How Casinos Make Money On Slots – An Inside Look at Slot Games

Slots are fan favorites among gamblers for a number of reasons, including a chance of winning jaw-dropping jackpots. Many casino winners have become rich after hitting the right combination in slots. If you are wondering how casinos make money on slots if going away with millions isn’t a rarity, it’s time to unveil all the secrets of these shiny machines. 

What are Slot Machines?

If you have ever visited brick-and-mortar casinos, you should have seen those large, colorful, and loud machines with symbols chaotically replacing each other on small screens. These are slots, one of the most popular gambling games in the US, Canada, Japan, Australia, and many other countries. Slot machines take their virtual form at online gambling sites in Canada, making them easily accessible for all players, regardless of their location.

The objective of both physical and online slots is the same. The player makes a wager and spins the reels, attempting to hit the winning combination. Players win the corresponding amount if three or more identical symbols appear when the reels stop.

Slots are known for some of the most generous prizes in the gambling industry. The biggest slot machine jackpot reached a whopping $39.7 million at Las Vegas’ Excalibur Casino, while the total number of winnings going over $1 million is countless. 

How Casinos Make Money on Slots: House Edge & RTP

After learning that physical and virtual gambling venues let slot players leave with some of the biggest casino winnings ever, you may wonder how casinos make money on slots.

If the primary goal of gambling operators is to make money, why do they give away such big amounts of money, especially in progressive slots? Let’s figure out.

House edge

Like other RNG-based games, slots are meant to be random. They are, in fact, but they still have a slight advantage built into the games that helps them gain profit. This advantage is called a house edge – a guarantee that the casino earns money in the long term, even if slot players may have their prizes in a short time. 

The house edge for most slots ranges between 5-10%, while the Return To Player rate starts at 90% and peaks at 99%. It’s worth mentioning that casinos can’t change these coefficients, as it is built in each game by providers.

RTP

So, what does all this mean to you as a King Billy Casino or any other casino player? To answer this question, you should also consider the concept of the Return To Player rate. RTP shows how much money each slot is expected to give players over a long period, which is opposite to the house edge.

In slots, the RTP rate typically starts at 90%. Mega Joker is known as the game with a record-high 99%, which means you may expect to win back $99 for every $100 you bet, while the casino is guaranteed to receive a $1 profit from each spin you make. This is how casinos make money on slots.

What Happens When Players Hit the Slot Jackpot?

Now, that you know how casinos make money on slots at online casinos in Canada, another question may arise: “Do casinos lose their money when players win?” The short answer is yes. All land-based and online gambling venues can experience some losses, just like other businesses. However, their profit still exceeds amounts in the long run for the following reasons:

• Players don’t win large amounts that often. Typically, they win small sums that are enough to encourage them to play more and bring the casinos their money.
• Winners of small amounts often start investing more significant sums, hoping to hit the main jackpot.
• Winning slots attract many new players, who ensure non-stop profit for casinos.

Considering all the reasons mentioned above, casinos secure themselves with profit in the long run. It’s worth mentioning though, that gambling platforms and venues are not rigged. Each reputable casino is licensed and monitored by respective authorities, guaranteeing their fair play. However, winning at slots remains a matter of luck, while a casino’s profit is an axiom. 

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