How does casino games work
New casino sites to play real money
A casino is simply a public place where a variety of games of chance can be played, and where gambling is the primary activity engaged in by patrons. The typical casino adds a host of luxuries to help attract players, including restaurants, free drinks, stage shows and dramatic scenery, but there have certainly been less lavish places that house gambling activities. These would still technically be called casinos. As of 2007, only two U.S. States do not have legal gambling: utah and hawaii [source: hawaii news]. Every other state either has state-sanctioned casinos or native american gaming.
How casinos work
The modern casino is like an indoor amusement park for adults, with the vast majority of the entertainment (and profits for the owner) coming from gambling. While musical shows, lighted fountains, shopping centers, lavish hotels and elaborate themes help draw in the guests, casinos would not exist without games of chance. Slot machines, blackjack, roulette, craps, keno, baccarat and more provide the billions of dollars in profits raked in by U.S. Casinos every year.
In this article we'll look at how casinos make their money, the history behind them, what the popular games are and how they are played, what you could expect when you visit one, how casino's stay safe and the dark side of the business.
Casino business
A casino is simply a public place where a variety of games of chance can be played, and where gambling is the primary activity engaged in by patrons. The typical casino adds a host of luxuries to help attract players, including restaurants, free drinks, stage shows and dramatic scenery, but there have certainly been less lavish places that house gambling activities. These would still technically be called casinos.
A truly enormous amount of money changes hands at casinos every year. While there are certainly big winners at the gaming tables every now and then, the only sure winner in a casino is the owner. In 2005, commercial casinos in the united states had gross revenues of $31.85 billion. Add to that the revenue of native american casinos, which brought in $22.62 billion in 2005, and it's safe to say that casino industry profits have been steadily increasing for more than a decade [source: american gaming].
Casinos make money because every game they offer has a built in statistical advantage for the casino. That edge can be very small (lower than two percent), but over time and the millions of bets placed by casino patrons, that edge earns the casino enough money to build elaborate hotels, fountains, giant pyramids, towers and replicas of famous landmarks. The casino advantage is known as the "vig" (short for vigorish) or the rake, depending on the game. The exact number can vary based on how the player plays the game and whether the casino has set different payouts for video poker or slot machines.
As of 2007, only two U.S. States do not have legal gambling: utah and hawaii [source: hawaii news]. Every other state either has state-sanctioned casinos or native american gaming.
A comp is a free good or service given by the casino to "good" players. Keep in mind that, from the casino's point of view, a good player is one who spends a lot of money. People who place large bets or spend hours at slot machines will often receive free hotel rooms, dinners, tickets to shows or even limo service and airline tickets if they are big enough spenders. Comps are based on the length of time the player spends at the casino and the stakes he or she is playing at. Ask a casino employee or someone at the information desk how to get your play rated. You may have to notify the dealer at the table you play at, or sign up for a "slot club" card that will automatically track your play at slot machines. That way, the casino will be aware of how much you're playing and betting. If you're rated high enough, you could get a comp. Casino experts point out that placing larger bets than you otherwise would, or staying in the casino longer in order to earn a comp is a sucker bet. The money you blow on the games is almost always far more than you would have spent simply buying whatever it is you want comped [source: renneisen].
How slot machines & coin slots work
Slot machines are the most popular games in any casino, but a lot of people don’t have a clear understanding of how they work. In fact, some people have an out-and-out misunderstanding of how they work, while others are more than willing to take advantage of the gambling public’s ignorance in such matters. See our page about slot machine myths for about what we think of those people.
The purpose of this page is to explain in some detail how a slot machine actually works. Once you have an understanding of the actual inner workings of the game, you might find yourself less (or more) attracted to this type of game, depending on your temperament. Slots can be a lot of fun, but they’re extraordinarily profitable for the casino for several reasons, not least of which is how they actually operate.
Are online slots rigged? If online slots were rigged, then you can guarantee that almost all of them would be closed down by now. It’s one of the biggest concerns people have when playing online, and it’s why we only recommend reputable casinos here at VSO. The top gaming jurisdictions such as UK, malta and gibraltar ensure that fair and secure gaming requirements are in place, and this gives each person the same percentage chance of winning.
Return to player (RTP) is the factor that decides how much the slot pays out. If the slot has an RTP of 96%, then for every $100 that is gambled, the slot will payout out $96. This is regulated and independently tested to make sure you have a safe environment to play it.
We want all of our readers to make the right decisions when it comes to playing games online, so follow our recommendations and eliminate any risk of encountering rigged slots.
Slot machines use a random number generator. Early slot machines were mechanical (think coin slots), but they still used a random number generator, in the same sense that a roulette wheel, a deck of cards, or a pair of dice are also random number generators. Modern slot machines use a computer to generate random numbers, and these determine the outcomes of the game.
The important thing to remember is that the results are truly random. The game doesn’t work on any kind of cyclical basis, and slot machine jackpots don’t become due. Slots don’t get hot or cold, either. They only seem to, and only then in retrospect. It’s not something you can predict, any more than you can predict with any degree of certainty what the next card will be when dealing a deck of cards.
The casino does have an edge over the player. This is true of every casino game, in fact. The casino gets its edge using math and large numbers. Every bet on every casino game offers a lower payout than the actual odds of winning.
For example, in roulette, the odds of hitting a specific number are 37 to 1. But a bet on a specific number only pays off at 35 to 1. It doesn’t take a genius to figure out how the casino makes its profit in that situation, does it?
Slot machines work the same way.
Slots usually have three reels but sometimes also have five reels. The reel is the image that spins in the front of the machine. It has multiple symbols on it, and if you line up certain combinations of symbols, you win money. The less likely it is to line up a particular set of symbols, the higher the payout on that particular combination.
For decades, these reels were literally large metal hoops, but now that slot machines are powered by computers, they’re more often just images on a video screen. Even in the case of slot machines with actual reels, the outcome is determined by the random number generator inside the computer.
Where those reels stop are called, naturally, “stops”. Reels can stop on a symbol or on a blank space between those symbols. On early slot machine games, each symbol would have an equal chance of coming up, but now that computers are running the show, the odds can be convoluted. You might have a cherry on a reel that comes up on average once every 50 spins, while an orange might come up on average once every 5 spins, or any other combination you can think of.
Early slot machines might have only had 10 stops per reel, but now it’s common to have between 30 and 50 stops per reel. The more stops you have on a reel, the easier it is to offer really large jackpots. For example, if you have a game with 10 stops on each reel, with an equal chance of landing on each stop, then your chances of winning any particular combination are 1/10 X 1/10 X 1/10, or 1/1000. If you have a payout larger than 1000 units, you’re losing money on that game.
Modern computers can adjust those odds using a weighting system.
The weighting is what determines how likely a particular stop is to be picked. Suppose you have a slot machine game with 10 symbols, but one of those symbols is special and only comes up once every 100 spins. The odds of getting 3 of that symbol are 1/100 X 1/100 X 1/100, or 1/1,000,000. You could theoretically offer a payout of $1 million on that combination and still break even over the long run. Casinos love that kind of action, and so do players.
