How does a slot machine work, and why do near-misses feel like almost winning?

A 1984 patent for a slot machine said it was important to make a machine that is perceived to present greater chances of payoff than it actually has.

A slot machine is a computer that picks random results and pays back a fixed share of what it takes in. It feels like spinning wheels of luck, but behind the screen a decides each outcome, and the machine is set so that, over time, it keeps a planned slice of the money put in.

The first machines were mechanical. Around 1887 to 1895, Charles Fey of San Francisco built a simple device with three spinning reels and five symbols, including a Liberty Bell that gave the machine its name. Today the mechanical operations of early machines have been superseded by random number generators, and most are operated with buttons and touchscreens.

The planned slice is called the , or RTP. Slot machines are typically programmed to pay out 0% to 99% of the money wagered. Rules set a minimum: in Nevada it is 75%. Take a machine costing $1 a spin with an RTP of 95%. Over 1,000,000 spins it returns an average of $950,000, so the operator keeps $50,000. Each spin is independent of the last, so no machine is "due" a win.

From coin to payout
  1. Step 1: You bet

    Each spin costs the same fixed amount.

  2. Step 2: A picks the result

    Each spin is independent of the last.

  3. Step 3: The reels display it

    Near-misses and sounds are part of the display.

  4. Step 4: The RTP sets the long-run share paid back

    For example 95% over millions of spins.

Then there is the feeling of almost winning. A , such as cherry, cherry, lemon, can make a player more motivated to continue, because the effort "almost succeeded". But a near miss is just a loss: missing a lottery ticket by one digit has no bearing on whether buying another is a good idea. Modern machines can give every symbol on every reel a different probability, so a winning symbol that looks "so close" may in fact be much less likely than it seems. Researchers still debate how strongly near-misses affect people, as the evidence is mixed.

Try it

What the machine keeps

062.512518825002505007501,000Spins at $1 eachAverage amount kept by the machine ($)

y = 0.05x + 0

Challenge · At an RTP of 75% (the Nevada minimum), the machine keeps 25 cents of each $1. How much does it keep on average over 1,000 spins?

A simple model of averages, not of any single session: the average kept = spins times (1 minus the RTP). At 0.05, an RTP of 95%, 1,000 spins keep $50 on average.

Quiz me

0/3

  1. 1.What does an RTP of 95% mean for a slot machine?
  2. 2.After a long run of losing spins on a random number generator machine, what is true about the next spin?
  3. 3.Why can a near-miss like cherry, cherry, lemon be misleading?

Recap

A near-miss is a loss that looks like a win: the next spin starts from zero.

💡 A trick to remember it · Two cherries and a lemon is a stumble, not a step: the staircase was never there, only the picture of one.

Surprising fact · The 1984 patent behind modern reel selection states that a machine should be perceived to offer better chances than it has.

Sources (2)

No source, no claim. Every fact in this lesson (14 claims) cites at least one of these.

  1. [1]Slot machine · Wikipedia
  2. [2]Near-miss effect · Wikipedia
More lessons in 🧠 Psychology (3) See all psychology lessons →

One more light on your map.

Get one lesson like this every day, about the things you love. Free, in two or five minutes.

Get the share card for this lesson ↗