Slot Machine Payback Percentages: The Devil is in the Moment

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dc.contributor.authorFarrow, Scott
dc.contributor.authorCosta, Jackson
dc.date.accessioned2021-08-10T13:58:36Z
dc.date.available2021-08-10T13:58:36Z
dc.date.issued2014-07-08
dc.description.abstractThe average payback percentage from slot machines is important to gamblers, casinos and governments. While apparently simple to define several complications can exist, among them which measure to average and potentially misleading formulas to calculate the average. Daily slot machine data from the state of Maryland for 19 months are analyzed for the expected value of the average payback ratio per machine and per dollar gambled. On a per dollar gambled basis, the payback percentage meets legislative requirements that the gaming floor payback be at least 90 percent. On a per machine basis, that requirement is not met which can imply a significant shift of money from gamblers to casino operators and the state. Other payback measures are hypothesized to also be less than the per-dollar gambled measure but data are lacking.en_US
dc.description.sponsorshipThe authors thank the Maryland Lottery and Gaming Control Agency for data and for reviewing preliminary findings and Gambling Laboratories International and Noah Dean for communication on industry practice. We thank the John D. and Catherine T. MacArthur Foundation for providing research support to Costa. Tim Brennan, Tim Gindling, Jay Kadane, Nagaraj Neerchal and Andrew Solow provided helpful comments on an earlier draft. Any errors remain the responsibility of the authorsen_US
dc.description.urihttp://bjll.org/index.php/jgbe/article/view/830en_US
dc.format.extent17 pagesen_US
dc.genrejournal articlesen_US
dc.identifierdoi:10.13016/m2epaq-bx72
dc.identifier.citationFarrow, Scott; Costa, Jackson; Slot Machine Payback Percentages: The Devil is in the Moment; The Journal of Gambling Business and Economics, 8, 2, 8 July, 2014; https://doi.org/10.5750/jgbe.v8i2.830en_US
dc.identifier.urihttps://doi.org/10.5750/jgbe.v8i2.830
dc.identifier.urihttp://hdl.handle.net/11603/22357
dc.language.isoen_USen_US
dc.publisherUniversity of Buckingham Pressen_US
dc.relation.isAvailableAtThe University of Maryland, Baltimore County (UMBC)
dc.relation.ispartofUMBC Economics Department Collection
dc.relation.ispartofUMBC Faculty Collection
dc.rightsThis item is likely protected under Title 17 of the U.S. Copyright Law. Unless on a Creative Commons license, for uses protected by Copyright Law, contact the copyright holder or the author.en_US
dc.titleSlot Machine Payback Percentages: The Devil is in the Momenten_US
dc.typeTexten_US
dcterms.creatorhttps://orcid.org/0000-0001-7106-8924en_US

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