Make Money Off Slot Machines

Posted By admin On 23/03/22

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Cheating at Slots 2021

Cheating at slots is often frowned upon but it is certainly an interesting subject. There are many stories of people who have successfully attempted cheating at slots.

Reading about various methods used by these people to cheat slot machines may be exciting, but you should definitely be cautious when you give it a try in real life. Modern slot machines are highly advanced and very difficult to take advantage of.

There are as many as 3 million slot machines in brick and mortar casinos across the world. Slots are often one of the biggest contributors to a casino’s revenue. As much as 80% of a casino’s income may come from its slot machines. So slot cheats can do some serious damage to a casino’s business.

According to estimates, gaming establishments in Nevada alone have had to bear a loss of millions of dollars every year as a result of slot machine cheating. This is one of the reasons why modern casinos have surveillance cameras covering every inch of the place.

Various Slots Cheat Methods

A big casino can have around 5,000 slot machines or more and continuously monitoring all the machines may not be possible. This provides an opening for slot cheats to try their luck. Slot machine cheaters have tried a number of different techniques in an effort to make big money, these include:

Cheating with coin and string or yo-yo method

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This was one of the oldest methods used by cheaters to trick slot machines. The concept was simple. Cheaters used to attach a string to a coin before inserting it into the slot machine. After the machine registered that a coin has been inserted, the person used to simply pull out the coin using the string taped to it.

This enabled the person to use the same coin over and over again to add to his/her credit without investing a single penny. Because of the yo-yo like action of dropping the coin and pulling it back up, this method is also called yo-yo method.

Some cheats have tried using this same trick with bills as well. They would attach a string to a bill instead of a coin before dropping it into the slot machine and pull it out once the money was registered.

The problem with this method was that it involved a visible string coming out of the coin slot, which would be difficult to justify for the fraudster. Since the discovery of yo-yo method, the slot machines have been modified to ensure that the coins once dropped into the machine can not be pulled out.

Cheating with devices like the monkey’s paw

Devices like the monkey’s paw, which was a foot long flexible steel rod bent into the shape of a claw, were also a popular method of cheating at slots. The device was inserted into a slot machine through the payout outlet and used to tamper with the coin counter to cause overpayment.

The monkey’s paw was one of the early devices used by slot cheats. Since then other devices that can tamper with a slot machine’s coin comparator have also been invented and used. Such devices, when inserted into the machine, could generate fake signals so that credit would be registered without any coins being inserted.

This enabled the cheater to play without making any payment or make money simply by cashing out. Today most casinos use highly sophisticated machines that cannot be tampered with such devices.

Cheating with shaved coins or tokens

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This was another popular method of cheating at slots used by fraudsters in olden days. The cheats realized that if they shaved off a tiny bit of a coin and dropped such coin in a slot machine, the coin would be registered, but it would be rejected and discharged.

This meant that the person could keep using the same coin again and again to add credit just like the coin and string method, but without the disadvantage of a visible string sticking out.

In order to avoid such cheating, many casinos started using tokens instead of coins in their slot machines. But cheaters have tried the same trick with tokens as well i.e. using shaved tokens to cheat slot machines.

With hundreds of cameras surveying every inch of modern casinos, a fraudster is sure to draw attention, if he/she tried this method. Moreover, the sophisticated machines used today ensure that the rejected coin/token is not registered in the credit.

Cheating with foreign coins

Fraudsters have even tried cheating casinos using foreign coins. They used foreign coins having a close resemblance to the US currency, but a very low value. The value of these foreign coins would be as much as ten times lower than the American coin it would be mistaken for.

This resulted in a significant loss for the casinos. But it is almost impossible to fool the advanced slot machines of today with such a trick.

Cheating with fake money or token

The use of counterfeit money is not exactly a slot cheating method, but slot machines are often used to launder fake bills. Good quality fake bills can closely resemble the real ones and the electronic sensors on slot machines may not be able to catch the difference.

This means that there was no way to catch the cheat as he will be long gone by the time the machine is opened and fraud discovered. Some cheats have even tried producing fake tokens that resemble the ones offered by a particular casino.

