Although the odds of winning are usually in the casino’s favour, there are still players that have managed to win big. So, how exactly does a casino make any profit? That’s the question we’ll be answering in this Wizard Slots blog post!
How Can A Casino Guarantee Profits In A Game Of Chance?
Like any business, a casino or slot site has to make a profit to run effectively. But if games are random, then how do casinos even make a profit?
As you might already know, the outcomes of slot machines are always completely random. This is because of the Random Number Generator (RNG), a microchip inside a slot that generates millions of random number sequences per second. The number sequences are then translated into the symbols you see on the reels.
It is true that casino games are games of chance, and because of this, casinos can’t guarantee any potential profits. However, to increase their (the casino’s) chances of making a profit, all casino games have a ‘house edge’. This house edge can typically work in the casino’s favour to make it highly likely that they will profit from players in the long term.
House Edge Explained
Every casino game has a house edge, from roulette to slots. The house edge is the advantage that a casino has over the players. It represents the average amount of money the casino may expect to make over the long run, from a specific casino game.
These advantages are already built into casino games. They are not chosen by the casinos themselves, so there’s no need to worry about games potentially being rigged at reputable and licensed casinos. Whether you play in a land-based casino or online, there is no way you can escape the house edge.
Knowing the house edge of each casino game can be helpful, as it may allow you to choose the best games to potentially play.
Casino games with a high house edge typically pay out less over time, whereas casino games with a low house edge tend to pay out more over time. However, as all casino games are random, this may be different with each gaming session. As a result, you may win more, or nothing at all.
Some players prefer to play casino games that offer a low house edge, whereas others may prefer games that offer a higher house edge.
Let’s take a look at some of the most common casino games, along with their house edge:
- Slots: 2%-15%
- Texas Hold ‘Em Poker: 2.36%
- Video Poker: 0.46%
- Baccarat: 1.01%-15.75%
- Caribbean Stud Poker: 5.22%
- American Roulette: 5.26%
- European Roulette: 2.70%
- Blackjack: 0.5%
As you can see, blackjack is the casino game with the lowest potential house edge. However, this may only be achieved by knowing basic rules and strategy. As it is a casino game that can offer a low house edge and can be simple to play, it is, of course, one of the most popular casino table games.
For table games like blackjack and roulette, it’s important to understand the rules of the game to potentially lower the house edge. Therefore, knowing the basic strategy and rules can help you make better decisions.
Do Casinos Ever Lose Money?
Yes, it is possible for casinos to lose money. For example, players can, and some even do, win real money when playing slots and casino games!
Sometimes, the amount players can win is huge. However, when someone wins big in a casino, that casino can also get a lot of publicity, attracting new players.
There are many other reasons why a casino may lose money. For instance, if a casino doesn’t have enough customers or an online casino has very few members, they may struggle to make a profit. A casino may also lose money if expenses are too high.
Things that are outside a casino’s control may also affect how much money they lose. This could include increased bills, a new gambling law restricting what games they can offer, a recession, or a new competitor.
Can A Casino Refuse To Pay You If You Win?
If you win and a casino refuses to pay you, there’s likely an explanation as to why. One of the reasons why a casino may refuse to pay out is if a player hasn’t met the wagering requirements and or terms and conditions.
For example, if a player claims bonus money or a free spins promotion, the terms could state that wagering requirements must be met before any potential winnings can be withdrawn.
Players generally agree to the full terms and conditions when they use/claim the offer. Once wagering requirements have been met, they should be able to withdraw any winnings.
Another reason why a casino may potentially refuse to pay any winnings is if you still need to verify your identity. Legitimate casinos need to check and validate the identity of every player to protect themselves and their players from fraudulent activity. Therefore, when you register with an online casino, make sure to upload all of the correct documents so that you don’t run into any issues regarding any possible payouts if you win.
If none of the above reasons explains why the casino is refusing to pay out, you would most likely need to contact the customer service team to investigate why they refuse to pay out.
Whenever you sign up to a new online casino, make sure to check that it is legit and has all of the correct licences, such as the UK Gambling Commission licence, so that you know that you’re playing on a safe, secure and fair site.
*All values (Bet Levels, Maximum Wins etc.) mentioned in relation to these games are subject to change at any time.
