- Online Slots That Pay Out
- Online Slots Payout Percentages
- Slot Machine Payout Chart
- Slot Machine Payouts By Casino
Introduction to Taxable Jackpots
Casinos are not able to change slot payouts, slot machines come with an already set payout percentage, when a casino places an order for a slot it specifies the long-term payout percentage it wants. Although, depending on the jurisdiction the casino may or may not be. They configure the progressive slot machine games to 'donate' a small percentage of each page (maybe half a penny) to the jackpot. This is money that the casino irretrievably sets aside for the next big jackpot payout. The transaction is handled electronically and automatically by the machines. Let's say one particular online slot has an RTP of 95% and over many years of playing you spend $1 billion playing it. That RTP means that you should expect to receive back roughly $950 million in winnings. The remaining $50 million would be around what that slot machine will take in profit.
One of the most popular slot machine questions on Google searches is: How do slot machines pay out taxable jackpots? I've assumed this question is about the mechanics of the payout process. A different upcoming post deals with explaining when slot machines pay out.
Slot machines are special-purpose computers, like a lot of equipment found in our lives. Specifically, standard tools are televisions, electronic watches, gas station pumps, cash registers, bank ATMs, automobiles, baby monitors, and the list goes on and on.
Each of these devices has one or more computer microprocessors, visual display, audio speaker, and some may also have a way to accept and/or dispense money either physically or virtually online.
Beyond controlling the multiple interfaces to and from the player, the computer within a slot machine also manages the odds of a player winning.
At its core, a pseudo-random number generator (PRNG) is a calculation. This PRNG is an element of the computer programming algorithm used by slot machines.
PRNGs (or more commonly RNGs) determine the outcome of a player's bet based on the pre-determined odds of winning as set by the casino operator within the limited options provided by the slot machine manufacturer.
As previously mentioned elsewhere, winning a jackpot involves using the PRNG twice:
- To determine if a jackpot is won
- To determine how much was won
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The Slot Machine Gambling Process
Once a player selects a specific slot machine, that machine operates to accept or reject the inserted cash, ticket voucher, and reward card.
Next, it accepts the player's selection for denomination amount and amount of credits to be bet, although it will merely reject one or both settings if insufficient funds are available to make such a bet.
When the bet is placed, the machine immediately selects the latest random number generated by its RNG to determine the outcome of the bet and well as updating the players club card with the points earned for placing the bet.
At the end of this process, the machine turns the reels to show the outcome of the bet. See below for this player-machine sequence of events.
During slot machine gambling, a sequence of actions and reactions take place between the player and machine. The player:
- selects a specific machine, inserts money in the form of cash or ticket voucher
- chooses from the denominations available
- chooses the number of credits to bet
- places a bet
- observes the results of the bet including any bonus round
- receives winnings from the bet (if any)
- then, either:
- leaves the machine empty handed
- cashes out any remaining funds and leaves with a ticket voucher
- continues playing the machine.
The player may choose to insert a player card at any time before or during play, then later remove it before leaving the machine.
Jackpot!
Between determining the outcome of the bet and turning the reels, the machine executes programming code that sets the reels.
The reels turn in a way the machine's game designers consider most entertaining to the player – such as stopping on reel symbols for non-wins which are next to the symbols for sizable jackpots.
As mentioned, the bet's outcome is determined when the bet is placed, not when the reels stop moving, despite the entertainment value derived by the player when observing the 'action' of the slot machine.
In the event of a win, the machine executes further programming to activate sequences of lights and sounds while updating the information display for the player, which is referred to as a roll-up.
Now What? – The Jackpot Pay Out Process
If a jackpot less than the taxable limit is won, slot players can simply proceed with continuing to play or cash out from that slot machine. The current taxable jackpot limit is $1,200 in the United States.
Meaning, if you have a win of $1,200.00 or more at a slot machine, there is an immediate tax bill resulting in an IRS Form W-2G. If you have a win of $1,199.99 or less, there is no immediate tax bill.
Jackpots that require immediate payment of taxes results in the slot machine locking up.
