- Slot Machines In Indian Casinos
- Indian Casinos With Slot Machines In California
- Indian Casino Slot Machine Payouts
- Most Winning Slot Machines In Indian Casinos
- Indian Casino Slot Machine Odds
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CASINOS: Sovereignty keeps financial reports from state, public
November 24, 20033
By GUY KOVNER THE PRESS DEMOCRAT
© The Press Democrat
Patrons at California Indian casinos are pouring about $130 million a day into 52,600 slot machines. How much they are reaping in return and whether the payoff is better across the state line in Nevada is one of the central issues in the competition for the gambling dollar.
Nevada pays almost 95 cents of every dollar dropped into slots back to players, and it must account for every nickel in reports to the state. California has no such records, leaving gamblers at the state's 54 tribal casinos guessing and state policy-makers in the dark.
Indian casinos are located on sovereign territory, with most rules and enforcement handled by the tribes themselves. Their financial reports go to a federal agency, which doesn't share the details with the state or the public.
Tribal leaders say their casinos pay out as much as Nevada's. A Nevada gaming expert maintains the return is probably lower, but there is no independent verification for any claim.
'There's no way to know,' said Bill Thompson, gaming expert and professor of public administration at the University of Nevada, Las Vegas.
Millions of gambler dollars are at stake because slots, from nickel-a-pull games to progressive machines with multimillion-dollar jackpots, account for the bulk of casino gaming revenues: 67 percent in Nevada; 80 percent to 90 percent in California.
Some Nevada gaming analysts say their state's 185,000 slots are more generous -- 'looser' in gaming parlance -- than California's, contending that stiff competition drives Nevada's odds in the player's favor.
Nevada casinos advertise as much as a 97 percent payback, with some machines set above 100 percent, Thompson said. Casinos advertise the rates to draw customers, and the 100 percent machines are scattered on the casino floor.
Nevada's Gaming Control Board polices casino advertising and constantly checks slot machine performance, said Joanie Jacka, administrative coordinator for the agency.
The state won't allow anyone to claim the 'loosest machines in town,' Jacka said, because individual casino payback rates aren't made public. Nevada reports slot payback by area, such as Las Vegas, Reno and Tahoe, and by type of machine, from 5 cent to $100 games. 'Our machines pay the most of any in the United States,' Thompson said.
Atlantic City slots return 91 percent to 92 percent to players, and New Jersey doesn't allow casinos to advertise their odds, he said.
In contrast, California's 54 casinos enjoy what Thompson calls a 'local monopoly,' sheltering them from competition and allowing a slot machine payback he estimates at 85 percent.
A tribal casino executive says there's no way the payoff could be poorer in the Golden State. 'You'd have a big empty room,' said Anthony Miranda, who runs the Pechanga Resort and Casino in Riverside County, one of California's largest gaming halls.
Tribal casinos pay back an average of 95 percent to 96 percent, keeping only 4 percent or 5 percent and depending on high volume, meaning heavy play at the machines, to make a profit, Miranda said.
'If we had 80 percent payout games, our customers would be flocking to Nevada,' he said. Miranda declined to cite Pechanga's payback, but said it was 'comparable to Nevada.'
A computer chip in every machine controls the payback rate. In Nevada, state officials test the machines before and after they are placed on a casino floor, assuring they meet the state's 75 percent minimum payback. Competition forces casinos to sweeten the pot considerably.
The payback varies, from 93.8 percent last year on the Las Vegas Strip to 95.35 percent in Sparks, one of the best rates in the state, according to Nevada Gaming Control Board reports. Reno casinos paid back 95.02 percent; South Shore Lake Tahoe, 94.23 percent; and North Shore, 94.62 percent.
Payback rate improves with the stakes: Nevada's nickel slots returned 92 percent to players, while $25 machines paid back 96.7 percent.
Patrons dropped $115 billion into Nevada slots last year, and the casinos kept $6.3 billion, about 5.5 percent. Keeping another 1 percent of the total would have added more than $1 billion to the casinos' coffers.
California tribal casinos do not make public how much they are making and paying back from slot machines, but state officials and other experts say slot machines earn casinos $250 a day, or $13 million a day statewide. If that represents 10 percent of the money put in by players, assuming a 90 percent payback, then $130 million a day -- $47.5 billion a year -- is pouring into the machines.
