How Can Online Casinos Offer Such Large Progressive Jackpots?

February 26, 2011 | Article Category: Slots

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Many online casino players wonder how an online casino can offer very large online progressive jackpots, since the jackpots that can be won are particularly large, many being worth more than a million.

It is well known and publicized that many online casino progressive slot jackpots are not offered by only one online casino, but by a network of casinos. This means that the costs associated with the progressive, or the 'losses' that the online casino sustains are shared with all others that are part of the network or the group. This network may be created through an online casino software provider, or else through an online casino group. Examples of an online casino software provider is Vegas Technologies, or Microgaming. An example of an online casino group is the English Harbour Group. The English Harbour Group is operated on Vegas Technology online casino software.

In order for online casino progressives to grow in size, and for the online casinos to still make money, the gaming providers have come up with a formula along the following lines, and although the exact amounts may differ, this is the way that progressives operate:

Online casinos count on the fact that players like to go for big ticket wins, even if the chance of winning is somewhat reduced. The online casinos expect a house edge of say 5%. If the online casino is earning $0.05 out of each $1 that is played in the online casino, it means that the casino will keep say $0.04 for their profits, and add the leftover $0.01 to the progressive jackpot in order to help it grow. Although the online casinos do take a slight financial loss, their profits should be up rather than down because of the greater interest that a big ticket progressive attracts.

Those who play in progressive slot games need to know that they only stand a chance of winning the full jackpot if they wager with the maximum number of coins. Any smaller wagers stand the chance of winning lesser prizes, but not the main prize. Having noted this, even though players who play anything less than the maximum bet are not eligible for the online casino progressive slot jackpot, their wager still contributes to the size of the progressive jackpot grows. This helps the progressive jackpot to increase in size, while still giving the online casino its income.

Essentially, the online casino attracts players to a well known progressive slot game because of the large progressive jackpot. Those who choose to play for less than the maximum bet do not lose out by choosing to play this slot game. They are simply not eligible for the largest jackpot.