Winnings at Online Casinos: Jackpot as a Player Acquisition and Retention Tool
For many newbies in gambling, jackpot means winning a huge, game-changing sum of money at a single spin. What does it mean for gambling houses?
There are several jackpot types – this article reviews how each of them works and what benefits they bring to operators.
What a jackpot is?
Jackpot is the main prize that the gambling house gives to the most successful player. Technically, this term means a huge pot of money won in the game. The jackpot amount is much bigger than the sum of bets and other cash prizes at the casino – it can reach tens of thousands or even millions of dollars. The bigger the amount is, the more interest players show in games.
Types of jackpots
There are four main jackpot types at online casinos: local, network, fixed, and progressive. The type defines the amount and frequency of jackpot payouts as well as players that contribute to the prize pot.
This jackpot is made up of bets made by players at a certain casino. The same game that offers a local jackpot can be available at several casinos, but the prize pot at each casino is comprised of bets made by players of the specific casino. As a result, local jackpots are usually much smaller than network jackpots.
This jackpot is formed of bets placed by players at all casinos that offer the slot. For example, a popular network jackpot is the Hall of Gods by NetEnt. It embraces bets placed by players at different online casinos all around the world.
Also known as pooled jackpots, network jackpots are usually the biggest ones, merely because bets of many players go to the prize pot. Games of all types can offer network jackpots including slot machines, table games, and scratch cards.
This is the only jackpot type that stands out for its stability. Games with a fixed jackpot give the player a possibility to take home a fixed amount during the game. This function is built in the game and does not depend on bets made by other players.
Some slot machines offer both fixed and progressive jackpot prizes, and the latter are usually significantly bigger than the first.
A progressive jackpot is a prize that grows each time a player makes a bet at a certain casino or across the network. A percentage of the bet is added to the jackpot with every spin.
Progressive jackpots can grow to huge amounts because they are difficult to win. In any slot machine, winnings are defined by the random number generator, which ensures that the gameplay is absolutely fair and cannot be changed. This means that jackpot can drop at any time.
However, experienced players can quickly and accurately define how often a certain jackpot lands. For this reason, the operator should payout winnings in a fair way to avoid reputational risks.
How jackpot works: player’s psychology
Christina Thakor-Rankin, a Principal Consultant at 1710 Gaming, believes that exclusive offers and attractive rewards are the most efficient tools for player retention.
Psychology uses the term “cognitive bias” that implies irrational human behavior in certain situations. It makes people act ignoring common sense. People prefer persuading themselves that only good occurrences are ahead. It seems to people that the probability of negative consequences is significantly lower for them than for others.
Professor and researcher of gambling Robert Williams assumes that although people have learned to understand numbers, they still cannot cope with big numbers.
“We deal with such numbers as 6, 15, or 123 during our whole life, but we rarely need to operate millions. A 1 in 200 million chance seems to hardly differ from the 1 in 3 million chance. You are very unlikely to win in both cases. This is not because people cannot perceive big numbers, they simply picture them poorly until they have to think about them thoroughly,” Robert Williams states.
Something similar takes place in the human mind when the player buys a lottery ticket: under the impression of lots of zeros, fans of gambling hurry to try out the luck.
Jackpots as a way to attract new users
When choosing an online casino, many players pay attention to prizes offered by the platform. Besides, the jackpot amount speaks about the integrity and reputation of the casino. Therefore, apart from bonus systems and good-looking design, the online casino should take care of the availability of the biggest win it can afford.