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What Is A Prize Pool In Online Slots At Canadian Online Casino And How Is It Formed?

What Is A Prize Pool In Online Slots At Canadian Online Casino and how it is formed?

This article focuses on one of the most baffling and often misunderstood ideas when it comes to playing slot machines.

How and where is one big profit formed?

It is recommended for all players who wish to increase their chances of winning to consider the following factors:

Check also our list of Canadian online casinos with no verification withdrawal.

Later in the column, we will go into specifics about the meaning of the slots prize pool (winning pool), how it is composed, why it is important and what is the definition of a big win. Most people consider a big win when they receive a payment of 200x or more of the total bet (i.e. if you bet 10 CAD, the 200x win is 2000 CAD).

Keep in mind that if the Canadian online casino is new, the prize pool will be empty, so you don't stand a chance of a big payout. This is because the prize pool of the new casino must first be filled, before 90% - 95% of the money raised is distributed.

Win the prize pool in slots at the best Canadian casinos

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Drop in the bucket and Pyramid principle

drop bucket concept
At the online casino, all slots are using the pyramid principle when filling the prize pools. And the reason for that is that most players don't place high bets (but rather small/medium bets). So it is difficult and lengthy for the casino pool to get full (small drops in a big bucket concept) with small bets. Plus, the casino takes a percentage of the bets made on the lower levels. Logically, the more players actively busy betting in one casino, the faster the prize pool will be accumulated, hence the faster a Big Win could be won.

Pyramide principle
Therefore the prize pool can be compared also with the pyramid principle of a common lottery, where the arrangement implies that:

  • The participant must pay a joining fee;
  • He is then motivated to believe - he will receive the joining fees (or part of them) of other participants;
  • And eventually, he will receive an amount that is higher than his own entry fee and even more (i.e. jackpot).

The casinos’ schemes have the same relevant features (of pyramid accumulating products), only the casino players are divided into 3 groups depending on the size of their bets.

Each group has its prize pool (jackpot).

The prize pool compared with the lottery

Pool N: 1

  • As usual, the cheapest tickets in the lottery are those that cost between 10 cents and 10 CAD.
  • For the purpose of our comparison, we equalize them to slot bets also between 10 cents and 10 CAD.
  • The largest crowd of players naturally plays with these small bets, i.e. the prize pool of this group is filled very fast.
  • The possibilities to trigger a Big Win are higher on such bets.
  • But of course, the final amount will be not gigantic as it is multiplied by the small stake.
  • As far as we know, this group is collecting around 10% of the money to fill the prize pools on the higher levels, and this percentage will be used for Big Wins on bigger bets.
  • Inside this group is also the division of bonus hunters (playing money granted to them by the casino, but still money). The flock of Bonus Hunters is big, and this is another reason why Pool N: 1 is filling rapidly.

Pool N: 2

  • The medium bets in a casino, like lottery tickets of this size, have an average value of 10 CAD to 50 CAD.
  • Playing with such bets might need a better wallet, but in our opinion, this is a much more profitable group to play than the previous one.
  • Because this group is not that populated, there are not that many gamblers in the “draw”, so playing here will give you a higher chance of a Big Win.
  • We believe that a crucial factor for the payouts is the statistic (history) that the specific player and other players in this group have.
  • Custom casino software will consider all the details before making a payment combination for a huge win (such as deposits, average withdrawals, wagering, etc.)

Pool N: 3

  • The highest bets in a casino, like most expensive lottery tickets (from 50 CAD up to maximum), are used by a very limited group of players. Playing often with such high bets will classify you as a high-roller.
  • Certainly, this group jiggles with the greatest risk, as playing with such bets can be the most profitable or unprofitable at the same time.
  • Again, the custom software will examine every detail that reflects on handing out a Big Win: gambler’s stats (history), the current status of the pool and the active number of players in this very narrow group (not so many players).
  • In this group, the Big Win can be called a "life-changing prize" as the money that can be distributed here, unlike the risky play with such bets, is of gigantic size.

A casino budget lesson

All Canadian online casinos have monthly costs to pay:

  • for taxes;
  • for licenses; 
  • for payment systems fees;
  • for royalties, partners (affiliates) commissions, salaries (employees & support teams);
  • for additional marketing, insurance, and so on.

Big WinRoughly speaking, 70% of the casino revenue goes for expenses, and 30 % remains as earnings for the casino. From this 30% still, the casino has to put aside capital to spend on players' current payouts. What is leftover should be used to create a pool for future winnings? I.e. one very minuscular part of the money deposited by the players is hypothetically used to shape up the prize pool. 

To pay the players, the casino needs to cut funds from its own earnings. Gradually this small amount goes misspent or embezzled. The scammer's trick is to cheat you at once, and the license guarantees a long-term scamming process. All this demonstrates that there is no randomness over the player's pool.

