How Do Slot Machine Jackpots Work

How many parts does a slot machine have? In general, traditional slot machines are made up of six parts. When you insert your money, these parts work together to activate the mechanism: The coin slot. How casino slot machines work for most players is that when you press the spin button the reels start spinning and you could win or lose. Over the years and through technological advancements slots have changed quite a bit, although the idea remains the same, the reels spin and stops in random positions, should three or more identical symbols form a combination then the player wins. Slot Machine Myths; Slot Machine B.S. Wrong info that's published elsewhere. Tips for increasing your chances of winning, and saving money. Odds of hitting the jackpot, progressive jackpots, and other jackpot topics. Skill-Based Slots. The scoop on the new games in which your results aren't entirely determined by chance.

Slot machines are an extremely popular form of gambling. The premise is simple: you insert a coin, pull a lever, and reap in cash rewards if the symbols on the reels align in a certain way. Slot machines test your luck and intuition, and, despite the simple rules, they are not boring in the slightest. Slot machines are an extremely popular form of gambling. The premise is simple: you insert a coin, pull a lever, and reap in cash rewards if the symbols on the reels align in a certain way. Slot machines test your luck and intuition, and, despite the simple rules, they are not boring in the slightest.

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.

How Do Slot Machine Jackpots Work Now

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.

How Do Slot Machine Jackpots Work Against

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.

Most slots players have dreamed about using slot machine hacks and cheats to bring down the house. I’ll walk you through some of the most successful slot machine cheats, as well as some outdated techniques that will fail every time.

Some of these video slot machine hacks and cheats used to work, but they don’t any longer. Before I begin, let me start with a disclaimer. Hacking slot machines is against the law in most countries. I do not advise it, and LegitGamblingSites.com does not endorse it.

Let’s see how slot machines work and whether you can cheat slots today.

Casino Slot Machine Hacks

There are some slot machine hacks that worked on old-school slots. I don’t recommend trying these today. They won’t work on modern slot machines which have evolved to deal with them. If you try these and get caught, you’ll likely get banned from the casino for life. Nonetheless, they did work once upon a time, and if you happen to find a classic slot machine in a bar, you might be able to try some of these.

The Yo-Yo Slot Hack

I have a confession to make before I tell you about this slot hack. I have used this successfully, but not on slot machines. I pulled it off once or twice on the vending machines in my high school and scored a free bottle of Coca Cola or two.

The idea is to tie a thin string around a coin and deposit it. When a deposit is registered, you yank the string and pull it out. If you know anything about modern slot machines, you probably just laughed out loud. Out of all the slot machine hacks and cheats, this most definitely would not work today.

The Counterfeit Coin Trick

Before scanning technology became widespread, slot machines used to accept bets based on the weight of the coin. The question of how to hack slot machines had a real answer: Use fake coins which were the same weight as real ones. They used similar metals or hard material, and they got away with it for a long time.

Again, technology has caught up and rendered this slot machine cheat impotent. Ask any experienced player, and they’ll tell you that it’s difficult enough to get a slot to accept some real coins, never mind counterfeit ones!

Tampering With Payout Switches

Throughout gaming history, slot machine hacks and cheats have brought on some hilarious inventions. A number of them involve guitar strings and metal wires. At one point, players would attach hooks and metal claws to the end of metal wire or strings and feed it through the cooling system of the slot machine. They’d rattle around for a while, and eventually, they’d hit the payout switch.

This hack would never work on an electronic slot machine. To understand why, you should read our report on Random Number Generators (RNG). There are no physical switches which activate payouts in modern slot machines. The only thing tampering with slot machines will get you these days is a place on the sidewalk when the casino security team catches you.

Slot Machine Cheat Codes

As slot machines evolved past basic mechanical parts and made use of technology like RNGs and electronic sensors, computer programmers became a key part of keeping them honest.

What happens when the computer programmer who’s supposed to do his job lets temptation get the better of him? Just ask Ronald Dale Harris. He was in charge of finding and fixing software flaws. He was a high-level programmer and worked for the Nevada Gaming Control Board in the 1990s. One day, for whatever reason, he decided to modify some slots so it would pay out when he entered a certain sequence of coins.

Harris got away with this for a long time, but his accomplice got busted when they tried the same thing on keno. Harris was locked up for seven years, but he got out in two for good behavior. I doubt he has ever tried to hack casino slot machines again, especially since all Vegas casinos have banned him.

A Mobile Slot Machine Hack Which Really Worked

What happens when you take cash-rich American casinos, Russian mobsters, high-tech equipment, and a team of jet-setting slot players and put them together? No, this isn’t the plot of a bad B movie, this slot machine hack really happened. In fact, it may still be happening today.

In the summer of 2014, a casino in St. Louis noticed some of its machines had paid out much more than they should have according to their payback averages. After watching the security footage of the casino, they found the same man winning again and again, and they knew he was a slot machine hacker right away. They just had to figure out how he was doing it. They noticed three things:

• He was holding his iPhone close to the screen when playing
• He was winning on Aristocrat slots
• And he was “jabbing” the spin button suddenly after long pauses

It soon became apparent that lots of other casinos had been the victims of slot machine hacking, and the same man was involved in most of the slot machine hacks and cheats. Authorities tracked down Murat Bilev and discovered he was part of a Russian team which had successfully hacked slots from the United States to Macau, bilking the casinos for millions.

After arresting him on a return trip to the US, Bilev spilled the beans. He was part of a Russian slot machine hacking team which figured out the exact timing of how the PRNGs work in Aristocrat slots. His phone was equipped was a slot machine hacking app which told him exactly when to press the spin button, hence the sudden hand movements after long pauses.

Bilev was sentenced to two years in prison and deported from the USA. However, authorities worry that the scam has evolved and there are still teams out there using slot machine hacks and cheats today.

Are slot machine hacking apps available online? Yes, but if you get caught using them, you’ll end up in the slammer like Murat Bilev. I’d strongly advise against it.

What If You Do Discover a Slot Machine Hack?

If you do figure out how to hack casino slot machines, you’ll face a moral and legal choice: to steal or not to steal.

I’d advise you not to. You see, there’s an alternative option, and it could be just as lucrative. Contact the casino slot machine company, tell them you’ve found a bug, and make a contract for a reward if you show them and are proven correct.

Some slots companies will dismiss you as a quack, but believe it or not, lots of them will give you an audience, especially if they suspect there’s a bug in their slot machine software.

Heck, you could even get a job as a consultant. After all, you’ve figured out a slot machine flaw that their coders didn’t recognize.

Can You Really Hack Slot Machines?

If you read the full article on slot machine hacks and cheats above, then you’ll know the answer is yes. But it takes some serious skills and connections. Both of the successful slot machine hackers mentioned here ended up in prison. And you have to ask yourself, is it really worth it?

I personally don’t think so. For me, slot machines are about the thrill of potentially winning a life-changing jackpot. I don’t even particularly want to win by cheating. I’d worry about being found out and having to look over my shoulder for the rest of my days.

Instead, I advise you to relax, have fun, learn all you can about how slots work, and forget slot machine hacks and cheats. If there’s such a thing as karma, you might even get rewarded for deciding not to try slot machine hacks!