The name “Penny Slot” is something of a misnomer. Most people who don't know better might assume that a penny slot costs a penny to play but that's not the case. For decades, the most popular slot machines in U.S. casinos were nickel slot machines. In the late 1960s, Bally Manufacturing developed an innovative machine called the Money Honey, a penny slot that could be played for up to five coins simultaneously. These multi-line machines that accepted multiple coins per line were a hit with players—despite the fact that they were playing more per pull of the one-armed bandit's handle.

The New Penny Slots Offer Extra at a Price

Slot machines are a firm favourite with players in every casino lobby, both online and land-based. Maybe it’s because they’re so simple to play: you place your bet, hit the button and, after a few seconds of sounds and visuals, the right symbols in the right positions could make you a winner. These games with the building prizes are progressive slot machines, and they’ve been favorites of jackpot hunters for decades. The base awards can be small, as in the $250 starting point on 25-cent Blazing 7s slot machine from Bally Technologies, or can be life-changing, with jackpots of millions of dollars in $1 Megabucks machines from. Knowing how slot machines work is the first step to learn the best slots secrets and tips to improve your chances to win. Despite the popularity of these games, slots are not easy to beat both when you play them on the best online casinos and at land-based slots rooms. Get to know slots and how they work. Slots aren’t exactly complicated — you select your betting amount, hit spin, and the machine essentially does the rest. However, since game developers started to include more features in these games, like multiple reels, paylines, and symbols, the layout and mechanics may seem a bit overwhelming to. These games with the building prizes are progressive slot machines, and they’ve been favorites of jackpot hunters for decades. The base awards can be small, as in the $250 starting point on 25-cent Blazing 7s slot machine from Bally Technologies, or can be life-changing, with jackpots of millions of dollars in $1 Megabucks machines from.

The new penny slot games offer their fair share of electronic excitement with such features as theme songs from popular game shows and movies, bonus screens, and special mystery payoffs. However, all of these extras come at a cost. The most popular games from the Japanese video conglomerate Konami including 'Race Driver' and 'Beat the Field' require a minimum of 50 coins amounting to a dollar per spin. Several other manufacturers have games with up to 16 lines that require up to 100 coins per spin—totaling a whopping 1,600 pennies.

While slot manufacturer IGT offers a penny version of its popular 'Megabucks' game that can be played for just a few pennies, for the standard 'Megabucks' machine, which is a $1 variety, the player must play three coins per spin, or $3. On the new 'Penny Megabucks,' the player is required to play the maximum of 300 coins per spin, so the price is the same.

The Odds Are With The House

These machines are built to be both fun and addictive. They require a minimum number of coins/lines to qualify for the bonus screens (where the bulk of the payoffs are made). Players must make sure to play enough coins/lines to get the payoff when a bonus hits.

For someone to play a 25-cent video poker game, they'll have to play five coins in order to qualify for a 4,000-coin royal flush. That's $1.25 per spin for a chance to win $1,000. On most penny slots offering payoffs of bronze, silver, and gold, the big payoff is much harder to win than the 45,000-to-1 odds on a video poker game. Plus, the player will likely risk $2.50 to $5 per spin to win it. That adds up.

The Psychology of Small Payoffs

Human beings are creatures of habit and thanks to the lure of instant gratification are prone to gamble. When players consistently receive small payoffs, psychology kicks in. The mind tricks itself into believing, 'Great, I'm winning,' when in reality, the player's initial deposit is usually being frittered away to nothing.

Penny slots have the kind of high hit frequency that ropes players in. As fun and exciting as the promise of winning may be, most of the time, the payoff is actually less than the initial wager on a spin. In other words, the bells and whistles go off on a regular basis but for small payoffs. For example, a player might risk something like 100 coins and only get a payoff of 18 coins.

Play Responsibly

The main issue with gambling in general—and penny slots, in particular—is that as a player, you mustn't forget that your personal bankroll is considerably smaller than that of the casino. Bear in mind that if you budget $200 for a trip to a particular casino where playing a penny slot takes 250 coins per spin, you won't get nearly enough spins to make a dent in the long-odds of hitting a substantial jackpot before your bankroll is exhausted.

Fast Facts: Tips for Newbie Penny Slot Players

As with any form of gambling, playing the penny slot machines should be approached with caution.

• Start by choosing just a few lines or just a single coin per spin.
• It's not recommended for players to automatically hit the maximum spin button.
• Read the help screen to find out how many coins it takes to have a bet on all the lines so you can better decide how many coins and credits to risk per spin.

Overall, players should enjoy their slot play, but never forget that gambling is gambling—especially on penny slots. A handful of pennies is still a dollar per spin. If you're playing more per spin, you'll bust-out fairly often—and it can happen very quickly.

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.

Slot Machines How They Work

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.

How Do Slots Work

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.

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.

How Do Slot Machines Pay

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.

Casino Slot Machines How Do They Working

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.