How casinos fund big payouts
Introduction
1. Rate deductions and pooling
1. RTP reserve
From each spin, the operator holds House Edge (100% - RTP), for example, with RTP = 96%, the reserve is 4%.
From this reserve, funds are formed for the payment of ordinary winnings and part for special ones (jackpots, bonus funds).
2. Betting pools
For progressive jackpots, 0.1-1% of each bet on the corresponding slot network is allocated.
Example: at an average rate of €1, €0.005- €0.01 goes to the Progressive Jackpots pool; for 100,000 spins, the fund will accumulate €500- €1,000.
2. Reserve and insurance funds
1. Operational reserve
The casino holds part of the profit in a separate account (cash float) for instant payments up to €100,000.
2. Insurance pools and reinsurance
For payments from €100,000 to €1,000,000, operators enter into contracts with specialized insurance companies or are combined into industry insurance pools.
With a jackpot drop over the casino's own reserve, the insurer covers part of the amount.
3. Corporate guarantees
Large groups (Entain, Flutter) create centralized funds at the holding level, distributing risk between brands.
3. Risk Management and Diversification
1. Product diversification
The casino in parallel offers low-volatility and high-volatility machines to balance payouts.
2. Cross-pool networks
Combining bets of several operators/jurisdictions accelerates the accumulation of jackpots, softens peak lunges.
3. Monitoring and limits
Track the growth rate of pools in real time; with abnormal accumulation, they can temporarily suspend rates or redistribute flows.
4. Progressive networks and drop algorithms
1. Accumulation cycles
Progressives are divided into levels: Mini, Minor, Major, Grand with different accumulation thresholds (for example, €5,000/€ 25,000/€ 250,000/€ 1,000,000).
2. Drop randomization
Additionally, timers are introduced: even before the full accumulation, the jackpot can "fall" by a random trigger in order to balance the payments.
3. Public indicators
The percentage of filling or the actual amount of the pool is transferred to the interface - this is part of marketing and a tool for managing the flow of players.
5. Financial and regulatory support
1. Licenses and regulatory requirements
UKGC, MGA, OCCC require a reserve fund and transparent reporting on RTP and jackpots.
2. Audits
Independent laboratories (eCOGRA, iTech Labs) verify that contributions actually go to the promised funds and are not "redirected" to other needs.
3. Reporting
Casinos are required to publish payment statistics at least in aggregated form so that the regulator sees the balance of incoming bets and outgoing wins.
6. Implementation examples
Conclusion
Large payments are the result of a well-thought-out system: from regular RTP deductions and rate pools to reserves, reinsurance and regulatory supervision. Understanding these mechanisms helps players evaluate the reliability of the casino and make an informed choice of a platform for "hunting the bank."
1. Rate deductions and pooling
1. RTP reserve
From each spin, the operator holds House Edge (100% - RTP), for example, with RTP = 96%, the reserve is 4%.
From this reserve, funds are formed for the payment of ordinary winnings and part for special ones (jackpots, bonus funds).
2. Betting pools
For progressive jackpots, 0.1-1% of each bet on the corresponding slot network is allocated.
Example: at an average rate of €1, €0.005- €0.01 goes to the Progressive Jackpots pool; for 100,000 spins, the fund will accumulate €500- €1,000.
2. Reserve and insurance funds
1. Operational reserve
The casino holds part of the profit in a separate account (cash float) for instant payments up to €100,000.
2. Insurance pools and reinsurance
For payments from €100,000 to €1,000,000, operators enter into contracts with specialized insurance companies or are combined into industry insurance pools.
With a jackpot drop over the casino's own reserve, the insurer covers part of the amount.
3. Corporate guarantees
Large groups (Entain, Flutter) create centralized funds at the holding level, distributing risk between brands.
3. Risk Management and Diversification
1. Product diversification
The casino in parallel offers low-volatility and high-volatility machines to balance payouts.
2. Cross-pool networks
Combining bets of several operators/jurisdictions accelerates the accumulation of jackpots, softens peak lunges.
3. Monitoring and limits
Track the growth rate of pools in real time; with abnormal accumulation, they can temporarily suspend rates or redistribute flows.
4. Progressive networks and drop algorithms
1. Accumulation cycles
Progressives are divided into levels: Mini, Minor, Major, Grand with different accumulation thresholds (for example, €5,000/€ 25,000/€ 250,000/€ 1,000,000).
2. Drop randomization
Additionally, timers are introduced: even before the full accumulation, the jackpot can "fall" by a random trigger in order to balance the payments.
3. Public indicators
The percentage of filling or the actual amount of the pool is transferred to the interface - this is part of marketing and a tool for managing the flow of players.
5. Financial and regulatory support
1. Licenses and regulatory requirements
UKGC, MGA, OCCC require a reserve fund and transparent reporting on RTP and jackpots.
2. Audits
Independent laboratories (eCOGRA, iTech Labs) verify that contributions actually go to the promised funds and are not "redirected" to other needs.
3. Reporting
Casinos are required to publish payment statistics at least in aggregated form so that the regulator sees the balance of incoming bets and outgoing wins.
6. Implementation examples
| Jackpot Network | Provider | Bet Deduction | Reinsurer |
|---|---|---|---|
| Mega Moolah | Microgaming | 0,1 % | Lloyd’s Syndicate |
| Mega Fortune | NetEnt | 0,5 % | Allianz |
| Age of the Gods | Playtech | 0,2 % | Munich Re |
| Jackpot King | Blueprint Gaming | 0,3 % | Swiss Re |
| WowPot | Play’n GO | 0,15 % | AXA XL |
Conclusion
Large payments are the result of a well-thought-out system: from regular RTP deductions and rate pools to reserves, reinsurance and regulatory supervision. Understanding these mechanisms helps players evaluate the reliability of the casino and make an informed choice of a platform for "hunting the bank."
