Who Must Act as an Iowa Withholding Agent?

This means the machines onboard the ship can be set to pay back whatever the operators want, without regard to a required minimum payback percentage. SOUTH DAKOTA SLOT MACHINE PAYBACK STATISTICS Below are statistics provided by the South Dakota Commission on Gaming concerning the payback percentages on all of Deadwood’s slot machines for the. 1985;13 excursion boat gambling was authorized in 1989;14 and slot machines were authorized at the pari-mutuel racetracks in 1994. 15 Along with the legislation to extend gambling facilities as noted in the preceding sentence, in 1992 the General Assembly.

Every employer who maintains an office or transacts business in Iowa and who is required to withhold federal income tax on any compensation paid to employees for services performed in Iowa is required to withhold Iowa individual income tax from that compensation. The amount withheld is calculated using the Iowa withholding tables, formulas or percentages.

Registering as an Iowa Withholding Agent

Register with the Internal Revenue Service first to obtain a Federal Identification Number (FEIN) or call the IRS at 1-800-829-4933. There is no fee for registering.

After obtaining a FEIN, Then register online with Iowa or obtain the Iowa Business Tax Registration form (pdf).

• Within 15 days, each new hire and rehire is required to complete and sign an Iowa W-4 (44-019). It must show the number of allowances the employee is claiming for family members, for itemized deductions, for adjustments to income or for the child/dependent care credit. Employees who hold more than one job at a time should consider how the W-4s they complete with each employer will interact. If for any reason the employee does not complete an IA W-4, the employer must withhold at zero allowances. Reference 701 — 46.3(2) Iowa Administrative Code

  Employers must keep copies of W-4 forms in their files for at least four years. Reference 701 — 46.3(2)e Iowa Administrative Code

  The Iowa W-4 is available online. (The Federal W-4 is available on the IRS website at www.irs.gov)

  Who Qualifies for Exemption?

  An employee who does not expect to owe tax during the year may file the Iowa W-4 claiming exemption from tax. Persons below the annual income levels shown below are eligible to claim exemption from Iowa withholding:

  • A married couple or a head of household with a total income of $13,500 or less.
  • A single person with income of $9,000 or less.
  • A single person with income of less than $5,000 who is claimed as a dependent on someone else’s Iowa return.

  Exemption for persons age 65 or older: (Note: Nonresidents may not claim this exemption.)

  • A married couple or a head of household with a total income for the year of $32,000 or less may file for exemption, if at least one spouse (in the case of a married couple) or the head of household is 65 years or older as of December 31 of the year.
  • A single person who is 65 years or older as of December 31 of the tax year may file for exemption if their income is $24,000 or less.

  Exemption for members of the military and spouses

  Members of the armed forces, armed forces military reserve, and the national guard in an active duty status (as defined in Title 10 of the U.S. Code) can exclude from Iowa pay received from the federal government for military service performed.

  Military spouses may be exempt from Iowa income tax on wages if:

  • Their spouse is a member of the armed forces present in a state other than their home state in compliance with military orders;
  • They are present in a state other than their home state solely to be with their spouse;
  • They maintain their domicile in their home state, and
  • Military orders must station the member of the armed forces in the state of Iowa

  Iowa Centralized Employee Registry Form

  Any employer doing business in Iowa who hires or rehires an employee must submit the Centralized Employee Registry Reporting form (the top portion of the Iowa W-4) to the Iowa Department of Human Services (IDHS) within 15 days of the hire or rehire date. Any questions on completing the form should be directed to the Employers Partnering in Child Support (EPICS) Unit at 1-877-274-2580.

  The Centralized Employee Registry form may be submitted by:

  • Mail - CER, PO Box 10322, Des Moines, IA 50306-0322
  • Fax - 1-800-759-5881
  • Website - (Centralized Employee Registry Reporting form)

  Notice to Independent Contractors

  If you are an independent contractor, do not complete a W-4 for Iowa. Instead, you may be required to make estimated payments on your income. See our individual income tax forms web page for estimated payment information, forms and instructions.