Another symbol might be programmed to come up half the time, so your chances of hitting that symbol might be as low as ½ X ½ X ½, or 1/6. If that pays out at 2 to 1, the casino still makes a significant profit, but the player feels like she’s winning on a pretty regular basis.
The par sheet determines the odds. Every modern slot machine is designed with a par sheet which specifies the weightings for each stop on the reel, including the blanks. That par sheet makes the odds and the house edge for a slot machine game a known quantity—for the casino. Gambling companies keep these par sheets under wraps, though, so players never really get a clear idea of what the odds, the house edge, or the payback percentage is.
One final term you should understand is “payback percentage”. This is a mathematical prediction of how much money the machine will “pay back” over an infinite number of spins. For example, if a machine is programmed to have a 97% payback, over enough spins, the average should come close to winning $3 out of every $100 put into the machine. Casinos distinguish between the theoretical payback percentage and the actual return on the machine, but you can count on one thing. Slots are immensely profitable for the casinos.
How casinos work
Casino games
A wide variety of games can be found at casinos, and some casinos seem to specialize in inventing new games to draw more players. In some places, the games that are allowed are regulated by state laws. This section will cover the most common casino games.
Blackjack
Blackjack is one of the easiest table games. The object is to get a hand of cards whose values are as close to 21 as possible without going over (busting). Only the values of the cards are considered, not the suit -- picture cards are worth ten, and an ace can be worth 11 or one, whichever is more advantageous to the player. The house advantage can be minimized by using a strategy or even counting cards, but if a casino suspects card counting, they can throw you out. The house edge without counting is about two percent. For more details, see how blackjack works.
Slot machines
Slot machines are the most popular casino games, and casinos earn a larger proportion of their money from them than any other game [source: PBS]. Part of the slot machine's appeal is the simplicity -- the player puts in some money, pulls a handle or pushes a button and waits to see the outcome. No amount of player skill or strategy can affect the outcome in any way. Varying bands of colored shapes roll on reels (actual physical reels or a video representation of them). If the right pattern comes up, the player wins a predetermined amount of money. Slot machines used to be mechanical devices with reels of the shapes spinning past, but today all slot machines are controlled by on-board computer chips. There are still slots with actual reels, but they are computer-controlled as well. Modern slot machines come in a dizzying array of colors and themes.
Most states have laws regulating the minimum payout frequency of a slot machine, usually about 75 percent. In other words, the house edge is a whopping 25 percent. However, to entice players or compete with other casinos, most slot machines have payout rates in the '80s or '90s. State law governs whether the payout rates are published or posted near the machines themselves.
Roulette
Roulette is a classic casino game was invented by the french (the name means 'little wheel'). A spinning wheel is divided into 38 spaces, each space containing a number from one to 36. The other two spaces have the numbers 0 and 00. The spaces are also divided between the colors red and black (the 0 and 00 spaces are green). A metal ball is dropped onto the wheel as it spins, rolls and bounces around a bit, and eventually settles into one of the spaces. The players bet on which space the ball will end up in. Bets can be placed in single numbers, various combinations of two or more numbers, even or odd numbers, red or black spaces or sets of a dozen numbers at once. While the house edge varies (different bets have different payouts), it is roughly between five and seven percent.
Craps
Craps is a dice game, and is often considered the most complicated casino game. The players bet on the outcome of the roll of two six-sided dice, or on a series of consecutive rolls. The casino edge in craps is about 1.5 percent. Explaining all the details of betting on craps is beyond the scope of this article.
We'll look at more casino games in the next section.
How online slot machine games work
You really are going to have an abundance of slot games available to you if you opt to sign up to any one of the many online casinos that are listed around our website, however if you are looking for a particular type of slot game or seeking more information on how they work, play, pay and operate then the following slot playing guides and informative slot game related articles are going to be of interest to you.
Types of online slot games
Whilst there are thousands of different slot games available to play online all of them will fall into only a handful of different online slot game categories, and when it comes to selecting a slot game to play you will of course be seeking one that is suitable to both your playing style and budget.
We have listed all of the main categories of slots that you will be able to access and play online which should give you an idea of how they have been designed and structured.
Aspect that affects the way a slot plays and pays
Being able to spot a slot game that is going to give you a slightly better chance of winning is of course what any savvy slot player will be aiming to do, and as such you may find our slot game payout percentages explained article of interest.
It will let you know which types of slots have been designed to return more to players from the stakes played on those slot games and will also show you how to work out the actual payout percentage you achieved on any session you played.
One important aspect of selecting a slot game to play online is going to be one that has a playing format that you are comfortable playing, some slots are designed as low variance slot games meaning you will spin in more lower valued winning payouts than higher paying ones, and some slots are designed the other way round and these are known as high variance slots.
Please do have a read through our guide to understanding slot game variance as this will give you a much better understanding of slot game variance and the reasons why slot games have been designed in a certain way.
It is true to say that a lot of online slot players will wish to play slots in the way they enjoy playing them, either low rolling or possibly playing for high stake levels, should you be looking for a few ideas and pointers in regards to putting into play a hopefully winning slot playing strategy to reduce your chances of losing then have a read through our playing online slot games optimally guide.
Slot game design
As an online slot player or as a player who enjoys playing slot games regularly at land based casinos, you will often find yourself returning to play only a handful of slots whenever you play at either type of venue. You may be attracted to play one particular slot game due to its theme, the bonus games or a whole host of other features that any one slot game has to offer.
Should you be new to playing slot games or have only played the more basic three reel classic slots then one part of our website that may be of interest to you, if you are looking to play some slightly more entertaining slot games is our guide on slot game bonus rounds and bonus features.
There are a whole host of unique types of bonus games round and base game features that can be awarded to you when playing some slots online, and by selecting a slot which triggers it respective bonus games more regularly than others you really will be getting a much more entertaining type of slot playing session.
If you do start to play some slot games which you are unfamiliar with then you can often become a little confused in regards to how certain reel symbols have been designed, for many reel symbols perform more than one task when they spin in and you can often find certain reel symbols spring to life whenever they have spun in on your activated paylines.
To help you understand the many different ways that some slot game reel symbols work, play and operate we have put together an in-depth article and guide on the types of slot game reel symbols you will find attached to a lot of online slot games.
This will give you an idea of what some of the more unusual reel symbols such as trailing wilds, scatter and bonus symbols, soaring wild reel symbols and expanding reel symbols can do whenever they have spun in!
There are numerous different types of reel symbols attached to the reels of a lot of the most recently released online slot games and understanding how they work will save you sitting there feeling confused when they have suddenly sprung to life and have done something unusual!
Where to play online slots
When you do decide that you wish to play slot games online then you are going to have several different decisions to make, namely which online casinos to play at, for with there being many different casinos available to play online then you do need to know the merits of playing at any casino site and just which types of slot games are available.
You will find some online casinos offer an instant play suite of slot games which you access and play via a flash powered gaming platform, and some casinos offer a fully downloadable gaming platform and these sites are the ones offering the largest and most diverse range of slots.
