Antoinette Hernandez | May 24, 2022 | Updated on: May 24th, 2022
Highest Slots Revenue Casinos Guide USA
Slots revenue generated from the gambling industry made large deposits worth approximately $240 billion into the economy every year. It generates $38 billion in taxes while supporting 17 million jobs. Slot machines and other casino games make up more than half of that economic activity. Spinning reel slots, in particular, bring in large profits for casinos, outdoing table casino games like roulette and blackjack.
If you are a frequent slot machine gambler, you might have a good idea of how much the casino earns from you on average daily. But, there are thousands upon thousands of players at casinos. So, how much revenue does a casino collect per slot, per day?
Las Vegas is known as the country’s glamour gambling capital and is also the region with the most slot machines. We’ll use data retrieved from the Nevada Gaming Control Board in July 2017 as a case study to try and get actual figures.We will not be focusing on the slot revenue for the best online casinos.
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More Online CasinosAbout Slot Machines
Essentially, slot machines are all very alike. They are computer boxes with lights and interesting graphics and audio, while in the inside you see nothing but computer chips that have been programmed to reveal random numbers, sound and graphics.
There’s also no pattern or skill needed to play slot machines whether online or at a casino. It all comes down to chance, much like the lottery. All slots are fixed with a random number generator (RNG) that spits out numbers in no particular order. Much like a moving list of numbers that never stop. When you press the play button, the RNG in no particular order selects a few numbers and displays them on your slot machine screen. Nobody can predict which numbers will be selected, not the manufacturer, the casino, or the player. But, it’s the near misses and small wins that keep you motivated to play.
Slots Revenue Streams
The amount of revenue generated from slots come from three different streams. Slot handle revenue is the total money received directly from best slot machines. Slot hold revenue is the percentage of the slot handle that is won by the casino, while the slot win refers to the casinos win that gets recorded on the income statement.
A study dating to 2016 claims that slot machines generate more revenue than all other casino games put together. Penny machines are singled out as the casino game with the most income. A Nevada gaming report from March 2015- February 2016 shows that the sum of all winnings accumulated by a casino over a period of twelve months from slots alone amounted to over $7 billion. The revenue generated from table games during that same period was $4 billion. This showed that slots revenue is amongst the biggest sources of income for casinos.
This, together with the fact that the majority of people are addicted to slot machines compared to any other game, supports the claim that slots generate the most revenue.
How the House Works
In the gambling industry, there are usually three categories in earnings: the mass market, VIP play, and then slots. The mass-market refers to any person who walks into a casino or visits one online and bets real money at a table or at a slot machine. VIP players are those who play on credit using rolling chips, while slots are exactly that- slot machines. Each revenue stream brings in different profits and means different things to the casino. We explain each further on in this article.
Las Vegas Casino Slots Revenue
As mentioned previously, we’ve chosen Las Vegas as a case study. The table below shows the revenue collected by Las Vegas casinos for the month of July in the year 2017. It shows the number of machines that were operative in 40 locations in Las Vegas. It also shows the revenue collected from those machines. If you take that figure and you divide it by the number of operative slot machines, you get the revenue collected per slot machine for July. You can further divide the revenue amount per machine by the number of days in July 2017 to get the total revenue collected per slot machine per day.
Month | No. of Machines in Operation (40 locations) | Revenue | Revenue per Machine for July | Revenue Per Day |
---|
July | 38,434 | $269,527,000 | $7,013 | $226 |
Other Casino Revenue Streams
Mass Market Revenue
Mass market revenue is generated from random walk-ins. For instance, if you walk up to a roulette table in a casino or log in to play roulette online, and bet $100 in exchange for chips, that money is put away and is known as ‘table game drop’. The casino revenue is the amount left over when you’ve cashed out.
VIP Revenue
Casinos generate most of their revenue from VIP players. Unlike other customers who play casino games using real money, VIP players play using credit. They use rolling chips to play. The rolling chip drop accumulates with every drop and all winnings are paid out in cash equivalent chips. The casino collects its revenue from all losing bets.
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