Jackpots on iGaming Sites: a Great Tool for Attracting Clients

The concept is inextricably linked to the casino industry. Any visitor to a location with slot machines dreams of winning a large prize. However, operators also take a lot of profit from offering such an option to their customers.

Experts of the 2WinPower studio have prepared a detailed report on the types of jackpots and how to use this tool with maximum efficiency.

What a Jackpot Is

The term has an American origin and was invented sometime in the early 1880s from poker slang. This is a combination of 2 words, “jack” and “pot”, which means a “very big win”.

According to the outdated rules of poker, the amount of the reward could increase at the expense of a participant who had less than 2 jacks left in his hands.

If the double was not recorded, part of the prize pool went to the general bank for the next deal of cards. The entire sum was received by the lucky person who managed to collect the necessary combination.

Nowadays, jackpots have become more than just a large payment. Many operators use them as a full-fledged business solution to strengthen the position of their brands.

With the right approach, this is a very practical and functional option that allows entrepreneurs to effectively manage most triggers of the user activity.

Types of Prize Pools in Online Casinos

The most common categories are the following:

Fixed Payments

They are characterised by a clearly defined amount. It does not change depending on the number of participants and bets or other factors.

Most often, this type of incentive is found in slots, land-based machines, and some table games.

The advantage of a fixed jackpot is its stability, which is convenient for players. People know in advance what amount they can count on in case of victory and act more rationally.

Progressive Rewards

This is one of the most popular options with the best engagement rates. The tool’s main feature is the constant growth of potential winnings as new bets are placed.

The prize pool is formed from a percentage of deposits and increases in accordance with the audience’s activity.

An interesting feature of the program is that a progressive jackpot can be either local (within one entertainment platform) or global (and spread immediately to a network of establishments of one or several brands). For example, exclusive systems in Mega Moolah or Major Millions slots from Microgaming.

Occasional Winnings

A distinctive feature of the program is that the payout does not depend on the user's actions. The jackpot can appear at any time during the session, regardless of the duration of rounds or the size of bids. This adds an element of surprise to the gameplay and gives a dopamine rush.

The advantage of random rewards is their unpredictability. Even if punters do not break the bank, they will always have a chance for an unexpected payout.

Predicted Jackpots

This is a relatively new type of incentive that appeared due to the rapid development of generative technology.

The program is based on predetermined conditions. For example, to win, casino visitors need to reach a certain wagering limit or make progress in a particular entertainment.

This format is becoming increasingly in demand among the younger generation. Zoomers tend to choose content based on a clear understanding of its mechanics. This approach makes sessions more conscious and shifts the focus from winning to social interaction.

Why Operators Need Jackpots

The main reason for the existence of prize pools is the attraction of the client’s attention. Monetary rewards very quickly transformed into a powerful marketing tool that allows entrepreneurs to quickly build a loyal customer base from a wide variety of demographic groups.

The main tasks and mission of jackpots in online casinos:

1. Retention of the target audience. If users manage to scoop a massive prize, they are most likely to continue playing on the platform. Quite often, iGaming sites provide winners with additional products and services. For example, access to exclusive draws, free spins, etc.
2. Financial gain. Establishments increase their income by expanding the customer base. The more users participate in the draw, the higher the company’s profit. Besides, jackpots are formed not from the operator's funds but from the bets placed by gamblers.
3. Raising brand awareness. The launch of an incentive program with interesting mechanics and a good bankroll is a great way to strengthen the firm’s reputation and stimulate interest in the casino.
4. Variety of offers. It is quite difficult to surprise a modern audience. A unique project will allow operators to stand out from the competition and provide users with a more exciting experience.

Who and How Pays Out Jackpots

It can be done by 2 parties:

Provider

The software of one brand can be used by a huge number of different platforms. The vendor simply builds a special algorithm into its product, thus including the game into a single network. As a result, any participant who connects to the session can count on winning regardless of the geolocation, currency of bets, and other characteristics.

Establishment

The entertainment platform can form jackpot programs based on the In-House principle: using its assets or percentages of bids in one or more slots presented on the website.

Users can receive payments in several ways, the most common of which are:

1. Partial transfers. A popular solution for the lottery business. For example, in the USA, there is a special program under which winners independently choose whether to take the prize in a single amount or in the format of small annual transactions. Moreover, in the first case, the incentive’s size is significantly reduced due to numerous fees and commissions.
2. Non-monetary compensation. This algorithm is often implemented in social casinos, where the reward is not real money but additional tools, such as free spins, points, exclusive avatars, etc. In some cases, valuable items are drawn: gadgets, cars, or cruise tickets.
3. Limited payments. Operators may set special limits on the size of jackpots. No matter how effective the player’s strategy is, they will not be able to receive a higher reward than it is stated in the platform's terms.

Basic Principles of Jackpot Management

Business owners have many ways to control prize pools and maximise their profits.

Key aspects of working with such special programs:

Wagering Conditions

This is a basic protocol that must be followed. If the user violates any of the paragraphs, the casino has the right to refuse payment.

An example of a standard way of participating in the draw: progressive jackpot candidates need to make the highest possible bets. This increases the amount of funds coming into the general pool and, at the same time, encourages customers to contribute impressive sums.

Distribution of Rewards

iGaming sites can directly affect the size of incentives and payment management. For example, this can be done by regulating the percentage of bids that go to the general fund.

Operational control allows entrepreneurs to maintain an optimal balance between the jackpot profitability for clients and the financial benefit for the digital platform.

Advertising and Promotion

Gamblers are well aware that the chances of a big victory are negligible, and the costs of a session, on the contrary, can be very high. However, a huge number of people do not give up trying to catch their luck.

Psychological perception plays a key role here. For most casino visitors, it is not so much the amount of money that is important; the fact of winning becomes the main goal.

When the audience is thinking like this, the establishment’s advantage is obvious: a jackpot is an excellent advertising campaign for any product. Moreover, there are many types of engagement programs. These can be exciting success stories, reviews of the latest innovations, and even broadcasts of sessions with victories in real time.

The Main Things about the Role of Jackpots in the iGaming Niche

Key aspects that entrepreneurs need to take into account:

• Progressive jackpots are the most popular option, with record engagement rates. The size of the rewards is potentially unlimited and can reach impressive values. At the same time, project owners do not spend their funds since the prize pool is created from a percentage of the placed bids.
• A new iGaming trend is predictable incentives. An interesting solution designed to increase the involvement of the younger generation. The peculiarity of such a tool is the pre-known conditions for achieving the desired result and clear wagering mechanics.
• The main goal of players is not money but a sense of victory. This is the key psychological aspect on which the most effective retention online casino programs are built. If customers manage to hit the jackpot, they are almost 100% likely to stay on the platform and participate in other sessions.

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