A brief History of Progressive Slots
In the beginning there were no such thing as progressive slots; they only became possible in the early 1980’s when microchips were added to slots machines. Even then it wasn’t until March of 1986 that the first multi site linked progressive slot machines were introduced by the slot machine manufacturer IGT.
Having the same jackpot being fed from a number of different machines (which are often spread across a number of different casinos) means these progressive jackpots can quickly grow to be very large indeed. I have heard of casinos in Las Vegas where slots players have won over $8 million in a single win on a progressive jackpot.
How Progressive Jackpots Work
Progressive Jackpots grow by skimming an amount of money from each and every bet; this means that their payout rate on normal wins (non jackpot wins) is lower than that of a regular slots machine. However if you take the progressive jackpot into account the payout would be the MEGAGAME same.
For example if you were playing at a Las Vegas casino on a linked progressive slots machine with a fixed $5 bet per spin. Your money could be divided as follows, 25 cents adds to the progressive jackpot, $1.25 goes to the casino and the remaining $3.50 is paid out in non jackpot wins. If however you were playing a non progressive slots game at that same casino it is likely that your money would be divided as follows. $1.25 to the casino and $3.75 paid out on wins.
The example above assumes the casino has a 75% payout rate, in reality slots at land based casinos typically have payout rates ranging from 70% up to 87%. This is in stark contrast to the online casinos which typically have payout rates from 89% up to as much as 99.5%!
So at a typical online casino with a 95% pay out rate the money you pay in for a $5 per spin online progressive jackpot slots would be divided up something like this. $0.25 for the online casino, $0.25 added to the progressive jackpot and the remaining $4.50 is paid out in non jackpot winnings.