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The gaming industry is big business in the U.S., contributing an estimated US$240 billion to the economy each year, while generating $38 billion in tax revenues and supporting 17 million jobs.
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What people may not realize is that slot machines, video poker machines and other electronic gaming devices make up the bulk of all that economic activity. At casinos in Iowa and South Dakota, for example, such devices have contributed up to 89 percent of annual gaming revenue.
Spinning-reel slots in particular are profit juggernauts for most casinos, outperforming table games like blackjack, video poker machines and other forms of gambling.
What about slot machines makes them such reliable money makers? In part, it has something to do with casinos’ ability to hide their true price from even the savviest of gamblers.
The price of a slot
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An important economic theory holds that when the price of something goes up, demand for it tends to fall.
But that depends on price transparency, which exists for most of the day-to-day purchases we make. That is, other than visits to the doctor’s office and possibly the auto mechanic, we know the price of most products and services before we decide to pay for them.
Slots may be even worse than the doctor’s office, in that most of us will never know the true price of our wagers. Which means the law of supply and demand breaks down.
Casino operators usually think of price in terms of what is known as the average or expected house advantage on each bet placed by players. Basically, it’s the long-term edge that is built into the game. For an individual player, his or her limited interaction with the game will result in a “price” that looks a lot different.
For example, consider a game with a 10 percent house advantage – which is fairly typical. This means that over the long run, the game will return 10 percent of all wagers it accepts to the casino that owns it. So if it accepts $1 million in wagers over 2 million spins, it would be expected to pay out $900,000, resulting in a casino gain of $100,000. Thus from the management’s perspective, the “price” it charges is the 10 percent it expects to collect from gamblers over time.
Individual players, however, will likely define price as the cost of the spin. For example, if a player bets $1, spins the reels and receives no payout, that’ll be the price – not 10 cents.
So who is correct? Both, in a way. While the game has certainly collected $1 from the player, management knows that eventually 90 cents of that will be dispensed to other players.
A player could never know this, however, given he will only be playing for an hour or two, during which he may hope a large payout will make up for his many losses and then some. And at this rate of play it could take years of playing a single slot machine for the casino’s long-term advantage to become evident.
Short-term vs. long-term
This difference in price perspective is rooted in the gap between the short-term view of the players and the long-term view of management. This is one of the lessons I’ve learned in my more than three decades in the gambling industry analyzing the performance of casino games and as a researcher studying them.
Let’s consider George, who just got his paycheck and heads to the casino with $80 to spend over an hour on a Tuesday night. There are basically three outcomes: He loses everything, hits a considerable jackpot and wins big, or makes or loses a little but manages to walk away before the odds turn decidedly against him.
Of course, the first outcome is far more common than the other two – it has to be for the casino to maintain its house advantage. The funds to pay big jackpots come from frequent losers (who get wiped out). Without all these losers, there can be no big winners – which is why so many people play in the first place.
Specifically, the sum of all the individual losses is used to fund the big jackpots. Therefore, to provide enticing jackpots, many players must lose all of their Tuesday night bankroll.
What is less obvious to many is that the long-term experience rarely occurs at the player level. That is, players rarely lose their $80 in a uniform manner (that is, a rate of 10 percent per spin). If this were the typical slot experience, it would be predictably disappointing. But it would make it very easy for a player to identify the price he’s paying.
Raising the price
Ultimately, the casino is selling excitement, which is comprised of hope and variance. Even though a slot may have a modest house advantage from management’s perspective, such as 4 percent, it can and often does win all of George’s Tuesday night bankroll in short order.
This is primarily due to the variance in the slot machine’s pay table – which lists all the winning symbol combinations and the number of credits awarded for each one. While the pay table is visible to the player, the probability of producing each winning symbol combination remains hidden. Of course, these probabilities are a critical determinant of the house advantage – that is, the long-term price of the wager.
This rare ability to hide the price of a good or service offers an opportunity for casino management to raise the price without notifying the players – if they can get away with it.
