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by John Robison
Do the slot machines on the ends of aisles pay better than the machines in the middle? How about the machines near the table games? They’retight, right? And are the machines near the coin redemption booths loose? Join us on our journey for finding loose slot machines.
The loose slot machine is the slot player’s Holy Grail. Much as King Arthur’s Knights of the Round Table searched Britain for the Holy Grail of myth, slot players search casinos for loosemachines. Slot players have formulated many theories about where casinos place their loose machines to aid them in their quest.
Before we can figure out where the loose machines are, we have to figure out what they are. There is no U.S.D.A. system for grading the looseness of machines and no national orinternational standard that determines whether a machine is tight or loose.
So, what is a loose slot machine?
Say we have two 94% payback machines. Are they loose? I bet some people say yes and some say no. Why isn’t there agreement? Let me add a little more information to thescenario to see if it gives you an idea of why one person calls a 94% payback machine loose and another calls it tight. What if I told you that one machine was a nickel machine and theother a dollar machine? For most people who play nickel machines, a 94% machine is among the best-paying machines in their area. For most people who play dollar machines, on theother hand, a 94% machine is among the worst-paying machines in their area. The person who called 94% loose probably plays lower-denomination machines, while the person who called 94%tight probably plays higher-denomination machines.
Let me add one more piece of information. The dollar machine is a video poker machine. Dollar video poker players would rather have root canals onall their teeth with no anesthesia while their fingernails and toenails are ripped off than play a 94% payback machine. They have many adjectives for a 94% payback machine, but loose isnot one of them.
You see, loose isn’t an absolute. Looseness depends on your frame of reference. Looseness is actually a comparison. We shouldn’t say “loose.” We should really say“looser”. We should really be asking where the looser machines are. But let’s bow to common usage and continue using the term loose machine.
So, what is a loose machine?
Quite simply, a loose machine is a machine that has a higher long-term payback percentage than another machine. The loose machines in acasino are those machines that have the highest paybacks. These are the machines that will take the smallest bites out of your bankroll in the long run. No wonder slot players areconstantly searching for them.
Over the years, players have developed a number of theories about finding loose slot machines. Casinos place loose machines near the entrances, for example, so passersby can see playerswinning and are enticed to enter the casino and try their luck. The loose machines are also at the ends of the aisles to draw players into the aisle, where the tight machinesare.
And, of course, a loose machine is always surrounded by tight machines. You never have two loose machines side by side. That’s done for players who like to play more than onemachine at a time. If they should happen to stumble upon one of the loose machines, they’ll be pumping their winnings from it into the tight machines around it.
More theories. The machines near the table games are tight because table games players don’t want to hear a lot of bells and buzzers going off and happy slot players whooping it up aftera big win. Another reason the machines near the table games are tight is because table games players will occasionally drop a few coins into a slot machine and they don’t expect to winanything, so why give them a high payback.
Similarly, the machines near the buffet and show lines are tight. People waiting in line are just killing time and getting rid of their spare change. They’re not going to play for along time or develop a relationship with those machines, so the machines can be like piggy banks – for the casino! Money goes in and rarely comes back out.
The machines near the coin redemption booths, on the other hand, are loose. Players waiting in line for coin redemption are slot players and the casino wants them to see other playerswinning. Seeing all those players winning will make them anxious to get back on the slot floor to try their luck again.
Finally, finding loose machines in highly visible locations is most likely. Again, casinos want players to see players winning and be enticed into trying to get a piece of the casino’sbankroll themselves.
These are the theories I can think of off the top of my head. Maybe you know of some others. Most of the theories have a basis in psychology. When we see others winning, we’llwant to play too because 1) we’re greedy, 2) we’re envious, or 3) we see that at least some machines really do pay off and if we keep trying we might find one too.
Based on my own discussions with slot directors, interviews with slot directors, and seminars I’ve attended, I don’t think these theories are relevant in today’s slot world. To see why,we have to look at how slot machines and slot floors have changed.
Picture a slot floor of 10-20 years ago. Even if you don’t go back that far, I’m sure you’ve seen pictures on TV or in books. The slot machines on a casino floor in that era arearranged in long rows, much like products out for sale in a supermarket aisle. There’s no imagination used in placing the machines on the floor. The machines are placed using cold,mechanical precision.