Many, many slot players have been surprised by their slot machine locking up when a taxable jackpot is won. It can only be unlocked by a casino employee, a slot attendant.
Whether a casino is old or new, a slot attendant will arrive shortly to administer a hand payout. During a hand payout, a slot attendant
- collects personal identification sufficient to both complete a tax form as well as any other state-required documentation
- performs the hand payout (if they have adequate cash on hand)
- unlocks the machine to allow the player to continue.
If the attendant is not carrying enough cash with them, or if the player wishes to have a cashier's check instead of a cash payout, the slot attendant leaves the player with a receipt and returns a short while later with the check or cash.
If the attendant leaves, they typically unlock the slot machine beforehand to allow the player to continue betting while waiting for the slot attendant to return.
Summary of Taxable Jackpots
The most important thing to remember about winning a jackpot is to make sure you've brought your government-issued I.D. If you don't have it, then you cannot receive a taxable jackpot.
And, no, your friend sitting next to you cannot claim the jackpot for you – the eye in the sky knows it's your winnings and not someone else.
The second thing to be aware of is what is or is not a taxable jackpot, a single win of $1,200 or higher. Many people have never won a taxable jackpot, so it can be challenging to get useful information on this unless you've done it more than a few times. But I have.
If the machine locks up, it's either had an error or you've won a taxable jackpot. Being out of paper is a machine error, for example. Either way, a slot attendant will show up shortly to help. For goodness sake, don't walk away until you know which!
As a final note, as of this writing, a decade ago, casinos moved away from using coins. Nowadays, they use cash, checks, and vouchers redeemable at cash machines and cages.
Related Articles from Professor Slots
Other Articles from Professor Slots
- Previous: Why Do Slot Machines Use Fruit Reel Symbols?
- Next: Who Builds Slot Machines Throughout the World?
Have fun, be safe, and make good choices!
By Jon H. Friedl, Jr. Ph.D., President
Jon Friedl, LLC
Anyone that is new to online slots and is a little suspicious about how they payout, you're certainly not alone as we have all been there in the past with the same thoughts.
Most of us would have wondered how do online slots payout and is the software that decides when it does payout, to be trusted.
Many of you might be used to the land-based slots that you have seen in the many bars, clubs and casinos.
Well, these are actually run by software as well, yet the physical aspect of these machines often leads to people forgetting that on the inside is hardware and software.
So actually, there is not much difference between playing a slot whether it is online or offline, as it is all controlled by similar RNG (random number generator) software that determines the machines randomness.
Random Number Generators
Each and every online slot will have what is known as an RNG or random number generator.
This is a piece of software which is used to create completely random sequences in millisecond intervals.
When you as a player clicks spin on an online slot, the RNG will come up with a completely different series of numbers.
This RNG software is used at each and every online casino for each and every online slot that they provide.
Simply put, the RNG software is what determines the result of each spin and that each spin is completely random.
No spin whether it was before or after your current spin will be irrelevant to the outcome of your current spin.
How RNG Actually Works
What you first have to realise about RNG is that it has no idea of what went before it, it has no idea whether you just won or lost on a spin and it has no idea that you have either won absolutely nothing all day or just a few spins earlier hit the jackpot.
Simply put, much like a goldfish, RNG has no memory.
As we mentioned earlier, RNG software is constantly throwing out random series of numbers at the speed of a millisecond for each one.
The very moment you hit that spin button, whatever series of numbers was just generated is what is going to determine your result.
While it is always a little difficult to trust software, especially when it's for an online casino that is there to try and win your money, it is completely random and there has never been any pre-programming to determine the result in either direction.
The only aspect of what you do that determines how the result will be is the millisecond that you click the spin button.
As you do not know which millisecond is one that will be a winner for you, it makes no difference what second you press it.
It all comes down to chance and luck as to when you click that button.
Are RNG's Regulated?
This is where any doubt that RNG software for online casinos is ever manipulated by the trusted online casinos.
Each casino will have to obtain licenses from regulatory authorities to be able to operate under certain jurisdictions and offer their products and random testing of RNGs is a major part of the regulations they will have to adhere to.
