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Because video poker is basically the integration of poker and slot machines, its history can be traced back to the invention of the slot machines itself. Charles Fey is the father of the slot machine. His slot machines had numbers on it and not poker hands. These coin-operated machines were developed in the U.S. in the 1800s and were very popular in saloons and cigar stores, especially in San Francisco.
You won't get rich from video poker even if a machine pays 100%+.  At a fast 600 hands per hour, and $1.25 per hand ($0.25 x 5 coins), that's $750 wagered per hour.  If you play perfectly (no mistakes) and realize your 0.77% advantage, that's $5.78/hr. on average.  You'll also need several thousand dollars of capital to fund the losses you'll suffer while waiting to hit the royal flush.  Yes, if you were capitalized you could play at higher denominations, except 100%+ machines are rarely found at anything but quarters and below.
A royal flush is a straight flush composed of the highest cards, such as 10? J? Q? K? A?.  But of course they don't all have to be in order. Q? 10? A? J? K? is still a royal flush.  The Royal Flush is the jackpot in video poker, and comes around about once out of every 40,000 or so hands -- or a week and a half of full-time play.  Hey, it could be worse:  The jackpot on a typical slot machine only hits about one out of every 262,144 spins.
Use a player card, and know the benefits of doing so. Casinos reward points for every penny bet in any machine, and those points can be redeemed for free play or comps. Free play rebates usually run from 0.1% to 0.33%. There are lots of other benefits for using a player card, like discretionary comps, free play mailers, drawings, and tournaments. If you don't use a card, there will be no evidence trail that you played, so you'll never get any of the freebies. This advice goes for any form of gambling. Finally, contrary to popular myth, the machines don't pay worse if you put in a card. The odds are the same whether you use a player card or not.
Video Poker is based on the game of draw poker and has virtually the same rules except that you are not playing against any other players. The machine deals five cards on the screen. The player then has the option of drawing up to five new cards. (In some instances you may not want to draw any new cards) You keep the cards you want to keep by pushing the “hold” button that corresponds to the card on the screen. When you have made your choice you hit the “deal” button and the cards you discarded will be replaced by new cards. Your win or loss is determined by the outcome after of your final hand after you hit the draw button. How much you win is based on the pay table that is posted on the front of the machine.

In the early 1980s, Si Redd and his new International Gaming Technology entered into a licensing agreement with Bally's Manufacturing that gave IGT exclusive rights to manufacture video poker machines. Few people recognized the potential at the time, but that gave IGT the boost it needed to become Bally's main competitor in producing electronic gaming devices. Today IGT and Bally's both produce video poker machines, and their machines take up most of the floor space devoted to electronic gaming devices across the country.
The process of listing hands with an ever lower average return continues until the average return for the hand is less than the average return for a totally new hand. The word “Redraw” or words to that effect are placed at this point in the strategy chart. This means you will get a higher return by totally replacing your hand than by trying to make something of it. The strategy chart is now complete.
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