  Note, however, you also must complete a Centralized Employee Registry form from the Iowa Department of Human Services. The person with whom you are contracted may have a supply of these. Otherwise, call IDHS at 1-877-274-2580 to obtain one or use the top of the IA W-4.

  Employee or Independent Contractor?

  The Internal Revenue Service (IRS) establishes the criteria for determining if a worker is an employee or an independent contractor. If you have employees and not independent contractors, you must act as a withholding agent on both the federal and state levels. Review the information on the IRS Web page: Independent Contractor (Self-Employed) or Employee?

• Wages and Other Employee Compensation

  Iowa income tax withholding is applied to the same wages and compensation to which federal withholding applies. Certain payments made by the employer into employee retirement plans or for employee heath insurance are not considered wages and are not included in the calculations of withholding tax. See IRS Publication 15, Circular E, for details.

  Supplemental Wages

  'Supplemental wages' includes a bonus, overtime pay, commission or other special payment that is made in addition to the regular wage payment. If federal income tax is withheld on a flat rate basis, Iowa income tax is required to be withheld at the rate of 6 percent. However, if the supplemental wage payment is included with the regular wage payment, the two are combined and the withholding tables or formulas are used. Reference 701 — 46.2(3) Iowa Administrative Code

  Winnings from Gambling

  Iowa tax is required to be withheld at the rate of 5 percent from lottery winnings and winnings from games of skill, games of chance and raffles in excess of $600, pari-mutuel winnings of more than $1,000, and winnings in excess of $1,200 from slot machines on riverboats or at racetracks. Reference 701 — 46.1(1)d Iowa Administrative Code

  Agricultural Wages

  Wages paid to agricultural labor are subject to withholding for state income tax purposes to the same extent that the wages are subject to withholding for federal income tax purposes.

  Nonwage Withholding Requirements

  'Nonwage income' includes pensions, annuities, supplemental unemployment benefits, sick pay benefits and other nonwage income payments to Iowa residents. Iowa income tax is generally required to be withheld in cases where federal income tax is withheld. In situations where no federal income tax is withheld, the receiver of the payment may choose to have Iowa withholding taken out.

  Withholding on nonwage income may be made at a rate of 5 percent. Withholding agents should be aware that in certain cases the 5 percent rate may be excessive. Payers of nonwage income also have the option of withholding Iowa income tax from these payments on the basis of tables and formulas.

  Iowa withholding is not required when payment amounts or taxable amounts of nonwage incomes fall below certain levels, when payments are not subject to Iowa income tax, or when no federal income tax withholding is required on those payments.

  Pension and Retirement Income Exclusion (IAW-4P)

  A partial exemption is provided for pensions, annuities, self-employed retirement plans, deferred compensation, IRA distributions, and other retirement benefits to qualified individuals.

  To qualify you must be 55 years of age or older, disabled or a surviving spouse of an individual who would have qualified. The exemption is up to $12,000 for a joint filing status and up to $6,000 for all other filing statuses. Eligible recipients should complete the IA W-4P (pdf).

  State income tax is not required to be withheld if the amount of the distribution is $500 per month or less or if the taxable amount is $500 or less and the person receiving the distribution is eligible for the partial exemption of retirement benefits. In instances where the distribution amount or the taxable amount is more than $500 per month but less than $6,000 for the year, no state income tax is required to be withheld, if the person receiving the distribution is eligible for a partial exemption of retirement benefits. Reference 701 — 46.1(2) and 46.3(4) Iowa Administrative Code

  For tax years beginning on or after January 1, 2014, military retirement benefits can be excluded from Iowa individual income tax and withholding. The exclusion also applies to military survivor benefits received under 10 U.S.C. 1447. The exemption is in addition to the general $6,000/$12,000 pension exclusion available for Iowa individual income tax for taxpayers 55 years of age or older.

  Nonresident Wage and Salaries

  Employers doing business in Iowa are required to withhold Iowa individual income tax from the wages and salaries of nonresident employees working in Iowa at the same rate as for residents.

  Exception: See Iowa-Illinois reciprocal agreement later in this publication.

