Do Slot Makers Get a Cut of the Action?

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The business model of how slots make money for various companies fascinate many players, if our inbox is any indication:

Do the Slot Manufacturers get a piece of the pie?

Tim

When it comes to the physical casinos, most of the time slot makers don’t make money off of how much is gambled. Instead, they make money off the sale or lease of the hardware and the games that are installed on that hardware.

They can also make money off the maintenance of the machines by selling replacement parts and other items needed for the regular upkeep of the machines.

There is an exception to this, however: Participation slots are those where, by definition, slot makers participate in the revenue generated by a game. These tend to be the machines where the giant wide area progressives are offered.

However, the slot makers also handle the management and payment of those progressives, so there’s both a revenue opportunity and an expense. But they still do just fine.

The business model is different when it comes to online slots – there revenue share is more established, in part because there’s servers and other considerations in play. Slot makers provide platforms that can deliver content as part of the deal, so the structure is set up differently.

But the adjusted business model works out better for us as players, as it also means access to more games due to the lack of physical space required to offer them. This means players have an embarrassment of riches when it comes to both the game makers offering games, and the games offered.

So that’s how it works out – physical casinos it’s more about the sale or lease, whereas online there’s a participation element, but the cost structure for each side is spread out differently as well.


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