Casino managers are under tremendous pressure to maximize their all-important slot revenue, but they do not want to kill the golden goose by raising the “price” too much. If players are able to detect these concealed price increases simply by playing the games, then they may choose to play at another casino.
This terrifies casino operators, as it is difficult and expensive to recover from perceptions of a high-priced slot product.
Getting away with it
Consequently, many operators resist increasing the house advantages of their slot machines, believing that players can detect these price shocks.
Our new research, however, has found that increases in the casino advantage have produced significant gains in revenue with no signs of detection even by savvy players. In multiple comparisons of two otherwise identical reel games, the high-priced games produced significantly greater revenue for the casino. These findings were confirmed in a second study.
Further analysis revealed no evidence of play migration from the high-priced games, despite the fact their low-priced counterparts were located a mere 3 feet away.
Importantly, these results occurred in spite of the egregious economic disincentive to play the high-priced games. That is, the visible pay tables were identical on both the high- and low-priced games, within each of the two-game pairings. The only difference was the concealed probabilities of each payout.
Armed with this knowledge, management may be more willing to increase prices. And for price-sensitive gamblers, reel slot machines may become something to avoid.
If you love gambling casino slot games from time to time, you know that it is something absolutely exciting. Slot machine made of wood. You might spend hours in front of your device, and still, it never seems enough. However, even the most devoted players might lose more than win.
Thus, the question of whether one can use some specific rules to win in the best online casino, such as Rich Prize, has bothered gamblers since the time when the first slots appeared.
Here, we will check whether there are any strategies that work 100% for slots. Also, we will mention some rules that every gambler shall follow to boost his/her winning chances.
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The very first thing you shall do even before you start playing online casino slots is to check whether the provider you have selected can be trusted.
- Thus, start with checking the license information. The best online casino is first of all a licensed casino. Only if the provider has a license it has a right to operate.
- The second option to verify before you play slots online is customer service. It shall be available and, like in the case with RichPrize.com, the company representatives shall be there 24/7.
- Payment options: if there is nothing available that you can use to deposit and withdraw your funds, you cannot play.
- Also, check whether the website of the provider is protected. If you see a lock in front of the URL or/and the URL starts with “https”, you can register there and move on with depositing some funds. After that, you can finally play casino games online.
Choose Games with Maximum Winning Chances
Now, it is time to tell a couple of words about winning strategies. When you play casino slot games, forget about so-called winning strategies. In every reliable online casino, including RichPrize.com, slots work based on special software called the Random Number Generator. Thus, all results in online casino slots are generated in a random way. This is one of the main operating principles of any online casino. Thus, not a single result can be forecasted. It means that all the strategies are not valid for online casino slot games.
When we say “strategies” we mean the standard meaning of the word. However, it doesn`t mean that there is no way to increase your winning chances. Some opportunities are available, and you can use them freely.
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When you play casino online and have an intention to win, make sure you choose online slots with the highest RTP. In such a case, you have higher chances to win.
You can also choose online casino slots based on their volatility. Those that have a high volatility level have high wins but they also require good investments. While slots with a low volatility level don`t require big expenses. However, potential wins are also much lower. So, you can choose the best online slots based on your character and preferences.
If you love bonuses and believe that a casino cannot function properly without them, check in advance whether they are available. Bonuses can be different. They can be assigned based on different criteria. For example, RichPrize.com offers something special for every type of player. However, the casino distinguishes its loyal clients by offering them higher bonus sums, etc. Thus, make sure you like the bonuses and the conditions under which they are offered.
Final Thoughts
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Now, you know the basics to provide yourself with a top safe experience when playing in an online casino. Thus, you can finally register an account and start playing. Don`t hurry to deposit funds immediately. A good provider that cares for its clients, even though they might be potential clients at the moment) will offer you to play online slots for free.
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Usually, most casinos offer such an option. It helps gamblers to assess whether they like the casino, its website, the environment, games, etc. It demonstrates also that the provider feels confident about its services. Finally, if you have tested everything and liked it, choose your favorite games, make a deposit, and gamble.
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