How Do Slot Machines Pay Players?

Slot machines are designed to guarantee, or lock in, a long-term profit for the casino. Each machine is programmed to pay back a certain percentage of every dollar wagered and keep the rest for the casino. These numbers are called different names, but I call them payback percentage and the house edge. If you consider this from the other angle you get the house edge. When the slot machine pays back $95 out of $100, it keeps the other $5 for profit. In other words, a machine that pays back $95 out of every $100 wagered has a 5% house edge. When you add the house edge percentage and the payback percentage together, they always equal 100%. This means that if you know one number you can subtract it from 100 to get the other number.
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