Casino Talks

Posted by: spearmaster at May 24, 2006, 10:00 pm

Topic: KING NEPTUNES Is Withholding My Winnings! Forum: Casino Meister

Quote: Originally Posted by GrandMaster

Let's compare progressive and non-progressive slots with 95% payout or equivalently, 5% house edge.

Non-progressive: The casino pays out, on average, 95c out of every $1 wagered and keeps 5c as gross profit.

Progressive: Let's assume that the progressive jackpot accounts for 5% of the payout and 90% is paid out on the other wins, and that the casino pays 5% to the software provider. Now the casino only gets 95c out of every $1 wagered, but only has to pay out 90c, so the casino's expected profit is still 5c. Assume now that the jackpot only accounts for 4%, and the other wins 91%, but the casino still has to pay 5% of the amount wagered to the software provider. Now the casino has to pay out 91c out of 95c, so it is essentially a slot machine with 4% house edge.

Maybe someone closer to the industry could supply more accurate percentages, but the principle is clear.

Somehow I misread your post to mean that the casino DID have to payout the jackpot... my mistake

Your description is correct - but I remember that there was a reason why progressives did not count. I'll have to look that up.

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