Online Slots That Pay Out
If we were to use the UK Gambling Commission as an example, they will not issue a license to any online casino that does not agree to have their RNG software tested and regulated to ensure that it is completely fair and random.
Any casino that is found to be advertising online slots that have a return-to-player percentage that is not found to be correct from the RNG testing, is susceptible to having their gaming license suspended or revoked completely.
There is far too much at stake for an online casino to even consider messing around with the RNGs.
Who Handles the RNG Testing?
To ensure that there is no chance of any kind of corruption, the Regulatory authorities do not actually handle the testing of RNGs themselves.
They usually send in a request to associations such as eCogra, who will be able to have a third-party RNG testing house perform the tests.
eCogra is a testing agency from London that has always worked incredibly hard to ensure that online gambling is completely fair for the players that enjoy it.
They are so renowned for what they do that they are something of a seal of approval for online casinos.
If an online casino is eCogra approved, you can are guaranteed that the RNG and all other aspects of fair play at your choice of online casino are adhering to all regulations.
What Is Return-to-Player Percentage?
Working alongside the RNG of an online slot machine is something called RTP or the return-to-player percentage.
This is essentially how much a slot will pay out for a set amount of money it has taken from however many players in a period of time.
You will generally see slot machines with an advertised RTP of between 90 to 99%.
This essentially means that for every $100 that the online slot has taken, it will pay out its RTP percentage on average.
The rest goes to the house as essentially, this is the house edge, which is expected at all online casinos as they are there to make money from the service that they are providing you.
Some slots have a higher house edge than others.
Let's use Starburst as an example, easily one of the most popular online slots at the moment.
This has an RTP of 96.1% which could be worse but could also be better.
Of the $100 that has been put into it by various players over time, it should be paying back out (on average) $96.10.
Where chance and luck and RNG comes into it, however, is that the $96.10 is spread out among the players that were putting the money in.
So, some players might not have won anything, others might have got small payouts and some will have got lucky and would have taken in some bigger wins.
Ever Heard Of Hit Frequency?
So we know what random number generators are and what a return-to-player percentage is, but did you know that hit frequency is another statistic that can be used for each and every online slot out there.
The hit frequency is basically the percentage of how often it is likely to bring a win of some kind.
Others label this hit frequency as variance or volatility of an online slot and the higher the variance, volatility or hit frequency, the more often this online slot will deliver you a win.
Now, while this might sound great if you find a hit variance slot of let's say 70%, it means that seven out of ten of your spins are going to bring you wins.
However, on a high variance slot, these wins are going to be smaller on most occasions to balance things out.
On the other hand, an online slot with just a 10% hit frequency is going to bring you one win out of every ten spins on average.
While it is still possible that this win could be small, there is at least a much higher chance of it being substantially bigger.
Experienced players will all have their preference on what sort of hit frequency they prefer, whether its a high frequency with lower average pays, a much lower frequency with the chance of bigger payouts or somewhere in the middle of the two.
Generally, those with patience and a large enough bankroll will often go for the low variance slots that could just bring in some good payouts.
Choosing an online slot to play should be down to a mix of the RTP and the hit frequency of the game.
In our opinion, a higher RTP is the more important number but the hit frequency should also be considered depending on your playstyle.
Just remember that RTP is not a guarantee of how much YOU will get back, its guarantee on how much the slot will payout across all players from its takings.
Which player gets what is completely random.
Five Slots With High RTP
All online casinos have to make money from their online slots right?
However, while a slot with 99% RTP is still making that 1% markup over time, it is hardly as much as you would imagine they would want to be making from their games.
Well, there are actually only a very small amount of online slots that offer such a high RTP, with the rest being anywhere between 90 – 98%.
Even that is quite a small margin when compared to bricks and mortar casinos that offer their slot machines at far lower RTPs that would be lucky to reach any higher than 80%.
Online casinos have that edge over land-based casinos simply because they do not have the obvious overheads that a land-based casino does.
The many different dealers, croupiers and all other staff in the casino need to be paid and you then have the huge utility bills that would obviously be created.
