Jackpot in iGaming: Definition, Types, and How It Works

In 2022, a lucky player hit a massive $23.6 million jackpot on Microgaming’s Mega Moolah Absolootly Mad slot — all from a single spin. With just one click, their life changed forever.

The magic behind this life-changing movement is the jackpot, which makes the iGaming world more exciting. For players, the jackpot is not a simple move, it is a road to winning big.

But do you know what makes jackpots so thrilling? And why do millions of players chase these life-changing prizes?

This incredible win shows why jackpots are so popular—the chance to win big instantly. But there’s more to jackpots than just huge prizes. 

Let’s dive into what they are, how they work, and why they’re a major draw in the iGaming world.

What is a Jackpot?

A jackpot is the biggest prize a player can win in a gambling game. These prizes are more commonly associated with slot machines, bingo, poker, lotteries, and more. In the world of iGaming, jackpots play a crucial role in attracting a large number of players because they offer a chance to win life-changing amounts of money.

These jackpots rely on complex algorithms that ensure fairness, randomness, and regulatory compliance. This algorithm not only determines the time of the jackpot but also manages the growth and distribution.

One of the key algorithms used in Jackpot is Random Number Generator (RNG), which is software that produces an unexpected sequence of numbers to ensure fair and unpredictable outcomes in iGaming.

Let’s dive into how different types of jackpots:

Types of Jackpots in iGaming

1. Progressive Jackpot:
   
   This is the well-known type of jackpot that keeps growing every time a player places a bet but doesn’t win. A small part of the bet adds to the pool prize, which can reach millions. The jackpot amount is continually increasing until the lucky player wins the entire amount. This jackpot attracts many players with the promise of life-changing payouts.
   
2. Fixed Jackpot:
   
   A fixed jackpot offers a fixed amount of prize that does not change, no matter how many players place bets or how big the bets are. The payout is always predetermined, so players know exactly how much they will win. This jackpot is perfect for those players who want consistent rewards without waiting for the prize to grow.
   
3. Local Jackpot:
   
   Local jackpots are linked to a single casino or gaming site. Only players on that specific platform contribute to and can win the prize. Since the player pool is smaller, the jackpot doesn’t grow as quickly as others, but it still offers attractive payouts with slightly better odds of winning.
   
4. Daily Jackpot:
   
   As the name suggests, daily jackpots are guaranteed to be won within a 24-hour period. This gives players a daily opportunity to win a significant prize. These jackpots are popular among casual players because they offer regular chances to win without waiting for weeks or months.
   
5. Mystery Jackpot:
   
   Random jackpots can be triggered at any time, regardless of the outcome of the game or the size of the bet. This element of surprise makes the gameplay more exciting because every spin or hand could lead to a big win without warning.

How Do Jackpots Work: A Step-by-Step Process

If we are talking about especially in casino games, large prize pools that players can win under specific conditions. Here’s how they work:

Step 1 – Bet Placement:

First, the players place their bets and play the game. Depending on the jackpot type, a portion of these bets might go into the jackpot pool.

Step 2 – Contribution to the Jackpot:

• In progressive jackpots, the prize pool grows simultaneously with the player’s bet.
• In fixed jackpots, the prize will remain the same no matter how many people play.

Step 3 – Winning the Jackpot:

• Matching Symbols: In slot games, players often need to match specific symbols to win.
• Random Wins: Some jackpots trigger randomly, no matter what symbols you get or how much you bet.
• Bonus Rounds: Some games have special rounds where the jackpot can be won.

Step 4 –  Payout:

Once a player hits the jackpot, the prize is awarded. For progressive jackpots, the pool resets to a base amount and starts growing again.

Step 5: Jackpot Resets

After a win, the jackpot resets to this base amount and then the cycle starts again with the new bets contribution to the pool.

Why Jackpots Matter in iGaming

Jackpots aren’t just exciting for players — they also serve as powerful tools for iGaming operators. Here’s how:

1. Increased Player Engagement:
   As we discussed above, the jackpot attracts many players and increases player engagement. The thrill of chasing the jackpot encourages players to stay longer and play more.
   
2. Enhanced Retention Rates:
   Many games offer attractive jackpots that make players want to come back. The large payout amounts motivate players to return regularly, improving retention rates for operators.
   
3. Marketing and Promotion Opportunities:
   Jackpots, especially large progressive ones, are perfect for marketing campaigns. iGaming operators can use them to attract new players by highlighting the massive prizes up for grabs, making the platform stand out in a competitive market.
   
4. Boost in Revenue:
   Progressive jackpots grow with each bet placed, encouraging continuous play. As players keep betting for a chance at the jackpot, the total betting activity increases, resulting in higher revenue for operators.

Conclusion

Jackpots play a crucial role in the iGaming industry, providing players with the opportunity to win substantial rewards while enhancing engagement across gaming platforms. These prize pools, whether progressive, fixed, local, daily, or mystery, create an exciting dynamic that attracts both casual and dedicated players.

From an operator’s perspective, jackpots serve as an effective strategy to increase player retention, drive continuous gameplay, and boost revenue. The promise of a life-changing win encourages higher betting activity, making jackpots a valuable tool for marketing and promotional campaigns.

As technology advances, innovative jackpot structures and mechanics will continue to shape the future of iGaming, offering more engaging and rewarding experiences for players while driving growth for operators.