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He worked out the computer chips inside the machines could be re-programmed to be manipulated to pay out jackpots on tap. Nikrasch ordered a load of these chips, hired a team of scammers, got hold of a bunch of slot machine keys and started a reign of scamming that would bleed casinos dry for years.

And he did it all just by switching the independent chips for his manipulated chips. She tried to sue the casino initially in but her final appeal was rejected three years later.

Unfortunately, historical instances are the reason for the casino winning this case. Software glitches have been manipulated by cheats for decades.

By playing a certain pattern of stakes and games players could confuse the machine and trigger a glitch that pays out the jackpot.

Many slots cheats benefited from this over the years but now many jackpot winners are also being denied their winnings because of it.

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The return to player is not the only statistic that is of interest. The probabilities of every payout on the pay table is also critical.

For example, consider a hypothetical slot machine with a dozen different values on the pay table. However, the probabilities of getting all the payouts are zero except the largest one.

Also, most people would not win anything, and having entries on the paytable that have a return of zero would be deceptive.

As these individual probabilities are closely guarded secrets, it is possible that the advertised machines with high return to player simply increase the probabilities of these jackpots.

The added advantage is that these large jackpots increase the excitement of the other players. This game, in its original form, is obsolete, so these specific probabilities do not apply.

He only published the odds after a fan of his sent him some information provided on a slot machine that was posted on a machine in the Netherlands.

The psychology of the machine design is quickly revealed. There are 13 possible payouts ranging from to 2, The payout comes every 8 plays.

The payout comes every 33 plays, whereas the payout comes every plays. Most players assume the likelihood increases proportionate to the payout.

The one mid-size payout that is designed to give the player a thrill is the payout. It is programmed to occur an average of once every plays.

The payout is high enough to create excitement, but not high enough that it makes it likely that the player will take their winnings and abandon the game.

In contrast the payout occurs only on average of once every 6, plays. The player who continues to feed the machine is likely to have several mid-size payouts, but unlikely to have a large payout.

He quits after he is bored or has exhausted his bankroll. Despite their confidentiality, occasionally a PAR sheet is posted on a website. They have limited value to the player, because usually a machine will have 8 to 12 different possible programs with varying payouts.

In addition, slight variations of each machine e. The casino operator can choose which EPROM chip to install in any particular machine to select the payout desired.

The result is that there is not really such a thing as a high payback type of machine, since every machine potentially has multiple settings. Without revealing the proprietary information, he developed a program that would allow him to determine with usually less than a dozen plays on each machine which EPROM chip was installed.

Then he did a survey of over machines in 70 different casinos in Las Vegas. He averaged the data, and assigned an average payback percentage to the machines in each casino.

The resultant list was widely publicized for marketing purposes especially by the Palms casino which had the top ranking.

One reason that the slot machine is so profitable to a casino is that the player must play the high house edge and high payout wagers along with the low house edge and low payout wagers.

Other bets have a higher house edge, but the player is rewarded with a bigger win up to thirty times in craps. The player can choose what kind of wager he wants to make.

A slot machine does not afford such an opportunity. Theoretically, the operator could make these probabilities available, or allow the player to choose which one so that the player is free to make a choice.

However, no operator has ever enacted this strategy. Different machines have different maximum payouts, but without knowing the odds of getting the jackpot, there is no rational way to differentiate.

In many markets where central monitoring and control systems are used to link machines for auditing and security purposes, usually in wide area networks of multiple venues and thousands of machines, player return must usually be changed from a central computer rather than at each machine.

A range of percentages is set in the game software and selected remotely. In , the Nevada Gaming Commission began working with Las Vegas casinos on technology that would allow the casino's management to change the game, the odds, and the payouts remotely.

The change cannot be done instantaneously, but only after the selected machine has been idle for at least four minutes.

After the change is made, the machine must be locked to new players for four minutes and display an on-screen message informing potential players that a change is being made.

Some varieties of slot machines can be linked together in a setup sometimes known as a "community" game. The most basic form of this setup involves progressive jackpots that are shared between the bank of machines, but may include multiplayer bonuses and other features.

In some cases multiple machines are linked across multiple casinos. In these cases, the machines may be owned by the manufacturer, who is responsible for paying the jackpot.

