We have all heard that dollar slots payout out better than the nickel ones. The reason behind this idea that higher denomination slots pay out more than the small coin ones is really very simple. Nickel slot machines require the same amount of floor space, maintenance and change people to service them as dollar machines do. However, higher denomination machines have a bigger profit margin for the house because the over-head costs are the same for all the machines regardless of the denominations. Therefore the house can afford to pay out at a higher rate for the larger denomination slot machines.