There is some confusion about payouts and percentages in online gambling. They may sound alike but in fact, they are quite different from each other. This article explains what payout and payout percentage are and how they work. What is a payout? When you gamble with money, the money that you withdraw from the casino as cash is called a payout. It is what the casino “pays out” to you.
What is a payout percentage?
The payout percentage is the amount of money gambled that a casino gives back on average. It is measured in terms of percentage. For example, an online slot machine with a 95% payout percentage means that for every $100 put into that slot, the casino will give back $95 to the players (in the form of winning spins) and keep the remaining $10.
Some things need to be clarified here. First, it may seem like a small amount, but when all bets are combined, it is actually quite large. Casinos make a lot of money.
Second, the payout percentage must cover the casino’s overhead costs as well as turn a profit. If overhead costs are high for a casino, it cannot afford to give a high payout percentage.
Third, the payout percentage does not apply to each and every individual gambler. This means when you make a $100 bet and lose all of it on a casino game with, say, an 85% payout percentage, don’t accuse the casino of fixing or rigging. The payout percentage takes effect over a long period; the more a casino game is played, the close it will get to its mandatory payout percentage.
And that is what makes payout different from payout percentage. A payout is what your total money is any time you want to cash out. A payout percentage is what the casino pays on a game over the long term.
How can we be sure that casinos don’t cheat on their payouts?
Casinos don’t cheat because they don’t have to. The casino games have rules designed to give the casino an edge over the player, so it is guaranteed a profit all the time. Further, licensed and reputable casinos undergo close inspection by regulatory bodies. So you can be sure it is all in compliance with the law. Of course, there are unlicensed casinos that can and do cheat. So be careful. Do not trust a casino that is not recommended by an independent authority or someone you know that is trustworthy.
If casinos always win in the long term, what use is it playing? If you play only to be entertained, what is wrong with paying for that entertainment? It’s no different from going to the movies or eating out. You pay for the fun and pleasure. If you play for profit, a high payout percentage means more frequent wins and fewer losses for you, especially if you use an optimal strategy. Some games have better payout percentages than others, and some can even give you an edge over the casino!
Where can we find casino games with the best payout percentages?
The best payout percentages are found in online casinos. In fact, the main selling point of web-based casinos is just that: they have better odds than land-based casinos. Why? Because overhead (maintenance) costs are cheaper for them. They don’t have to pay scores of dealers and casino staff, electricity, food and a host of other things. Fewer expenses mean the casinos can afford to be more generous with payouts.