We have put together a complete guide on the many online slot game designers and gaming platforms available online and it is worth you having a read through of that guide as it will enlighten you on which gaming platforms have a unique and exclusive range of slot games along with a lot of other relevant facts and figures!
Doug holmes author
Doug is a passionate slot fan and an expert in the gaming industry and has written extensively about online slot games and various other related information pertaining to online slots. In his spare time, he enjoys time with friends and family, reading, travelling, and of course, playing the slots.
How does gambling work? What’s the difference between that and “gaming”?
When you’re writing for a gambling blog, it’s easy to get bogged down in some of the minutia of advanced gambling topics. But sometimes it’s better to cover some of the most basic of subjects.
This blog is obviously about gambling in general, and my colleagues and I have covered almost every aspect of the subject you can think of—from how card counting works to how the house edge in a casino game is calculated.
Today I’m going to back up and cover the basics of what gambling is and how gambling works.
What do we mean when we talk about gambling?
You’re gambling when you risk something valuable on an event that might or might happen. If you lose a gamble, you lose whatever you were risking. When you win, you get paid off with a prize. The amount that you risk versus the prize amount is agreed to before you place your wager.
When people gamble on a roll of the dice at the craps table, a spin of the roulette wheel, or a hand of poker, they’re risking money to win more money. The payoffs for the various bets on craps or roulette are standard. In games like poker, though, the payoff amount changes based on how much action you see in each hand.
People gamble on all kinds of things. We cover casino games extensively on this site. But people also gamble between themselves playing card games like spades or bridge at home. They might bet on the outcome of a game of billiards or darts at the local bar. Bingo games and lottery games count, too.
It’s the placing of a bet that makes an activity “gambling”. You’ll sometimes see people claim that poker isn’t gambling if you play well because of the skill element. That’s a potentially interesting argument, but I disagree. Just because you have the edge doesn’t mean you’re not risking your money.
And if you’re risking your money on the chance to win more money, you’re gambling.
What’s the difference between “gaming” and “gambling”?
“gaming” is an expression with multiple meanings. I hear it used most often to describe people who are into video games. I’ve also heard it used to refer to other types of games people play—board games, roleplaying games, and card games.
In the context of “gambling”, “gaming” refers to legal casino gambling. It’s a term popularized by the industry itself. “gaming” sounds like less of a sin or seedy experience than the word “gambling”. This is largely a united states convention; other countries don’t necessarily have the same connotations for gambling.
England, for example, has offered multiple legal gambling activities for years. In the united states, the only legal sports books are in nevada. But in england, you can find a sports book on almost any street corner. This is an example of a broader difference between european sensibilities about behavior and america’s more puritanical sensibilities.
Gambling is huge business throughout the word, though. In 2014, the market in its entirety represented $423 billion worldwide. Lotteries represent the largest gambling activity in the world, too. In fact, almost 1/3 of the worldwide gambling market is made up of people playing the lottery.
Gambling and the law
As with many activities that are deemed “sinful” by a percentage of the population, gambling is usually regulated by your local government. These laws vary dramatically based on your jurisdiction. In the united states, we see a patchwork quilt of laws and regulations at the state level, with a couple of big laws at the federal level.
In some countries in the middle east, all forms of gambling are illegal. I have a friend who can’t even play chess legally. In other countries, especially smaller ones like costa rica, gambling laws are lax. This has led to the rise of offshore sportsbooks and online casinos that accept players from the united states.
From a legal perspective, the element of skill sometimes does affect whether an activity constitutes gambling. This is called the “dominant factor” text. Most states don’t have a list of specific games that are legal or illegal. They instead have blanket bans on gambling or certain forms of gambling—usually in the form of exceptions to those blanket bans.
But some states make exceptions for games which consist largely of a skill element rather than just being based on chance.
Some states, too, have legalized and regulated casinos. Nevada is the most prominent example, of course, as it’s home to reno and las vegas. But new jersey also has legal, regulated casinos in atlantic city.
Other states allow the local native american tribes to operate casinos. And still others (like texas) offer almost no legal kinds of private gambling at all.
The one major exception throughout most of the united states is the lottery. Almost every state has a legal lottery, and this makes up the bulk of the gambling revenue in the country.
If you’re experiencing some cognitive dissonance right now, I don’t blame you. I, too, think it’s odd that the same government that restricts gambling among private citizens so strictly also runs its own gambling operation.
Imagine if the state governments were running their own liquor stores during prohibition.
How old must you be to gamble?
Strictly speaking, most people start gambling at a young age. It seems to me that gambling is an intrinsic part of human nature.
But one restriction by the government that I favor is requiring people to be a certain age before participating. I think this is especially important if we’re talking about people participating in a gambling business. Twelve-year-old’s have no business playing blackjack for money, and I think we can all agree to that.
Legal gambling ages vary by jurisdiction, but appropriate ages mirror those of the age requirements for drinking, or joining the military, or getting married. In some places, the minimum gambling age is 18. In most, it’s more likely to be 21.
Even offshore gambling companies have strict requirements related to their customers’ ages. If you’ve ever joined an online casino, you’ll probably remember having to provide identification when you set up your account. This is part of their age verification process. Most online casinos require their players to be at least 21 years old to participate.
Is gambling a sin?
If you google the phrase “is gambling a sin”, you’ll find plenty of religious sites expressing their opinion that gambling is indeed a sin.
I think it’s a little more complicated than a black and white issue. Religious beliefs vary. According to this page from the wikipedia, there are over 4200 major religions in the world. I know of a lot of churches with hardline opinions on various activities that seem to think gambling is okay if it’s limited to a game of bingo.
It’s hard to make a solid case that gambling is or isn’t a sin, as the entire concept of “sin” is specific to individual religions. Catholics probably have a much different opinion on the matter than someone participating in one of the newer, smaller religions like dudeism or jediism.
Some things aren’t gambling
Investment and business activities, like stock market trading and insurance, are generally NOT considered gambling. One might think there’s risk and reward, but there’s a significant difference between these kinds of activities and those that gamblers engage.
Probably the biggest difference is that investing in the stock market or buying/selling insurance isn’t done for entertainment. These are financial activities with a distinct social purpose. Companies use the stock market to raise assets so that they can conduct business. Individuals buy insurance to protect themselves in case of disasters. Companies sell insurance as a financial instrument to make profits.
Some might argue that if you buy car insurance, you’re betting that you’ll be in a wreck, and the casino is betting that you won’t be in a wreck. I think that’s silly.
What types of gambling are there?
Gambling can be categorized in various ways. These are the categories I think are most useful:
Casino games
These are games offered by a casino. The odds of winning a casino game and the payout odds are different, so the casino always has a mathematical edge over the player. In the short run, players can and do sometimes win. But in the long run, the casino always wins.
You can further subcategorize casino games into table games and gambling machines. Table games include dice games, spinning wheel games (like roulette), and card games (like blackjack or pai gow poker). Gambling machines include slot machines, video blackjack, and video poker.
