Why Are Land-Base Casinos Money Eaters?

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Monday, July 9, 2018

One thing is for sure and that is land-based casinos are restricted to only those that are physically located at the casino. Online slots do not come with this problem because they are connected to the internet, so players do not have to be physically located at the slot to be able to play it. As a result of this, more money is pumped into online slots; while a considerably lesser amount is taken by land-based slots – for this reason alone the Return to Player (RTP) on land-based slots is very low.

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Online slots have a much higher RTP than land-based slots because the casino takes so much money from them that it can afford to allow the slot to pay out more. Multiple players can connect to the same slot at any time of the day from their mobile or desktop devices and spin the reels. The turnover for a single individual slot is huge.

On the other hand, a land-based slot can only host one player at a time and the slot will only attract those that are physically visiting the casino that the slot is located in. This means that land-based slot in question will have a much lower turnover compared to exactly the same video slot found in an online casino. Now if you consider online casinos all want their slots to make as much money as possible, then you have to ask yourself – how do the casinos make money from the floor space the slot occupies.

Land-Based Casinos Reduce the RTP of Slot to Make More Money

Slots are designed with a certain number of symbols on each reel. To calculate the RTP or paying a percentage, the slot’s developer will use a mathematical equation. This equation calculated the likelihood of symbols or features connecting per spin. The end result is what is known as the Return to Player or RTP when abbreviated.

To make more profit from a slot, the number of symbols on each reel must be configured to stand a lower chance of connecting. In turn, this reduces the player’s chances of winning because the slot’s edge is being increased.

A casino can do this quite easily depending on the type of slot. If it is a video slot, then the casino needs to call the developer to change the code.  If it is an electronic slot with real reels, then the casino will ask the owner to come in and exchange reels to reduce the RTP. You can be safe in the knowledge that the casino does not own the slot, and so to make any configuration changes, they need the owner or developer to send an engineer to do this.

As land-based casinos need physical members to come in and play their slots, they are at a severe disadvantage compared to an online casino that can advertise to anyone that has an internet connection.

The result of this is that the casino needs to lower the RTP on the slot to make sure that it turns over a profit that is worthwhile. Casinos are always calculating their profit per square meter of floor space and slots can take up at least a square meter plus seating space and aisle space.

In the end, when you are playing land-based slots, you may think that you are being given an equal opportunity to win compared to an online slot. In actual fact you are probably getting an RTP of around 90% and in many cases much lower than this.

Online Slots and Their RTP

With online slots, the world is their oyster so to speak. If you consider how many people in Malaysia play at online casinos such as Newtown Casino and 918Kiss, and how many of these players are playing online slots, then you can already begin to understand just how much more money an online slot can potentially bring in.

The reach of the online slot in any of these two aforementioned casinos is the whole of Malaysia. Then consider that both these casinos also attract clientele from countries such as Indonesia, Japan, and Thailand.

Casinos want their slots to be popular and so do the developers that design them. The amount of exposure a popular online slot can get is astronomical. Some slots host over 5,000 players per day. You can imagine that the online casino can attract so many players if they increase the RTP on the slot so it pays out more often. This way people will keep on coming back to play; unlike a land-based slot that will slowly eat away all your cash and leave the player disheartened at the end of the session.

Online Slot RTP Versus Land-Based Casino Slots

Now that you have digested all the reasons why a land-based slot needs to pay out less compared to an online casino, you can already paint the picture as to why online slots are so much more lucrative.

A typical online slot will have an RTP of 96% and some even have an RTP of 98%. On the contrary, a typical land-based slot will have an RTP of 80% to 90%. The difference is huge. Even though the land-based slot is theoretically giving you back 80 MYR out of every 100 MYR you bet, you are basically giving away roughly 16 MYR per 100 MYR.

An online slot will be paying back around 96 MYR to every 100 MYR wagered giving you an additional 16 MYR per spin when compared to a land-based slot. This means you will be getting far more spins and increasing your chances of hitting a big win.

Weighing up the difference between the two options, it is far more lucrative to play online slots. Start to imagine how much more cash you are losing playing land-based slots when you are betting 1,000 MYR or 10,000 MYR over time compared to when you are betting the same amount at an online casino.

The only conclusion you can come to is that land-based slots are money guzzlers!