How Can an Online Casino Pay Out Millions?

October 02, 2010 | Article Category: Casino Software

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Usually, when an online casino has to pay out millions of dollars, they are not doing it alone. If this is the case, then where is the money coming from?

The answer to this question is found in networking. Usually, when an extremely large amount of money is won at an online casino, it is won on a game that has a progressive jackpot. The progressive jackpot in these cases will not be run by a single online casino, but rather at online casinos that are part of a group, or a network.

By being part of a network, the online casinos are protected from losing fortunes on big online casino progressive jackpots. No single online casino could afford to pay out millions to players for single wins, and manage to stay in business for any length of time, no matter how good an online casino they are.

In order to understand a little better how these jackpots operate, let us take Microgaming's Mega Moolah online casino progressive slot jackpot as an example. This particular online casino progressive slot starts at a payout of one million, and has been known to pay out over six million euros, although payouts have also been closer to one million, which is close to the starting amount for this progressive.

The starting payout for Microgaming's Mega Moolah progressive slot is seeded by Microgaming, and the progressive is offered at all the online casinos that use Microgaming's online casino software. After the initial amount of one million has been seeded by Microgaming, a fraction of all the bets that are placed on the online casino progressive slot game go towards increasing the size of the jackpot. This makes the progressive slot jackpot grow with each wager that players place on it, and the more players that play, the bigger the jackpot will grow, until it is hit, and reset back to one million.

There are very few jackpots that will reach such big amounts, but a large software company like Microgaming can afford to seed this incredible jackpot. In fact, while the online casinos do not lose money on this kind of networked online progressive, it is also excellent publicity for the software company, and for the online casinos that they power.

The publicity received for large wins such as this go a long way to promoting online casinos, and in this case, a group of online casinos, and possibly more so the online casino at which the most recent jackpot was hit. This kind of publicity is well worth the price.