Tribal casinos submit annual independent audits, including slot machine payout, to the National Indian Gaming Commission, a federal regulatory agency.
The agency doesn't share the financial data with states, said Greg Bergfeld, who works in the national commission's Sacramento office.
California casinos' slot payback rate is 'very competitive with Nevada,' he said.
'There is no verification,' said Cheryl Schmit, director of Stand Up for California, a gambling watchdog group.
The only statistics released by the national commission are tribal gaming revenues by region, including one region that essentially covers California. Gaming revenue for fiscal year 2002 in California was $3.6 billion, up 24 percent, or more than $700 million, from the previous year, according to the national commission.
Critics say the tribes are too conservative in calculating their revenues. The state says tribal gaming revenue is $5 billion to $6 billion a year.
River Rock Casino, which opened amid controversy last fall in Alexander Valley, offers a payback 'similar to those in Nevada,' said spokesman Dave Reiseman. He didn't cite a specific figure.
Inside the domed, tent-topped casino, bright lights flash, chimes ring and drums spin on 1,600 slot machines with names like 'Blazing 7,' 'Movie Star' and 'Winning for Dummies.' A 25-cent slot lists a $1,198 jackpot, while the $1-a-play progressive slot 'Megabucks' shows a jackpot of $7.8 million and counting upward right before players' eyes.
Two players said they think Nevada offers better odds.
'I think they pay better in Nevada,' said Pedro Fernandez of Santa Rosa, who said he puts about $50 in the slots on his visits to River Rock.
Slot Machines In Indian Casinos
James King of Santa Rosa said he has 'done pretty well' at River Rock, including a recent $1,700 jackpot. But he used to go to Reno once a month 'and it always seems I did a little better there.'
Even if River Rock slots are less generous, King said there's a big difference in time and money between a four-hour, 170-mile drive over the Sierra to Reno and a 20-minute trip to Alexander Valley.
Indian Casinos With Slot Machines In California
Convenience is a significant economic factor, which may erase the difference in slot payback between distant Nevada and casinos near a Californian's home, Thompson said.
No matter how high the payback, there's no guarantee a player will profit from pumping money into a machine. By continued playing -- a process known in gambling parlance as 'the grind' -- machines will usually take it all.
If the experience lasts long enough, it may not matter. 'People tend to put in all their money anyway -- they're just buying time,' Thompson said.
King said that when he hit the $1,700 jackpot, he left while he still had $1,200. 'In the long run you always end up losing more than you win,' he said.
The first time I saw people use member cards for slot games, I didn’t know what they were. I asked the man sitting next to me and he explained a few details about the rewards club. But he wasn’t using a card himself.
When I asked him why, he said he once had a card but stopped winning when he played with the card. He thought the casino was monitoring his playing and adjusting the slot game results.
This rumor has circulated both online and offline for many years. It’s normal for people to hear something repeatedly and wonder if there is truth to it. But I’ve never found any proof that casinos can change the way slot games play by flipping a switch.
What makes it difficult to combat this idea and other rumors about slot machines is the many different markets where you find them. Slot machine games are regulated by each country. Complying with different regulations may mean that a slot maker must change how its games work.
The clearest example I can give is how slot games are decided in the United States. Class II slot games decide the outcome on the basis of one random number then configure the display to match that result. Class III games use several random numbers to control the reels.
How Modern Slot Machine Games Work
There aren’t many physical slot games left. They’re all electronic now, and the electronic machines use random number generator chips to decide results.
But there is more involved than just generating a random number. The “slots” in the slot games are spaces on reels. The computers now simulate these reels.
Former and current slot machine manufacturing employees answer questions about game design on several websites including Quora. This answer was posted in September 2014, and it explains how the simulated reels are managed by software.
The programs to simulate the reels and assign the random numbers are etched into ROMs, Read-Only Memory chips. These ROMs must be physically changed by a technician to change how the game payout percentages work.
Legitimate Online Casino Operators Lease Games From Service Providers
There are over 2,000 online casinos. It’s impossible to be sure about how they all manage their slot games. But what is known about the most popular casinos is that they don’t run their slot games from their own servers.
Instead the online casinos lease game services from secure data centers. These gaming platforms are run by companies like Blue Ocean and EveryMatrix. Some of the game design companies also run their own servers, leasing resources to online casinos.
