, I expect you’ll make the most out of it.

Play High Limit Slot Machines When Appropriate – Carefully!

So, let’s continue to talk about getting the most out of my winning strategies. The whole point of these specific strategies is that they don’t require much money to try out. Not to be too blunt about it, why wouldn’t you try out inexpensive strategies in the high limit slots area?

I suppose I first noticed this myself at Seminole Brighton Casino in Florida in October 2019 and earlier at Foxwoods Casino in Connecticut in April 2018.

Slot Machine Profit Margin Template

Only afterward did I think, while I’m here why don’t I try out the winning strategies I’ve just figured out in the high limit slots area?

Unfortunately, this idea came to me only after I left both places. But, here it is for you. If you have figured out a winning slots strategy that appears to work at a casino, consider trying it in the high limit slots area.

This suggestion is especially valid if the specific slots strategy you’ve found to work outside of the high limit area doesn’t require much bankroll to win. If only a small bankroll is needed, or if you’re willing to risk a larger bankroll if it doesn’t, consider one way to optimize your strategy – by bringing it into the high limit slots area. Carefully, of course.

For those who have read my blog article Seminole Brighton Casino Florida Trip Report, these follow up thoughts for using a working strategy on high limit slots should work quite well there.

However, for those who have read my blog article Easily Win a Little at Slots at Foxwoods Casino Connecticut, I’d caution against this approach there.

As Dr. Mike from the You Can Bet on That podcast very well knows (I was sitting near him at the time), you can win a couple of hundred dollars on a high limit slot machine there within the first few bets.

But, the problem is, you can do the same thing on a low limit slot machines. So, use the winning strategy I described outside of the high limit area to bet less for corresponding winnings. Your profit will be more substantial.

Summary of High Roller Slots Tricks

In review, I’ve pointed out the easy application of two past winning slots strategies, along with a new winning strategy, which would require only a few bets on a high limit slot machine.

From a high level, the three easy high roller slots tricks I’ve outlined are merely pointing out that the winning strategies you worked hard to uncover at the casino you frequent can be leveraged, perhaps even optimized, in the high limit slots area with relatively little risk.

Because, finding that a winning strategy which works is a huge accomplishment, for which you should be proud to have uncovered. But, don’t stop with finding it, even if it was with my help. Your next step is, as always, to work closer to accomplishing your gambling goals.

Slot Machine Profit Margin Software

If your gambling goal is entertainment, as with more slots enthusiasts, then getting a W-2G for having won a taxable jackpot would be exciting. I know my first W-2G was very exciting and, quite honestly, you never really get tired of winning them.

If your gambling goal is earning comps, then you’ll undoubtedly earn players clubs point by making bets on high limit slot machines. But, more importantly, some or all of winnings received in the high limit slots area can be spent on low limit slots.

Finally, is winning take-home money your gambling goal? Well, you’ll earn that money with little cash spent. If, as always, the casino you’re at has been set up by their operator such that one or more of these approaches will work.

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Profit Margin Formula

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