The fact that betting with different coin denominations changes the odds in slot games is very unique and important to remember. In other games, such as roulette, craps, baccarat or blackjack, your odds stay the same no matter if you play at the $100 table or at the $5 table.
The higher the denomination, the higher the payout percentage of a particular slot machine. Quarter slots will pay less than $5 slots, and $5 slots will pay less than $25 slots.
It comes from the fact that casinos are able to afford giving out more money when players bet on the higher denomination machine. The profit from the bigger wagers is worth raising payout percentages. Example payout percentages are 92.5% for nickel slots, 94.3% for quarter slots, 96% for $1 slots and as much as 98.5% for $5 slots.
It’s easy to count how this situation is beneficial for the casino. The average numbers of spins per hour is about 500. By multiplying this number by the amount wagered on each bet, you see what the casino’s expectation is. Then you multiply the outcome of this calculation by the house edge.
On a nickel machine it means 5 cents x 500 bets = $25. 7.5% of $25 equals $1.88.
On a quarter machine it’s 25 cents x 500 bets = $125. Which multiplied by 5.7% equals $7.13.
On a $1 machine it’s $500. Multiplied by 4% it equals $20.
On a $5 machine it will be $5 x 500 = $2500. When you multiply it by 1.5% it’s $37.50.
It shows that casinos automatically make a lot more money from high denomination machines, even if the house edge is very low.