What is the prize pool?

We all have the notion about the scamming Canadian online casino operating on scenarios. They have created several different plots by adjusting the slots RTP. Meanwhile, the trusted online casinos are functioning objective, fair, and unbiased, having no entry to the game settings. The software is located at the controlling platform directly on the network company`s servers. 

Explained in a nutshell - players winning in a scamming scenario casino hinges on the casino manager’s greed (the one “calibrating” the RTP), but will definitely be between 30 and 70%.

Each Canadian online casino has its own prize pool. For example, if you play in a new casino where there are no other players, then you will not have the chance to win an amount much higher than your starting balance. At best (if you selected a bet from the calculation of 200+ bets on the balance), you will accumulate your own prize pool and successfully win almost the entire amount of your deposit back. In the worst case, you will run out of money before this moment.

At a fair and certified Canadian online casino, the player can win х100 of the deposit. For example, by placing a deposit of 100 CAD, the player will be able to win 5k, 10k, 15k, depending on the casino pool and luck or randomness. But forget for a while about the cheating element, and concentrate on the randomness - then which online operator or which slot you chose is not important.

The prize pool is the sum collected from all players’ bets minus winnings in the current spin. So, for example, if 100 gamblers are betting by 1 CAD after 20 CAD is won, the prize pool for a further 80 CAD will be the prize pool for further winnings.

  • Depending on the selected casino game, from 1% to 10% (this is the RTP) will be returned to win the players.
  • So, for example, if the slot has an RTP of 96%, in the long run. The slot will payout 96% of the collected money, and 4% will be the winning for the online casino and the slots provider.
  • The slot will spread from 5% to 90% for winnings from each spin, and the other will fill the prize pool.
  • For example, again, the slot has 96% RTP;
  • 10 players bet 10 CAD (100 CAD), 
  • The slot pays 50 CAD in the current spin, then the slot will move in the pool 46 CAD
  • (100 CAD – 4% RTP – 50 CAD paid = 46) for further winnings.
  • When the prize pool is filled, the slot becomes “Hot,” which is when the Big Win is coming. 
  • From 1% to 10% from the pool are moved for big winnings in higher bets.

What is the link between slot status, cycle and prize pool?

It takes simple reasoning to grasp that to secure a 100% winning, you must be the only participant in the lottery. If the lottery pool is 100000 CAD and you solely buy all 1 mln tickets, those tickets will sure bring you the 100000. It is another question, however, how much you paid for those 1 mln tickets. You will see that paying for tickets exceeds the winning price.

Recognizing how similarly centralized casino slots operate you should see the link that you will be in a more favourable position if you play in casinos which are more popular (i.e. legions of active users playing at any time of the day/night). They will all be working together with you on filling and replenishing the prize pool.

slot cyclicality
It is also of significant importance to play in DEMO mode first so that you can identify the slot cyclicality.

In this way you can examine the slot mood at certain bets, taking into consideration the ratio between the winning value and the size of the stakes.

With more time spent testing one slot, you will start understanding the game better and will begin to identify the start/end moments of the cycle, which can enable your maximum win awareness. In this regard, determining whether a slot is Hot/Cold becomes a prize pool-based attribute.

It is easy to get the notion that each slot is built with a different RTP (return to player percentage), but for online games, this index usually averages around 95%-96%. Simplifying: we lose 5%-4% of every bet we made. Sometimes the game is in a hot mood, and you may win 1000 CAD in 5 minutes or gain thousands from 100 CAD during a long game session. 

Roughly said, the higher the RTP (even if it is just a theoretical figure, established after a billion simulation spins), the greater the capacity to collect the prize pool, and with that, your chances at a Big Win, regardless in a short or long session.

At every casino, there are thousands of slots with an RTP higher than 90%, and there is also a complex of seamless fusion of different software. It is believed that each software has its own bank, though there may also be a common pool for all the games at that casino.

The implementation of a special Application Programming Interface (API) defines the interactions between multiple software and helps in allocating the funds among the games. There is no certainty but the claimed RTP would be quite different for each player, i.e. you can get 10%, 70%, 300%, and even 1000%. On average, 8 people out of 10 will lose.

Conclusion

The prize pool is where all the money for winnings is collected. The higher the volatility, the longer the pool needs to be filled and the longer the wait for a Big Win. Filling the prize pool can be compared with the lottery system: there are several groups of bets and the prize pool of the lower group is provided as a percentage of winnings in the higher group of bets.

When the pool is filled to the max, the slot becomes "Hot", which is when the slot can hand out a Mega-Big-Win. And last but not least, the prize pool is different for every Canadian online casino. So, new gambling sites cannot generate big winnings until their pool is filled.

Choose the TOP Canadian online casino 2022

Written by Yovko Peev
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