Understanding Penny Slots

Sep 06, 2018 According to the Nevada Gaming Control Board (NGCB), casinos in the Silver State won $6.3 billion from slot players during 2017. Of that amount, $3.17 percent – or a hair more than half – was claimed by the penny slots, while multi-denominational machines took in $3.13 billion. The term penny slots creates the idea that you can play for as little as one cent per spin. But this isn’t the case at all, because most penny slots force you to play a fixed number of paylines. If you’re on a 50-line penny slot machine, then you’ll need to wager a minimum of $0.50 per turn.

Introduction to How Slot Machines Work

In these series of posts, I continue to answer the most common questions about slot machines asked via Google searches. This post explains the simple question of how slot machines work.

In this post, I will discuss the operational components of a slot machine from the point-of-view of a slots player. Meaning, the various interface areas on the front of a slot machine. These player interface areas include:

  • Service Light
  • Bonus Display (Optional)
  • Pay Table
  • Players Club
  • Results
  • Play Console
  • Ticket In, Ticket Out (TITO)

Additional relatively minor interface areas are not listed or shown below. These areas are the locations audio speakers, audio volume control (optional), display lights, lever arm, and a hearing aid jack to accommodate those with a hearing disability.

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Service Light

A slot machine’s service light is generally located at the very top of a slot machine to be easily visible to casino employees. Because of this uppermost location, it’s also known as the candle within slots terminology.

Slots players can switch on the service light by activating the service button on the player console. Or, it will enable by itself if the player wins a hand pay jackpot or the slot machine develops a service fault. Faults might include lack of paper, a full cash-in condition, mechanical or electronic tampering, or an internal electronic failure such as CPU overheating, etc.

Modern casinos have a slot attendant call/dispatcher communication system using a headset and microphone. This setup is helpful for spotting problems on the casino floor. An activated service light automatically notifies the casino operating system. The casino dispatcher then informs the slot attendant responsible for that section of the casino.

Once the notification is sent out, a lit candle is of little practical use. At best, it guides the responding slot attendant the last few feet to the customer needing attention and, also, provides some reassurance to the waiting customer.

Slots players may activate the candle for a multitude of reasons. In general, they do so to deliberately call a slot attendant to their location, for any of a host of reasons only limited by imagination.

Pro-Tip #1: Service Light

Sometimes slots players need to leave a slot machine briefly but don’t want to give it up to someone else. If this break is relatively brief, say 10-15 minutes, use the service button to call over a slot attendant. The slot attendant can temporarily lock up the slot machine at the request of the player.

Understanding Penny Slots

The slot machine can be unlocked later by the player via insertion of only their service card … or after 10-15 minutes when the temporary lockout automatically expires. For the specific length of lockout times, ask any slot attendant at your casino.

Bonus Display Area

If a specific slot machine has a bonus round available, then it will often have a second display area. Video slots may use the same primary display screen but abruptly display the bonus round game theme instead. However, video slots most often have a secondary display screen available for bonus rounds.

The Bonus Display area is optional and dependent upon the specific slot machine model. The location of this bonus display varies. More often than not, it is high up on the slot machine to be viewable by other players from a distance.

Casinos offset their losses by offering slot machines with bonus round display visible from a distance. Frankly, wins on these highly visible and usually loud bonus displays are seen by many. This obvious win encourages other casino patrons to play slot machines.

Pro-Tip #2: Bonus Round

Bonus rounds generally cannot be activated unless that slot machine’s maximum credits are bet. By not betting maximum credits, the player automatically lowers their odds of winning.

If betting maximum credits on a specific denomination slot machine is not affordable, pick another affordable slot machine. I discuss this approach in detail at Choosing Slot Machines.

Pay Table Area

The Pay Table area lists information on the jackpot amounts for specific reel combinations. It can also display some or all of the game theme rules. This area may be permanently displayed on the slot machine, or possibly only available through an interactive series of images available by touchscreen.

In either case, all possible wins may or may not be displayed. Sometimes the list is highly abbreviated, and displays only the highest jackpots, due to space limitations. Other times, mainly with touchscreen displays, a series of images can be switched between to view every possible winning combination.

However, pay tables typically provide the highest value jackpot. Slot machine game themes with multipliers or “wild” reel symbols have their most top value jackpots being the result of these reel symbols. Alternatively, it may not show all multipliers or “wild” symbols in the tabulated list of win-reel combinations. Instead, they may be in writing along the edge of the paytable interface area.

Penny

But, with large touchscreens has come the capability to provide full paytable information along with game theme rules. Some slot machines now have this feature and, perhaps, more will have it in the future.

