Understanding the Appropriate Tip for Video Poker Hand Payouts -- September 26, 2006

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How much to tip for video poker handpays

This article focuses on the practice of tipping for hand payouts in video poker. This guidance is also relevant for slot machines, video keno, and similar electronic games. It is commonly recommended to tip between 1% to 2% for hand payouts; however, I believe this amount is excessively high. If I had to define a more reasonable range, I'd suggest tipping should be between 0.5% and 1%.

The basis for the commonly stated range of '1% to 2%' appears to originate from publications like Casino Player and Strictly Slots, both of which I have contributed to. Until recently, I strictly adhered to this guideline, much like the customary 15% to 20% tip in dining situations. But now, I suspect it reflects the personal views of the editors from those magazines. From my discussions with various video poker players, including some heavy hitters in the game, I've found that most tend to tip significantly less.

My doubt was sparked after I read a novel by Bob Dancer Sex, Lies, and Video Poker. In a key part of the story, a highly skilled professional player named Annie is coaching her boyfriend on the 9/6 Jacks or Better game. After he scores his first significant win of $1250 from a $25 bet, Annie suggests a tip of ten dollars for a jackpot of that size, as mentioned on page 186. Throughout the book and its sequel, tipping advice remains quite consistent. This revelation shocked me. It either implied that Dancer's character was under-tipping or that I had been excessively tipping all along. When I consulted other prominent video poker players, they had varied opinions but agreed that tipping in the range of 1% to 2% is excessive. Now, I feel rather foolish for possibly over-tipping by around $1000 to date.

So how did I arrive at the 0.5% to 1% recommendation? The only individual who provided me with precise percentages was Jean Scott, known as the 'Queen of Comps.' When I shared that I had tipped $200 on an $8000 jackpot, she exclaimed, 'Oh my god!' Most other players I spoke with gave lengthy explanations that ultimately suggested there wasn't a standard practice, opting instead to consider each W2G win ($1200 or greater) individually. However, when they were pressed for a range, it seemed that 0.5% to 1% might even be too much. Many highlighted that for high denomination games where wins of $1200 or more are frequent, tips aren't typically expected unless there are exceptionally large jackpots. Therefore, the 0.5% to 1% guideline is primarily attributed to Jean Scott, with my support of her position.

The cost of tipping as a percentage of the bet will significantly vary based on the choice of game and its denomination. Generally, you will incur substantial tipping costs if you frequently win hands yielding $1200 or more. For instance, consider the jacks or better game. If you choose to tip 1% for a royal flush but only 0.5% for any other hand payout, here is how the tipping costs break down according to the denomination played.

You will notice that the tipping percentage drastically increases at the $10 betting level. This is primarily because, with a $50 wager (since you're playing five coins), hitting a four of a kind will result in a $1250 payout, which occurs roughly once every 423 hands. Because of this, I believe it’s reasonable to skip tipping for every four of a kind if you’re playing for an extended period.

My gambling adventures

On the topic of video poker, I've had some great luck lately! I previously mentioned this in one of my newsletters, but in May, Treasure Island provided me with $300 in free play. On my fifth hand at a $2 three-play game, I hit an $8000 royal flush. Additionally, in August, Treasure Island offered a free cruise promotion, rewarding players who earned 150,000 points or played through $450,000 in bets. This was complemented by double shopping points that month. The cash back and shopping points alone made for a game with a theoretical expectation return of 100.1%. The cruise experience was just the cherry on top. Playing through $450,000 at $10 a hand meant I needed to go through 45,000 hands, which I managed by playing ten at a time on a ten-play machine. Statistically, a royal flush comes about once every 40,388 hands, so I would have expected approximately 1.1142 royals, but I ended up hitting four of them! The likelihood of achieving exactly four royals with that level of play is only 2.1%.

However, I received some unfortunate news regarding the cruise today. Treasure Island has announced that, at least for now, they won't be fulfilling their offer. I’ve been informed that the cruise is fully booked, and I am currently on a waiting list for any cancellations. Yet, when I contacted Princess Cruises directly regarding the specific cruise, they indicated there is plenty of availability. This dispute is just getting started! I’ll keep everyone updated.

In addition, during August, New York New York had a double points promotion. Typically, the cash back is just 1/3 of 1% at all MGM/Mirage casinos; however, New York New York doubled this cash back as free play throughout the month. This created a player advantage of 0.43%, which is significant for video poker. Unfortunately, I didn’t discover this promotion until around August 20th, but after that, I played it four times. I focused on the $5 five-play, 9/6 Jacks or Better game and had to release some of my action to a friend since it slightly exceeded my betting budget. By August 28th, word of the promotion had spread, and upon entering the high limit area, I found every multi-play game occupied, with many players monopolizing two games at once (a behavior I find quite annoying). I voiced my frustration to the woman handling the W2G documentation and requested to be informed if any multi-play games became available. In the meantime, I settled for a $10 single-play game. Even at $50 per hand, the potential returns didn’t quite justify my time, but I was hoping for a multi-play machine to open up. About 90 minutes into my session, which had otherwise been uneventful, I was dealt four cards to a royal flush. The odds of completing a royal in this situation are only 1 in 47. I’ve drawn to four to a royal many times in the past, but never with a $50 bet and the potential for a $40,000 jackpot. I was optimistic since I had to hit the button eventually and hoped for the jack of diamonds while expecting nothing. To my surprise, I did get the jack of diamonds! It's tough to describe the emotion—winning $40,000 was fivefold my largest win ever. Thankfully, I canceled the profit-sharing agreement on that play since I could handle a $10 single-play on my own, so the entire amount was mine.