The disadvantage of these methods is that producing fake bills or tokens is not so easy. Also, producing counterfeit bills is a very serious crime and the cheater can end up spending many years in jail. Counterfeit token are also taken very seriously by casinos and cheaters can expect strong action.

Cheating with mini-lights – Slot machine cheaters have even tried blinding the machines. They made use of mini-lights, which is a small battery operated light emitter, to tamper with the optical sensors of slot machines, which are used to count coins to be paid out. This sometimes resulted in overpayment. But the modern slot machines come with safeguards against such devices.

Cheating by a casino insider

In the history of slot frauds, there have been a few cheaters who have made ambitious plans of introducing errors in the slot machine program before its installation in a casino, so that it paid out on pressing buttons in a particular pattern.

The success of such a plot is impossible without the help of a casino insider and a real programmer. Majority of such plots have ended up in failure with the fraudsters serving long jail terms.

As slots machines become more and more sophisticated, cheaters are also coming up with advanced techniques of cheating. But with the introduction of hi-tech slot machines that accept only cards, not coins, the future of slot cheats is bleak.

One of the most famous fraudsters in the history of slot cheating

Tommy Glenn Carmichael is a slot cheating legend. He is probably the most famous person in the field. Although a cheater, Tommy’s mechanical genius can’t be denied. He started his slot cheating career using a device called a ‘top-bottom joint’. The initial success encouraged him to close his shop and leave for Vegas. But soon he was caught and sentenced to prison.

Five years of jail time could not change Tommy. On getting out of the prison, he realized that slot machine technology had changed. He soon educated himself and came up with the famous monkey paw device mentioned earlier. As the slot machine technologies kept changing, Tommy kept coming up with newer devices to cheat them.

When slot machines started using the optical sensor technology, Tommy invented a light wand that could blind these sensors. He managed to overcome the slot machine safety device called the actuator arm with his ‘hanger’. According to records, he took 7 cruises within 6 months in 1995, winning huge amounts of money in casinos at these ships.

The following year Tommy was arrested, but the charges were dropped. He still did not mend his ways. He was arrested once again in 1998-99 and in 2001 he was sentenced to a year in prison, 3 years of probation and prohibition from entering casinos.

He is listed in the Nevada black book, which lists various casino fraudsters and the methods used by them. Slot cheats account for about 27% of the entries in this book.

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Tommy has finally changed sides and is now working with casinos to develop an anti-cheating technology to prevent people like him from cheating. He now aims to make a fortune by selling products that prevent cheating, as opposed to earlier days when he was known for his inventions that helped fraudsters to cheat at slot machines. He has also been featured in “Breaking Vegas’ series on the History Channel.

Rather than cheating and ending up on the wrong side of the law, strategic gaming can help you win big legally. If you get rid of the misconception that gambling is all about luck, you will realize that strategies do play a role in winning at any casino games, including slot machines.

The gaming industry is big business in the U.S., contributing an estimated US$240 billion to the economy each year, while generating $38 billion in tax revenues and supporting 17 million jobs.

What people may not realize is that slot machines, video poker machines and other electronic gaming devices make up the bulk of all that economic activity. At casinos in Iowa and South Dakota, for example, such devices have contributed up to 89 percent of annual gaming revenue.

Spinning-reel slots in particular are profit juggernauts for most casinos, outperforming table games like blackjack, video poker machines and other forms of gambling.

What about slot machines makes them such reliable money makers? In part, it has something to do with casinos’ ability to hide their true price from even the savviest of gamblers.

The price of a slot

An important economic theory holds that when the price of something goes up, demand for it tends to fall.

But that depends on price transparency, which exists for most of the day-to-day purchases we make. That is, other than visits to the doctor’s office and possibly the auto mechanic, we know the price of most products and services before we decide to pay for them.

Slots may be even worse than the doctor’s office, in that most of us will never know the true price of our wagers. Which means the law of supply and demand breaks down.

