Slot tournaments (where does the money come from?)

[IOI]

When a online casino host a slot tournament, where does the money come from?
Lets say a slot has been stated to have 96%rtp and the casino wants to withdraw money from slots to pay tournaments.

Does the money come from the 4% profit that the casino makes or does it come from the 96%?
If it is the case that the money does come from the 96% that means the casino is in a way lying to the players about rtp.

I posted something similar on another forum and the adminstrators became defensive saying that withdrawing money from slots to pay tournaments does not affect rtp.
That might be true,  just because the casino ghost withdraws money from the slot dosent mean the actual algorithm changes.
But the account tied to the slot holding the funds will become smaller.

If the casino can just withdraw funds from the slots whenever they want who to say that they arent just putting the money in their own pockets.

Another shady thing they could do is making accounts tied to the casino and just give themselves points to win some of the tournaments.

I could be wrong and missunderstand how the slots work.
If someone could explain the exact process how a casino makes money from slots and how the tournament process works i think the picture would become more clear to me.

[cocopop3011]

On 1/19/2020 at 11:27 PM, IOI said:

When a online casino host a slot tournament, where does the money come from?
Lets say a slot has been stated to have 96%rtp and the casino wants to withdraw money from slots to pay tournaments.

Does the money come from the 4% profit that the casino makes or does it come from the 96%?
If it is the case that the money does come from the 96% that means the casino is in a way lying to the players about rtp.

I posted something similar on another forum and the adminstrators became defensive saying that withdrawing money from slots to pay tournaments does not affect rtp.
That might be true,  just because the casino ghost withdraws money from the slot dosent mean the actual algorithm changes.
But the account tied to the slot holding the funds will become smaller.

If the casino can just withdraw funds from the slots whenever they want who to say that they arent just putting the money in their own pockets.

Another shady thing they could do is making accounts tied to the casino and just give themselves points to win some of the tournaments.

I could be wrong and missunderstand how the slots work.
If someone could explain the exact process how a casino makes money from slots and how the tournament process works i think the picture would become more clear to me.

No idea I'm afaid but maybe our master of tournaments may be able to help here @Fiekie247

[Afi4wins]

Well, from my understanding, the money should come from the games provider.

Take Pragmatic Play's Free Daily Tournaments for example. They are hosting the tournament games and the prize monies are made by them as well. Proof? I received my prize money via Skrill, listed as a money transfer from Pragmatic Play. 

I don't think it has anything to do with any of the game's RTP...the monies are probably taken directly from the games collected funds. I may be wrong of course, but that's how I would do it anyway. 

[Fiekie247]

On 1/20/2020 at 1:27 AM, IOI said:

When a online casino host a slot tournament, where does the money come from?
Lets say a slot has been stated to have 96%rtp and the casino wants to withdraw money from slots to pay tournaments.

Does the money come from the 4% profit that the casino makes or does it come from the 96%?
If it is the case that the money does come from the 96% that means the casino is in a way lying to the players about rtp.

I posted something similar on another forum and the adminstrators became defensive saying that withdrawing money from slots to pay tournaments does not affect rtp.
That might be true,  just because the casino ghost withdraws money from the slot dosent mean the actual algorithm changes.
But the account tied to the slot holding the funds will become smaller.

If the casino can just withdraw funds from the slots whenever they want who to say that they arent just putting the money in their own pockets.

Another shady thing they could do is making accounts tied to the casino and just give themselves points to win some of the tournaments.

I could be wrong and missunderstand how the slots work.
If someone could explain the exact process how a casino makes money from slots and how the tournament process works i think the picture would become more clear to me.

Okay first things first - Casinos offer different tournaments, associated with different terms.

 

- Social Tournament ( Pragmatic Play ) - I think these are pretty standard in terms of who sponsor the money, which is obviously the game provider Pragmatic Play themselves.

- Casino Tournaments (Hosted by the casino itself) - The casino itself sponsor these tournaments by putting the money upfront and then you need to play a selection of slots, or any slot to score points for every bet you placed and climb up the leader board and when the month end, they announce the winners and money are credited to your account. Now of course if there is 2000 euro tournament every month, of course the casino makes the profit in terms of people losing on slots in general, which is how they can afford it IMHO. Check Bitstarz has 50 000 tournament every month.

- Game Provider Tournaments ( These are huge tournaments with 50 000 to 100 000 euro prize pool over a period of 2 - 3 months or 1 500 000 euro prize pool over a period of 6 months and this tournament is on a specific game provider across all casinos that is hosting the provider). - These are sponsored by the game provider itself, now just imagine, there are thousands and thousands of online casinos that you can play at on this specific provider to participate, imagine how much money are being pumped into their slots, so surely they make a huge profit which is more than what they dishing out.

Videoslots Tournaments - Sponsored by the casino itself as another form of Entertainment purely and makes them different from others. Here you have a fixed buy in for x(amount) of spins and you need to get the highest score possible. However you can buy and re-buy and sometimes these re-buy and the amount of players exceed the original fixed prize pool amount, which means on some they make a profit and on others they don't.

 

So in short - The money for tournaments hosted by the casino itself is sponsored by the casinos itself. Software Provider tournaments are sponsored by the software provider itself, but these are never just for 1 specific casino, as it spread across the entire network of casinos and finally Videoslots is a bit different and Unique. The RTP has nothing to do with it!

Lets be honest a casino or game provider would not put money upfront unless they know they can make a profit in the end, otherwise many will shut their doors, by offering benefits and promotions that is not beneficial for them in the end.

I hope you realize how we can see a decrease in promotions, VIP, Loyalty programs etc.

 

16 hours ago, cocopop3011 said:

No idea I'm afaid but maybe our master of tournaments may be able to help here @Fiekie247

@cocopop3011Hope the above gives clarity.

[cocopop3011]

6 hours ago, Fiekie247 said:

@cocopop3011Hope the above gives clarity

Perfectly! Thank you,  knew you were the right man for the job here.