I requested the slot host to take a picture of the moment, which he did with his digital camera. He had me sign a waiver permitting New York New York to use the photo in exchange for a copy that I would receive in the mail, which I have not gotten yet. Unbeknownst to me, they require significantly more paperwork for jackpot wins exceeding $25,000. A slot technician came to open the machine, documenting plenty of details. Various casino executives also came over to witness the process. It took approximately 30 minutes to receive my payout. I have also had positive results at other casinos, including Suncoast, Orleans, and MGM Grand. I hope my good fortune persists, keeping in mind that 'luck' is fundamentally just random mathematical variation, not something preordained.

Ask the Wizard!

Here's an excerpt from the newest Ask the Wizard , column #173.

I play blackjack occasionally and have enjoyed considerable success in physical casinos. I'm now considering transitioning to online play but have a few questions. For instance, if a game has a payout percentage of 98%, does that assure a consistent loss of 2%, regardless of whether my play is good or bad? Furthermore, in European blackjack without a hole card, if I'm playing the last box, shouldn't I leave small cards for the dealer instead of hitting? I sometimes question what the best strategy is. P.S. I love your site, THANK YOU -- Andrew from Belgium

Thank you for your insights. Payout percentages like these are based on historical data. For instance, the June 2006 report (link removed) from King Neptune's Casino shows a payout of 96.78% for table games, indicating that in June 2005, the proportion of money returned to wagers was 96.78%. This correlates to an actual house edge of 3.22%. Your individual outcomes will depend on the rules of the game, your personal skill level (especially in decision-making games), and luck (referring to how favorable your outcomes are). Generally, the odds can be calculated, making payout reports less useful for your specific situation. What should really matter to you is how other players have played or the types of games they have chosen. However, these reports can be incredibly beneficial for evaluating slot machines. No casinos openly share the looseness of their slot machines, but such payout reports give players a clearer idea. If you check payouts from other months and discover that King Neptune's tends to offer around 96% for slots, it’s a positive sign of a reliable operation to have those payout percentages validated independently, suggesting the casino has transparency.

Why is it that people avoid using mirrors on flat roofs in Las Vegas? Wouldn’t it reduce air conditioning costs?

I posed this question to my father, who holds a Ph.D. in physics and has solar panels installed on his home. His response was:

Using mirrors could indeed help, but the economics might not warrant it. It’s estimated that a maximum of 25% of heat enters homes through the roof. As mirrors age and accumulate dirt, their reflectivity could decline to around 60% or less. It’s generally more efficient to utilize that space for solar water heaters or solar electric panels. On sunny days, my roof-mounted panels generate enough energy to power both my air conditioner and pool pump, which represent my greatest energy expenses. During times when either device isn’t in use, my electricity meter actually runs backward. Just last week, the temperature in my pool reached 90 degrees thanks to my pool heating panels, leading me to reduce the pump running time.

What's new on the site

Flashing Dealers in Baccarat . If you're in a position to see the first player card before placing your bet, here's my strategy for winning at baccarat.

And of course, don't miss the new Ask the Wizard column for more insights. #173 .

Until next time, aim high with your expectations.

From Michael Bluejay: Unfortunately, there were no submissions for our contest to redesign the website. Not a single entry. Perhaps the reward wasn't sufficiently enticing? Nonetheless, this means I will handle the redesign myself. I'm fine with this decision, as the Wizard himself wasn’t particularly enthusiastic about the redesign contest initially.

We shall now return to the drawing for a complimentary copy of the Wizard's book. Gambling 102 Due to concerns regarding privacy, we will no longer be disclosing the names of our winners. Therefore, I can only mention that this month's lucky recipient is our subscriber numbered 543 out of a total of 9,974.

Stupid casino promotions

It’s widely recognized that the online gambling sector is quite dubious. Virtual casinos employ various tactics to extract your money from you, including offering misleading promotions. Recently, I encountered one of these misleading offers, and it frustrated me to the point of wanting to share my thoughts. This experience highlights the reason why Bodog is our sole advertiser: they do not indulge in the type of deception I am about to discuss.

Recently, I received a letter from Emma Hall representing Casino Classic. In her correspondence, they proposed giving me $500 worth of casino credits for free—no deposit required—and assured me that I could keep everything I won after an hour of play. Naturally, I assumed there must be some hidden terms, and as I read the letter more closely, I noted that Emma directly addressed my skepticism with the phrase: "No catch, no kidding!"

When someone boldly states, "No catch!", it’s only reasonable to believe that there are no hidden stipulations. However, that’s often far from the truth. Discovering that there is a hidden catch after being explicitly assured there isn’t one is incredibly frustrating. To be blunt: when Emma exclaimed, "No catch!", she was not truthful.

The promotional letter lacked any mention of the terms and conditions. However, upon checking their website, I uncovered the following stipulations:

• All winnings over $200 are void.
• To access any winnings below $200, a minimum deposit of $20 is required.
• The playthrough requirement stands at 30 times the amount before you can withdraw, but it escalates to 300 times for video poker and an astonishing 1500 times for blackjack.

This means that your likely loss when playing blackjack is calculated as $500 in free chips x 1500 playthrough x 0.5% house edge = $3750! If the video poker offers a return rate as generous as 99.5% (I didn't verify), your anticipated loss would be around $750. In essence, under this promotion, you shouldn’t expect to win any money at all. Yet Emma presents a vastly different picture with her enthusiastic claims:

"Picture yourself stepping into a casino, gifted with $500 for free, enjoying your favorite games for an hour, and leaving with your winnings... It might sound unbelievable, but that’s precisely what awaits you at Casino Classic! No catch, no kidding!"

This is exactly what she is offering me?! Not even remotely close. And as for her promise of "No catch," this promotion is entirely a catch.

Following this encounter, it’s no wonder I had to click the unsubscribe option from their mailing list multiple times before they finally removed me from it.

Written by: Michael Shackleford