On page 193 in Slot Machines: A Pictorial History of the First 100 Years by Marshall Fey, there’s a great picture of Bally’s casino floor in Atlantic City that illustrates my point. Thepicture shows hundreds of slot machines all lined up in perfect rows like little soldiers. The caption reads, “Like a Nebraska cornfield, rows upon rows of Bally slots extend as far asthe eye can see.”
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Compare that image with the slot floor layout at a casino that was designed in the last five or so years. Studies have shown that players feel very uncomfortable playing in longaisles. They feel trapped when they’re playing in the middle of a long aisle, particularly if the casino is crowded. As a result, modern casinos have shorter aisles and when a long aislecan’t be avoided, it will be wider than others so players won’t feel like they can’t get out.
One of the finding loose machines theories has casinos placing loose machines at the ends of aisles to draw people into the aisles. Having shorter aisles means having more machinesat the ends of those aisles. Can all of these machines be loose?
In addition to being uncomfortable in long aisles, players are also uncomfortable being put out on display for the other players. Perhaps they feel like they might become a target iftheir good luck is too visible.
One slot director I heard speak said that he tried to create “comfortable niches” for his players. Instead of being in a fish bowl, visible to most of the slot floor, players in hisniches can be easily seen by only the other players in that niche.
Another theory about loose machine placement is that casinos place them in highly visible areas. Modern casinos still have highly visible areas, but the areas are visible to a smallernumber of players. A loose machine in this area will influence fewer players than before.
The last change in the slot floor that I want to mention is perhaps the biggest change of all. Casinos used to have hundreds of slot machines. Now they have thousands. Oneslot director in Las Vegas said in an interview a few years ago that with so many machines on his floor, he didn’t have time to micro-manage them. He and his management decided the holdpercentage they wanted for each denomination and he ordered payback programs close to that percentage for his machines. Furthermore, he said this was the common practice in LasVegas.
As much as the slot floor has changed, the changes on the floor are dwarfed by the changes in the slot machines themselves. One thing that struck me about that picture of Bally’s is howall the machines look alike. They really do look like soldiers being inspecting, all standing at attention and in identical uniforms, or like rows of indistinguishable corn plants. In fact, it looks like there are only three different games in the 10 machines in the first row in the picture. Granted, the majority of the machines in Bally’s casino were Ballymachines. Still I’m surprised by the lack of variety in the machines in the front row in the picture.
I heard that one theory why Americans have gotten heavier is that we have access to a wider variety of foods today than we had before. When meals consisted of the same thing time aftertime, it was easy to pass up second helpings of gruel and eat just enough to no longer be hungry. But now we have Chinese one night, Mexican the next, followed by Thai, burgers, pizza,and pasta -- it’s easy to overeat on our culinary trip around the world.
Just as variety in food creates desire, so does variety in slot machines. “Hey, I used to watch The Munsters all the time. I’ll try that machine.” “I never miss TheApprentice. I’ll give that machine a go.” “I played Monopoly all the time as a kid.” “I have a cat and a dog and a chainsaw and a toaster.”
Not only is there more variety in themes on machines, there’s also more variety in paytables. Back in the 1920s, a revolutionary change in slot machine design was paying an extra coin fora certain combination. Adding a hopper to the machine in the electro-mechanical era made it possible for the machine to pay larger jackpots itself instead of requiring a handpay from ajackpot girl. Adding a computer to the slot machine made it possible for today’s machines to pay modest jackpots of a few thousand coins all the way up to life-changing jackpots ofmillions of dollars.
The computer also makes it possible to add more gimmicks to machines. Gimmicks like “spin-til-you win,” symbols that nudge up or down to the payline, haywire repeat-pays, and double spinall add more variety and interest to the games.
Today’s machines are immeasurably more interesting and fun to play than those of even just a decade ago. Each new generation of machines has crisper graphics and better sound than theprior generation. Slot designers are working overtime to devise compelling bonus rounds that will keep players playing for just one more crack at the round. How many people playingWheel of Fortune are trying to win the jackpot? Not many. Most people keep playing to get one more spin of the wheel.
Slot directors today don’t need to pepper their slot floors with loose machines to stimulate play. Today’s machines themselves generate more desire to play than seeing a player doingwell.