  Other Nonresident Income

  The payer or withholding agent may withhold on a one-time basis. The following additional types of income to nonresidents are subject to Iowa withholding:

  • Compensation paid to entertainers performing in Iowa, but not payments to entertainment corporations.
  • Rental payments received from Iowa property.
  • Taxable Iowa-source income paid to a beneficiary of an Iowa estate or trust.
  • Iowa-source income received by a nonresident partner or shareholder of a partnership or S corporation doing business in Iowa.
  • Income derived from any business of a temporary nature such as contracts for construction or fees paid for services in Iowa.

  Nonresidents Working in Interstate Commerce – Railroads / Airlines / Trucking

  Under provisions of federal law, Iowa tax should not be withheld from nonresidents working in Iowa as employees of railroads, airlines, and trucking firms in interstate commerce if they are working in at least one other state. Withholding may be required for the employee’s state of residence or the nonresident employee may be required to make estimated payments to their state of residence.

  Iowa-Illinois Reciprocal Agreement

  Iowa and Illinois have a reciprocal agreement for individual income tax purposes.

  Any wages or salary made by an Iowa resident working in Illinois is taxable only to Iowa and not to Illinois. Any wages or salary made by an Illinois resident working in Iowa is taxable only to Illinois and not to Iowa.

  An Iowa resident working for wages or salary in Illinois should complete and file Illinois formIL-W-5-NR “Employee's Statement of Nonresidence in Illinois” with the employer so that the employer will be aware it is appropriate to withhold Iowa income tax. The Iowa resident should also complete an Iowa W-4.

  An Illinois resident working for wages or salary in Iowa should complete and file the IA 44-016 “Employee's Statement of Nonresidence in Iowa” with the employer so that the employer will be aware it is appropriate to withhold Illinois income tax.

  Iowa will tax any Iowa-source income received by an Illinois resident that is not from wages or salaries. Illinois will tax any Illinois-source income received by an Iowa resident that is not from wages or salaries. Examples of income that are not wages and salaries and, therefore, not covered under the Iowa-Illinois Reciprocal Agreement are Iowa gambling winnings and unemployment compensation for employment in Iowa.

  Unemployment Benefit Payments

  Recipients of benefits may choose to have state income tax withheld from the benefit payments at a rate of 5 percent. Questions concerning state unemployment are answered by Iowa Workforce Development at 1-866-239-0843.

• Exemptions from Iowa withholding follow the guidelines of the Internal Revenue Service, with the following exceptions:

  Domestic Workers and Clergy

  Domestic workers and clergy are generally excluded from Iowa tax withholding requirements. However, if they anticipate an Iowa tax liability of $200 or more and are not subject to withholding, they may be required to submit quarterly estimated payments.

  Interest and Dividends

  Interest and dividends are not subject to Iowa withholding.

  Film or Television Production - Nonresidents

  Wages of nonresidents engaged in film production or television production may not be subject to Iowa withholding tax if an exemption has been filed. Applications for exemption must include:

  • Each nonresident employee’s name and permanent address;
  • Social Security Number;
  • Estimated amounts the employee is to be paid.

  Applications for exemption from withholding for nonresident employees engaged in film production or television production should be directed to the Iowa Department of Revenue, Tax Management Division, Compliance Services, Hoover State Office Building, P.O. Box 10456, Des Moines, Iowa 50306.

  Agricultural Payments to Nonresidents

  Agricultural payments to nonresidents are exempt from Iowa withholding if the withholding agent provides certain information to the Department about the sales of agricultural commodities or products. The following information must be included:

  • Name, address, Social Security Number of each nonresident;
  • Payments made in the calendar year to the nonresident;
  • County or counties in which the nonresident worked, owned or leased property, had products stored or livestock located;
  • The type of agricultural commodities or products: commodity credit certificates, grain, livestock, domestic fowl, or others.

  Note: Although these types of payments are not subject to Iowa withholding, they are subject to Iowa income tax in most instances.

• Filing Frequencies

  • Quarterly if you remit less than $6,000 tax per year (less than $500 per month)
  • Monthly if you remit $6,000 - $120,000 tax per year ($500 - $10,000 per month)
  • Semimonthly if you remit more than $120,000 tax per year (more than $10,000 per month; more than $5,000 semimonthly)

  Filing Withholding

  Based on their filing frequency, every employer is required to file for each applicable period during the calendar year, even if compensation was not paid during a period. If no wages or compensation was paid during a period, the employer will enter zeroes on the return/deposit for that period.

