Penny slots, like penny stocks, are a no brainer for many gamers in Las Vegas. Low stakes make these games attractive, despite the fact that they tend to have a lower Return-to-Player (RTP) than higher denomination slots.
Easy to Play, Low Risk
The advantage of penny slots is that they are comfortable for players who don't feel comfortable with the rules of some gambling activities like poker or baccarat. Penny slots, like any slot machine, are pure games of chance that do not require any specific knowledge to play.
Further, the low wager amount, a coin value of 1¢, means that even betting all the paylines is a sub-dollar affair, generally just a fraction of that.
For high rollers, or for those who want to increase their chances of winning big, the higher limit slots might be more their speed. These machines often have higher payouts and give players a better chance to win big. Of course, with any type of gambling, there is always going to be some risk involved.
Lower RTPs
The major disadvantage of penny slots is that they usually have a lower RTP than the higher value machines. RTP is referred to as a percentage. A machine that returns 94¢ for every dollar would have an RTP of 94%.
The higher the RTP of a game, the lower the house edge. House edge is calculated by subtracting the RTP from 100%. For example, if a game has an RTP of 98%, its house edge would be 2%. That means for every $100 you wager on that game, you can expect to lose $2.
Nevada has a minimum RTP of 75%. It doesn't seem like any casinos are setting the RTP anywhere near that low limit, but it is common for penny slots to have RTPs in the mid to high 80s. For Las Vegas casinos, that equates to tens of millions in profits each month.
Stay Informed
If a visit to the casino is nothing more than an entertainment experience, and you aren't interested in dropping large sums of cash down, the penny slots are a good option. Just be aware of the nature of these games. If a higher return is what you are after, you will need to play some of the more expensive machines. Naturally, the risk there is that a bad streak can quickly deplete your bankroll in a way a penny slot would not.