Now I'll finish our discussion of where slot directors place loose machines with some additional thoughts, with a few anecdotes I've heard at slot seminars, and with what I think will be thefinal nail in the coffin of loose machine placement philosophies.
One of the placement theories says that tight machines should be placed near the table games because the table games players don’t like a lot of noise while they’re playing. Have the peopleputting forth this theory ever been near a craps table? A craps table with a shooter on a hot roll has to be one of the loudest places -- if not the loudest place -- in the casino. Crapsplayers can be a boisterous lot even when the table isn’t hot. Okay, I can see players needing peace and quiet at blackjack tables (It’s difficult to count cards even in a quiet casino.), butnot at craps, roulette, Let It Ride, and other tables. In any case, the casino can adjust the volume level on a machine. The slot director can put a very quiet, loose machine near the tablesand not disturb a single table games player.
Another problem with following a loose machine placement philosophy is that it limits the flexibility slot directors have in moving their machines around on the slot floor. If the directors aregoing to give up a little bit in payback on some machines, they certainly will want to get their money’s worth and ensure that these machines are in locations where they’ll be played, be seenbeing played, and entice other players to play. Slot floors have only a limited number of high visibility areas. Slot directors won’t want to waste any of their high-paying machines in the morenumerous less visible areas, where the machines won’t be encouraging other players.
Now I’d like to share some anecdotes I’ve heard at panel discussions during the big gaming show (first the World Gaming Congress, then the Global Gaming Expo) that’s held in Las Vegas eachyear.
First, one slot director described an experiment he conducted in his casino. He had a carousel of 5 Times Pay machines that all had the same long-term payback. He ordered new chips to lower thepayback percentages on a couple of the machines to see if anyone would notice. The machines with the lower long-term paybacks received just as much play as the higher-paying machines. Noplayer, furthermore, ever complained that some of the machines in the carousel were tighter than others.
In another seminar, a slot director shared the philosophy he used to place some machines that he had inherited from another property. These machines, he said, had lower long-term paybacks thanthe payback he usually ordered for machines on his slot floor. He said, 'I read the same books that the players read. I put these lower payback machines in the spots that the books said shouldhave the high payback machines.'
My last anecdote is about a decision made by the slot director at the MGM Grand in Las Vegas many years ago. He was ordering 10 Times Pay machines for his slot floor and he was concerned aboutthe low hit frequencies available for those machines. (Machines with multiplying symbols tend to have low hit frequencies, and usually the higher the multiplier, the lower the hit frequency.)The slot director was afraid that his players would think the machines were very tight because they hit so infrequently. He said that he ordered higher paybacks than he usually does for thosemachines in an attempt to offset the low hit frequency. The machines would still have a low hit frequency, but at least the average value of a hit would be a little higher than if he hadordered a payback percentage nearer the percentage he usually ordered. He hoped that would be enough to keep his players from thinking these were tighter than the other machines on his slotfloor.
Although I think these anecdotes are the exceptions that prove the rule that some casinos at least order the same long-term paybacks for machines of a particular denomination, there is evidencethat some casinos may not. In the first edition of Casino Operations Management, for example, Kilby and Fox list a number of “general philosophies that influence specific slot placement”including: “low hold (loose) machines should be placed in busy walkways to create an atmosphere of activity” and “loose machines are normally placed at the beginning and end of trafficpatterns.”
They then say that “high hit frequency machines located around the casino pit area will create an atmosphere of slot activity.” I’m not sure whether they’re saying high hit frequencyshould or shouldn’t be placed near the pit. In any case, note that one philosophy said that loose machines create an atmosphere of activity and another said that high hit frequency machinesalso create an atmosphere of activity. This is the perfect segue into what I think puts the final nail in the coffin about loose machine placement theories.
There is no correlation between long-term payback and hit frequency. A low hit frequency machine can have a high long-term payback. High hit frequency machines, in addition, can have lowlong-term paybacks. Larry Mak, author of Secrets of Modern Slot Playing, recently queried the Nevada Gaming Control Board to find out the payback reported on penny machines. The Board said itwas 90.167%. Most of the penny video slots have very high hit frequencies, yet the overall average long-term payback is very low.
The usual reasoning behind putting loose machines in highly visible areas is so slot players can see other players winning. Maybe we should be more precise here and say that players will seeother players hitting and assume that they are winning because they are playing loose machines. But because there’s no correlation between hit frequency and long-term payback, these players canactually be playing machines with low long-term paybacks.