  • Quarterly filers are required to file a quarterly return for each calendar quarter for which they are registered.
  • Monthly filers are required to file two monthly deposits and one quarterly return for each calendar quarter.
  • Semimonthly filers are required to file six semimonthly deposits and one quarterly return for each calendar quarter.

  Withholding returns are submitted electronically through the eFile & Pay system. Once you are registered as a withholding agent, the Department will send you a Business eFile Number (BEN). This number is necessary to access eFile & Pay.

  If you were awarded a tax credit certificate for the period being filed, a withholding credit schedule will be provided through eFile & Pay. Each credit claimed against withholding tax is recorded separately on this schedule. Information entered on the credit schedule will be automatically populated on the withholding quarterly return.

  Credits that may be claimed against withholding tax are as follows:

  • The Iowa New Jobs Training Program Credit (NJC) – This credit is available to businesses to cover the cost of approved training programs entered into with community colleges for new employees hired due to business expansion, the start-up of a new business, or relocation from outside Iowa. The credit equals 1.5% or 3.0% of the gross payroll attributable to the new employees, depending on the achievement of certain wage targets. The credit may only be claimed after payments are made to the community college under terms of the job training agreement. (Iowa Code 260E) The community college gives the credit certificate number to the qualifying business.
    
  • The Supplemental New Jobs Credit (SJC) – Businesses located in an enterprise zone or eligible for the New Jobs and Income Program (NJIP) may also be eligible to receive additional job training credits equal to 1.5% of the gross wages of new employees engaged in approved job training under the 260E program. (Iowa Code 15.331) The community college gives the credit certificate number to the qualifying business.
    
  • The Accelerated Career Education Credit (ACE) – Businesses participating in the program may claim a credit of up to 10.0% of the hiring wage that would be paid to individuals completing approved training by community colleges. (Iowa Code 260G) The community college gives the credit certificate number to the qualifying business.
    
  • The Targeted Jobs Tax Credit (TJC) – This credit is available to employers that created targeted jobs in an urban renewal area and that enter into a withholding agreement with pilot project cities approved by the Iowa Department of Economic Development. The credit is equal to 3.0% of the gross wages paid to employees under the withholding agreement. The employer shall remit the amount of the credit to the pilot project city. The qualifying employer will be given the credit certificate number by the Iowa Department of Revenue.

  Remitting the Tax

  Several payment options are offered throughEasyPay Iowa.

• A withholding agent who fails to withhold and pay to the Department any money required to be withheld and paid is personally, individually and corporately liable to the State of Iowa. If this occurs, the amount of withholding may be assessed against the withholding agent in the same manner as is used to assess personal or corporate income tax.

• Visit ourPenalty and Interestpage for more information.

• Verified Summary Report

  All withholding agents are required to submit a completed Verified Summary of Payments Report (VSP) by February 15. This covers the Iowa income tax withholding payments made in the prior calendar year. The VSP is submitted online through eFile & Pay. Withholding Tax Forms can be found here.

  W-2s, W-2Gs, & 1099s

  Beginning in 2020 for tax year 2019 and all subsequent tax years, businesses that issued W-2s or 1099s that contain Iowa withholding must electronically file those documents by February 15. If businesses did not withhold any Iowa taxes, filing is not required.

  Wage and Tax Statements (W-2)

  W-2s must be given to employees on or before the last day of January following the tax year or within 30 days of the time the last wage payment is received if requested by the employee. This statement must contain the name, address and federal employer identification number of the employer; and the name, address and Social Security Number of the employee; the gross amount of compensation paid to the employee during the year and the amount of federal and state tax withheld. Reference 701 — 46.3(3)d Iowa Administrative Code

  Employees: If you need a copy of your W-2, first ask your employer. The Department is not able to furnish W-2s. If you are unable to obtain a copy from your employer, here are some other possible options:

  • Social Security Administration (SSA) - will provide copies of Forms W-2 for retirement purposes at no charge and for other than retirement purposes for a fee. Call 1–800–772–1213, or visit the SSA website at www.ssa.gov for instructions on how to obtain wage information from the SSA.
    
