The size of some of the online slots jackpots these days is almost unbelievable. At any time, you can find slots prizes that are worth over $1 million. And in some cases, jackpots have actually been worth over $10 million! But where do these giant prizes come from? Going further, how do they reach such astronomical heights? Let’s answer these questions by looking at the basics of progressive slots jackpots.
Launched by Casino Networks
The multi-million dollar slots prizes that you see are not the product of a single casino working independently, but rather a large network of casinos. When an online casino network offers the same game across dozens of sites, there’s a much greater chance that the jackpot will build to bigger proportions. As for how a progressive jackpot starts in the first place, the network will seed it with money and the prize grows from here. In some cases, the seed money can be $500,000 or more.
A Small Percentage goes to the Jackpot
Every time players bet money on a progressive slots game, a small percentage goes to making the jackpot bigger. The amount can vary, but just to provide an example, let’s say that a game pays back 94% over the long term. And the network will then make sure that a percentage of their theoretical take – 6% in this instance – goes to the jackpot. A realistic sum might be 1-2% of every dollar wagered.
Great for Casinos
While casino networks have to give up some of their house-edge revenue to make progressive jackpots grow, the end more than justifies the means. Assuming a jackpot grows large enough, it can attract thousands of new players to the linked online casinos. And so giving up one cent out of every 5-6 cents earned becomes a small cost in the grand scheme of things.