The most important thing to remember about casino games is that the house always has an edge. If you play any of these games long enough, you’ll eventually lose all your money.
Poker games
Poker games sometimes get lumped in with casino games, but there’s a crucial difference. In poker, you’re wagering your money against the other players at the table. The casino takes a small (usually 5%) cut of each pot to make the game profitable for them. But when you win or lose, you’re winning or losing money from the other players at the table.
One of the implications of this is that if you’re more skilled than the other players at the table, playing poker can be a positive expectation gamble. In other words, in the long run, you can expect to win more than you will lose in poker.
Sports betting
This is where you place bets on the outcomes of sporting events. These bets are often placed between individuals, but they’re even more often placed with bookmakers—companies which specialize in taking sports bets. These companies make their money from the “vig”, the extra money you risk. For example, at most books, you must wager $110 to win $100.
You can lump betting on horse and dog races into this category, although most bookmakers don’t take bets on these events. If you’re betting on horses or dogs, you’re betting through a racebook, and that works differently.
Bingo games
Everyone’s played bingo, so I don’t think I have to describe it in detail here. But bingo usually creates the prize pool from the players’ contributions when they buy their bingo cards. This is the most socially acceptable type of gambling in the world.
Lottery games
At one time, most states didn’t offer a lottery. Organized crime ran their own lottery games. If you’ve heard the expression “running numbers” in old gangster movies, that’s what they were talking about.
Now, 48 of the 50 states offer lottery games. Like casino games, the odds are in the house’s favor. Only in the case of the lottery, the state is the house. And the house edge is huge.
Conclusion
That’s about as succinct an explanation of what gambling is and how it works as I can write. You’ll find answers to lots of other questions related to specific subtopics throughout this blog, and I encourage you to read as many of these posts as you can.
How online casinos work
Unlike landbased gambling, online gambling allows for greater dynamics and a faster pace of play since there is no interaction between players to slow down the games. Enhanced convenience is also a factor that has lead to the proliferation of online casinos since players are granted access to their preferred games at all times.
Additionally, web-based casinos allow for a broader choice as they offer hundreds of different games from branded and progressive slots to dozens upon dozens variations of classics like roulette, blackjack, and baccarat. The majority of these are embellished with fantastic graphics, life-like animations, and immersive sounds which greatly contribute to one’s authentic gaming experience. Furthermore, many of the most popular games have been adapted for mobile devices like ios, windows phone OS, and android, making it possible for players to bet and potentially win big as they go.
If you are preparing to delve into the world of interactive gambling, the following article may be of interest to you as we explain how online casinos work, how payments are processed and what types of games you can find there, along with various other aspects of the casinos’ operation, concerning fairness, security and privacy.
Legality, licensing and regulation
One of the burning questions on all online casino players’ minds concerns the legality and reliability of gambling operators. Not all online casinos are created equal and while there are plenty of dependable and well-regulated operators, there are also those which should be avoided at all costs.
The first steps towards a regulated and legitimate online gambling industry were made when special licensing and regulatory commissions were created to issue licenses, protect players, ensure fairness, and oversee the casinos’ operations. Some of the most respected regulatory authorities in the industry include the malta gaming authority, the gibraltar gambling commission, the alderney gambling control commission, the UK gambling commission, and the isle of man gambling supervision commission.
If a given casino provider is licensed by one of the above-mentioned commissions, this indicates it adheres to the local gambling laws and guidelines and operates legally. This results in a number of benefits for players themselves. To begin with, if players have complaints against a gambling operator, they can direct their concerns to the regulatory body and rely on the problem to be resolved in a fair and timely manner.
Additionally, regulated and legitimate online casinos need to meet specific criteria in regard to the theoretical return of their games – normally, there are minimum payout percentages that need to be met and these are determined by the regulatory authorities issuing the casino’s license. Players’ money is well protected against insolvency because there is usually a condition on behalf of regulators for the funds to be kept in a separate account from that the casino uses for its operations.
Licensing jurisdictions also benefit from the regulation of online casino operators as each licensee is expected to contribute with taxes. Depending on the jurisdiction, these taxes can be flat or can amount to a specific percentage of the casino’s annual turnover. In some cases, separate licenses need to be issued for the different types of games the casino offers. A percentage of these funds goes towards the prevention and treatment of compulsive gambling. Since the operators are sometimes expected to open offices in the jurisdiction issuing their license, this also helps create job positions for the locals.
Please keep in mind the legality of online gambling differs from one country to another. Because of this, players are advised to first check what the legislation in their jurisdiction is and then proceed to open their accounts at their preferred online casinos. Players from the UK, however, have nothing to worry about since online gambling is fully legal in their jurisdiction and is strictly regulated by the UK gambling commission.
Types of online casinos
Virtual casinos can generally be grouped into three categories and each one has its own merits. At the dawn of online gambling when the first interactive casinos were launched in the mid 1990s, players were required to download and install the casino’s software on their desktop computers. Many operators continue to offer downloadable clients to this day where players often benefit from higher quality graphics and faster, more reliable gameplay. On the downside, one can play the games only on the device they have installed the casino client on and will not be able to access the gaming portfolio from other desktop computers.
Because of this, many players prefer online casinos where the games are available for instant play, meaning that they can be loaded directly into the internet browser and the installation of additional software is not necessary. This increases flexibility because the player can access their casino account from any desktop device they like, using their existing log-in credentials. Additionally, there will be no need to waste storage space to install bulky casino clients. Many operators give their customers a choice between downloadable clients and instant play as both options are supported.
Portable devices have become an integral part of modern people’s lives so it makes sense the majority of online casinos support mobile play on commonly used smartphones and tablets like those running on android, ios and windows phone OS. The websites of all well-known operators are compatible with mobile devices and the games can be run in-browser. There is no need to sign up again if you already have an account at a given online casino – you can log in via your phone using your existing username and password. A number of reputable gambling operators provide their customers with the option to download a free ios or android application on their phones or tablets.
Prominent developers of online casino software
Today, when online gambling has already exploded all over the internet, there are plenty of companies, committed to developing bespoke games to offer and license to casino operators. However, some names are better known than others and have been leading the interactive gambling industry towards innovation for over two decades.
One such developer is microgaming, a company whose name is associated with the launch of the first online casino in history, the gaming club, back in 1994. The company then decided to veer off in a different direction and license its software for other online casino operators to use. This was a key decision for microgaming as it allowed them to devote themselves entirely to creating bespoke and innovative games, which are instantly recognisable by their superb visuals, realistic sound effects, and user-friendly interface. Today, the company boasts an impressive catalogue which spans over 850 state-of-the-art casino games and is one of the world’s leading suppliers of interactive gaming software.
Another notable brand name is that of software developer playtech. The latter was founded a few years after microgaming, in 1999, but quickly succeeded in cementing its rock-solid position in the industry. Playtech is associated with some of the most loved and widely played slots in the world, with many of the titles being based on well-known movies, comic books, and TV series. Playtech’s developers are also to be held responsible for some of the best mobile casino games in the world. But this is not all – in addition to its comprehensive portfolio of premium casino games, the company offers operators various other services including binary options, share trading, and customer support.