I don’t put much stock in loose machine placement theories, but I do believe slot directors may follow a hit frequency placement philosophy. Slot directors may try to place high hit frequencymachines in visible areas to encourage play. This philosophy says and implies nothing about the long-term payback of the machines.
John Robison is the author of 'The Slot Expert's Guide
to Playing Slots.' His website iswww.slotexpert.com
Our 13th Annual Guide to the Best Slot Paybacks in the Nation
by Frank Legato
It has been a dozen years since Casino Player first gave recognition to the casinos that had shown themselves to be the most generous in the nation. It was 1994 when the magazine first issued awards to the casinos with the “loosest slots.”
Welcome to the 13th edition of our annual “Loosest Slots” awards. This is where we tell you the casinos and regions in North America that have, for the past year, given their players back the highest percentage of the money put into their slot machines.
As we do every year, we first mark the occasion with the story of how the awards—and the concept of “loose slots”—got started. Players, in fact, began referring to slots as “loose” or “tight” in response to information first published by Player. Shortly after the magazine published its first issue in 1988, our editors decided to take the information publicly reported by regulatory agencies (only two at the time, in Nevada and New Jersey) on slot “hold” or “win”—the percentage of slot wagers kept by the casino as profit—and presenting it in a way that would be useful to slot players.
CP took the reported hold percentages and reversed them to show the “payback percentage”—the percentage of slot wagers returned to the players in jackpots. The regulatory agencies reported the information to the public every month, so we began publishing monthly charts showing slot payback in Nevada and Atlantic City. The charts grew as the industry grew, to include every new riverboat and Native American jurisdiction as their payback numbers became public.
Before long, players were referring to casinos with low slot paybacks as “tight.” Generous casinos inevitably became known as having “loose slots.”
It didn’t take long for the casinos to get over their initial misgivings about having their generosity logged by a magazine, and to start considering “loose” as a potential marketing hook. Billboards began to herald “loose slots” as something to differentiate one casino from another.
And, when Player began tallying up each year’s actual payback numbers for annual “Loosest Slots” awards, the awards themselves became badges of honor, to be shouted from billboards and advertisements.
Annual calculations of the loosest slots by casino and jurisdiction are recognized as a much better gauge of casino payback policy than examining the charts from any single month. It takes several months for slots on the floors to reach payback numbers similar to their theoretical settings. One month’s actual numbers will often reveal short-term aberrations—such as a single-month percentage exceeding 100 percent, for instance, if there happened to be several large jackpots.
Four or five months offer a much more accurate picture of slot payback, and a year’s worth of actual numbers gives a fairly accurate picture of a casino’s payback policy.
The numbers you find in the following pages will show you where the loosest slots are in 2006, based on the percentage numbers reported over the past 12 months. Before we give you this year’s highlights, there are questions that our readers always ask concerning this subject which we feel should be addressed up front.
First, a word on the nature of payback percentage: It is a long-term number that does not reflect the odds of any one player of winning or losing in the short term. A 100 percent payback percentage does not mean you win every time. It means that, over time, that machine will return as much in jackpots as it takes in wagers. The flip of a coin is 100 percent payback. Over time, it will come up heads as many times as it comes up tails.
Next, the percentage numbers reflect both regular slot and video poker percentages. The casinos are not required to separate video poker percentages from slot percentages in their reports to the state regulators, so this is viewed as proprietary information. However, as our video poker experts have reported time and again, the casinos with the highest overall percentages are almost always the same casinos with the highest-returning video poker pay tables.
Nevada and a few other jurisdictions publicly report their percentages by region rather than individual casino. In the case of Nevada, the sheer number of casinos makes individual casino listings impractical, so the state breaks the numbers into regions including Reno/Tahoe in the north, and six sub-regions of Clark County in the south—Las Vegas Strip, Downtown, Boulder Strip, Laughlin, North Las Vegas, and Balance of County.
Next, it is possible that the jurisdiction in which you play is not included in the listings—particularly if the casinos you frequent are Native American casinos. Not all casinos are required to report their hold percentages publicly, and if they are not required to make those numbers public, the casinos view the percentages as proprietary information, and will not reveal them to us or anyone else.
