• What Do Slots Pay Out
• What Percentage Do Slots Pay Out
• Pay Slots Game
• What Time Do Slots Pay Out Online

I saw someone writing down payout times during the day on a hot machine he was playing and he would sit out most of the day, keeping his chair reserved and not playing the machine. He was hitting an unusually high number of jackpots and playing very litle, 15-20 minutes during certain hours of the day. “Time on Device” (TOD) is the #1 metric that casinos and slot machine manufacturers are.

Introduction to Taxable Jackpots

One of the most popular slot machine questions on Google searches is: How do slot machines pay out taxable jackpots? I’ve assumed this question is about the mechanics of the payout process. A different upcoming post deals with explaining when slot machines pay out.

Slot machines are special-purpose computers, like a lot of equipment found in our lives. Specifically, standard tools are televisions, electronic watches, gas station pumps, cash registers, bank ATMs, automobiles, baby monitors, and the list goes on and on.

Each of these devices has one or more computer microprocessors, visual display, audio speaker, and some may also have a way to accept and/or dispense money either physically or virtually online.

Beyond controlling the multiple interfaces to and from the player, the computer within a slot machine also manages the odds of a player winning.

At its core, a pseudo-random number generator (PRNG) is a calculation. This PRNG is an element of the computer programming algorithm used by slot machines.

PRNGs (or more commonly RNGs) determine the outcome of a player’s bet based on the pre-determined odds of winning as set by the casino operator within the limited options provided by the slot machine manufacturer.

As previously mentioned elsewhere, winning a jackpot involves using the PRNG twice:

1. To determine if a jackpot is won
2. To determine how much was won

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The Slot Machine Gambling Process

Once a player selects a specific slot machine, that machine operates to accept or reject the inserted cash, ticket voucher, and reward card.

Next, it accepts the player’s selection for denomination amount and amount of credits to be bet, although it will merely reject one or both settings if insufficient funds are available to make such a bet.

When the bet is placed, the machine immediately selects the latest random number generated by its RNG to determine the outcome of the bet and well as updating the players club card with the points earned for placing the bet.

At the end of this process, the machine turns the reels to show the outcome of the bet. See below for this player-machine sequence of events.

During slot machine gambling, a sequence of actions and reactions take place between the player and machine. The player:

• selects a specific machine, inserts money in the form of cash or ticket voucher
• chooses from the denominations available
• chooses the number of credits to bet
• places a bet
• observes the results of the bet including any bonus round
• receives winnings from the bet (if any)
• then, either:
  • leaves the machine empty handed
  • cashes out any remaining funds and leaves with a ticket voucher
  • continues playing the machine.

The player may choose to insert a player card at any time before or during play, then later remove it before leaving the machine.

Jackpot!

Between determining the outcome of the bet and turning the reels, the machine executes programming code that sets the reels.

The reels turn in a way the machine’s game designers consider most entertaining to the player – such as stopping on reel symbols for non-wins which are next to the symbols for sizable jackpots.

What Do Slots Pay Out

As mentioned, the bet’s outcome is determined when the bet is placed, not when the reels stop moving, despite the entertainment value derived by the player when observing the “action” of the slot machine.

In the event of a win, the machine executes further programming to activate sequences of lights and sounds while updating the information display for the player, which is referred to as a roll-up.

Now What? – The Jackpot Pay Out Process

If a jackpot less than the taxable limit is won, slot players can simply proceed with continuing to play or cash out from that slot machine. The current taxable jackpot limit is $1,200 in the United States.

Meaning, if you have a win of $1,200.00 or more at a slot machine, there is an immediate tax bill resulting in an IRS Form W-2G. If you have a win of $1,199.99 or less, there is no immediate tax bill.

Jackpots that require immediate payment of taxes results in the slot machine locking up.

Many, many slot players have been surprised by their slot machine locking up when a taxable jackpot is won. It can only be unlocked by a casino employee, a slot attendant.

Whether a casino is old or new, a slot attendant will arrive shortly to administer a hand payout. During a hand payout, a slot attendant

• collects personal identification sufficient to both complete a tax form as well as any other state-required documentation
• performs the hand payout (if they have adequate cash on hand)
• unlocks the machine to allow the player to continue.

If the attendant is not carrying enough cash with them, or if the player wishes to have a cashier’s check instead of a cash payout, the slot attendant leaves the player with a receipt and returns a short while later with the check or cash.

If the attendant leaves, they typically unlock the slot machine beforehand to allow the player to continue betting while waiting for the slot attendant to return.

Summary of Taxable Jackpots

The most important thing to remember about winning a jackpot is to make sure you’ve brought your government-issued I.D. If you don’t have it, then you cannot receive a taxable jackpot.

And, no, your friend sitting next to you cannot claim the jackpot for you – the eye in the sky knows it’s your winnings and not someone else.

The second thing to be aware of is what is or is not a taxable jackpot, a single win of $1,200 or higher. Many people have never won a taxable jackpot, so it can be challenging to get useful information on this unless you’ve done it more than a few times. But I have.

If the machine locks up, it’s either had an error or you’ve won a taxable jackpot. Being out of paper is a machine error, for example. Either way, a slot attendant will show up shortly to help. For goodness sake, don’t walk away until you know which!

As a final note, as of this writing, a decade ago, casinos moved away from using coins. Nowadays, they use cash, checks, and vouchers redeemable at cash machines and cages.