Established in 1996, netent is one of the biggest names around and is entirely committed to delivering the very best in online gambling. The software developer serves over 170 of the world’s most respected casino operators, offering them an extensive selection of more than 200 premium games. These range from various award-winning slots to authentic table games like baccarat, roulette, and blackjack. Netent’s live dealer offering is one of the best in the world and allows players to enjoy a life-like interaction with professional croupiers, thanks to the high quality of the stream.
Many renowned online casinos have teamed up with more than one developer in order to give their players a wider choice and diversity in terms of graphic design, themes, and betting limits. So, do not be surprised if you come across an online casino with games that are courtesy of all of the above-mentioned software providers.
Game variety
The success of online casinos is quite easy to understand since they place players’ favourite games in a single spot, making them easily accessible from all locations and on all devices, mobile or desktop. In most instances, it is possible to test the available titles free of charge prior to processing a payment and making real-money bets.
One of the main game categories consists of online slots – all top-rated gambling operators offer hundreds of titles one can choose from. There are classic, 3-reel titles which are more suitable for traditionalists but one can also bet on modern video slots with multiple paylines, advanced graphics, enticing animations, and plenty of extra features. What is more, some of the slots have colossal progressive prizes which can beat anything landbased casinos can offer as far as jackpots are concerned.
Fans of traditional table games no longer have to pay a visit to a landbased casino in order to place a few bets on craps or roulette. Online casinos are home to a nice range of mainstays which are available in all variations one can possibly think of. Some variants can be played exclusively online and are not offered in brick-and-mortar venues. There are plenty of roulette, baccarat, and poker variants to pick from and players usually have the option to engage in multi-hand games as well. The betting limits are rather flexible so they can suit every pocket.
Video poker fans will not be disappointed, either, with a plethora of variants at their fingertips. At many online casinos, one is usually provided with the choice to make real-money bets on jacks or better, deuces wild, tens or better, bonus poker, and aces and faces, to mention just a few of the most popular titles. There is usually the option to play multiple hands at the same time.
Players who lack previous experience with casino games are not left without options since many online casinos have a separate section, devoted to arcades, keno, bingo and scratch cards. Casino fans interested in more interactive games can add further excitement to their experience by visiting the live-dealer section where they can play against professionally trained dealers in real time.
Live dealer casinos and how they work
Live dealer casinos are growing in popularity these days since they offer a more authentic experience, one you can taste only at the floors of a prestigious gambling establishment. The only difference is, however, one does not have to leave the comfort of their home in order to play.
The authentic casino atmosphere is accurately recreated with a live, high-definition stream using high-end cameras to show professional and highly-skilled croupiers hosting the games in real time. Thus, players are given the chance to see and hear real cards being shuffled, cut and dealt, the rolling of real dice, and the tossing of real roulette balls instead of the usual computer-generated graphics and sounds. Normally, there is a zoom feature enabling players to take a closer look at the tables. These games also allow for a greater social interaction as players can converse with each other or the dealer via the live chat box.
You can use the interactive control panel to make bets, read instructions on how to play the games, look at previous rounds’ history, and keep track of your current account balance. Similarly to landbased casinos, players can also toke their dealers if they are happy with the service since there is a tip box in the control panel for this particular purpose. The games that are most commonly offered in live-dealer casinos include classics like craps, blackjack, roulette, sic bo, baccarat, and hold’em poker.
Online casino deposits and withdrawals
There is one main trait all respected online gambling operators share – players who register with them are enabled to process payments to and from their accounts safely, efficiently and quickly. Such online casinos offer their customers a multitude of deposit and withdrawal methods, so that everyone can find the payment solution they are most comfortable with. Little does it matter whether you prefer to use credit or debit cards, digital wallets, prepaid vouchers, online banking, echecks, or virtual cards – in all cases, you will find a payment solution that corresponds to your needs and preferences.
Deposits are normally processed immediately and no fees are involved on behalf of the casino operators. Sometimes, players are even rewarded with bonuses upon depositing via specific payment methods. Withdrawals, on the other hand, usually take some time (several business days at most) because of the verification procedures of the casinos, which aim at ensuring the money is sent safely and to the right person. Some of the payment methods are exclusive to specific regions and countries so that players from all jurisdiction can find a method that suits them. The winnings are normally paid back via the same payment solution the player had used when processing their deposit.
Players can completely immerse themselves in their casino experience without having to worry over the safety of their funds and personal information. All highly esteemed online casinos implement the latest SSL encryptions to hide their customers’ sensitive information from ill-intentioned fraudsters. Basically, processing a payment to your favourite virtual casino is just as secure as paying your utility bills online.
How return percentages are determined in online casinos
Those who are just making a transition from landbased to online gaming often doubt the fairness of the available games. The truth of the matter is many online casinos actually offer higher return percentages than their brick-and-mortar cousins. Furthermore, at landbased casinos, it is impossible for players to obtain information as to the payback percentage of a given blackjack or roulette variation, for example.
This is not so if you play online where the outcomes of all games are governed by programmes called random number generators, or shortly rngs. The only exception are the live dealer games which take place in real time. The RNG is an elaborate piece of software which produces long sequences of random numbers using complicated algorithms. These long sequences are then reduced to simplified numbers corresponding to a specific card, slot symbol or a given number on the roulette wheel.
The main idea behind this is to ensure the results of all virtual casino games are entirely random and therefore, fair, so that all players have equal chances of collecting a payout. All reputable online casinos publish the theoretical return to player percentages (RTP) of their games. An online casino rookie may ask themselves why are these return percentages so important. They are, in fact, beyond important as they serve as indicators as to the overall winnings amount, returned to players over the long run.
Independent testing agencies – the bastion of fair play
Sceptics continue to question the fairness of online casino games despite the use of the rngs. And indeed, they partially have a right to do so because like any other software that relies on algorithms and computations, the rngs can be meddled with. This is where independent testing agencies play a crucial role.
Regulatory and licensing authorities typically require their licensees to undergo regular tests of their gaming software. These audits are performed by third-party testing agencies to ensure impartiality and accuracy of the results. The job of the auditors is to make sure the rngs of the games are running correctly as well as to detect any bias towards specific results, i.E. Towards certain cards, reel symbols, roulette numbers, and dice combinations. Thus, the specialists at the testing agencies verify the theoretical return percentages and if everything is in correct working order, the online casino is given a certificate of approval to publish on its website.
These audits sometimes happen on a monthly basis and the majority of respected gambling operators publish the results for all players to see. There are several reputable non-profit organisations which deal with casino games testing, with the most notable names being itech labs, gaming associates, TST (technical systems testing), GLI (gaming laboratories international), and of course, ecogra – testing and player protection agency, co-founded by microgaming.
