The present disclosure is directed to a gaming system and method providing a gaming tournament having a variable average expected point payout. Generally, during the gaming tournament, the gaming system enables each tournament player to play a tournament game at an EGM. The gaming system accumulates one or more tournament points for the tournament player when a play of the tournament game results in a winning outcome. At various points during the tournament, the gaming system increases or decreases an average expected point payout of the tournament game to change the tournament players' gaming experience.