Finally, no, pennies are not yet broken out in our payback percentage charts. The penny phenomenon hit the slot business so quickly that the regulatory agencies have not yet caught up. Though they are probably played by at least as many players as choose the nickel denomination, the agencies have not yet broken their payback numbers out of the “Other” category that includes dimes, half-dollars and two-cent denominations. We can only report and analyze what is made public. When penny numbers are made public, you will have them.
A New Day
So who gets the crown as having the loosest slots in 2006? Not who you may think. This year’s survey reveals some firsts.
For the first time in more than a decade, our survey shows that the loosest slots in America are not in Nevada, and that the loosest slots in Nevada are not in Clark County.
For years, we have been reporting the loosest slots in the nation can be found in the locals casinos surrounding Las Vegas—in the northeast suburbs (“North Las Vegas” on the charts), along the Boulder Strip, and in other off-Strip areas of Clark County.
A survey of percentages for the past 12 months shows that the loosest slots in the nation are in Illinois, at the Casino Queen riverboat casino in East St. Louis. Casino Queen has been in the Top 3 in our survey before. This year, the riverboat casino hotel beats them all, returning 95.13 percent of all slot wagers to players in jackpots over the past 12 months.
Casino Queen was the only place in the nation to record overall slot payback percentage for the year that exceeded 95 percent. Congratulations to these folks for giving more back to players than anyone else.
No. 2 on our Loosest Slots list was in Nevada, but not in the Las Vegas Valley. This year, the second-loosest slots in the nation—and the loosest in Nevada—are in the Reno/Tahoe area, with 94.96 percent of wagers returned to players. That was enough for Reno to squeak by our third-place finisher nationwide, the Boulder Strip—the group of properties along Boulder Highway in southeast Las Vegas that includes Sam’s Town, Boulder Station and Arizona Charlie’s Boulder.
There were few surprises elsewhere in our survey this year. In Atlantic City, Borgata turns in the highest payback again—the third Loosest Slots award in the resort’s three years of existence—returning 92.51 percent of wagers. Close behind were Trump Plaza at 92.25 percent and Trump Taj Mahal at 92.15 percent.
Everywhere else, there were repeat winners: President in Missouri; New Orleans in Louisiana; Cripple Creek in Colorado; Mohegan Sun in Connecticut; Casino Queen in Illinois; Argosy in Indiana; the Gulf Coast in Mississippi; Prairie Meadows in Iowa; and Lac-Leamy in Quebec.
A few tidbits within the numbers: Although failing for the second year in a row to reach our top three (after six years as Number One), North Las Vegas does have the loosest dollar slots in the nation, returning a hefty 96.49 percent of wagers to players last year. The highest annual payback number on our chart was 97.25 percent, returned by $5 slots at the Lakeside Casino Resort in Iowa. The “lowest loosest” number was 89.22 percent, returned by nickel slots at Foxwoods.
As always, our Loosest Slots results are certified by the Ventnor, NJ, accounting firm Rimm, Lavinsky, Horowitz and Pollard LLC.
To all of our Loosest Slots winners, congratulations from Casino Player. You have proven you know how to give slot players a fair shake.