Bonuses offered by online casinos
Online casinos are preferred over their landbased counterparts by many players because of their unprecedented generosity. Players are given the chance to boost their balance, make risk-free bets, and extend the time they spend playing online from the very moment they sign up with real-money accounts. There is a widespread practice among online casinos to reward newcomers with welcome bonuses upon making their first deposits. Some operators even greet new customers with appealing offers where no deposit is necessary in order to receive the free casino credits.
The deposit method one uses can also earn them additional credits at some online casinos, where players receive reload bonuses each time they transfer a payment to their accounts. There are always ongoing promotions to participate in, from various free spins offers, to cash backs and different giveaways.
While landbased casinos treat their regular customers to junkets and comps, their online counterparts reward loyal players with points each time they bet real money on any of the available games. There are multi-tier loyalty schemes and players are able to benefit from greater rewards as they progress from one level to the next. The points can be converted into cash or free casino credits but there are online casinos which reward their most regular players with various non-monetary prizes as well, including vacations, tickets for exclusive events, and free tournament entries.
Customer support and how to reach it
Adequate customer care is a sure-proof sign a given online casino is reputable and respects its player community enough to respond quickly and clearly to individual enquiries. There are several channels of communication, with the live chat facility being the quickest and most convenient one.
The live chat agents of established online casinos normally undergo rigorous and detailed training so that they can answer all types of queries, not to mention the support representatives are on standby seven days a week, including on public holidays. Should any problem arise, it will be resolved as quickly and professionally as possible because good customer care ensures players will not only stick with a given casino, but will potentially attract new members by word of month.
Calling on the phone is also an option and the good news is that many gambling operators have toll-free support lines to spare their customers the additional expenses. Of course, communicating via email is also an alternative, albeit a slower one. Despite that, players usually receive a response within a couple of hours, which is still quite reasonable.
Security measures and privacy policies
A bit earlier, we broached the subject of security and online casinos. Now we would like to further elaborate on this topic and explain how gambling operators protect the information players share with them. If you load the website of a virtual casino, you may notice there is a small padlock in the address bar next to the address. This indicates a secure SSL connection has been established to encrypt all data that is transmitted to and from the casino’s website.
The SSL encryption consists of two “keys”. One key is public and establishes the encrypted connection between the casino’s website and the web browser of the player. The second key is private and serves the purpose of decrypting the information that was previously encoded.
Another way to protect the money of players is by placing them in a separate bank account than the one the casino uses for its own operations. This condition is actually listed among the guidelines of many regulatory bodies and aims at protecting the funds players have deposited should the casino declare insolvency.
Finally, renowned gambling operators are also committed to the protection of their customers’ privacy. The data customers disclose in the process of opening their accounts is not shared with third-parties, except for the instances when the information is requested by the above-mentioned testing agencies, by the casino’s contractors or the regulatory body, issuing its license. In such cases, the information is used predominantly for diagnostics and research.
Each gambling operator has its own privacy policy and players are strongly recommended to read it in advance before they register their real-money accounts. The same applies to the terms and conditions of online casinos – it is players’ responsibility to read those beforehand to avoid misunderstandings and unpleasant surprises later on.
How do online casino games work?
In this article we will attempt to provide an explanation of exactly how online casino games function. In each section the we will attempt to provide a short answer and an expanded explanation and these explanations will be added to and expanded as and when appropriate information comes to light.
Most of this article was authored by our resident casino software expert binary 128 (you can chat to him on the message boards). Binary 128 is one of the developers behind galewind software, the casino platform for pinnacle sportsbook.
What is a random number generator (RNG) and how does it work?
In an online casino a random number generator (RNG) is something that returns a number to whatever asks it for a number. It’s as simple as that.
Let’s use european roulette (single zero) as an example. The “wheel” spins, and needs to stop on a number between zero and 36. So, the “wheel” asks the RNG for a number between zero and 36. The RNG returns 17.
The RNG doesn’t know or care what is asking for that number. The ONLY thing that it does – when something asks it for a number within a range, then it makes sure that any number in that range has exactly the same chance of being returned as any other number.
- When a european roulette “wheel” asks it for a number between zero and 36, then zero has exactly the same chance of being returned as 1, or 17, or 36.
- When a video poker “dealer” asks it for a number between 1 and 52, then 1 has exactly the same chance of being returned as 2, or 23, or 52.
And that’s it. The RNG doesn’t know that in one case it is a roulette “wheel” that is asking, and in another case it is a video poker “dealer” that is asking. It doesn’t know what the number is for, or how it is going to be used.
In that way, the RNG is one of the stupidest parts of online casino software. Something asks it for a number, it returns a number, and its job is done (until something else asks it for another number).
Again, the ONLY thing that an RNG does – when something asks it for a number within a range, then it makes sure that any number in that range has exactly the same chance of being returned as any other number.
What does this mean?
The most important part of the quick answer was the statement – when something asks the RNG for a number within a range, then the RNG makes sure that any number in that range has exactly the same chance of being returned as any other number.
When the roulette “wheel” spins, and asks the RNG for a number between zero and 36, the RNG returns 17. When the “wheel” spins again and asks the RNG for another number, 17 has exactly the same chance of being returned as any other number. And when the “wheel” spins again, then again 17 has exactly the same chance of being returned as any other number.
When players see the number 17 returned three, or four, or five times in a row (or even more), then they start thinking “hey, this isn’t a random wheel! Is this game rigged!” that’s because people see things in “patterns”. People like to see “patterns” so much that they can see them in things even when there are no real “patterns” there at all. (let’s call it imagination.)
But, like I said earlier, rngs are just amazingly stupid. They have absolutely no imagination. AND, they have no memory. They don’t know what the last number they gave was, what the requested range was, who asked for it – nothing – no imagination, and no memory.
So, for an RNG, returning the number 17 to a roulette “wheel” three, or four, or five times in a row is … random. It doesn’t happen very often, and because it doesn’t happen very often the player notices it even more. If the roulette “wheel” stops on:
14, 12, 2, 3, 2, 34, 27, 21, 6, 15, 13, 22, 36, 9, 0, 17, 17, 17, 17, 17
Those five 17s in a row stick out like a sore thumb. “hey, this isn’t random. How can you have a pattern with five 17s in a row?”
There is no doubt – it can be a little confusing to think about it.
But if we look at that sequence of numbers above, then the first five numbers – 14, 12, 2, 3, 2 – have exactly the same chance of being returned as the last five numbers – 17, 17, 17, 17, 17. That is, the exact return order of 14, 12, 2, 3, 2 has the same chance of happening as the exact return order of 17, 17, 17, 17, 17.
This last part can be difficult to really understand, but … that is random.
How does a random number generator guarantee that any number in a requested range has exactly the same chance of being returned as any other number?
There are two methods to a random number generator (RNG). The first method is the one that generates a random number – I’ll call this method generate. The second method transforms that random number into something that can be used by whatever asked for it – I’ll call this method scale.
The generate method
There are 2 different types of things that can generate a random number – the first is a piece of hardware, and the second is a piece of software. A hardware example is the QUANTIS product from a company named ID quantique. A software example is named the mersenne twister algorithm.
