Casinos profit on slots

[bart1981]

Hi all,

I really wonder what the casinos profits are on slots..

For example, if a slot claims to have a RTP of 96 procent.

Does that really mean (over a longer period) that when 100 euro bets is placed they earn 4 euro, 1000 euro only 40 euro, 10000 just 400 euro and 100000, wowwwwwwww: 4000?

How can they pay their staff with that? and all the other costs? Maybe the big casinos where lots of people play, but with casinos opening every day? I just cant understand..

There has to be something about rng/rtp that I do not understand.

 

[McMaNGOS]

The RTP does not really matter much here, what matters is when players choose to cash out.

A player can have excellent RTP during a session but simply keep playing under the impression that they can win more, this usually ends in a bust and thus gives the casino their profits. Factor in the idea that a lot of highrollers employ this method of play, and suddenly casinos are profiting wildly off these players.

If all players were to cash out the moment they reach even the slightest amount of profit, however, then it would indeed not be very profitable for the casino. They make their money off of greed and addiction, basically.

 

[CasinoTwitcher]

Hi all,

I really wonder what the casinos profits are on slots..

For example, if a slot claims to have a RTP of 96 procent.

Does that really mean (over a longer period) that when 100 euro bets is placed they earn 4 euro, 1000 euro only 40 euro, 10000 just 400 euro and 100000, wowwwwwwww: 4000?

That is correct! For each €100 wagered the casino will sit back with an average of €4.

How can they pay their staff with that? and all the other costs? Maybe the big casinos where lots of people play, but with casinos opening every day? I just cant understand..

There has to be something about rng/rtp that I do not understand.

You should keep in mind that players might play thousands of spins per day, and that casinos might have thousands of active customers per day.

Let's say I play 5000 spins during a day at a €1 stake, then I have wagered €5000 and the casino will on average have taken €200 from me.

When you start to add up all the wagers, players and days during a month you will see some pretty big numbers at the end of the month.

 

[KasinoKing]

Hi all,

I really wonder what the casinos profits are on slots..

For example, if a slot claims to have a RTP of 96 procent.

Does that really mean (over a longer period) that when 100 euro bets is placed they earn 4 euro, 1000 euro only 40 euro, 10000 just 400 euro and 100000, wowwwwwwww: 4000?

How can they pay their staff with that? and all the other costs? Maybe the big casinos where lots of people play, but with casinos opening every day? I just cant understand..

There has to be something about rng/rtp that I do not understand.

Yes - there seems to be a LOT you don't understand!

For EVERY €100 wagered (not deposited) the casino makes €4... As pointed out above, no-one deposits €100, wagers it through just once and withdraws; They either keep on playing until the (average) 4% taken of all their bets makes them bust out... or they hit a big win and cash-out!

Slots are the casinos BEST source of income IMHO!

KK

 

[jshort]

The RTP does not really matter much here, what matters is when players choose to cash out.

A player can have excellent RTP during a session but simply keep playing under the impression that they can win more, this usually ends in a bust and thus gives the casino their profits. Factor in the idea that a lot of highrollers employ this method of play, and suddenly casinos are profiting wildly off these players.

If all players were to cash out the moment they reach even the slightest amount of profit, however, then it would indeed not be very profitable for the casino. They make their money off of greed and addiction, basically.

This.

Nevertheless, I do often wonder if they lose money on BJ and vp players. While these games are still slightly under 100% rtp, when you factor in affiliate payments, processing fees and taxes....

 

[bebo67]

Hi all,

I really wonder what the casinos profits are on slots..

For example, if a slot claims to have a RTP of 96 procent.

Does that really mean (over a longer period) that when 100 euro bets is placed they earn 4 euro, 1000 euro only 40 euro, 10000 just 400 euro and 100000, wowwwwwwww: 4000?

How can they pay their staff with that? and all the other costs? Maybe the big casinos where lots of people play, but with casinos opening every day? I just cant understand..

There has to be something about rng/rtp that I do not understand.

