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April 2009

Video Poker: The Next Big Thing by Linda Boyd

“Big cigars, diamond rings, Ridin’ all around in a limousine, When you finally hit the top, Man you know what that means, Everybody’s ready for the next big thing”
Lyrics/Song By Vince Gill

Doesn’t matter whether it’s music, fashion, celebrity or a casino game, everybody’s looking for the next big thing. It’s fair to say that Americans have a short attention span, so to remain at the top of the heap you always have to try something new or add a whimsical twist to the old.

Gaming manufacturers already know their industry, even more so than others, they cater to people who are looking for heart-pounding thrills in exchange for their disposable mad money. Their customers may be risk-takers, but whatever you do, don’t bore them. It’s quite a challenge to constantly create and produce the next big thing when even popular traditional games lose some luster after repeated play.

If Bennie Binion (original Horseshoe owner) or Si Redd (IGT founder) were to enter a casino today, they’d be dumbfounded by what they saw. Even table games offer unusual side bets as well as game variations, like Spanish 21 or totally mechanized versions of Texas Hold’Em and other traditional felt standards.

The greatest changes, however, are with the glittery, vibrating, talking devices occupying the majority of space on the casino’s floor. Comfy but gaudy slots along with endless video poker options are enough to make your head spin. Here’s the latest view of the next big thing.

Slots Versus Video Poker

Slots: Players understand that slots are primarily based on luck so their rapid pulse vibrations must come from the whistles and bells along the yellow brick road. You should play smart by making sure you’re betting enough to be eligible for the big jackpots if there are any. For example, if it’s Mega Bucks, bet max coins or don’t play. Also, many of the new Aristocrat games (Outback Jack, Mr Woo, Zorro and others) have stand-alone or separate jackpots. Make sure you play the machine with the largest jackpot amounts. You will not know the expected return (ER) for the device you are playing and side- by-side machines may have different return chips.

Developers have done a bang-up job of continuously besting themselves with new products. Star Trek, for example, has several levels that you attain by earning “medals” along the way; it’s also continuous from session-to-session and casino-to-casino if you create an ID. You can even annoy others by putting the sound as high as it can go and then feel the seat vibrate when you hit a bonus. Mesmerizing!

In short, when it comes to making profitable slot machines, manufacturers and developers have clearly delineated objectives. First, create user-friendly and totally entertaining games and then make sure everybody knows about them by advertising and marketing like there’s no tomorrow. (As P.T. Barnum put it, “Without promotion something terrible happens ... Nothing!”)

Video Poker: Even though video poker is lumped with slots and in the short run there’s a component of luck, like with all casino games, there are still many differences from slots. First of all, you can use the pay schedule on the machine to determine the expected return (ER) before you even deposit your money. Secondly, you can either bring a strategy card for the game with you or practice playing statistically correct at home by using tutorial software. Playing smart, then, involves finding a game with a good ER and playing accurately. (Details can be found in my book, The Video Poker Edge, available in major bookstores or through amazon.com.) Many players are drawn to games where they can have some control over their own fate.

Game developers have tried applying their winning formula for innovative slots to video poker, highly entertaining games along with major advertising blitzes, with mixed results. That’s because when you inject skill, which varies from player-to-player, the average Joe runs short of bankroll too fast when trying quirky new games. On the other hand, highly skilled hustlers will use the latest technology to play accurately and they’ll pounce on every player-advantage game in the house. Tough games with high ER’s attract the pros, while the same game with a low theoretical return chases everybody away.

Next Big Thing for Video Poker

Even the brilliant marketing wisdom of P.T. Barnum won’t help the long-term success of any casino game that pounds gamblers every time they play. Winning or just seeing others beat the house spurs people on so they will keep on trying. So the video poker objectives for the future involve finding a game that’s an adrenaline rush, not too difficult for recreational players and not too attractive to professionals. Sounds tough but the latest products to hit the market do all of these things.

Multiple Options For Core Games: Since the late seventies when Jacks or Better (JOB) made its casino debut, video poker has been a big hit with players as well as a major money-maker for casinos. Really, it’s the perfect combo; patrons get lots of stimulation for their wager while the house rakes in their sure-thing profit. Still, like most gamblers, video poker players are adrenaline rush junkies and want new forms of titillation as time goes on. Game developers really did an A+ job of coming up with some wacky but thrilling choices; many appeared to be sure hits after focus group evaluations. The problem was real customers played with their own hard-earned money and when their lack of skill on games with complicated strategies caused results to be considerably lower than the expected return (ER), the love affair ended. It’s important to note that the only time long-term results mirror theoretical expectations is when the game is played accurately.