An online casino barely needs much more than a server, some software, a small support team and you're pretty much good to go.
Anyhow, we have found a few online slots that have broken that 99% RTP barrier and are therefore the most likely to give you most of your investment back on average.
You will be able to find these online slots at dozens if not hundreds of online casinos on the internet and if you like to be tight with your RTP, you should be checking them out.
1. Nemo's Voyage
The first 99% RTP slot that we would like to recommend.
Online Slots Payout Percentages
Containing 5-reels, 40-pay lines and allowing bets between 0.40 and 200.00 per spin, this entertaining slot by WMS comes packed with lucrative bonuses and features.
2. Tropic Reels
The next slot on our 99% list and the Playtech title is a highly entertaining one that could just pay out a jackpot of 2,500x your original stake.
Using a max bet of 500.00, you can just imagine what doing the math is going to do for your adrenaline levels.
3. Mega Joker Jackpot
NetEnt is one of the biggest names in the gambling industry so it is no surprise that we have one of their titles on this list.
Mega Joker Jackpot is one of their most popular progressive jackpot slots and we can see why with that excellent RTP of 99%.
4. Goblin's Cave
Playtech has featured once again but this time with an online slot that has the highest RTP we have ever seen.
Goblin's Cave actually has a return-to-player percentage of 99.3%.
Even better is the fact that this is a classic slot that does not confuse things with too many bonus features.
5. Ooh Aah Dracula
Ooh Aah Dracula is the 99% RTP slot to finish off this list and the Barcrest title is another great little slot for you to enjoy.
5-reels, 10-pay lines and a wide betting range, you could also unlock a lucrative free spins round.
Conclusion
Each of those titles has always been popular at the online casinos and we have a slight feeling that their RTP's might be a large reason for that.
Do you blame the players though?
Of course, a player is always going to be looking at any advantage they might be able to claw back from the house.
If we were to use the UK Gambling Commission as an example, they will not issue a license to any online casino that does not agree to have their RNG software tested and regulated to ensure that it is completely fair and random.
Any casino that is found to be advertising online slots that have a return-to-player percentage that is not found to be correct from the RNG testing, is susceptible to having their gaming license suspended or revoked completely.
There is far too much at stake for an online casino to even consider messing around with the RNGs.
Who Handles the RNG Testing?
To ensure that there is no chance of any kind of corruption, the Regulatory authorities do not actually handle the testing of RNGs themselves.
They usually send in a request to associations such as eCogra, who will be able to have a third-party RNG testing house perform the tests.
eCogra is a testing agency from London that has always worked incredibly hard to ensure that online gambling is completely fair for the players that enjoy it.
They are so renowned for what they do that they are something of a seal of approval for online casinos.
If an online casino is eCogra approved, you can are guaranteed that the RNG and all other aspects of fair play at your choice of online casino are adhering to all regulations.
What Is Return-to-Player Percentage?
Working alongside the RNG of an online slot machine is something called RTP or the return-to-player percentage.
This is essentially how much a slot will pay out for a set amount of money it has taken from however many players in a period of time.
You will generally see slot machines with an advertised RTP of between 90 to 99%.
This essentially means that for every $100 that the online slot has taken, it will pay out its RTP percentage on average.
The rest goes to the house as essentially, this is the house edge, which is expected at all online casinos as they are there to make money from the service that they are providing you.
Some slots have a higher house edge than others.
Let's use Starburst as an example, easily one of the most popular online slots at the moment.
This has an RTP of 96.1% which could be worse but could also be better.
Of the $100 that has been put into it by various players over time, it should be paying back out (on average) $96.10.
Where chance and luck and RNG comes into it, however, is that the $96.10 is spread out among the players that were putting the money in.
So, some players might not have won anything, others might have got small payouts and some will have got lucky and would have taken in some bigger wins.
Ever Heard Of Hit Frequency?
So we know what random number generators are and what a return-to-player percentage is, but did you know that hit frequency is another statistic that can be used for each and every online slot out there.
The hit frequency is basically the percentage of how often it is likely to bring a win of some kind.
