Slot machine payouts vary
Greg Rogers figures casinos have the advantage on every game they offer, so he tries to find any legal way to reduce it.
The retired teacher from Center, Beaver County, asked Player's Advantage how Pennsylvania's slot payouts compare with those in neighboring states. Rogers' home is about equidistant from Rivers casino on the North Shore, The Meadows in Washington County and Mountaineer casino in Chester, W.Va., and he wants to head to the one with best slot payouts.
In the first 16 weeks of the 2010-11 fiscal year, Pennsylvania's slot machines had a payout rate of 90.38 percent, or $90.38 for every $100 bet, Gaming Control Board figures show. Rivers and The Meadows are pennies away from that average -- $90.27 and $90.29, respectively.
Mountaineer's payout is $89.92 for every $100 bet for the year to date, according to West Virginia Lottery records.
Slot machines in most states pay out 90 to 92 percent, said Frank Legato, editor of Global Gaming Business, the leading casino industry trade journal. Legato, a native of Library and graduate of Duquesne University, was a founding editor of Strictly Slots magazine and has written about slots for more than a quarter-century.
Borgata casino had Atlantic City's highest payout at 91.5 percent last year, he said, while Midwest riverboats pay out 92 or 93 percent. He said Las Vegas casinos that cater to local residents return 94 to 95 percent, compared with 91 or 92 percent on the Strip.
While 90 percent payout is common, it doesn't have special meaning, Legato said.
"It's just as much as they can get away with, really," he said. "It's not a good return (for players). But people know that going in.
"People are willing to buck the house edge because it costs so little. They can take a $20 bill and play for a good long time."
Pennsylvania's tax rate on gross slot revenue -- what's left after the payouts -- totals 55 percent: 34 percent to the state gaming fund, 12 percent to the horse racing industry, 5 percent to economic development and 4 percent to local governments.
Legato said Pennsylvania's tax rate is high but still below Maryland's 67 percent. New York has a 65 percent tax rate, and Legato said all slot machines there pay out at the state-mandated minimum of 90 percent.
Nevada's slot tax is 3 percent.
Pennsylvania law says slots must pay out at least 85 percent of the amount bet over the long run. Legato said Pennsylvania kept slot payouts from being lower than they are by allowing casinos to offer free play without it being taxed.
Nancy Bulla of the West Virginia Lottery, which oversees that state's casinos, said players often are confused by slot payout percentages.
For one thing, payout percentages cover an extended time for thousands of players. Anything can happen in a short run. You could double your money on your first spin and walk away with the profit, giving you an astronomical payout percentage. Or you could lose 15 spins in a row and have a payout of zero percent.
If you're like most players, you'll have small wins during a session but bet the profits. You might work your way back to even or a little ahead before the bottom drops out and your credits dwindle to zero.
Even though you lost your buy-in, your payout for that session wasn't zero percent. You made money at times. You played those winnings.
Of course, recognizing that your payout percentage wasn't zero offers little comfort when you've lost your stake.
How can you tell the payout percentage of a slot machine?
You can't, unless you somehow access the programming records. Slot manufacturers can offer seven or eight programs for each game, with payouts different for each one. You can't tell from looking at the machines which is which. In general, higher denomination machines pay back more than lower denomination machines.
Gross table game revenue for the state's 10 casinos totaled $36.87 million in September, up by 6.7 percent from the $34.56 million reported from the nine casinos open in August. Poker accounted for $3.33 million, or 9 percent, of September's total. Rivers reported gross table game revenue of $4.94 million in September, up from $4.16 million in August. Table games at The Meadows grossed $2.49 million in September, up from $2.4 million in August. Presque Isle in Erie had gross table game revenue of $1.71 million in September, down from $1.89 million in August.
For the week ended Oct. 24, the state's 10 casinos reported gross slot machine revenue of $41.44 million on bets totaling $541 million. That compares with gross revenue of $38.18 million for the comparable week last year, when only nine casinos were open. The statewide payout percentage for the fiscal year, which started in July, was 90.38 percent. The state's tax take is based on gross revenue. Gross slot revenue for Western Pennsylvania casinos for the week ended Oct. 24:
• $3.37 million: Rivers, on bets totaling $48.41 million. Payout since July: 90.27 percent
• $4.72 million: The Meadows, on bets totaling $60.89 million. Payout since July: 90.29 percent
• $2.73 million: Presque Isle in Erie, on bets totaling $38.27 million. Payout since July: 90.27 percent
Rivers casino on the North Shore quietly started poker tournaments last week and has daily tournaments scheduled with total fees of $65 and $100, The schedule is available on the casino website, www.theriverscasino.com .
