Winning Strategies by Elliot Frome | The concept of supply and demand is a fundamental principle of economics.
You donít have to be an expert at economics to understand this simple idea. If your team is doing well and you go to the stadium without tickets, you can expect to pay top dollar to a scalper for a pair.
If your team is in last place and youíve got an extra pair, you might find out that it is hard to give them away for free.
The casino floor is not immune to this concept. In fact, it may be a place in which this idea is more immediate than any other place. If no one plays a new table game, that game is not going to last very long. If a new game hits the casino floor and people are waiting to play, there is a good chance that a second table will appear very quickly.
Casinos donít make money from empty seats or from people standing around waiting to play.
Over the years, Iíve discussed both halves of the casino supply and demand equation. On the upper end of things, Iíve asked how the casinos can afford to have machines on their floor that pay over or even close to 100 percent and still make enough money to pay their bills.
The casinos know that only a small portion of the players play at anywhere near the theoretical payback (by using Expert Strategy). Therefore they can allow these customers to only lose a little or even to win. Casinos know full well there are so many more players who will use incorrect strategy at these games.
So, while the casinos count on human error to drive their profits, you have the opportunity to be the exception to the rule. The casinos want to be able to advertise that they have full-pay machines and high paybacks. They can do this because they know at the end of the day, the machines will never deliver these paybacks.
Thatís because the element of skill in video poker does not exist with slots. This creates an opening for the expert player to use these high payback machines as much as they would like.
So, if casinos want to offer high payback machines, why do they also provide some of the worst paytables that could possibly be created? There are multiple answers to this question.
The simplest one, however, is that people play them! Going back to the supply and demand theory, you can be sure that if players stopped messing with 95 percent payback video poker machines, they would be removed from the floor fast.
Again, so many players have no idea what they are doing. Not only do they not know which cards to discard, they donít know that the paytable actually matters in video poker.
Perhaps they just run over to the first open bank of video poker machines, which fortunately (for the rest of us) are generally the poorest paying ones Ė or maybe the ones closest to the buffet line.
For roughly 20 years, my father and I have been teaching our readers about the three important parts of Expert Strategy.
ē Know which games to play.
ē Know how to play each game.
ē Know what to expect.
These first two parts are direct reasons why obscenely low paying games are nearly extinct. It is not an accident that 20 years ago, places like Atlantic City offered 95-97 percent payback games at the upper end of their range and now offer paybacks that are almost as competitive as Las Vegas.
To be fair, these same two concepts have probably led to a decline in machines paying over 100 percent. More players have looked for these machines and learned how to play them.
Sometimes, you have to take the good with the bad.