My fundamental question of "why?" makes an assumption that casinos have the right to set the pay table (hence theoretical RTP) at whatever the want. If this is wrong then do let me know as that means my entire question will be in valid. Although I'm guessing the laws probably won't allow a 20% RTP but meantime doesn't force the casinos to always give 9/6 on JOB.
So then, my assumption is that, casinos are in no way obligated to give us more than 100% RTP or any +EV for that matter. But yet, they do, for some reason, especially in Vegas. Having more than 100% RTP makes them extremely vulnerable to APs.
I took a trip to Sweden earlier this year. While I was there I checked out a few major casinos in Stockholm. I was really surprised to see the video poker pay tables maxing at 95%. All the blackjack tables there are Continues Shufflers with poor rules as well.
So my question is, if these Swedish casinos seem to do quite well while offering horrible RTP, well, why offer any better then? Even without comparing to Sweden, my hometown casinos have 97-98% RTP which is shit. America's 2nd largest Gambling City, AC, also has pretty shitty video poker pay tables from what I know.
All this analysis seems to point to that Vegas has no reason to offer good pay tables on video poker. And yet, there is one reason to offer bad ones - more money for the casino. Can the average tourist even feel the difference between 97% RTP and 101% RTP anyway? Can APs even feel it in a short session for that matter?
So the conclusion - either I'm missing something or Vegas Casino managers are making a very bad decision that is costing them a lot of money.
I assume I'm missing something.
So fill me in.
Yet Slots are still 80-85% And nobody seems to mind setting it any higher for "competition for customers"?
Slot players aren't as picky about taking their business elsewhere.
Video poker machines are easy to figure out, all you need to do is look at the paytable and you know what the return is....well, assuming you know 9/6 JOB is 99.54%, 8/5 BP is 99.17%, and whenever a pay goes down it hurts and if it goes up it helps. And from there, it's very easy to figure out why a local would rather play at stations property than a caesars property when it comes to video poker.
My fundamental question of "why?" makes an assumption that casinos have the right to set the pay table (hence theoretical RTP) at whatever the want.
Pretty sure that is not the case. There are likely gaming commission rules that specify a minimum theoretical return. Some jurisdictions will have a maximum theoretical return, too.
And plenty of people make mistakes costing them .5 to 1%.
People generally are playing with more money per pull and the pull lasts shorter.
3-5% on the strip for most VP players at $1.25 is most typical. At 400 pulls per hour, that's $500 / hour x 3-5% = $15 - $25/hour.
A game like $20 PGP at 30 hands per hour is about $12/hour.
$10 BJ at 100 hands an hour is about $10 / hour
Penny slots at 300 pulls an hour at $1/shot at 7-10% = $21 - $30 / hour.
It's all in line.
0 - 1% machine are few and far between, especially on the strip and in places lacking competition or where competitors are colluding.