Auditing the Slot Payback Percentage

Casinos are very particular with the payback percentage of their slot machines. Not only are they mandated by the state law where they operate their gambling business, they need to upkeep with the tough competition among other casinos that offer the game of slot machine in offline and online venues.

Moreover, the licensing of the casinos also oblige its operators to submit their slot machine software that reflects the payback percentage and payback frequency for regulation under federal law and follow a regulated conduct set forth by a regulating body.

The state regulates the payback percentage of the slot machines of the casinos that are within their jurisdiction by setting a determined minimum payback percentage in all of their slot machines.

The payback percentage is the percentage rate that the slot machine is bound to pay its players in the long run of playing the machine. It is taken from the overall income of the slot machine of which a portion is returned to its players.

The average minimum payback percentage is usually 75% in most states but casinos vary in the payback percentage that they impose on their slot machines which is favorably higher than the minimum owing to the competition among casinos.

There is no way that a casino can instantly change the payback percentage of their slot machines. Most slot machines operate on a software based program that constitutes the payback percentage of a particular slot machine. Computer chips installed within the software contain the programmed percentage on a slot machine's payback which requires the removal of the chips in order to change or alter the payback percentage rate installed within the slot machine.

Regular auditing is usually carried over by regulating bodies at a random schedule in order to ensure fair gaming and honest operation of the slot machines in a casino. Licensed casinos usually are affiliated with Gambling Regulating and Licensing Bodies such as eCOGRA and Microgaming that carry out a random inspection and audit to the slot machine's payback percentage and payout frequency of a slot machine.

Online and offline operating slot machines keep a record of all the coins that are cashed out and put in that is used for auditing the transactions carried out within the slot machines. Once the slot machine is opened in cases where a jammed bill needs to be remove an audit slip is usually printed out that shows the grand total of all financial transactions in the slot machine such as the cash won and cashed out and the amount of coins that are placed as bets by its players.

These are vital information in auditing the payback percentage of a slot machine although there are some slot machines that are designed into network to a central data base in the casino accounting department that also monitors all financial transaction of every slot machine in their establishment.

These financial records are readily available for auditing by independent auditing firms and to the regulating and licensing bodies to which a casino is affiliated.