Back at the drawing board it became clear that many core games could be played fairly well by the average customer; some, like JOB, are pretty intuitive so few mistakes were made by most frequent players. The place where the rubber hits the asphalt, then, would involve adding multiple options to standard video poker fare.

These objectives can be achieved:

Bigger Thrills than Traditional Games: You can bet that potentially winning a jackpot of 10 times the traditional one, even though it’s a long shot, will make a gambler’s heart beat faster.

Good Return for Recreational Players: Most people play for fun and expect the casino to make money over time, just like every other business. Frequent players hope for a fair shake by getting a decent amount of time on the machine.

Not Attractive to Pros: If a game’s return, assuming perfect play, is less than 100%, pros won’t touch it with a 10-foot pole. They’d starve to death if even after comps and cash are computed, the house still has the advantage.

Here’s a quick synopsis of some core games included on the ever- growing list of player options. Smart players will take the time to learn the basics of some of them so they can broaden their range of options once they get to the casino. Free removable strategy cards for eight core games, including these, can be found in the back of my book, The Video Poker Edge.

Note that the game designation numbers below refer to the per coin payouts for the full house and flush respectively. For example, 9/6 JOB pays 9 for one on the full house and 6 for one on a flush.

Jacks or Better (JOB) This original video poker product remains popular, just like Oreo Cookies or Coca Cola. 9/6 JOB has an ER of 99.54%, it’s a low risk choice since you’re paid double your wager for two pair and the basics are easy to learn. The major player complaint was it was too boring. That problem is immediately solved when format options provide a jolt.

Bonus Poker (BP): Even without extra format choices this game is more exciting than standard JOB because players are paid extra for specified quads. 8/5 BP has an ER of 99.16% and you can use the same basic JOB strategy.

Double Bonus (DB): 10/7DB has an ER of 100.17% making it too attractive to pros, especially if more format options result in increasing the size of wagers. Even if the theoretical edge is small the incentive to play is greater for pros as bet size increases. To solve that problem either 9/7 DB (ER of 99.11%) or 9/6 DB (ER of 97.81%) are typically offered. Accurate DB play requires more deviations from basic JOB strategy than BP so make sure you either bring a strategy card or practice on tutorial software (several excellent products on the market) before trying it in a casino.

Double Double Bonus (DDB): 9/6DDB has an ER of 98.98% and is risky to your bankroll even without the extra punch of more options to the base game. Tread lightly before choosing DDB by making sure you have the strategy down pat and that you stick to pre-determined budget limits.

Format Modifications: If you’ve been to a Midwest casino lately you’ve surely noticed some of these options on the gaming floor. Look for even more in the future from IGT, Bally and every other manufacturer. Here’s a rundown on each.

Multi-Play (Also called Multi-Hand): You can play from three to 100 hands on a single game. Your main hand will be on the bottom of the display screen. Each of the hands you play will appear in smaller graphics above the main hand. Be aware that the cards held in the main hand will be held in every hand you chose to play, but separate decks are used for each hand in the draw portion. If you choose either 50 or 100-play games you may select as many hands as you want and play max coins for each hand without a short-coin penalty for the royal. However, if you chose any other multi-play game, say a 3-play or a 5-play, you must play max games and max coins to receive full odds on a royal flush. For example, if you are just playing two hands on a 50-play machine, then a 10-coin bet (max of 5-coins for each hand) will return 800 to 1 for a royal on either hand. If you were to make the same 10-coin bet on a 5-play machine then you would be forced to bet just two coins per hand and only receive a 250 to one payout for any royals.