Many paytables show the number of credits that would be won for a specific combination of reel symbols. Or, they may show a monetary amount. In either case, these tables have separate columns for winning combinations dependent upon how many credits are bet. The farright column typically shows the winning jackpots available when betting maximum credits.

Some examples of credit and denomination combinations are:

  • 1-credit slot machines having a $100 denomination
  • 3-credit slot machines having a $5 denomination
  • 5-credit “quarter slots” having a $0.25 denomination
  • 300-credit “penny slots” have a $0.01 denomination

Pro-Tip #3: Pay Tables

Frankly, learning the paytable of any slot machines played is a relatively easy way to improve the odds of winning at slots. Many typical slots players believe there is no skill involved in winning at slot machines. Casinos gently foster this misunderstanding, as it is to their benefit. Don’t fall for it.

Traditionally, slots players find it acceptable to play slot machines with visual succinct paytables. Frankly, casinos would instead have their customers spend their time playing a game they don’t understand.

The casino isn’t making money if a player spends time studying or reading until they do understand rather than playing the machine.

One easy-to-learn skill to improve the odds of winning at slots is choosing which slots to play based on their paytables. I discuss this in detail at Choosing Slot Machines.

Players Club Area

The Players Club area contains a card reader, numbered keypad, and a small display. A security feature of players club cards is for players to choose a PIN to enter when they wish to access their player account.

Newer-style slot machines have a touchscreen display, which removes the need for a physical keypad. Meaning, it’s part of the touchscreen display.

Bets can be made on a slot machine without a players’ club card. At most casinos, it typically is not required. Neither is the PIN needed to play the device or view basic information. For example, a running total of reward points earned during the current play session is generally on display.

The PIN is required, however, to:

  • access certain portions of player’s casino account
  • transfer banked funds
  • activate “free play” provided by the casino as a complimentary gift

Results Area

The Results interface area is where the reel combinations are seen after making a bet. Whether a video slot machine or a slot machine with physical reel, this is where the results of a bet are provided.

Interpreting whether a reel combination is a winner requires an understanding of the paytable. This result is fundamental to how slot machines work.

Of course, the slot machine will immediately display the results. A small display beneath the reels shows:

  • the total amount of money or credits available in the machine
  • how many credits most recently bet
  • the jackpot amount won if any

Jackpots are usually in credits, where each credit equals the denomination of the machine rather than the amount bet, as well as a monetary amount.

Player Console

The Play Console typically has physical buttons, a cash/ticket reader, and a ticket printer. The buttons include:

  • Cash Out for requesting the removal of any player funds in the machine
  • Service to request a casino attendant
  • A Series of Buttons for selecting the number of credits to bet, or placing the maximum possible bet
  • Cash Out for removing any remaining bankroll
  • Repeat to making another bet for the same credit(s)
  • Denomination to select a specific bet denomination (optional)

The player console may have several possible button configurations, dependent upon the model of the slot machine. Given how often game themes are switched to maintain the interest of players over time, it is common for player consoles to be standardized over many machines within a casino.

Also, it is becoming common for consoles to have embedded displays visible through their semi-transparent button covers. This array of small screens are linked together to show visually stunning composite images displayed across the entire array of buttons.

Ticket In, Ticket Out (TITO)

By the beginning of the 21st Century, the use of coins was removed from casinos. This removal was for the sake of convenience of both the casino and customers. Both had issues with handling so many coins. Customers because of the difficulties inherent with carrying so much weight, but also gambling delays due to full (or empty) slot machine coin hoppers.

Casinos had issues with coins as well, including customer complaints due to delays caused by a full (or empty) slot machine coin hopper. This inconvenience was a coin logistics issue, which also included higher costs of maintaining a larger vault space and coin processing equipment and services. As casinos became more popular, coins became more difficult for everyone.

As a result, Ticket-In, Ticket-Out technology was pulled into casinos. They are now integral to how slot machines work. This automation is the same technology that was beginning to be seen in Automated Teller Machines (ATMs). Once proven out, this slot machine technology was here to stay like so many others.

Summary of How Slot Machines Work

I’ve discussed the operational components of a slot machine from the point-of-view of a slots player. This explanation of how slot machines work included the various player interface areas on the front of a typical slot machine.

There are additional relatively minor interface areas. These areas include audio speakers, audio volume control (optional), display lights, lever arm, and a hearing aid jack to accommodate those with a hearing disability.

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Understanding Penny Slots

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By Jon H. Friedl, Jr. Ph.D., President
Jon Friedl, LLC

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.

Understanding Penny Slots Games

The New Penny Slots Offer Extra at a Price

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.

Understanding Penny Slots For Real Money

The Psychology of Small Payoffs

Understanding Penny Slot Machines

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.