Gaming system and method for dynamically grouping gaming devices to provide progressive awards

A gaming system enables players of a group of gaming devices to wager on progressive or other awards for that group and tracks an amount of player activity at the group. If player activity of the group exceeds an upper reconfiguration threshold, the gaming system disassociates one or more gaming devices from the group to reduce the amount of player activity. If the player activity of the group falls below a lower reconfiguration threshold, the gaming system associates one or more additional gaming devices with that group to increase player activity. Reallocation of gaming devices can occur following a player winning the award for the group. The system can incrementally increase an award reset amount, while reducing the odds of winning the award, to maintain a desired range of gaming experiences. The system can also enable a player to select an initial groups based on a characteristic of that player.