Rules and Strategy

# Payout rates

It’s normal to expect that when we invest money we should receive some sort of return for our time and investment. Playing at an online casino is no different in this respect because while it’s great fun to play all the fantastic casino games available, we know that at some point we will chase that big win. So to make sure that the odds are in your favour, we will discuss an interesting concept called payout percentages, or more commonly known as pay-out rates.

## What is the payout rate?

Put very simply, the payout rate is the percentage of the total money spent in a casino that’s paid out to the players that win. Keep in mind that the amount played is not the amount deposited.

## Who regulates the percentage?

The payout percentage is a very important concept because it enables you to find the most profitable games in the casino. A lot of players believe the payout percentage is regulated by the casino but this is not the case. It’s regulated by the commission that controls the issuance of licenses. They take into account a lot of variables and check and validate it primarily. Secondly if an online casino wants to have their status officially recognized, the organization that controls quality across all casinos will monitor this percentage as part of a series of quality assurance checks.

## How the casino calculates the payout percentage?

In the majority of online casinos the payout rate is around 95% to 98% however it’s always important then to check the percentages for each game individually because they usually differ.

For example, let’s imagine that the payout rate at a certain online casino is 95%. This means 95% of bets made by the player will be paid out on. This might seem high but it’s true that casinos don’t make more than 5% to 2% on each game. So to continue, on our example slot machine, \$10,000 has been wagered over a period of 24 hours. Upon analysis of the machine the casino realizes that the pay outs amounted to \$9500. The calculation therefore is really easy:

9500/10000 = 0.95 x 100 = 95%

A really good tip in this case would be to check with the online casinos customer services as to what the payout rate is for the particular game you wish to play so you can compare and choose the best one.

## Conclusion

An online casino operates in exactly the same way as a regular land based casino. There are laws that govern them based upon the jurisdiction they apply for their license under, but we have to remember that casinos are a business at the end of the day and a business is there to make money. The truth is individual players may win but the player base as a group will always lose, otherwise the casino would simply go out of business. This is the nature with games of chance, it’s mathematically impossible for everybody to win all of the time.