  • Internal Revenue Service (IRS) – will provide an exact copy of a previously filed and processed tax return with attachments (including Form W-2).
    
  • For the Iowa Department of Revenue, you should complete Form 4506, Request for Copy of Tax Return, and mail it to the address listed in the instructions. A fee will be charged for each tax year requested.

• Does the State of Iowa assign its own employer identification number?

  Yes; however, the Federal Employer Identification Number is normally used as part of the Iowa withholding number with a 3-digit suffix added for Iowa registration.

  I need to register to withhold Iowa tax from employees’ wages, but have not yet received my Federal Employer Identification Number. What will my number be?

  Complete the Iowa Business Tax Registration form online, indicate 'Applied for' in the FEIN field.

  Is the employer required to match the amount of Iowa income tax withheld from the employees’ wages?

  No. There is no matching of withholding of Iowa income tax from the employees’ wages.

  How is withholding calculated?

  There are two methods of figuring the Iowa income tax withholding. The employer can use either the manual tables or the computer formula. Either method is acceptable. The tables and computer formula are available on the Withholding Tax Information page.

  Where does an employer obtain blank W-2s, Iowa W-4s and Iowa W-4Ps?

  W-2s may be obtained from the Internal Revenue Service on the IRS website or by calling 1-800-829-3676 or by purchasing them through an office supply/forms business.

  When can an employee fill out an Iowa W-4 to change their number of allowances?

  An employee can adjust their withholding at any time by providing the employer with a new Iowa W-4.

  How can I obtain a refund of Iowa withholding?

  To receive a refund of Iowa withholding, file an amended quarterly withholding return(s).

  To receive a refund of Iowa withholding due tojobs credit:

  • File an amended quarterly withholding return for each affected quarter.
  • On the amended return(s), indicate only the jobs credit earned in that quarter.
    • If you were awarded a tax credit certificate for the period being filed, a withholding credit schedule will be provided through eFile & Pay. Each credit claimed against withholding tax is recorded separately on this schedule. Information entered on the credit schedule will be automatically populated on the amended withholding quarterly return.

  Will I be charged penalty and interest if I don't file on time?

  A penalty of 10% will be added to the tax due if the return is not filed by the due date and at least 90% of the correct tax is not paid by the due date.

  If the return is filed timely and the tax is not remitted, a penalty of 5% will be added to the tax due if at least 90 percent of the correct tax is not paid by the due date.

  The interest rate may change yearly. Interest must be added to delinquent tax at a per month rate, beginning on the due date of the return and accruing each month until you make full payment of all tax, penalty, and interest due.

  Visit our Penalty and Interest page for more information.

  What should income recipients complete?

  Employees must complete the federal W-4 and the Iowa W-4 (pdf).

  Page three of the Iowa W-4 is the Centralized Employee Registry (CER) administered by the Iowa Department of Human Services. It was created to assist with the collection of delinquent child support payments and will also help detect unemployment benefits fraud.

  Instead of using page three of the IA W-4, you may complete it online at the Department of Human Services website.

  If you have questions, contact the CER hotline at 1-877-274-2580.

  Employers are required to submit information on any new hire or re-hire to the CER within 15 days of hire.

  Pension income

  A W-4P (pdf) is available for use by those receiving pensions. Because of the pension exclusion on the Iowa return, many taxpayers may want to use the W-4P to reduce the amount of withholding taken from pension checks.

  Why do more allowances result in more Iowa withholding?

  In some cases, withholding amounts on the withholding tax table for a given income will actually rise as the number of allowances increases. This is because federal tax is deductible when calculating state tax. Federal tax will decline as the number of allowances increases, resulting in a smaller deduction when calculating Iowa tax. Because of this, state withholding amounts may increase even though the number of allowances claimed increased.

  What should I do if I don't receive my withholding payment vouchers?

  You may print your payment voucher directly from the eFile & Pay system. Your computer must have Internet Explorer version 5.5 or newer and Acrobat Reader version 6.0.1 or newer.

