There are some obvious key differences between playing slots in a brick and mortar casino and playing slots in an online casino. A brick and mortar casino offers perks such as the flashing lights of the machines, free drinks for players, and an exciting atmosphere. An online casino competes with this by offering large signup bonuses and loyalty rewards for players who stick to one company. However, not many people know that the percentage pay out also varies between a brick and mortar casino and an online casino. Not only does the percentage pay out differ between online and physical casinos but it also varies from slot game to slot game! You can try playing latest online slots for free at casinogames.ca/slots.
What is a Pay Out Percentage?
To understand the differences between pay out rates of a brick and mortar casino and online casinos, one must first understand exactly what a pay out percentage is. The pay out percentage is essentially an estimate of what a player can expect from a slot machine in terms of pay out. Slot machines are programmed to pay out winnings as a percentage of all the wagers that are paid into the machine by players. However, it is important to remember that the machines are still random and the pay out percentage covers the lifespan of the machine. This means that putting $100 into a slot machine with a 90% pay out percentage doesn’t guarantee a $90 return!
These percentages can vary quite significantly between a brick and mortar Las Vegas casino and an online casino. For example in a Las Vegas casino, the average pay out percentage range is 86-93% whereas an online casino offers an average pay out percentage range of 95-98%. That’s quite a significant difference! Payout ratio is scientific metric, also common language in the investment and financial world.
Why Does the Pay Out Percentage Vary?
As you can see above, there is quite a significant difference between the brick and mortar casinos in Las Vegas and online casinos in terms of pay out percentage. The main reason for this is that physical casinos in Las Vegas have much higher operational costs and overhead expenses. They operate in a physical building which requires rent and maintenance as well as employing staff and other general expenses. Online casinos on the other hand have very low operational costs and most of the profits are re-invested into the company in the form of marketing and bonuses.
The remaining money from the pay out percentage is known as the slot hold percentage and is the equivalent of the casinos house edge or hand rake in poker and other games. If a slot machine has a pay out percentage of 90%, the amount of money taken by the casino is 10%. So, for every $100 wagered, the casino retains $10 and the machine pays out $90. So, brick and mortar casinos in Las Vegas take an average of $7-$14 per $100 wagered, whereas online casinos only take an average of $3-$5 per $100 wagered. Although this may not seem like an awful lot, it can add up quite quickly.
Which Slot Games Offer the Best Pay Out Percentage?
Another aspect of pay out percentages in slot machines is the type of slot that you are playing. Each slot machine features a pay table which shows the probability of winning and the maximum winnings each machine will pay out. Brick and mortar casinos in Las Vegas generally have 3 reel classic slot machines which have a much lower pay out table and heavily favour the house. However, online casinos favour video slot machines with higher pay lines and a much better pay out probability. Slot games which are exclusively available in online casinos such as Thunderstruck II and Jurassic Park allow players to win on 243 lines with a host of features, wild symbols, and special mini games. Other exclusive online slot games such as Piggy Fortunes allow players to play 25 lines at one time, providing an excellent chance of winning on each spin. These online video slots combine a high pay out percentage of 95-98% with a high probability of winning on each spin, making them much more profitable than classic reels in brick and mortar online casinos.
When considering all the information, there is really no comparison between brick and mortar Las Vegas casinos and online casinos. In terms of pay out percentage, online casinos offer players a much higher chance of winning as the house takes a much smaller percentage of the money. Although brick and mortar casinos offer a different gaming experience with flashing lights, exciting sounds, and a general buzz, it is worth remembering that you are paying for that experience by sacrificing the probability of winning.