Atlantic City
5¢
Borgata 90.74
Trump Marina 90.33
Trump Taj Mahal 89.93
25¢
Harrah’s 92.63
AC Hilton 92.19
Showboat 92.18
50¢
Harrah’s 94.15
Trump Plaza 93.02
Trump Marina 92.40
$1
Trump Taj Mahal 93.98
Trump Marina 93.35
Bally’s Park Place 93.23
$5
Trump Plaza 95.77
Trump Taj Mahal 95.15
AC Hilton 94.80
Overall
Borgata 92.51
Trump Plaza 92.25
Trump Taj Mahal 92.14
Connecticut
5¢
Foxwoods 89.22
Mohegan Sun 89.20
25¢
Foxwoods 91.00
Mohegan Sun 90.21
$1
Foxwoods 92.44
Mohegan Sun 92.13
$5
Foxwoods 94.34
Mohegan Sun 93.76
Overall
Mohegan Sun 91.48
Foxwoods 91.46
Reno Airport Still Have Slot Machines Invented
Colorado
5¢
Cripple Creek 93.54
Black Hawk 93.16
Central City 92.84
25¢
Black Hawk 94.99
Cripple Creek 94.99
Central City 94.64
$1
Central City 95.53
Cripple Creek 95.30
Black Hawk 95.27
$5
Black Hawk 95.83
Cripple Creek 95.46
Central City 94.53
Overall
Cripple Creek 94.29
Black Hawk 94.15
Central City 94.04
Illinois
5¢
Casino Queen 93.18
Alton Belle 92.72
Jumer’s Casino 92.31
25 Cent
Alton Belle 95.03
Casino Queen 95.02
Jumer’s Casino 94.94
$1
Casino Queen 96.25
Alton Belle 95.39
Harrah’s Joliet 95.29
$5
Alton Belle 97.14
Casino Queen 96.94
Empress Joliet 95.81
Overall
Casino Queen 95.13
Alton Belle 94.11
Grand Victoria 93.83
Indiana
5¢
Caesars 90.47
Belterra 90.24
Argosy 90.17
25¢
Trump 93.64
Belterra 93.42
Caesars 93.32
$1
Argosy 94.70
Trump 94.58
Majestic Star 93.95
$5
Argosy 96.55
Trump 96.36
Caesars 95.40
Overall
Argosy 93.32
Caesars 92.53
Belterra 92.44
Iowa
5¢
Mississippi Belle 2 93.00
Diamond Jo 92.29
Prairie Meadows 92.06
25¢
Diamond Jo 94.48
Isle of Capri Bettendorf 94.29
Mississippi Belle 2 94.07
$1
Prairie Meadows 95.76
Argosy of Sioux City 95.58
Rhythm City 95.28
$5
Lakeside 97.25
Argosy of Sioux City 96.45
Isle of Capri Marquette 96.25
Overall
Prairie Meadows 93.69
Diamond Jo 93.20
Dubuque Greyhound
Park & Casino 93.08
Louisiana
5¢
New Orleans 91.24
Baton Rouge 91.07
Shreveport/Bossier 90.03
25¢
New Orleans 93.03
Baton Rouge 93.03
Lake Charles 91.99
$1
New Orleans 94.66
Baton Rouge 94.22
Shreveport/Bossier 93.76
$5
New Orleans 95.83
Baton Rouge 95.25
Shreveport/Bossier 93.78
Overall
New Orleans 92.78
Shreveport/Bossier 92.40
Baton Rouge 92.25
Mississippi
5¢
Coastal Region 92.23
South River Region 91.76
North River Region 90.38
25¢
Coastal Region 94.34
South River Region 93.39
North River Region 92.76
$1
South River Region 95.70
Coastal Region 95.23
North River Region 95.20
$5
North River Region 95.94
South River Region 95.80
Coastal Region 95.69
Overall
Coastal Region 93.76
North River Region 93.33
South River Region 93.15
Missouri
5¢
Harrah’s N. KC 92.22
Ameristar St Charles 91.44
Mark Twain 91.29
25¢
Isle of Capri KC 93.98
President 93.88
Argosy Riverside 93.75
$1
President 95.63
Argosy Riverside 95.63
Isle of Capri KC 94.85
$5
Argosy Riverside 97.23
President 96.63
Isle of Capri KC 96.36
Overall
President 93.25
Isle of Capri KC 92.63
Argosy Riverside 92.62
Nevada
5¢
Mesquite 93.81
Boulder Strip 93.50
North Las Vegas 93.15
25¢
Boulder Strip 96.32
North Las Vegas 96.24
Balance of County 95.08
$1
North Las Vegas 96.49
Boulder Strip 96.17
Reno 95.84
$5
Laughlin 96.31
Balance of County 96.25
Reno 96.01
Reno Airport Still Have Slot Machines For Sale
Overall
Reno 94.96
Boulder Strip 94.95
Balance of County 94.91
Quebec
5¢
Charlevoix 91.41
Lac-Leamy 90.78
Montreal 90.70
25¢
Montreal 91.59
Lac-Leamy 91.57
Charlevoix 91.08
$1
Lac-Leamy 94.38
Montreal 93.78
Charlevoix 93.52
$5
Lac-Leamy 95.23
Montreal 94.85
Charlevoix 94.24
Overall
Lac-Leamy 92.76
Montreal 92.57
Charlevoix 92.3