how do slot providers make money ?

[iamback1992]

just curious.. do they make money from selling their games to online casinos for a one time fee ? 

Or like do they make based on how much people wager playing their slots 

[Taldarin]

So the basics of the mechanics go like this:

Let's say pragmatic for instance.

- They license their games to websites like Stake and many others to be used.
- Stake/any other gambling site host paying interface and have basic tools for support, but the game ultimately stays on the providers servers.
- Stake/other hosts will negotiate a cut of the revenue from each machine per month.

Now for the actual providers, they way they work (as I understand) is as follows. Let's use Buffalo slot for example.

- Pragmatic set a profit target across all of their machines, regardless of the host. So let's say they put the min profit return to be $10,000,000.00 per month.
- They will allow for X amount of bonus/normal hit wins, provided the payout does not impact the set min revenue per month set.
- They will allow for overdraw on wins, depending on the estimated income for the month. So they might let the wins payout over $10,000,000.00, provided they can forecast a min $20,000,000.00 profit that month.

So basically, no matter how many people win, the machine will always be profitable. Don't take any of the RTP stuff to heart - the way providers work around this is using 'safety measures' that protect them from going into the negative on a machine. Very easy to work around regulations in the gambling industry.

Source: worked as a slot machine tech for 12 years. Attended multiple roadshows and machine acquisition meetings for major clubs and casinos.

[Sankebab]

Really interesting. Thank you for the information

[iamback1992]

3 hours ago, Taldarin said:

So the basics of the mechanics go like this:

Let's say pragmatic for instance.

- They license their games to websites like Stake and many others to be used.
- Stake/any other gambling site host paying interface and have basic tools for support, but the game ultimately stays on the providers servers.
- Stake/other hosts will negotiate a cut of the revenue from each machine per month.

Now for the actual providers, they way they work (as I understand) is as follows. Let's use Buffalo slot for example.

- Pragmatic set a profit target across all of their machines, regardless of the host. So let's say they put the min profit return to be $10,000,000.00 per month.
- They will allow for X amount of bonus/normal hit wins, provided the payout does not impact the set min revenue per month set.
- They will allow for overdraw on wins, depending on the estimated income for the month. So they might let the wins payout over $10,000,000.00, provided they can forecast a min $20,000,000.00 profit that month.

So basically, no matter how many people win, the machine will always be profitable. Don't take any of the RTP stuff to heart - the way providers work around this is using 'safety measures' that protect them from going into the negative on a machine. Very easy to work around regulations in the gambling industry.

Source: worked as a slot machine tech for 12 years. Attended multiple roadshows and machine acquisition meetings for major clubs and casinos.

This is very informative ! Thank you . 

Another question that pops up in my mind is that... 

" Let's say i am one of the tech guy working at pragmatic. I create a account in Stake and do my under the hood work at pragmatic to get a huge bonus hit and cash out . Thus costing Stake millions. As far as Stake knows is that i am just a regular customer .

How do casino knows the integrity of the slot providers or the people who work for them ?

[akm222]

3 hours ago, Taldarin said:

So the basics of the mechanics go like this:

Let's say pragmatic for instance.

- They license their games to websites like Stake and many others to be used.
- Stake/any other gambling site host paying interface and have basic tools for support, but the game ultimately stays on the providers servers.
- Stake/other hosts will negotiate a cut of the revenue from each machine per month.

Now for the actual providers, they way they work (as I understand) is as follows. Let's use Buffalo slot for example.

- Pragmatic set a profit target across all of their machines, regardless of the host. So let's say they put the min profit return to be $10,000,000.00 per month.
- They will allow for X amount of bonus/normal hit wins, provided the payout does not impact the set min revenue per month set.
- They will allow for overdraw on wins, depending on the estimated income for the month. So they might let the wins payout over $10,000,000.00, provided they can forecast a min $20,000,000.00 profit that month.

So basically, no matter how many people win, the machine will always be profitable. Don't take any of the RTP stuff to heart - the way providers work around this is using 'safety measures' that protect them from going into the negative on a machine. Very easy to work around regulations in the gambling industry.

Source: worked as a slot machine tech for 12 years. Attended multiple roadshows and machine acquisition meetings for major clubs and casinos.

Thanks for information about that I didn’t knew before really 

[dupeddonk]

23 hours ago, Taldarin said:

So basically, no matter how many people win, the machine will always be profitable. Don't take any of the RTP stuff to heart - the way providers work around this is using 'safety measures' that protect them from going into the negative on a machine. Very easy to work around regulations in the gambling industry.

That could be true (although I doubt it since it just doesn't make sense) for some providers that aren't licensed anywhere reputable (like curacao), but it's definitely not true when it comes to the more respected regulators (many of the providers stake works with are).  I don't know what you mean by 'that RTP stuff', but slots have an RTP, that's what determine what % of each wager is paid back to players in the long run.  That's how slots work.  

 

Look up The Technical Services Bureau Slot Lab, part of the New Jersey Dept of Gaming Enforcement .  They have a lot of information publicly available on the process used to insure the integrity of a game.  Trying to 'get around' them would be a very expensive mistake.

[StakeESportsGG]

Rake sharing probably