Protecting New Casino Startups: Managing the Risks of Large Payouts

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Introduction 

In this post, we will explore strategies that new online casino startups can use to protect themselves from large payouts and jackpots. This will help new operators understand how to manage risks and ensure financial stability.


Why Large Wins Can Happen

The possibility of large wins is explained by the randomness built into the operation of Random Number Generators (RNG) and the long-term perspective of the Return to Player (RTP) percentage. Each spin has a chance of a big win, regardless of previous results. This is why even new casinos can face the need to pay out significant amounts.


Partnership with Game Providers

Major game providers such as Microgaming, NetEnt, or Playtech take on the responsibility for large jackpot payouts. This allows new casinos to offer games with big jackpots without bearing the financial burden.


Example: Mega Moolah by Microgaming, where jackpot payouts are covered by a network of casinos, not just one operator.


Jackpot Insurance

New casinos can enter into insurance agreements to protect against the risk of large payouts. In the event of a big win, the insurance company covers the amount, protecting the casino from financial loss.


Example: If a player wins a million dollars, the insurance company pays out the win, not the casino itself.


Progressive Jackpots

Progressive jackpots accumulate from the bets of many players across different platforms. Payouts for such jackpots are often covered by a network of casinos and the game provider, reducing the financial burden on a single casino.


Example: A progressive slot network jackpot can reach millions of dollars, but the payouts are distributed among all participating casinos.


Bet and Limit Controls

New projects can set limits on maximum bets or the number of games to minimize the risk of large payouts in a short period. This includes limiting bet sizes and introducing daily or weekly spin limits.


Example: Setting a $100 limit on maximum bets or restricting the number of spins per day.


Conclusion

New online casino startups can effectively manage the risks of large payouts by using a combination of partnerships with game providers, jackpot insurance, progressive jackpots, and bet controls. These measures not only protect the casino from financial losses but also ensure fairness and transparency for players. This allows new projects to develop and grow, providing stability and security in their operations.


This article is based on a thorough analysis of real strategies used in the industry to protect new casinos. We hope this knowledge will help new operators better understand and manage risks in their activities.


#CasinoStartups #OnlineCasino #JackpotInsurance #GameProviders #ProgressiveJackpots #RiskManagement #Gambling #CasinoIndustry #FinancialStability #CasinoStrategy #NewCasinos

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