A recent study of 16 states by the Association of Gaming Equipment Manufacturers indicated Iowa slots are among the tightest in the U.S., paying out about one-third less than they did 10 years ago. The study showed Iowa casinos had an average slot hold of 9.37 percent in 2014. Nevada had the smallest average hold at 6.4 percent. Brian Ohorilko, administrator of the Iowa Racing and Gaming Commission, said, “There’s no question the overall hold at Iowa casinos has declined the last 10 years.” Some observers said the tighter holds are leading to less gambling at and lower returns for casinos.
The study found the slots at Prairie Meadows racino in Altoona has the highest payouts compared to Iowa’s 18 other casinos, based on IRGC figures.
AGEM Executive Director Marcus Prater said the study did not include all states with legal slot wagering, but the 16 that were included have the most publicly available hold data. Prater noted machines with payouts of less than 85 percent are not considered to be a good value for players. He noted dollar slots typically have a higher payback and penny machines have the lowest. In addition, he said, the study found slot-machine hold among the 16 states reached a record high of 7.7 percent following years of expanded gambling.
