A 90’s kid would probably say that the arcade was one of the best places they had fun when they went out with friends. Arcade games are an extension of the slot machines used for gambling. Slot machines are more or less the bread and butter of a casino nowadays. But these seemingly kiddish looking machines are quite interesting once you get to know more about them.
The Highest Revenue
Slot machines generate the most revenue for a casino. But just by how much is really astounding. It is estimated that the slot machine brings 70-85% of the casino’s revenue; and casino’s make a lot of money everyday.
The Most Opaque Odds
The main reason why the slot machine generates so much revenue for the casino is because the odds are so opaque. There are two odds for every game when put into perspective: the player’s edge and the casino’s edge, called the house edge. Slots have the highest house edge of any game. To put that into perspective, Blackjack has a house edge of 0.5-2%; whereas slots are easily over 5%. The main problem is that you cannot know the house edge of a slot machine because of the random number generator inside it. It could be 5% or 35% and you would never know.
A Better Bet than the Lottery
A lottery ticket’s odds are determined by the number of tickets there are. And the chances of winning is roughly between one in half a million to one in three-quarters a million. Slot machines also give more or less the same reward at half the odds. That would still be one in quarter a million but it is significantly higher.
More Local of an Entertainment
Slot machines are used by locals more than the tourists because it is comparatively cheaper betting and offers very high payback.
The Chances Don’t Change
Today there are several algorithmic software slots that have the same functionality of a slot machine. It is interesting to note that since its popularization in the 90’s, slot machines have remained popular and still are, 30 years down the line. It has evolved with the passage of time, and has even become virtual, but its popularity has not died. Casinos still generate a massive amount of money from video slots, all from the pull of a lever.