Optimizing returns in the gaming industry for players and operators of video poker machines

Video Poker in Australia is on the verge of extinction. These machines are being replaced in casinos as it is claimed they generate less money than the traditional slot machines. A brief outline of Video Poker is given and a method of calculating the optimal strategies for any Video Poker machine is developed. The distinction between non-progressive and progressive machines is highlighted by an extensive analysis of a Joker Wild Video Poker machine still offered at Star City casino. Video Poker is interesting to analyze due to the changing strategies produced by progressive jackpots. These allow players to have the odds in their favor, while paradoxically allowing the casinos to increase their percentage margin on extra turnover as the jackpot rises. This situation makes progressive jackpots beneficial for both the player and the casino and it seems reasonable these machines should be accessible to players in all Australian casinos. Progressive jackpots applied to other industries are also discussed.