Casino operators usually think of price in terms of what is known as the average or expected house advantage on each bet placed by players. Basically, it’s the long-term edge that is built into the game. For an individual player, his or her limited interaction with the game will result in a “price” that looks a lot different.

For example, consider a game with a 10 percent house advantage – which is fairly typical. This means that over the long run, the game will return 10 percent of all wagers it accepts to the casino that owns it. So if it accepts $1 million in wagers over 2 million spins, it would be expected to pay out $900,000, resulting in a casino gain of $100,000. Thus from the management’s perspective, the “price” it charges is the 10 percent it expects to collect from gamblers over time.

Individual players, however, will likely define price as the cost of the spin. For example, if a player bets $1, spins the reels and receives no payout, that’ll be the price – not 10 cents.

So who is correct? Both, in a way. While the game has certainly collected $1 from the player, management knows that eventually 90 cents of that will be dispensed to other players.

A player could never know this, however, given he will only be playing for an hour or two, during which he may hope a large payout will make up for his many losses and then some. And at this rate of play it could take years of playing a single slot machine for the casino’s long-term advantage to become evident.

Short-term vs. long-term

This difference in price perspective is rooted in the gap between the short-term view of the players and the long-term view of management. This is one of the lessons I’ve learned in my more than three decades in the gambling industry analyzing the performance of casino games and as a researcher studying them.

Let’s consider George, who just got his paycheck and heads to the casino with $80 to spend over an hour on a Tuesday night. There are basically three outcomes: He loses everything, hits a considerable jackpot and wins big, or makes or loses a little but manages to walk away before the odds turn decidedly against him.

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Of course, the first outcome is far more common than the other two – it has to be for the casino to maintain its house advantage. The funds to pay big jackpots come from frequent losers (who get wiped out). Without all these losers, there can be no big winners – which is why so many people play in the first place.

Specifically, the sum of all the individual losses is used to fund the big jackpots. Therefore, to provide enticing jackpots, many players must lose all of their Tuesday night bankroll.

What is less obvious to many is that the long-term experience rarely occurs at the player level. That is, players rarely lose their $80 in a uniform manner (that is, a rate of 10 percent per spin). If this were the typical slot experience, it would be predictably disappointing. But it would make it very easy for a player to identify the price he’s paying.

Raising the price

Ultimately, the casino is selling excitement, which is comprised of hope and variance. Even though a slot may have a modest house advantage from management’s perspective, such as 4 percent, it can and often does win all of George’s Tuesday night bankroll in short order.

This is primarily due to the variance in the slot machine’s pay table – which lists all the winning symbol combinations and the number of credits awarded for each one. While the pay table is visible to the player, the probability of producing each winning symbol combination remains hidden. Of course, these probabilities are a critical determinant of the house advantage – that is, the long-term price of the wager.

This rare ability to hide the price of a good or service offers an opportunity for casino management to raise the price without notifying the players – if they can get away with it.

Casino managers are under tremendous pressure to maximize their all-important slot revenue, but they do not want to kill the golden goose by raising the “price” too much. If players are able to detect these concealed price increases simply by playing the games, then they may choose to play at another casino.

This terrifies casino operators, as it is difficult and expensive to recover from perceptions of a high-priced slot product.

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Getting away with it

Consequently, many operators resist increasing the house advantages of their slot machines, believing that players can detect these price shocks.

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Our new research, however, has found that increases in the casino advantage have produced significant gains in revenue with no signs of detection even by savvy players. In multiple comparisons of two otherwise identical reel games, the high-priced games produced significantly greater revenue for the casino. These findings were confirmed in a second study.

Further analysis revealed no evidence of play migration from the high-priced games, despite the fact their low-priced counterparts were located a mere 3 feet away.

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Importantly, these results occurred in spite of the egregious economic disincentive to play the high-priced games. That is, the visible pay tables were identical on both the high- and low-priced games, within each of the two-game pairings. The only difference was the concealed probabilities of each payout.

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Armed with this knowledge, management may be more willing to increase prices. And for price-sensitive gamblers, reel slot machines may become something to avoid.