  You may also call or email the Department. Please be sure to provide the tax I.D. number, business name and address, tax period, your Business eFile Number, your name and telephone number, and other pertinent information.

  Payment vouchers are not available on the website.

  Please note that these vouchers are not returns. Returns must be filed through eFile & Pay.

  If you are a semimonthly filer, you are required to pay electronically.

  Are Department employees required to abide by any confidentiality laws?

  Yes. Please refer to this confidentiality statement of the Taxpayer Bill of Rights for more details.

  Do not combine multiple quarters of jobs credits.

You can find stories about people gambling for a living. Many people play poker for a living, and it’s easy to see why. Poker doesn’t have a built in house edge; it has what amounts to a seat charge in the form of rake. Poker players aren’t trying to win the house money, they compete for other player’s money. This is different than most other forms of gambling.

You can also read about blackjack players that have learned how to count cards or find sloppy dealers that flash the value of down cards. Some of these players are able to play blackjack for a living. A small percentage of sports bettors, horse track bettors, and dog track bettors are also able to make enough money to gamble for a living.

But it’s rare to find people who can gamble for a living who play other casino games. Bob Dancer claims that he was able to play video poker for a living several years back, but even if his claim is true, many things have changed since then. It’s harder to find full pay video poker machines and casinos pay lower comp rates for video poker play.

Of course, there’s nothing wrong with that and I’m not trying to say that he didn’t make money playing. But I don’t know if anyone is making a living playing video poker today. It’s possible, but if there are players doing it, there aren’t very many.

A few authors claim to make money playing craps using dice control. This has always struck me as a way to sell books and training courses, but just like Dancer’s claim in video poker, I suppose a few people can use dice control. Also just like video poker, if people are successful at dice control, there aren’t very many of them.

Games like slots, roulette, baccarat, and other table games don’t have stories about gamblers playing them for a living. Does the lack of stories mean that these games are impossible to beat?

Slots are the most popular form of gambling in casinos. People love to play slots. This brings me to the reason for this article.

The Hard Truth

Before you continue, consider exactly what making a living means. Some people live on $25,000 a year, while others seem to need $50,000 or $100,000 a year. Many factors come into play when determining how much someone needs to live.

Some of the factors include:

• Where you live
• How many people you have to support, like a spouse and children
• How frugal your lifestyle is
• How much debt you have

For the purposes of this article I’m going to use $52,000 a year as the threshold for making a living. This works out to $1,000 a week. You can use any number that you want, but unless you live in an expensive area, most people can survive on this amount.

Another issue that must be considered when you think about playing slots for a living is the lack of health insurance and other benefits. Professional gamblers have to find health care and they don’t get paid time off. Health care is a serious expense for many people and it can be dangerous not to have some type of coverage.

Many young people don’t worry about the lack of health care coverage, but as you get older it often becomes a real concern. If you have to pay for health insurance it can take a big chunk out of your income. Keep this in mind when you determine how much you need to make to play slots for a living.

The hard truth is playing slots for a living is almost impossible unless you’re already wealthy and have enough money that you can afford to lose in the long run. It’s much more likely that you’re going to lose $1,000 a week than win $1,000 week playing slots.

While most slots players lose in the long run, it’s not 100% impossible to play slots for a living. But such a small percentage of players make money that the truth is that you should probably forget the idea.

Each machine is programmed to pay back a certain percentage of every dollar wagers and keep the rest for the casino. These numbers are called different names, but I call them pay back percentage and the house edge.

A slot machine’s pay back percentage is the amount of all bets returned to the player through wins on the machine. If a slot machine has a 95% pay back percentage that means that on average it gives back $95 out of every $100 wagered to the player.

If you consider this from the other angle you get the house edge. When the slot machine pays back $95 out of $100, it keeps the other $5 for profit. In other words, a machine that pays back $95 out of every $100 wagered has a 5% house edge.

When you add the house edge percentage and the pay back percentage together, they always equal 100%. This means that if you know one number you can subtract it from 100 to get the other number.

