Calculating Progressives With Different Currencies In The Pot
April 28, 2009
Players play in different currencies…so how are Progressive Jackpots calculated?
This may be a question you’ve asked for some time and we have the answer for you!
As an online player you will probably select an account in the currency of your country when you sign up an account at an online casino. This will make things a lot simpler because you usually “think” in the currency in which you live making it a lot easier to gauge how much you are winning or losing and you won’t have to pay conversion fees on winnings credited to your account. This part is pretty straight forward.
The question however, comes in as to how casinos who operate in nearly every currency, each with very different values, can offer the same jackpot for example $/€/£50,000, regardless of that fact. In the current market, one could not be blamed for getting the impression that it is more favourable for the casino if a dollar player wins the jackpot due to its weaker value when compared to the Pound or Euro exchange rates.
Ultimately however, this becomes irrelevant for the casino. Some jackpots like Microgaming’s Cash Splash are won often; in fact on average this one goes every 2 to 3 days. With that in mind, let’s suppose 60% of the players playing this progressive play in dollars, and 40% in Euros. Both player groups on average, over the long-term, will win the jackpot at a ratio of 60/40. Meaning that those playing in dollars would win more often and in these times, the casino would actually reap large profits due to the Euro pay-in’s but dollar payouts. If only those playing in Euros won, the casino would incur 45% losses in their profit figures (calculated on 1.45 Dollars to the Euro rates) at that time, but would have gained a great deal during the Euro players losses which would compensate accordingly. In conclusion, over the long term and with many players playing it all balances out, if it didn’t, casinos would implement single currencies within player accounts.
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