To start with, let's explain what loose slots mean. Loose slots are the ones holding better payoffs to a "certified" high of 100%, on average over a period time. A machine will have a symbol; let's say 2-3 cherries, which pay a couple of coins. These cherries will replace a symbol that doesn't pay, and presto you have a loose machine.
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So where else can one find the illusive loose slot machines that so many people speak of from time to time? Below are the most common places where you might find loose slots and they only apply to land based casinos of course.
Near the change booths - casinos want other players who are waiting in line to receive change to hear the unmistakable sounds and sights of players hitting mid-level and top jackpots. This will, supposedly, motivate other players to get more change and play more machines.
On elevated carousels - high payoff machines that are visible from nearly any angle from the gaming floor also serve to motivate other players to put more money into THEIR chosen machines.
Near the coffee shop/cafe/snack bar - casinos frequently place their best machines in these locations to motivate players to eat quickly and get back to the gaming floor as soon as possible. When a player takes a "time out" for food or drinks it's time spent not playing the machines. No play = no revenue for the casino.
Slot aisles known as "crosswalks" - crosswalks are areas that players must walk through to get to other slot aisles. Again, the same principle applies: the casinos want slot players to witness frequent jackpot payouts. Passers-by using these carefully planned pathways are more likely to be drawn into the main slot aisles, where the mid-range and tight machines are waiting to fleece them.
Locations highly visible from other slot aisles - same philosophy, same reasons as cited above.
Round or rectangular, free-standing kiosks within the main casino - nearly all casinos sublet space to the manufacturers of slot machines (Bally's is a prime example). These free-standing kiosks are not strictly bound by the individual casino's marketing principles, and may have a larger percentage of "loose" machines.
Why? It is supposedly believed that if they are placed where people walk by, they will generate excitement and interest for others when they see someone winning. I don't know how true this really is. I am a big doubting Thomas when it comes to many issues and my personal take on this whole matter is that the pull of the slot machine results in a totally random outcome. Slots are for fun, not for a ticket to overnight success. Try your luck, don't go over your budget and if you win, you win, if you lose, you lose. End of story!