You can use these numbers to predict how much money you should win or lose over a set period of time, based on how much you bet per hour. Because the house edge is in the casino’s favor, it means that if you can’t figure out how to overcome the edge or get lucky, you’re going to lose in the long run.

Most slot machines have a payback percentage between 90 and 98%. This means the house edge is between 2 and 10%. With a house edge, it means that you lose between 2 and 10% of every dollar you run through the machine.

Here’s an example:

• You play on a slot machine that has a 98% pay back percentage, which means it has a 2% house edge. Your bet size is $2 per spin and you make 400 spins per hour. You can figure out your average loss rate, or what you can expect to lose on average per hour, by using this formula.
• Amount bet per spin times spins per hour times the house edge.
• $2 X 400 X 2% = $16

This means that if you play for 10 hours your expected loss is $160. You simply multiply the expected hourly loss times the number of hours you plan to play and you get the average expected loss.

Slots are run by computers, which use a program based on math. These programs, unless the programmers made a mistake, make sure that the underlying math principles always come true. It might take millions of spins, but the programs guarantees that the machine produces the programmed profit percentage for the casino.

The house edge and pay back percentage are long term things. This means that these percentages are realized over a long period of time. In the short term the house edge and pay back percentages vary, sometimes a great deal. But eventually the short term variance evens out and produces the correct results.

Most players can’t, and this is why it’s almost impossible to play slots for a living.

If you still want to try to play slots for a living, the following sections have additional information you need to know. Just keep in mind that even if you use every trick and strategy in your power, you still might lose money in the long run.

Finding the Pay Back Percentage of Slots

You just learned about pay back percentage and the house edge and how these things guarantee the casino a profit. So the next question is how do you find out the house edge and pay back for slot machines?

Most casino games are designed in a way that it’s fairly easy to determine the house edge and pay back percentage, or you can easily find the numbers with a quick internet search. But slots are different. The programs that run the machines have so many variables that unless you have access to the program it’s impossible to determine the house edge and pay back percentage.

Another problem is that some machines offer different pay back percentages from the manufacturer, so each casino can order their machines with the percentage they want. You can find out more about finding slot machine pay back percentages here, but the news isn’t good.

The following sections include everything I know that can help you improve your chances to win. Four of them are strategies that you can put into action yourself, and the other one is based on hope. Sadly, hope isn’t much of a strategy, but it fits in perfectly with how most people gamble. They put their money out and hope to win.

Online Bonuses

Iowa Minimum Pay Back Slot Machines Online

Online casinos often offer bonuses for slots players when they make a deposit. You can get 100% or more of your deposit matched with bonus money you can use to play slots. This sounds like a great way to overcome the house edge, and if the money was free it would be.

While bonus money looks like it’s free, when you read the conditions and terms associated with the bonus you find out that it’s not a simple as the casino giving you free money.

Every online slots bonus comes with rules and regulations about how you can use it, what you have to do before you can cash out your money, and if you get to keep any bonus amount when you meet the terms of the offer.

The terms vary from online casino to online casino, so it’s important to read them before you make your deposit. Some bonuses are deducted from your balance when you make a cash out request, while others can be cashed out eventually.

When you accept an online slots bonus you have to meet certain requirements. These are usually called play through requirements. A play through requirement means that you have to play the bonus amount, and sometimes the deposit amount as well, a certain number of times to clear the bonus. The requirement is usually shown as a multiple, like 25X or 50X. This means you have to make wagers totaling 25 times or 50 times the bonus, and sometimes the deposit amount.

Here’s an example:

• You sign up at an online casino that offers a 100% sign up bonus on deposits up to $250. You make a $250 deposit and get a $250 bonus. This gives you a total bankroll of $500. The terms and conditions state that you have to play the deposit and bonus amount 50 times before you can cash out.
• The total of the bonus and your deposit is $500, so you multiply this by 50 to find the total amount you have to bet. 50 X $500 = $25,000, so you have to make $25,000 worth of bets before cashing out. The best can be any size as long as the total amount reaches the limit.

You can use a trick at this point to get an idea of the possibility of clearing the bonus and having money left over. You can multiply the total amount you have to wager times the house edge to find the expected loss.

