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Progressive slots are the casino’s version of the lottery, as they promise the chance at
life-changing money for just a couple of bucks per spin. Players flock to progressive
slots in droves, as everyone wants a shot at hitting it big and taking home millions of
dollars.
For as popular as progressive slots are, there is very little information
available out there on how they actually work. But that is where our resident casino
expert here at TheSportsGeek, Jason Gray, comes into play.
Jason spent years managing
casinos on the Las Vegas Strip, and he is going to give you the inside info on how
progressive slots really work from a true industry insider.
With that, let’s jump right
into it, with 7 facts about progressive slots that will shock you. We will kick things
off by taking a look at the casino’s house advantage on progressive slots and how it is
likely much higher than you might expect!
The Casino Hold Is Higher On Progressive
Slots
The casino knows that you are mesmerized by those huge progressive jackpot
numbers, which is why they jack up the house advantage on the game. Their thinking is
that you are going to play anyways, so they may as well charge you for the
experience.
When you compare the house take for a progressive slot machine to a typical
reel, video reel, or video poker machine, it is going to be much higher on the
progressive slots. The hold on an optimal rule set video poker machine can be as low as
less than 1%, whereas progressive slot machines are going to hold double digits.
When
you factor in that a large percentage of the money that is going to be paid back to the
players goes to the progressive jackpot winner, it makes it that much harder for the
average player to walk away a winner. If you want to chase millions, and let’s be
honest here, who doesn’t, expect to pay a premium price to do it while playing
progressive slots.
The House Must Pay Out All Money Collected
Most gamblers have no
idea how progressive slot machines actually work. For every dollar bet on a progressive
slot machine, a percentage of it goes toward the progressive jackpot pool.
The exact
breakdown is going to vary from slot to slot, but just know that every time someone
pulls that handle, the progressive meter is going to go up.
That money is held
separately from the rest of the money that is collected, and per gaming regulations,
must be paid out in full to players. Essentially all the casino is doing is holding the
player’s money for them, until they eventually give it all away to one lucky
gambler.
Many gaming jurisdictions set rules on how long the casino can hold the
player’s money, which is why you will see games that advertise that they must hit by a
certain date or dollar amount. When that big jackpot does eventually hit, all of the
money paid out comes from the pool of money contributed from all of the handle
pulls.
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You Must Play Max Bet to Win the Jackpot
While not every slot machine is
going to be identical, one thing that you can bet on when playing progressive slots is
that you must bet the maximum if you want to hit the jackpot. That doesn’t mean that
you can’t win if you are playing less than the max on a progressive slot, it just means
that you can never win the top award on the game.
We already talked about how a large
percentage of the money that gets paid back out to the players on a progressive slot
machine comes via the top award jackpot, and if you aren’t eligible to win the big one,
you shouldn’t be playing the machine at all.
If the max bet for a specific game is
above your bankroll, you are better off dropping down in denominations and playing max
credits on a different game with a smaller max bet. The last thing you ever want to do
is hit the magical combination that should get you rich, only to find out that you
don’t qualify because you didn’t play the max bet.
Progressive Slot Jackpots Can Reach
8 Figures
When slot machines first appeared on casino floors, they were used to
distract the wives of the “real” gamblers that were playing table games. But since
those humble origins, slot machines have come a long way, and they now dominate the
gaming landscape in terms of volume.
The days of winning a couple of nickels on a slot
machine are long gone, as slot machines have become big business with even bigger
jackpot payouts. A quick walk across the casino floor of any major casino will show you
multiple machines boasting million-dollar payouts.
We have even seen some slot machines
payout 8 figures, as the largest progressive slot machine win of all time was
nearlyR$40 million bucks!
These jumbo jackpots are exceedingly rare, but as more and
more casinos get in on the progressive slot machine craze, they are only going to get
bigger and bigger. It is only a matter of time until we see a new record set, and it
won’t shock me at all when we inevitably see the first 9 figure progressive jackpot
payout!
Huge Progressive Slot Jackpots Are Paid by The Manufacturer, Not the
Casino
Here is a progressive slots fact that I am sure you didn’t know! When those
massive 8 figure payouts do hit, it’s not the casino that pays it out, it is actually
the game manufacturer. The slot machine makers take out insurance against these big
jackpots, to lessen the blow of the hit when it eventually comes.
That is why the
casino separates the progressive funds from the normal money that flows through the
slot machine. All of the money that is on the progressive meter is actually being held
by the game manufacturer, not the casino.
If you have ever seen a monster jackpot hit,
you may have noticed that they can take several hours to be paid out. That is because
it must be verified by the casino, the game manufacturer, and a representative from the
insurance company.
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With so many different hands in the cookie jar, and so much money being
paid out all at once, everyone involved wants to ensure that everything was on the up
and up, and that there was no shady business or machine malfunctions that caused the
jackpot to hit when it shouldn’t have.
Many times, the manufacturer will actually
disassemble the entire bank of machines to confirm a legit jackpot before it gets paid
out. There have been several high-profile progressive jackpots that turned out to be
machine malfunctions, voiding all payouts. A big part of the casino’s due diligence
when handing out that much cash is to know without a doubt that the hit was
legit.
Taxes Will Be Taken Out of Your Payout
When you are playing a normal slot
machine and hit what is known in the industry as a taxable jackpot (a jackpot
overR$1,200 in the US), you can choose to take all of the money right away or to have
taxes withheld from your payout. When you hit a major progressive jackpot, you don’t
have a choice, as the casino is going to withhold taxes upfront, even if you don’t want
them to.
Depending on which market you are playing in and which country you are from,
the amount that they are going to withhold is going to vary. As a general rule, they
will hold roughly a third of any major progressive jackpot for tax purposes.
That is
even true if you live in a country that doesn’t tax gambling wins or has a tax treaty
with your home country absolving you from paying.
In a case like that, where you are
from a country that doesn’t tax gambling wins, you will have to work with your home
country’s government to retrieve your funds after the fact, as they are going to
withhold it from you no matter what. It is a little bit of a bummer to hand over so
much cash to Uncle Sam, but it is a good problem to have, as that means you just won a
boatload of money!
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Many Progressive Machines Are Linked Across Multiple
Properties
So, we know how progressive jackpots grow, as a percentage of every handle
pull is added to the progressive pool. But you might be wondering to yourself, how can
these progressive pools get so big, so fast?
Well, many of the slot machine game
manufacturers link their machines across multiple properties. So, in reality, you
aren’t just playing one machine when you are playing a progressive slot machine, you
might be playing for money that was collected on machines at several different
casinos.
Megabucks is a good example of a slot where the prize pool is built up at
hundreds of different casinos, allowing it to grow at a much faster rate than if it
were just one machine at one casino. When you drop your dollar into a progressive slot,
a player in another casino, or even another country, depending on the game you are
playing, could end up taking home the progressive jackpot that you helped
build.
Conclusion
Do you want to know where some of the biggest progressive slot
jackpots in the world are at? Of course, you do! These days, some of the biggest
progressive jackpots can be found online!
Online casinos regularly feature massive
progressive slot jackpots, and if you want a shot at taking home life-changing money,
you must give them a try!
Are you looking for a place to play progressive slots for
real money online? Look no further than TheSportsGeek’s play slots for real money page,
where we bring our readers exclusive offers at all of the best online casinos.
Here you
will find sign-up bonuses, deposit matches, cash back, and more, and you don’t want to
miss out on all of the free cash! Thanks for reading, and good luck playing progressive
slots at your favorite online casino!
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