Definition
Payback percentage is the mathematical ratio of money returned to players versus the total amount wagered on a game. It is the most common way to measure the ‘generosity’ of a slot machine or table game.
In context
If a slot machine has a 92% payback percentage, it is designed to return $92 for every $100 bet into it over the long run. The remaining $8 is the casino’s profit, known as the ‘house edge.‘
Why it matters
The payback percentage tells you exactly how much it ‘costs’ to play a game. A game with a 99% payback percentage is ‘cheaper’ to play over time than one with an 85% payback percentage, because your bankroll will last significantly longer on the 99% game.
Related terms
In detail
Payback percentage is the ‘hidden’ number that determines your fate in a casino. Every slot machine in the world has a microchip (or a software setting) that dictates this number. While the symbols on the screen look random, the results are constrained by this percentage.
It is vital to understand that payback percentage is not a guarantee for your specific session. Many players make the mistake of thinking: ‘If this machine is 95% payback and I’ve put in $100 and only have $50 left, the machine owes me $45.’ It doesn’t. The 95% is calculated over a ‘cycle’ of millions of spins. In the short term—meaning your entire weekend at the casino—the actual return could be 10% or 1,000%.
In the industry, we often use the term ‘RTP’ (Return to Player) interchangeably with payback percentage. However, ‘Payback’ is the term you’ll see more often in US-based casino marketing and regulatory reports.
How is this percentage set? For slot machines, the manufacturer provides the casino with several options for each game. For example, a ‘Wheel of Fortune’ slot might come with settings for 88%, 90%, 92%, and 94%. The casino management decides which setting to use based on their competition and their business strategy. Generally, ‘Penny Slots’ have the lowest payback percentages (often 85-88%), while high-denomination machines ($5, $10, $100) have the highest (95-98%). The casino is essentially saying: ‘If you bet more, we’ll take a smaller percentage of your money.’
In table games, the payback percentage is ‘hard-wired’ into the rules. In Roulette, the presence of the 0 and 00 pockets sets the payback percentage at 94.74% for almost every bet. You can’t ‘change’ the setting; you can only change the percentage by moving to a different game with different rules (like European Roulette, which has a 97.3% payback).
One of the biggest ‘insider’ secrets involves the location of machines. In the old days of Vegas, casinos would put their highest payback percentage machines (the ‘loose’ ones) at the ends of the rows or near the buffet lines to show off people winning. Today, with digital tracking, casinos are more likely to balance the percentages across the whole floor, but the rule of thumb still applies: the more ‘entertainment’ or ‘licensed’ a machine is (like a movie-themed slot with high-definition video clips), the lower the payback percentage usually is. You are paying for the movie clips with your bankroll.
For the player, the takeaway is simple: always check the payback percentages if they are published (many states require casinos to report these by law). If you have a choice between a 90% machine and a 96% machine, you are literally choosing between losing your money fast or losing it slow. And in the casino, ‘losing it slow’ is the closest thing you have to winning.