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How do online casinos really work?

Want to learn more about how legal online slots at internet casino sites work?

Issues such as the payout ratio, or the casino software we have already dealt on Slot.Team. But always from the perspective of the players. But it is also interesting to see what this means for the operator, the online casino. Because if you understand how an online casino works and how it earns money, then you probably also become clearer about what to look for yourself.

The operators of online casinos are not people who act out of pure charity. It’s about business here. And a well-running online casino is a good deal for the operator. Because the house always wins. This does not mean that the player always loses – but he needs, in contrast to the casino, luck to make money. An online casino is thus only for the player a gambling, for the operator not.

How do online casinos really work

How does such an online casino work?

An online casino is based on several technical applications that allow players to play stress-free and entertain themselves. For an online casino to run it needs the games, these are usually provided by one of the major software companies ( NetEnt , Microgaming , Playtech , etc.). That’s what most players recognize, that’s what the casino is all about. But a casino software has to fulfill even more functions .

It has to be able to handle deposits and withdrawals. This requires appropriate software that also requires topics such as encryption, random generators and data security . This software serves as a key between online casino and the various online payment methods. Then of course the casino has to manage the customer data, “recognize” each customer and allocate his money to his account and more. All these solutions can be bought off-the-shelf, but many casinos have also developed their own ways.

Now the player can create an account, cash in and out and play. It was not that long ago. For now comes the areas that make a casino successful first : a customer service team that communicates with the players, the marketing that brings the customers to the casino, and the technical support that makes sure that everything runs smoothly in case of problems. Hundreds of thousands of players often play in large casinos in parallel – as well as the topic server etc. is important. These are also the areas that cost the casino a lot of money: marketing experts, security technicians and IT, as well as after sales service, want to be paid. And the, hopefully successful, promotions cost the casino money.

How does the casino make money?

That’s why it’s important that this money is earned. The payout ratio is responsible for this . Because the difference between paid-in and paid-out money is not, as is often said wrongly, the profit, but the revenues of the online casino. This margin must be high enough to cover all other costs.

But the odds are often surprisingly high. slots free with bonus with a 98 percent payout ratio are common today, and slot machines and games with really bad odds are disappearing from the market. Now comes an important factor to bear: the frequent repetition. Statistically losing 2 percent per use is not much. But if you play very often, then these stakes add up and so an online casino earns a lot on the players through the house edge . Enough to distribute lots of money directly to the players via promotions.

Does a Million Jackpot Ruin a Casino?

It may seem odd at first glance that online casinos are happy when a player has won millions in a jackpot . After all, such a profit can make up the multiple of the annual profit of a smaller online casino. But the joy is meant honestly. Because such a profit means for the casino a real marketing coup . And it costs practically nothing.

Because the profit in progressive jackpots comes for the most part from the players themselves : and the “seed capital” on which the jackpot after the profit falls, is filled by the casinos after fix given keys and falls for each casino anyway.

Who is behind the games?

Behind most casino games are software companies that have developed them. There are several big names, but also smaller niche companies that have specialized: for example, evolution gaming for live dealer casinos . Only a few online casinos have completely independent software. Most of the games offer from a provider, more and more also have a mix of games from various providers. Just this mix can make an online casino unique.

The central element of any casino software is the Random Number Generator : the random generator that ensures that the games are fair and purely random. About the technical details are silent here, the casino software developers – after all, it is at the heart of their software.


Who guarantees compliance with the rules?

As we said in the beginning, an online casino is not gambling for the operators, because of the likelihood that they will definitely make money , thanks to the house edge . How much depends on the number of players and bets. But you could still turn on the random generator to increase the profits further.

That this does not happen, there are independent reviewers who control over millions of cubes thrown, cards dealt and numbers rotated to see if the distribution fits. For example, many casinos publish their permanents to give those numbers to the informed players and to prove that the game is really random.

State control protects against casino fraud

And the casinos must also prove this to their licensors. Because in order to operate an online casino you need a gambling license . These do not all countries forgive – and so you always come back to the same countries as Malta, Cyprus and even autonomous regions like Gibraltar or the Isle of Man.

Outside the EU, the Caribbean islands of Curacao and Antigua, as well as the Kwawawake Indian reservation of the Mohwaks in Canada are particularly significant. (The Mohawks refer to their own status as a nation and have been offering a data center as a starting point for online gambling since 1996).

Each of these states or regions has their own legal regulations, which the casinos have to fulfill . These range from license fees, over regulations such as customer funds must be managed to controls of the random generators by the authorities (mostly English ” gaming commission ” called). In these countries, the jurisdiction of the online casino is usually located – that means the casino submits to the legislation of that country.

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