The casinos lease the machines rather than owning them outright. Casinos in New Jersey, Nevada, and South Dakota now offer multi-state progressive jackpots, which now offer bigger jackpot pools.

Mechanical slot machines and their coin acceptors were sometimes susceptible to cheating devices and other scams. One historical example involved spinning a coin with a short length of plastic wire.

The weight and size of the coin would be accepted by the machine and credits would be granted. However, the spin created by the plastic wire would cause the coin to exit through the reject chute into the payout tray.

This particular scam has become obsolete due to improvements in newer slot machines. Another obsolete method of defeating slot machines was to use a light source to confuse the optical sensor used to count coins during payout.

Modern slot machines are controlled by EPROM computer chips and, in large casinos, coin acceptors have become obsolete in favor of bill acceptors.

These machines and their bill acceptors are designed with advanced anti-cheating and anti-counterfeiting measures and are difficult to defraud.

Early computerized slot machines were sometimes defrauded through the use of cheating devices, such as the "slider", "monkey paw", "lightwand" and "the tongue".

Malfunctioning electronic slot machines are capable of indicating jackpot winnings far in excess of those advertised.

In the United States, the public and private availability of slot machines is highly regulated by state governments. Many states have established gaming control boards to regulate the possession and use of slot machines and other form of gaming.

Nevada is the only state that has no significant restrictions against slot machines both for public and private use.

In New Jersey , slot machines are only allowed in hotel casinos operated in Atlantic City. Several states Indiana , Louisiana and Missouri allow slot machines as well as any casino-style gambling only on licensed riverboats or permanently anchored barges.

Since Hurricane Katrina , Mississippi has removed the requirement that casinos on the Gulf Coast operate on barges and now allows them on land along the shoreline.

Delaware allows slot machines at three horse tracks; they are regulated by the state lottery commission.

In Wisconsin, bars and taverns are allowed to have up to five machines. These machines usually allow a player to either take a payout, or gamble it on a double-or-nothing "side game".

The territory of Puerto Rico places significant restrictions on slot machine ownership, but the law is widely flouted and slot machines are common in bars and coffeeshops.

In regards to tribal casinos located on Native American reservations , slot machines played against the house and operating independently from a centralized computer system are classified as "Class III" gaming by the Indian Gaming Regulatory Act IGRA , and sometimes promoted as "Vegas-style" slot machines.

As a workaround, some casinos may operate slot machines as "Class II" games—a category that includes games where players play exclusively against at least one other opponent and not the house, such as bingo or any related games such as pull-tabs.

In these cases, the reels are an entertainment display with a pre-determined outcome based on a centralized game played against other players.

Some historical race wagering terminals operate in a similar manner, with the machines using slots as an entertainment display for outcomes paid using the parimutuel betting system, based on results of randomly-selected, previously-held horse races with the player able to view selected details about the race and adjust their picks before playing the credit, or otherwise use an auto-bet system.

Conversely, in Connecticut , Hawaii , Nebraska , South Carolina , and Tennessee , private ownership of any slot machine is completely prohibited.

The remaining states allow slot machines of a certain age typically 25—30 years or slot machines manufactured before a specific date.

For a detailed list of state-by-state regulations on private slot machine ownership, see U. In essence, the term "lottery scheme" used in the code means slot machines, bingo and table games normally associated with a casino.

These fall under the jurisdiction of the province or territory without reference to the federal government; in practice, all Canadian provinces operate gaming boards that oversee lotteries, casinos and video lottery terminals under their jurisdiction.

OLG piloted a classification system for slot machines at the Grand River Raceway developed by University of Waterloo professor Kevin Harrigan, as part of its PlaySmart initiative for responsible gambling.

Inspired by nutrition labels on foods, they displayed metrics such as volatility and frequency of payouts. In Australia "Poker Machines" or "pokies" [40] are officially termed "gaming machines".

In Australia, gaming machines are a matter for state governments, so laws vary between states. Gaming machines are found in casinos approximately one in each major city , pubs and clubs in some states usually sports, social, or RSL clubs.

The first Australian state to legalize this style of gambling was New South Wales , when in they were made legal in all registered clubs in the state.

There are suggestions that the proliferation of poker machines has led to increased levels of problem gambling ; however, the precise nature of this link is still open to research.

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