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• Slot Machine Profit Margin Ratio
• Calculate Profit Margin
• Slot Machine Profit Margin Example
• Profit Margin Formula
• Profit Margin Formula

The luck factor in a casino game is quantified using standard deviations (SD). The standard deviation of a simple game like roulette can be calculated using the binomial distribution.In the binomial distribution.

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? Jun 24, 2012 Favorite Answer It varies by jurisdiction. But the slot machines in most casinos pay back just over 90% of what they take in, leaving a profit of just under 10%. Table games also have win.

Hi, Owen, and welcome to the forum!
I'm not a math guy, but I'll try to give you a short version, and let others correct it if necessary.
The 95% example you gave is a theoretical amount that the casino should receive over the long run; for every $100 run through the machine, the casino expects to keep $5 on average. The slot is programmed to have winning and losing spins come up randomly, but each a certain amount of times that will be realized over many, many spins.
Some people will lose the whole $100 without a win; some people will win $100 or more right away and walk away. Other people will keep playing when they win, maybe quit even again, maybe continue until they lose, maybe keep winning and get up with more than they put in.
It all is expected to average out to $5 lost per $100 spent. But almost no individual player will have that exact experience. I think your understanding of it is pretty close to that, based on what you wrote, but I hope that my explanation helps.
FWIW, Casinos in the US (and perhaps in Peru) use the amount a gambler puts through a machine (how much money they 'expose') multiplied by the House Edge (rough description of this formula), to decide how valuable that customer has been to them; whether the customer won or lost, their value to the casino is based on that theoretical amount, and they will offer complimentary cash, rooms, and prizes that will draw those customers to return.

if one day 1,000 people go to a casino with $100 and every one play a few hours of slot machines with a 95% RTP: 1000 x 100 = $100,000, turning a theoretical 5% of profit for the casino: $5,000, it this correct?

Yes, if and only if they each play $100 of spins and leave.
Most people do not do this. Most people playing on $100 actually play $1200 or more worth of games, as they play through their winnings as well as their initial bankroll.
Every $1 spin on a slot machine has the same 5 cent theoretical profit for the casino, assuming your 95% RTP.
I would expect if 1000 people with $100 each came in that they would play about 1,000,000 $1 spins (or equivalent), and house profit would be about $50,000.
If each spin took a slow 10 seconds, that would mean each player would play about 2 hours 45 minutes. On a more realistic 6 seconds per spin, that's a little longer than an hour and a half. Both of these numbers are well within what I've seen as possible.
If the place is 60% full for 14 hours, this is doable on about 250 machines.
I have no idea if this covers rent on the slot machines and TITO units.

Hi!
Thank you! I've read this forum for many years. I really appreciate your response. I was checking some oficial documents from the local government regarding the financial statistics from the local casino and here is some of the info from the last month (Approximately. I'm using example numbers):
Visitors per month: 9,000
Average spend per visitor: $50
Total wagered on slot machines: $4,950,000
Real monthly RTP: 95%
So, as you can see, people spent approximately $450,000 in the month, but wagered $4,950,000. That's eleven times the total spend. I don't know if I'm not understanding correctly the document or there is a kind of error. What does that mean? That the profit of the casino it's the 8% of the total wagered? ($247,500) Or it's just the 8% of the total spend? ($36,000)

Well, those are a bit different, perhaps made more complicated by translation from Spanish to English.
If I'm interpreting based on how it's done here:
$4,950,000 is called the 'drop', or how much is 'exposed' by all the gamblers together by making wagers.
95% RTP is what was returned to players from that drop, or $4,702,500. So the 'win' or 'hold' on the machines was $247,500, the other 5%.
The 9000*$50 per person (assuming this is only what they directly bet, not the amount they spent on their entire visit, like the economic impact including bar profits, gift shop, whatever), reflects the real impact of the HE on repeated exposure of your money to it. The house edge takes a cut at your money every time you cycle it, not just the first $100 you expose. And that adds up. So I would say, the house was able to keep (gross) 55% of the money made available to them during that month (247,500/450,000), while that base amount (450,000) was exposed to them approximately 11 times per $100 available.
I could, as always, be wrong. But I don't think those numbers are unrealistic.

So it's normal that slot machine players wager 10 times their initial bankroll?

Some more, some less, but I think this is a reasonable approximation for many players. This matches what I generally observe for 'normal' players.
Compulsives and AP's are different, but averaging them together might come out around the same.

So it's normal that slot machine players wager 10 times their initial bankroll? And the real profit of the casino it's a % of the total wager? This casino have a large screen which holds all the statics from the previous day. Example:
Money played: $1,300,000
Money returned: $1,210,000
Commission: $90,000
So the $1,300,000 isn't necessary what people put on the machine. I would expect that people only put $130,000 or less. So if the casino received $130,000 in cash and returned $90,000, the real return it's near 30%? (!)

The $1,300,000 is exactly what people put in the machine. Your question is (I think), where did that money come from? It could 100% be straight out of people's pockets, it could be them cycling the same money 10 times, 20 times, 30 times on average. That answer is the RTP. If everybody just plain lost, and kept feeding new money into the slots anyway, the RTP would be 0%. In your example above, the RTP is 93.077%.
So the casino made $90,000 that day. Other days, it could be a negative number, if the money returned was larger than the money played. But for the real impact on the players, you'd have to know how many came in (the numbers you listed before) and their average or actual losses. I'm sure the casino tracks those, but what they really want to know is how much of the money that came in people's pockets stayed in their casino. They could've broken everybody and realized 100% of what came in. Maybe it was 2%. In your previous example, it was 55%. I'm sure those metrics matter to them in determining what games to keep offering, what clients to concentrate on making into repeat customers, whether their staffing is appropriate (not leaving people with money looking for games, but also not a lot of paid staff standing at dead games). But the bottom line is they made 90K that day, or almost 7% of the drop. That's actually a little low, I think; again, I could be wrong.

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?

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.

Slot Machine Profit Margin Ratio

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?

Calculate Profit Margin

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.

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 Example

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.

Profit Margin Formula

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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