Aficionados of online casinos insist that that there are so many advantages to gambling on the internet. They simply cannot imagine visiting a land based casino any more. No doubt, land based gambling establishments offer a complete entertainment package including food and the opportunity to socialise. But the internet makes gambling far more convenient and cost effective. In fact, they maintain that land based casinos cannot compete with their online counterparts when it comes to bigger payouts.
Higher Payouts at Online Casinos
There are two major reasons for the higher payouts at online casinos. For one, these businesses have lower operating costs. They do not have to maintain a large physical area or even pay a large number of employees. Online operators do have to pay for their gambling platform and the gaming software hosted by that platform. They also have to spend a lot of money on high tech encryption methods to ensure that all online transactions are completely secure. A big chunk of their expenses comprises marketing and promotional costs.
Overall, this is far lower than the fixed and variable costs incurred by a land based gambling business.
Land Casinos vs. Online Casinos
Land casinos are under a lot of pressure to recover costs. Therefore, they tend to have a relatively high house advantage. This is bad news for players because it means that they have fewer chances to win any money. Online casinos, on the other hand, have lower house edges for this very reason. Incidentally, a brick and mortar casino also has to give a lot of freebies away in the form of discounted hotel rooms, free drinks, and even complimentary rooms. All these costs will have to be recovered on the casino floor, and this puts more pressure on the business to increase the house edge.
All games of chance at brick and mortar or internet based casinos have a Random Number Generator that gives the results of each game. This ensures that the games are absolutely tamper proof. But it also means that the operator can set the percentage of wins that will occur out of the total number of spins.
Minimum Limits for Wins at Land Casinos and Online Casinos
The government generally sets a minimum limit for wins. For instance, the law in Las Vegas states that the payout rate should be no less than 75%. This number is set higher at an internet based casino, often at 95 to 97%. But a land based casino is often around 90%. Casinos are aware of the fact that if the payout rate is very low then players them will stop coming to them over time. If the payout rate is too high then thy will no longer be profitable.
Incidentally, online casinos are also under a great deal of pressure to get business even though the industry is expanding at a very rapid rate. They deal with this problem by offering players a number of promotions and bonuses that give them extra money and even free turns at a game. It is really very easy for players to get far more playing time than they have actually paid for. Therefore, it’s obvious that players get far better value for money at an internet based casino.
It is clear to see that online gambling sites pay out substantially more than land based casinos. People who appreciate a good bargain will opt to gamble at the online casinos. However, where players eventually choose to play depends upon their personal preference.
Indeed, the industry is growing so rapidly, especially by bringing in new customers, that the brick and mortar gambling business hasn’t yet started to feel the pinch.