A gaming system and method is disclosed which provides variable payback or hold amounts for a primary or base game, a secondary or bonus game, or both. The gaming system includes a central controller that changes at least one aspect of the game to provide a variable payback or hold for a gaming device in the gaming system. The gaming system includes a plurality of different paytables or award sequences each having a different average expected payback. The gaming system selects one of the paytables or award sequences for the game based on a player ranking assigned to each player. The player ranking is associated with a player tracking status obtained through a suitable player tracking system. The selection of one of the paytables or award sequences and its associated average expected payback is based on the player ranking (i.e., the player tracking status) of the player.