The VAST majority of online casino programs use a piece of software to generate, and the mersenne twister is a very common software program. (galewind software uses it.) when I use examples in all of this documentation, I’ll tend to focus on the mersenne twister.
The generate method usually returns a number from one of two different generate ranges (depending on the software). Range #1 is [0 to 0.999999999999999]. Range #2 is [0 to 4,294,967,295]. (the mersenne twister uses range #2.)
The most important contribution of the generate method to the RNG’s performance – over the millions, or billions (or trillions) of numbers that it is asked to return:
- There is no observable pattern to those numbers (aka correlation).
- Those numbers are equally distributed across the generate range (aka bias).
In other words, the generate method returns a random number. No correlation is the “no one can guess the next number” guarantee. No bias is the “every number has an equal chance” guarantee.
There are all sorts of tests that can be run on the numbers that the generate method returns to determine their “quality” as “random numbers”. (link to test details 1. Link to test details 2.)
(the “quality” of the “random numbers” returned by the mersenne twister algorithm is considered excellent.)
The scale method
Since a large number of online casino software uses the mersenne twister to generate, let’s focus on the mersenne twister to talk about scale.
As we’ve seen, the mersenne twister’s generate method returns a random number in the generate range of 0 to 4,294,967,295. Obviously, these numbers are of no use to a roulette “wheel” that is asking for a value between 0 and 36. The generate method’s random number has to be transformed into a number that can be used by the “wheel”. Most importantly, it needs to be transformed without messing up the “quality” of the generate method’s “random number”.
Here is one way to make that happen.
The mersenne twister’s generate range (including 0) is 4,294,967,296 numbers. The roulette “wheel’s” requested range is 37 numbers. Divide 4,294,967,296 by 37, and we get 116,080,197.18919. Throw away the decimal and we get 116,080,197.
Now set up 37 “number bins”, one for each of the roulette “wheel’s” requested range. The first bin will return to the “wheel” the number 0, the second bin will return the number 1, and so forth. The last bin will return the number 36.
Into each of these “number bins” we put exactly 116,080,197 numbers. The first bin will contain the numbers 0 to 116,080,196. The second bin will contain the numbers 116,080,197 to 232,160,393. The last bin will contain the numbers 4,178,887,092 to 4,294,967,288.
Finally, we ask the mersenne twister to generate a random number – it returns 2,031,403,430. (bin 18, which returns the “wheel” number 17, contains the numbers 1,973,363,349 to 2,089,443,545). So, the generate number 2,031,403,430 returns the scale number 17 to the roulette “wheel”.
A final note
You can see that the highest number that the mersenne twister’s generate method can return is 4,294,967,295. But the highest number in the last roulette “wheel” bin is 4,294,967,288. This is a difference of seven numbers.
If the mersenne twister’s generate method sends into the scale method one of these seven numbers, then the scale
How slot machines work
Originally, casinos installed slot machines as a diversion for casual gamers. Unlike traditional table games (such as blackjack or craps), slot machines don't require any gambling knowledge, and anyone can get in the game with a very small bet.
This idea proved to be a monstrous success -- slot machines eventually moved off the sidelines to become the most popular and the most profitable game in town, bringing in more than 60 percent of the annual gaming profits in the united states.
The technology of slot machines has also changed a lot over the years. The classic mechanical designs have been almost completely replaced by computer-controlled machines. But the game has remained the same. The player pulls a handle to rotate a series of reels (typically three) that have pictures printed on them. Winning or losing is determined by which pictures line up with the pay line, a line in the middle of a viewing window. If each reel shows the same winning picture along the pay line, you win (certain single images are sometimes winners as well). The amount you win -- the payout -- depends on which pictures land along the pay line.
In this article, we'll find out what sets the reels in motion in modern slot machines as well as in the old mechanical models. We'll also see what determines the odds of winning on a slot machine and look at some popular variations on the traditional game.
The classic slot machine design works on an elaborate configuration of gears and levers. The central element is a metal shaft, which supports the reels. This shaft is connected to a handle mechanism that gets things moving. A braking system brings the spinning reels to a stop, and sensors communicate the position of the reels to the payout system. A coin detector initially registers that a coin has been inserted and unlocks a brake so the handle can move.
There are any number of ways to arrange these elements, and manufacturers have tried dozens of approaches over the years, so we'll focus on one representative design. The basic design includes three reels mounted on a central shaft. The central shaft also supports three notched discs, which are connected to the three reels. A second shaft below the central shaft supports a kicker, a piece of metal comprising three paddles. The kicker paddles are lined up so they can push against the notches on the three discs. The second shaft also supports a series of connected stoppers, teeth that lock into the notches on the discs.
The kicker and the stoppers are both connected to springs, which hold them in a standby position. The kicker is held in place behind the discs, while the stoppers are held up against the discs, locking them into place.
When you pull the handle on a slot machine, these parts do a lot of work. We'll look at exactly what happens in the next section.
How slot machines work – and why you should think twice before playing them
Author
Professor of casino management, university of nevada, las vegas
Disclosure statement
Anthony frederick lucas receives funding from the sycuan institute on tribal gaming and the university of nevada, las vegas.
Partners
University of nevada, las vegas provides funding as a member of the conversation US.
The conversation UK receives funding from these organisations
The gaming industry is big business in the U.S., contributing an estimated US$240 billion to the economy each year, while generating $38 billion in tax revenues and supporting 17 million jobs.
What people may not realize is that slot machines, video poker machines and other electronic gaming devices make up the bulk of all that economic activity. At casinos in iowa and south dakota, for example, such devices have contributed up to 89 percent of annual gaming revenue.
Spinning-reel slots in particular are profit juggernauts for most casinos, outperforming table games like blackjack, video poker machines and other forms of gambling.
What about slot machines makes them such reliable money makers? In part, it has something to do with casinos’ ability to hide their true price from even the savviest of gamblers.
The price of a slot
An important economic theory holds that when the price of something goes up, demand for it tends to fall.
But that depends on price transparency, which exists for most of the day-to-day purchases we make. That is, other than visits to the doctor’s office and possibly the auto mechanic, we know the price of most products and services before we decide to pay for them.
Slots may be even worse than the doctor’s office, in that most of us will never know the true price of our wagers. Which means the law of supply and demand breaks down.
Casino operators usually think of price in terms of what is known as the average or expected house advantage on each bet placed by players. Basically, it’s the long-term edge that is built into the game. For an individual player, his or her limited interaction with the game will result in a “price” that looks a lot different.
For example, consider a game with a 10 percent house advantage – which is fairly typical. This means that over the long run, the game will return 10 percent of all wagers it accepts to the casino that owns it. So if it accepts $1 million in wagers over 2 million spins, it would be expected to pay out $900,000, resulting in a casino gain of $100,000. Thus from the management’s perspective, the “price” it charges is the 10 percent it expects to collect from gamblers over time.
Individual players, however, will likely define price as the cost of the spin. For example, if a player bets $1, spins the reels and receives no payout, that’ll be the price – not 10 cents.
So who is correct? Both, in a way. While the game has certainly collected $1 from the player, management knows that eventually 90 cents of that will be dispensed to other players.