Related Articles from Professor Slots

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By Jon H. Friedl, Jr. Ph.D., President
Jon Friedl, LLC

'A Myth Comes True
For years slot players have believed a myth that the casinos could change the payback of a machine with the flip of a switch. They worried that the casino could tighten the machines during busy times such as weekends and then loosen them up to pay more during the week. With the new server based system this myth could actually become a reality as they can change the payback of the machines through the server. ' I found my answer at casinogambling.com

It always HAS been possible to do that--it's a myth that it is a myth.
I remember, on several occasions, watching a slot tech use a key to make a menu come up on the screen of a video slot, and selecting a payback percentage from that menu. He didn't even have to open the machine. Five choices: 1) 97.4% 2) 95.9% 3) 94.0% 4) 92.4% 5) 91.2%. Select one. Turn the key. Boom. Done. That makes me laugh when I read that it would be impractical and take too much time to manually change all the payback percentages on the casino floor. (And I saw the scene described above as long as fifteen years ago, so the capability has been there for quite some time.)

'The Missouri regulators, for example, were making the rounds with the hypothetical issue of whether casinos should be banned from allowing better slot paybacks to players who gamble more - a feature that is possible with server-based games.
Clayton said Nevada regulations prohibit casinos from offering one player a better chance of winning than another

That's only partly right. A high-roller absolutely has better odds on a slot game than a low-roller because the models are different on a $100 machine than on a 5c machine. It's also okay to give a player who bets more a better return within a single machine -- that's what *every* multiplier slot does when they bonus the last coin. Same thing with VP games and the bonus pay on a royal. I think the issue is whether the same machine being played at the *same level* should have a different payback based on some external criteria like comp points, but even then the effect of the comp rewards on higher players makes the net payback better anyway, so...

It always HAS been possible to do that--it's a myth that it is a myth.
I remember, on several occasions, watching a slot tech use a key to make a menu come up on the screen of a video slot, and selecting a payback percentage from that menu. He didn't even have to open the machine. Five choices: 1) 97.4% 2) 95.9% 3) 94.0% 4) 92.4% 5) 91.2%. Select one. Turn the key. Boom. Done. That makes me laugh when I read that it would be impractical and take too much time to manually change all the payback percentages on the casino floor. (And I saw the scene described above as long as fifteen years ago, so the capability has been there for quite some time.)

Nobody who knows slots would dispute that. However, it would be impractical to open every machine and change the return on a daily or weekly basis. The myth is that some guy in the back room can change the return on any machine from his desk because he doesn't like your polka dotted hat, or any other reason he wishes. However, with server based slots, now he can. As noted, in Nevada he has to wait until the machine has been idle for four minutes, and then is has to be down another four minutes.

You guys obviously know your games of chance. My original question, Is there a particluar time and day of week that is better to play slots with a greater chance of winning? ANd additional are there any other factros that should be considered; size of crowd, denomination, minmax bet, type of slot game, player level, parent company, ....

Time of the day, day of the week, size of crowd: Doesn't matter.
Denom, Min bet: Definitley does matter, the higher the denom, the higher the return (generally).
You would also be advised to avoid slots with fancy signs with a movie or television theme, as these are usually set to around 88%, which for slots is pretty low. Then again, they may provide more entertainment value.

What Percentage Do Slots Pay Out

You would also be advised to avoid slots with fancy signs with a movie or television theme, as these are usually set to around 88%, which for slots is pretty low. Then again, they may provide more entertainment value.

Modification to that: when they first bring those kind of slots out, the slot techs generally set them to the highest available payback, to garner interest, then after a few weeks, they tighten them up. One slot tech told me that since just about all themed slots have bonusing games, the determinant for the variable payback percentages is usually the frequency of the bonusing game--nothing else is usually altered.

Pay Slots Game

So if you see what looks like a very new themed slot, it might be worth a fun play for a while--it'll cost you less now than later.
I have one secret location in Vegas where all the Monopoly machines are set to 97.4%, per the slot tech I know who works there...you can play for HOURS on those machines without getting wiped out. He said that he was told to leave those machines at the highest setting in order to increase play in an area that gets a lot of foot traffic, but that traffic is usually going somewhere else. The frequency of the bonus games makes people stop and take a look, and hopefully, sit down and play. (He also told me that the rest of the Monopoly machines in the casino were set to 92%.)

He said that he was told to leave those machines at the highest setting in order to increase play in an area that gets a lot of foot traffic

If they wanted to attract the players, wouldn't it make more sense to advertise the generous payout rather than keep it a secret?
In general, I don't quite understand how loosening the games on low traffic days will help the casino, unless they make it known to the public. I kinda take the lack of that advertising as an indirect confirmation of Wizard's point, that they don't do this as a rule, because they either see it as too cumbersome or just not good for the business.
Sure, they could just leak the info discreetly, so that people, who hear the rumor think they'd just been let in on a huge secret, and run to the casino ... But in that case, they also don't have to actually increase the payout - they just need to allude that they are going to ...

What Time Do Slots Pay Out Online

Modification to that: when they first bring those kind of slots out, the slot techs generally set them to the highest available payback, to garner interest, then after a few weeks, they tighten them up. One slot tech told me that since just about all themed slots have bonusing games, the determinant for the variable payback percentages is usually the frequency of the bonusing game--nothing else is usually altered.

Correct me where I'm wrong, but I thought that it was standard on 'participation games' that the return is set close to 88%. For those who don't know, participation games are ones where the casino and the slot maker share in the revenue. They generally have some kind of branded theme and very fancy signage and machines. I'm sure the brand being promoted gets a cut too. I was quoted saying as much in a LV Sun article about a year about, on the Sex and the City slot machine, and I heard IGT got very mad. The next week the Sun ran a puff piece praising slots.