Others label this hit frequency as variance or volatility of an online slot and the higher the variance, volatility or hit frequency, the more often this online slot will deliver you a win.
Now, while this might sound great if you find a hit variance slot of let's say 70%, it means that seven out of ten of your spins are going to bring you wins.
However, on a high variance slot, these wins are going to be smaller on most occasions to balance things out.
On the other hand, an online slot with just a 10% hit frequency is going to bring you one win out of every ten spins on average.
While it is still possible that this win could be small, there is at least a much higher chance of it being substantially bigger.
Experienced players will all have their preference on what sort of hit frequency they prefer, whether its a high frequency with lower average pays, a much lower frequency with the chance of bigger payouts or somewhere in the middle of the two.
Generally, those with patience and a large enough bankroll will often go for the low variance slots that could just bring in some good payouts.
Choosing an online slot to play should be down to a mix of the RTP and the hit frequency of the game.
In our opinion, a higher RTP is the more important number but the hit frequency should also be considered depending on your playstyle.
Just remember that RTP is not a guarantee of how much YOU will get back, its guarantee on how much the slot will payout across all players from its takings.
Which player gets what is completely random.
Five Slots With High RTP
All online casinos have to make money from their online slots right?
However, while a slot with 99% RTP is still making that 1% markup over time, it is hardly as much as you would imagine they would want to be making from their games.
Well, there are actually only a very small amount of online slots that offer such a high RTP, with the rest being anywhere between 90 – 98%.
Even that is quite a small margin when compared to bricks and mortar casinos that offer their slot machines at far lower RTPs that would be lucky to reach any higher than 80%.
Online casinos have that edge over land-based casinos simply because they do not have the obvious overheads that a land-based casino does.
The many different dealers, croupiers and all other staff in the casino need to be paid and you then have the huge utility bills that would obviously be created.
An online casino barely needs much more than a server, some software, a small support team and you're pretty much good to go.
Anyhow, we have found a few online slots that have broken that 99% RTP barrier and are therefore the most likely to give you most of your investment back on average.
You will be able to find these online slots at dozens if not hundreds of online casinos on the internet and if you like to be tight with your RTP, you should be checking them out.
1. Nemo's Voyage
The first 99% RTP slot that we would like to recommend.
Online Slots Payout Percentages
Containing 5-reels, 40-pay lines and allowing bets between 0.40 and 200.00 per spin, this entertaining slot by WMS comes packed with lucrative bonuses and features.
2. Tropic Reels
The next slot on our 99% list and the Playtech title is a highly entertaining one that could just pay out a jackpot of 2,500x your original stake.
Using a max bet of 500.00, you can just imagine what doing the math is going to do for your adrenaline levels.
3. Mega Joker Jackpot
NetEnt is one of the biggest names in the gambling industry so it is no surprise that we have one of their titles on this list.
Mega Joker Jackpot is one of their most popular progressive jackpot slots and we can see why with that excellent RTP of 99%.
4. Goblin's Cave
Playtech has featured once again but this time with an online slot that has the highest RTP we have ever seen.
Goblin's Cave actually has a return-to-player percentage of 99.3%.
Even better is the fact that this is a classic slot that does not confuse things with too many bonus features.
5. Ooh Aah Dracula
Ooh Aah Dracula is the 99% RTP slot to finish off this list and the Barcrest title is another great little slot for you to enjoy.
5-reels, 10-pay lines and a wide betting range, you could also unlock a lucrative free spins round.
Conclusion
Each of those titles has always been popular at the online casinos and we have a slight feeling that their RTP's might be a large reason for that.
Do you blame the players though?
Of course, a player is always going to be looking at any advantage they might be able to claw back from the house.
Despite this lower house edge, however, the casino always wins and you should always be aware of that.
Slot Machine Payout Chart
This is why it is important to always gamble responsibly and to not go chasing any losses with money you should not be gambling with.
So anyway, hopefully, we have answered your question on 'How do online slots payout?' in as detailed a way as possible.
Slot Machine Payouts By Casino
You should now be armed with the knowledge to know that all is above board and how RNG, RTP and hit percentages are what determines your chances at the online casinos.
