Slot machines are programmed to keep a specific portion of the money wagered by players, known as the "house edge" or "hold percentage." This is the inverse of the machine's "Return to Player" (RTP) percentage, which indicates the theoretical amount paid out as winnings. While machines are typically designed to pay out between 0% and 99% of the money wagered (meaning they keep anywhere from 1% to 100%), in practical, regulated casino environments, this percentage is much narrower and legally defined.
Understanding Return to Player (RTP) and House Edge
The Return to Player (RTP) is a critical concept for understanding how much money slot machines keep. It represents the long-term theoretical percentage of all wagered money that a slot machine will pay back to players as winnings.
- RTP (Payout) + House Edge (Kept) = 100% of Wagered Money
For example, if a slot machine has an RTP of 95%, it means that, over millions of spins, it is expected to pay back 95% of the money wagered on it. Consequently, the casino's house edge on that machine is 5%. This 5% is the money the machine "keeps" for the casino over time.
While the theoretical payout percentage can range from 0% to 99%, resulting in the machine keeping 1% to 100%, regulated casinos ensure their machines offer a fair payout, meaning the percentage kept is usually much smaller.
Typical Percentages Slot Machines Keep
The actual percentage of money slot machines keep varies significantly based on several factors, including jurisdiction, the type of machine, and whether it's an online or land-based casino.
- Land-Based Casinos: In physical casinos, slot machines commonly have RTPs ranging from 85% to 92%, meaning they keep between 8% and 15% of the money wagered. Some jurisdictions may have minimum payout percentages established by law or regulation.
- Online Casinos: Online slots often feature higher RTPs compared to their land-based counterparts, frequently ranging from 94% to 98%. This translates to the online casino keeping between 2% and 6% of the money wagered.
Here's a simplified table illustrating the relationship between RTP and the house edge (what the machine keeps):
| Return to Player (RTP) | House Edge (What the Machine Keeps) |
|---|---|
| 99% | 1% |
| 98% | 2% |
| 96% | 4% |
| 95% | 5% |
| 92% | 8% |
| 88% | 12% |
| 85% | 15% |
Factors Influencing the Amount Kept
Several elements dictate the precise percentage a slot machine keeps:
- Jurisdiction and Regulation: Gaming commissions and regulatory bodies in different states or countries set minimum theoretical payout percentages that slot machines must adhere to. These regulations prevent casinos from setting RTPs too low.
- Machine Type:
- Loose vs. Tight Slots: "Loose" slots have a higher RTP (lower house edge), while "tight" slots have a lower RTP (higher house edge).
- Denomination: Often, higher denomination slots (e.g., $5 or $100 machines) have slightly higher RTPs than penny or quarter machines, meaning they keep a smaller percentage.
- Game Design: The complexity of the game, bonus features, and volatility can all influence the programmed RTP.
- Competitive Landscape: Casinos in highly competitive markets might offer slightly higher RTPs to attract and retain players.
It's important to remember that RTP is a long-term average. In the short term, individual players may experience wins or losses that deviate significantly from the theoretical percentage due to the random nature of slot machine outcomes.
