Strategy changes for the cost of winning

[weekendplayer]

I play a lot of 96 job.  Unfortunately, I live in a state where gambling losses are not deductable.  So when I hit a $4000 royal, $240 (6%) goes for an unavoidable state income tax. Also, when I hit a royal, I usually tip the attendant $20. My total cost of winning is $260.  So my royals are worth $3740.
 
I have adjusted the pay table on Dancer's WinPoker from $4000 to $3740 to compensate for these cost. I have also changed my strategy to compensate for the lower RF value.
 
Is this the proper thing to do?  It seems to make sense, but I've never heard of anyone making these kind of adjustments. 
 
Or would I be better off leaving the RF value at $4000 (and making the corresponding strategy changes) to get the highest return out of the machine?
 
Also, $20 tip.  To much?  To little?

[vidopoker]

I think a $5 tip is appropriate ($10 if you are in a generous mood and are doing well overall). That is just my opinion. Others may think I am cheap. Obviously giving a tip is at your discretion so I think any tip is a generous gesture on your part.

 
Regarding your losses not being deductible upto your winnings, I did some research and you must reside in one of these states: Michigan (up to $300), Connecticut, Mississippi or Wisconsin.  I know all have some sort of casino gambling. Which one are you in, if I may ask?

[New2vp]

IIs this the proper thing to do?  It seems to make sense, but I've never heard of anyone making these kind of adjustments. 
 Also, $20 tip.  To much?  To little?It is a smart thing to do.  After all, 3740 represents your actual take for a royal in this instance, not 4000.   At the state tax rates and tip levels that you suggest, e.g., Jacks 9/6 goes from a 99.54% game to a 99.42% game, increasing expected losses by 27%.Making the change to 3740 with any VP Software like you did allows you to see the results you seek.  This will make it about 8% less likely to get a royal, but that's ok because it really doesn't pay at the 4000 level; the other hand type that will change the most as a result is that you will get about 3% more flushes.VPGenius has an option that allows tax rates and tip amounts to be built in automatically into his strategy tables.  At http://www.vpgenius.com/video-poker/jac ... etter.aspx, just click on options.  This particular address gets you to Jacks or Better games, but you can find other games there as well.  The threshold is for payouts ABOVE a certain level, so these numbers must be set BELOW 4000 for them to take effect (the default level is $1200).The default levels are 0% on taxes and 0 on tips (and it assumes a $1 machine).  All these levels can be activated and changed as you desire.  Iif you change the state tax to 6% and the tip amount to $20, you can get results for many games.  You could enter a percentage tip if you wanted to tip different amounts on different hand pays instead of the flat $20 if you decided to switch to a game like DDB when you might get taxes deducted for quad aces with kicker or if you wanted to tip differently on such hand pays.No opinion on tip amount.  Whatever you feel comfortable with, but it is a good idea to anticipate this up front like you have and it sure doesn't hurt to incorporate it into your strategy.If you do this and others don't, it just makes you ahead of the curve, not behind it.

[wilcoxfun]

I like your idea of making the adjustments as that helps you.  I too play jb and hopefully get to play jb at 9/6 but they only pay 2000 for royal flush what is the percentage of that difference in my play?
I also would give 20 if I hit a royal at 4000.

[weekendplayer]

I think a $5 tip is appropriate ($10 if you are in a generous mood and are doing well overall). That is just my opinion. Others may think I am cheap. Obviously giving a tip is at your discretion so I think any tip is a generous gesture on your part.

 
Regarding your losses not being deductible upto your winnings, I did some research and you must reside in one of these states: Michigan (up to $300), Connecticut, Mississippi or Wisconsin.  I know all have some sort of casino gambling. Which one are you in, if I may ask?





Wisconsin.

[shadowman]

I've played at Ho Chunk a few times. Is this where the 9/6 JOB are located. I haven't been there for a couple of years as I don't travel I-90 as much as I used to several years ago.
 
They used to have this game at Turtle Lake but has since been removed. I never saw anything playable around Green Bay but I've only been there a few times.

[faygo]

Add NC to your list. The State Income Tax is computed from Federal AGI.

[Marksman]

Wouldn't the effect on your AGI have to be considered, also? This would change from year to year, but if your claiming medical or employee deductions, then there may be a loss there, too.

[shadowman]

Good point. Those who do not itemize or show a profit need to consider at least some of the money as taxable on the federal side. And, as you indicated, even if you do itemize the increase in AGI could reduce other deductions. 

[New2vp]

I like your idea of making the adjustments as that helps you.  I too play jb and hopefully get to play jb at 9/6 but they only pay 2000 for royal flush what is the percentage of that difference in my play?
I also would give 20 if I hit a royal at 4000.If you don't change strategy from regular 9/6 Job (4000 RF), with a reduced royal payoff of 2000, you will move from an EV of 99.54% to 98.55%.  With $1 machines at 600 hands per hour, you will lose on average another $29.71 per hour.  If you make strategy changes and hold for RFs a bit less, you can increase this EV slightly to 98.67% and an additional loss of "only" $26.14 per hour given the assumptions mentioned.You can also expect 19% fewer royals with the strategy changes.