Although it would be simple for online gaming companies to switch things up, they would risk losing independent certifications if they allowed the games to be rigged.
There’s no need for casinos to adjust the percentages. They can order the percentage breakouts for house edge and return to player that they want to offer. This way, they maintain competitiveness and support long-term profitability.
Many Games Publish the Theoretical Return to Player
Some slot games include the theoretical return to player in their help screens.
If the players see that RTP has been adjusted downward, they can play elsewhere. If players only suspect that the RTP has been adjusted without proper notification, they might still leave.
Casinos need players. The best strategy to grow their customer base is to keep game rewards high enough to make the risk worthwhile.
Some Governments Regulate Return to Player Percentages
Licensed gaming casinos must comply with local laws governing their businesses. Some countries provide more regulation than others.
In the United States, commercial land-based casinos are regulated by their states. However, Native American casinos are mostly regulated by the tribal governments that own them. Each jurisdiction has the authority to set minimal RTP percentages to ensure the casinos don’t make too much money.
The 1988 Indian Gaming Regulatory Act creates the legal framework used by tribes to protect their traditional gaming activities from state regulatory laws. The act also defines the three classes of gaming and how they are to be regulated.
Class II games are regulated by the tribes but only in states that allow any kind of gaming. Only Class III games are subject solely to state regulation.
True slot machine games are Class III games. Native American casinos offer Class II bingo games that are made to look like slot games. The game cabinets must display the casino bingo games that are used to determine wins.
Class II slot machines may have reels and bonus games but they’re not really slot machine games as defined by federal law.
How Do You Determine the Odds That a Slot Game Pays?
Casinos may or may not be required to declare the return to player for their slot games. Some casinos place a plate or sticker on their slot games with a notice. Other casinos leave it to the game help screens (thus, the manufacturers) to inform players.
The games’ odds may be reported as a theoretical RTP percentage, but they could also be reported as a ratio, similar to the way lottery games declare chances of winning a prize. Either way, these games don’t have to tell you how often to expect to win a prize of any amount.
Some players merely judge the looseness of slot games by how much money they win or how often they win as they play the games.
Some players judge the looseness of slot games by how popular they appear to be. This observational strategy assumes that the crowd knows more than the individual.
One of my friends tells me he only plays slot games with low jackpots. His reasoning is that players need to lose less money for someone to win $10,000 than for someone to win $20,000.
Slot Machines May Have Programmed Payout Limits
In another post on Quora from 2016, someone claimed to have industry experience in the Caribbean.
In his post, he said that a machine won’t pay more than it has accumulated after the first month of operation. That first month establishes the limit based on the profit the machine made.
The system is designed to be random within a range of percentages. The software decides when and how much to pay but won’t go over the monthly limit.
It should be obvious that this limit could be reset.
The Games Are Designed to Be as Random as Possible
People who design and repair slot machine games express much trust in the random number generator chips these games use. The RNGs, as they are called, use the latest available algorithms at the time they are manufactured.
Math has not yet progressed to the point where truly random numbers can be generated. Mechanical devices require input from an outside source to be truly random.
The way slot game designers handle this limitation is they design the chips to generate thousands of random numbers every second. The random numbers each take a turn at being available for use by the game.
Indian Casino Slot Machine Payouts
Because of the percentage payouts and internal limits they use, slot machine games don’t have to be reprogrammed to improve casino profits. Everything is designed to run with as little intervention as possible.
And that is better for the casino because the more they can intervene in a game’s function, the more likely they’ll face regulation over that intervention.
Casino game techs often say that replacing chips in slot machines must follow a special procedure (in the United States). They are closely monitored and every part must be accounted for. So, it’s less expensive for casinos if they don’t tweak the games.
Most Winning Slot Machines In Indian Casinos
Conclusion
An honest casino doesn’t need to control who wins at a slot game. They already control who can play a slot game. They can ask anyone to leave for any reason.
Naturally, casinos don’t do that. Instead. they purchase gaming systems that are designed to create an entertaining experience for patrons while legally retaining a profitable percentage of wagers.
Indian Casino Slot Machine Odds
No matter how much one’s frustration tempts a player into wondering about Big Brother Casino tweaking the game, it’s more profitable for the casino to let nature take its course.