Multi-Strike Poker: This popular choice has been around for a while and you must modify your strategy as you progress from one level to the next. You can choose either a single deck or a multi-play version. For the sake of simplicity, let’s assume you selected single- deck multi-strike and chose to play max credits. Instead of a max bet of five credits you will be betting 20 credits. There are four levels and you must win at the previous level to climb the ladder to the next level. A new deck is used at each level and the stakes double in value as you advance. For example, you would use a standard pay schedule at Level One, double the payouts at Level Two, four times Level One at Level Three and a whopping Eight Times Level One at Level Four. A new consideration is the importance of just winning so you can advance to the next level. That’s why the strategy is different from the base game; you will receive high premiums just by advancing to the next level. Make sure you take the time to practice on tutorial software offering multi-strike before you try it in a casino.

Quick Quads: For complete details on this option check Midwest Gaming & Travel’s video poker archives for February 2009. You must wager an extra coin, that’s six coins for a max bet rather than the standard five-coin max. After the draw, if you have three of a kind, the two non-matching cards are added together, Ace through Nine. If they add up to the same rank as the three-of-a-kind then you have quads. Of course, only three-of-a-kinds Two’s through Ten’s can make quads for the bonus feature. For example, let’s say you hold three dealt Fives and draw a Four and an Ace. You will be paid for four of a kind because the Ace counts as a One and 4 + 1 = 5. Traditional quads are valid as well. You will have to make some adjustments to basic game strategy to increase your odds of achieving quads with the bonus feature. If played accurately the quick quads feature increases the expected return of the base game, so it’s well-worth the extra coin bet.

Super Times Pay: Here’s an excellent choice to rev up the fun-factor of any base game. Just like with quick quads you must bet six coins rather than just five for a max wager. In return for the extra coin you will randomly win a multiplier bonus. When this happens you will see a number from two to 10 in a box located on the left of the display screen. Your winnings for the hand will be multiplied by the amount indicated. For example, if you win 40 coins on a full house with a multiplier of 5 in the box, then you would receive 200 coins rather than just 40 for the hand. (40 X 5 = 200) Like quick quads the super times bonus feature increases the theoretical return of the base game. If this bonus is offered definitely wager the extra coin.

Spin Poker: Just like the other formats you can apply this feature to any base game. There are 15 blocks where virtual cards will appear, configured with a top middle and bottom hand. You will have to check the winning pay patterns to determine the nine pay lines. (They’re accessed by pushing the help button on the bottom of the display screen.) It will cost you 45 coins for a max coin bet, that’s five coins times nine games. The first hand is dealt on the center payline with two other decks used for the lines above and below the main hand. That’s a total of three decks, but the cards held on the main hand (center line) will be held for the other two hands as well. Some people find the paylines, there are nine of them, difficult to follow visually. Again, I recommend that you practice using either tutorial software or by going to the website of a video poker manufacturer, like IGT or Bally, before trying it in the casino. The game is fun, but you have to make sure you don’t get carried away and spend more than you budgeted for the session.

The new format options included here are just some of those already on the floor in Midwest casinos.

Golden “Error”: You can see by the recommended core games, close to but not quite 100% theoretical returns, that there’s the potential for management to make player-advantage mistakes. It’s not going to happen often and, given the inability of most gamblers to make accurate video poker holds, it will have little or no impact on casino profits. On the other hand, if you are able to compute the comps and cash yourself (include multiple point promotions), you’ll stumble upon some excellent opportunities from time-to-time. With the latest options you’re actually playing for higher stakes on base games than in the past. For example, a 10-play quarter game now costs $12.50 per hand instead of just $1.25. If the game is 9/6 JOB (99.54%) plus 1% cash back (.25% cash back on a four times points promotion) you have a 100.54% play with an expected value (EV) 10 times that of the core game. In the current “golden era” of video poker you’ll find more “golden errors” than in the past.

Final Thoughts: If you listen to country western music then you may have heard Vince Gill sing “The Next Big Thing.” It’s a sardonic look at the latest fad, which is sure to dissolve into oblivion when something newer comes along. Video poker players can expect the future to hold the best of two worlds — golden oldies combined with format options that allow players to up the ante on old standby games. Sort of like Nabisco offering the original cracker as well as several variations with more or less kick. Unlike country music songs video poker classic games will remain at the top of the charts, only now you can season to taste.

— Linda Boyd ,a long-time table game player before turning to video poker, writes for many gaming publications. Look for Linda’s story in the 2009 edition of American Casino Guide. Her book, The Video Poker Edge, includes free removable pay schedules and her free strategy cards for the most popular games. Available at amazon.com, bookstores or www.squareonepublishers.com.