Using this example, if you play on a slot machine with a 5% house edge, your expected loss is $1,250. This means that usually you’re going to run out of money before you clear the bonus. The only ways to change this are to play on a machine with a lower house edge, or find bonuses that have lower play through requirements.

You also need to make sure you understand the difference between cashable bonuses and the ones that are deducted from your balance. A bonus that can’t be cashed out when you meet the playing requirements makes it unlikely you can beat the house edge.

Here’s an example if you play a slot machine with a 2% house edge, using the same bonus numbers in the last example.

$25,000 X 2% = $500. This means that your expected loss is the same as your total bankroll of $500. Even if you get lucky and don’t lose all $500, the odds of you having more than your deposit of $250 left after clearing the bonus is slim.

You should defiantly use online slots bonuses if you want to play slots. Even a bonus that’s not cashable gives you extra money to gamble with. It also gives you extra chances to hit a big jackpot, which is the only way most slots players have of getting ahead.

Slots Tournaments

Slots tournaments aren’t run at all casinos, but some casino run them from time to time, and a few run them on a regular basis. A slots tournament offers a minimum amount of play for a set entry fee and awards prizes for the top finishers.

Some casinos offer slots tournaments as a reward for a set amount of play and/or connected to their slots club program. If you can earn a free entry into a slots tournament, anything you win helps overcome the house edge on your normal slots play.

When you’re looking for a slots tournament that has an entry fee, you should look for ones that have a guaranteed prize pool. If you can find tournaments that don’t get enough entrants to cover the prize pool you can play with an edge. It won’t greatly improve your chances of finishing in the money, but when the entry fees don’t cover the prize pool it’s profitable to play.

Here’s an example:

• The casino offers a slots tournament with a guaranteed prize pool of $1,000. The entry fee is $10 and they only get 80 people to sign up. If you divide the prize pool by the number of entrants you get the average value of playing.
• In this case, the average is $12.50. Any time the average return for playing is higher than the entry fee you’re playing with an edge.

You still have to finish in the money to win some money, but if you play in enough of these types of situations you come out ahead eventually.

Playing Slots for Comps and Promotions

Every time you play slots you should be earning comps. Sign up for the slots club at your local casino and look for online casinos that have a rewards program. The casinos don’t give back enough in comps to overcome the normal house edge, but every penny you get back in comps helps lower your cost to play.

Casinos also run promotions from time to time. You might be able to find free slots play vouchers and match play coupons in the local paper or on the web site of the casino where you’re planning to ply. Promotions and coupons are a great way offset the built in house edge of the slot machines.

Getting Lucky

I hate to say it, but the only way most people can play slots for a living is to get lucky. If you’re lucky enough to hit a big jackpot sometime in your life, and are smart with the money, you can afford to play slots full time.

The only slot machines I play are the ones that offer either a progressive jackpot or ones that have a set top jackpot prize of $100,000 or higher. I know I can’t overcome the long term house edge without a big win, so I don’t waste my time on machines that can’t make a big deposit into my bank.

Getting lucky isn’t a strategy, but if you don’t put yourself in position where you have the chance to be lucky you don’t even have reason to hope. If you want to play slots for a living focus on slots with big jackpot possibilities.

Progressive Jackpots

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The only way to truly play slots with an edge over the house is to play a progressive jackpot slot machine where the top prize has grown so high that it overcomes the edge. The problem with this is the same as I discussed earlier. If you don’t know the house edge you can’t determine how high the progressive jackpot has to climb before it makes the play profitable.

If you don’t know the house edge, simply play the slots that have the highest jackpots. Most casinos, both online and off, have at least one slots game with a jackpot over $1,000,000.

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If you can’t find one with a jackpot over $1 million, look for the highest one you can find. A $500,000 jackpot win might not set you up financially for life, but it’s enough to help out quite a bit.

Conclusion

Playing slots for a living is a dream of many gamblers. But the truth is that it’s almost impossible to succeed. The house edge locks in a long term profit for the casinos, so very few people win.

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You can use the tips and strategies on this page to give yourself the best chance to overcome the house edge, but if you want to gamble for a living your best bet is to stop playing slots and pick a different game.