vpFREE2 Forums

Megabucks (XVP)...

In a message dated 12/16/2003 8:07:02 PM Pacific Standard Time,
brumar_lv@yahoo.com writes:

Each pull, one chance in 48,806,447.

Brian

Thanks Brian, thats very interesting. Based on $3 a pull, that means
IGT collected $146,419,340 before they paid the +$40 million jackpot,
leaving about $106,419,000 to cover expenses. Is that a great
business or what!!!!!!
Your figures are way too high for several reasons.

First of all, other combinations pay off, not just the top Jackpot. I have
heard that Megabucks machines pay back around 85%, NOT including the Jackpot.

Second, I don't know the meter contribution to the top Jackpot. Without that
piece of information, it is impossible to calculate how much the overall
"hold" of the Megabucks machines are. A good estimate might be a 7-8% overall hold.
Additionally, I don't know what the split is between the casino and IGT of
the machines' "take."

A 2% meter would put the average Jackpot at just under $10,000,000. This
seems a little low to me, based upon the most recent Jackpots. Maybe a 3% meter?
That would make the average Jackpot $11,400,000. At any rate, if the return
minus the Jackpot is 85%, and reset is $7,000,000, then the payback at reset is
(not accounting for the fact that the Jackpot is not paid out in one lump sum)
7,000,000/(48,806,447 X 3) + .85 = 89.78%. If the meter is 3%, overall return
would be 92.78%. Break-even (not counting slot club benefits) would be when
the Jackpot's present value got to just under $22,000,000. It seems likely,
since the Jackpot is not paid out in a lump sum, that the game has never actually
gone positive!

Finally, if you've ever watched folks play the Megabucks machines, you've
observed that a good percentage of them play just one coin. These are the people
wandering around the casino with a bucket of dollars, dropping one into this
machine and one into that machine. These people are playing Megabucks at just a
fraction over 85%, since they cannot actually hit the Jackpot.

I understand that IGT is doing quite well financially!

Brian

[Non-text portions of this message have been removed]

Your figures are way too high for several reasons.

Thanks for correcting my gross oversimplification of the Megabucks
return. I'm sure your analysis is much closer to the truth.
However, when I was watching last year I rarely saw anyone make less
than a full bet.

What I did see, however, is lots of people who didn't use their
players card!!!! That amazed me. At the SunCoast (where I was
watching), comps are awarded based on the amount won, not the amount
gambled. A $40 million Megabucks win was worth 40 million comps ...
probably enough to eat free at the SunCoast for the rest of your
life!