I was told by a casino that payout percentages include bonuses. Most people don't realize that Casino's pay for spins for instance Microgaming will give a casino a certain amount of free spins on certain games. So every time a free bonus is given to a player, it will eventually cost the casino money. They add that in payout amounts. So for all those grumpy players that get cranky when they cant get daily freebies, this is why. Cheers

 

[CasinoTwitcher]

I was told by a casino that payout percentages include bonuses.

This is just wrong, a slots RTP is not effected in any way by promotions the casino run on that slot (free spins, etc.).

The bonus rounds inside the slot is however included in the RTP.


As a side note: I can say that casinos pay their normal fee on free spins and free cash as well. Many people think that this ain't a cost for the casino, but if they give out for example €100.000 in free money shared among their players, and all players lose their share, the casino still have to pay their normal fee/percentage out of €100.000 to the game providers. If their fee is 10%, then this campaign where no players have withdrawal anything still cost the casino €10.000.

 

[sledge13]

Are we all stupid addicts that should try and stop playing slots then? seems like it...

 

[snotter999]

Here is part of an article i read on News.com.au today


IN JUST over 50 years, they’ve gone from being illegal, to being everywhere.

That is the foreboding opening line delivered by the narrator of an explosive new ABC documentary that pulls back the veil on the industry designed to maximise the addictive nature of pokie machines.

They’ve been called the “crack cocaine of gambling” and “electronic morphine” but Australia has a unique relationship with the machines since they were first made legal in 1956.

“I was very interested to know about this creeping reality for so many people,” producer Mitzi Goldman tells news.com.au. “I really had no idea of the extent (of pokie addiction).”

Ms Goldman became involved with the documentary Ka-Ching! Pokie Nation four years ago after it was brought to her by fellow producer Neil Lawrence, who died suddenly in July this year, just days after it was finished.

She says the filmmaking process amounted to be a “shocking realisation” of the insidiousness of modern-day pokie machines and the predatory industry that’s pulling the lever.

‘BUILDING A BETTER MOUSE TRAP’

Aristocrat is the biggest manufacturer and supplier of pokie machines in the country. Back in 2000, the company’s billionaire founder Len Ainsworth was asked by Four Corners what the secret to their success was, and he didn’t mince his words.

“Building a better mouse trap,” he said.

It may not have been deliberate, but the metaphor of a mouse caught in a trap has proved to be a scarily accurate one.

As the science and technology involved in the industry has advanced in recent years, manufacturers have been able to design machines perfectly engineered to create addiction.

“They’re actually designed to take advantage of how the brain works,” Ms Goldman says. “They have the same effect on the brain as cocaine does.”

Public health expert Dr Charles Livingstone went a step further.

“It’s like having someone on every street corner selling drugs with a licence from the government,” he told news.com.au.

The machines are designed to keep their players in a trance by taking advantage of certain chemical responses in the brain. Features such as the random reinforcement schedule that disguises losses as wins and the in-built programming that gives the frequent appearance of a near miss all work to prey on the neurological makeup of players.

Everything from the painstakingly composed music to the speed of the spinning reels is engineered to hypnotise players. Players like Sharon Hollamby.

That haze stays with you when you leave the venue,” she told news.com.au. “You still here the music in your head.”

Ms Hollamby battled pokie addiction for 15 years. She now works with an advocacy group she founded in 2010 called Communities Without Pokies.

PLAYING TO EXTINCTION

A study carried out in the 1950s by American scientists James Olds and Peter Milner gave unprecedented understanding of the power of stimulating certain areas in the brain. The most famous of these experiments involved a rat that was given the chance to self administer a pleasurable electric shock to the brain by simply pressing a pedal. The rat ignored food and drink and kept pressing the pedal until it died of exhaustion.

Researchers say the same underlying mechanisms are at play when someone blows all their money on the pokies.

Machines are set to pay out anywhere from 85 to 97 cents of every dollar they take in. According to one designer featured in the documentary, many Aussie machines he deals with are programmed at the lower end of the scale, meaning they chew money quicker. But even though they’re programmed to return a percentage of the money, if a player continues to play indefinitely, they will eventually lose everything.

It’s known as “playing to extinction” by industry insiders and it’s considered the common goal of pokie manufacturers.

Just like the rat that keeps on pressing the pedal.

 

[bart1981]

thanks for explaining guys

There has a LOT of wagering on those slot machines..