A player could never know this, however, given he will only be playing for an hour or two, during which he may hope a large payout will make up for his many losses and then some. And at this rate of play it could take years of playing a single slot machine for the casino’s long-term advantage to become evident.
Short-term vs. Long-term
This difference in price perspective is rooted in the gap between the short-term view of the players and the long-term view of management. This is one of the lessons I’ve learned in my more than three decades in the gambling industry analyzing the performance of casino games and as a researcher studying them.
Let’s consider george, who just got his paycheck and heads to the casino with $80 to spend over an hour on a tuesday night. There are basically three outcomes: he loses everything, hits a considerable jackpot and wins big, or makes or loses a little but manages to walk away before the odds turn decidedly against him.
Of course, the first outcome is far more common than the other two – it has to be for the casino to maintain its house advantage. The funds to pay big jackpots come from frequent losers (who get wiped out). Without all these losers, there can be no big winners – which is why so many people play in the first place.
Specifically, the sum of all the individual losses is used to fund the big jackpots. Therefore, to provide enticing jackpots, many players must lose all of their tuesday night bankroll.
What is less obvious to many is that the long-term experience rarely occurs at the player level. That is, players rarely lose their $80 in a uniform manner (that is, a rate of 10 percent per spin). If this were the typical slot experience, it would be predictably disappointing. But it would make it very easy for a player to identify the price he’s paying.
Raising the price
Ultimately, the casino is selling excitement, which is comprised of hope and variance. Even though a slot may have a modest house advantage from management’s perspective, such as 4 percent, it can and often does win all of george’s tuesday night bankroll in short order.
This is primarily due to the variance in the slot machine’s pay table – which lists all the winning symbol combinations and the number of credits awarded for each one. While the pay table is visible to the player, the probability of producing each winning symbol combination remains hidden. Of course, these probabilities are a critical determinant of the house advantage – that is, the long-term price of the wager.
This rare ability to hide the price of a good or service offers an opportunity for casino management to raise the price without notifying the players – if they can get away with it.
Casino managers are under tremendous pressure to maximize their all-important slot revenue, but they do not want to kill the golden goose by raising the “price” too much. If players are able to detect these concealed price increases simply by playing the games, then they may choose to play at another casino.
This terrifies casino operators, as it is difficult and expensive to recover from perceptions of a high-priced slot product.
Getting away with it
Consequently, many operators resist increasing the house advantages of their slot machines, believing that players can detect these price shocks.
Our new research, however, has found that increases in the casino advantage have produced significant gains in revenue with no signs of detection even by savvy players. In multiple comparisons of two otherwise identical reel games, the high-priced games produced significantly greater revenue for the casino. These findings were confirmed in a second study.
Further analysis revealed no evidence of play migration from the high-priced games, despite the fact their low-priced counterparts were located a mere 3 feet away.
Importantly, these results occurred in spite of the egregious economic disincentive to play the high-priced games. That is, the visible pay tables were identical on both the high- and low-priced games, within each of the two-game pairings. The only difference was the concealed probabilities of each payout.
Armed with this knowledge, management may be more willing to increase prices. And for price-sensitive gamblers, reel slot machines may become something to avoid.
How mobile slot machines work
Slot games started out as big machines with drums that spun symbols around when people pulled a long lever. These one-arm bandits couldnвђ™t be further from how the games that you know and love, work today. Todayвђ™s slot games can be found online or via slot apps, just like the games you can find at house of fun. These work with a click of the mouse or a swipe and tap of the smartphone screen and you certainly canвђ™t see drums of the reels spinning around. Of course, there is plenty going on behind the scenes to make sure that you can enjoy a fun and exciting game with great sound effects and graphics, unique features and mini games and even progressive jackpots. Here weвђ™ll look at the guts of the mobile and online slot machines that we have all grown to love in order to understand how they are designed and how they work.
The ins and outs of video slots
When slot games first moved online in the 1990s, people were nervous of a game where they couldnвђ™t see the actual reels spinning. But, the way that these games work has proved to players that they are not only fun, but fair and reliable.
The most important part of the way that video slot games work is the random number generator (RNG) and hereвђ™s where it gets a bit technical. The RNG produces a constantly random sequence of numbers. When you click spin, that sequence will stop, telling the symbols where to land. This means that the symbols will land in a random way every time you spin.
How is the random number generator random?
The RNG does not have a memory so it canвђ™t remember if youвђ™ve won or lost in the past and it canвђ™t remember how the symbols landed on the reels on past spins. It works with a mathematical equation, but the results are not pre-programmed.
The RNG is constantly producing numbers so that each time you press the spin button, the sequence will be different. In other words, no 2 spins will be the same, giving you a unique playing experience every time you sit down to play!
How does a slots game work?
The RNG is the guts of the slot machine; itвђ™s behind the scenes and we donвђ™t see it. Letвђ™s take a look now at the parts of the slot games that we do see.
- Reels – there are slot games that aim for a more authentic look and feel and these have 3 reels, similar to the original land-based machines. These are known as classic slots or fruit machines. More common are the video slots and these generally have 5 reels, although you may find games with 6 reels. These are the types of games you will find at house of fun.
- Paylines – this describes how many lines of combinations of symbols there are in the game and also explains how many chances you have to win as you play. Video slots games generally have between 5 and 50 paylines, but there are games with more. You can choose how many paylines you want to play and this will affect the size of your bet. You will only be paid out for combinations that land on active paylines so the more paylines you bet on, the bigger your chances of winning!
- Rows – the number of rows in a game describes how many symbols there are visible on each reel at a time. Online slot machines most commonly have 3 rows, but 4 is not unusual. At house of fun, during some bonus features, the number of rows increases to give you even more opportunities to create winning combinations!
- Ways to win – some games do not have paylines, but they have something called ways to win. These ways to win are calculated by how symbols land with respect to other symbols. Games commonly have 243 or 1,024 ways to win. If a game increases its number of rows, such as during the free spins feature of some of house of funвђ™s games, the number of ways to win will go up.
- Features – features are what make games unique and fun. At house of fun, there is an incredible range of features, including free spins, mini games, gold symbols, progressive jackpots, classic star jackpots, rapid fire jackpots and more.
How mobile slots are unique
Mobile slots use the same RNG as online slot machines so whether you are playing on your computer or on a mobile device, every spin will be unique and fair. The games also look the same as online slot machines with great graphics and sounds, unique features and impressive bonus games. But, at house of fun, we know you love to play on the go and have your favorite games right in your pocket with you, so we have developed our games to be played on mobile devices also. These games are designed to fit perfectly onto a smartphone or tablet screen with a specific layout and display that suits the size of the screens. The swipe and tap features of mobile devices are also perfect for slots play and these are incorporated for intuitive and simple playing. Not only that, but mobile players will have access to the same incredible progressive jackpots as online players.
So, let's see, what we have: casinos bring in billions of dollars in revenue each year. Learn about casinos and find out how security keeps casinos safe and fair. At how does casino games work
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