It is a common misconception that online gambling operators pay out progressive jackpot wins themselves but this is not necessarily the case.
Software providers normally supply the seed amount and then pull out bets from all gambling sites linked to the wide-area progressive network for the growing jackpot pool.
The straightforward example below can give you an idea of how this works.
1. Software supplier X provides a progressive slot game to five gambling operators.
2. The progressive pool starts seeding at $100,000.
3. The 1st operator feeds $45,500 into the pool from players’ bets made on the slot.
4. The 2nd operator feeds $15,000 into the jackpot pool.
5. Bets made with the 3rd operator contribute $25,100 to the jackpot pool.
6. Bets at the 4th casino have a pool contribution of $10,500.
7. Finally, the 5th casino contributes $6,500 to the pool.
8. The jackpot has progressed to a total of $202,600 and a lucky player at casino #2 triggers it.
Now, the question is who pays the amount of $202,600 to the winning player when multiple casinos feed funds into the pool?
Software supplier X will first pull the entire jackpot amount from all associated sites in the network and either pay the winner directly or use casino #2 as an intermediary in the payment process.
This is the best course of action from the perspective of winning players because the software provider will pay the jackpot amount, no matter how large it is, in a single installment without any annoying delays.
In the second scenario, the software supplier seeding the jackpot delegates the payment duties to the gambling site where the jackpot has hit. This does not necessarily result in delays and complications, though.
Operators that are part of the Microgaming progressive network pay jackpot wins as a single lump sum after the industry-standard verification checks are complete. One recent example that comes to mind is from early June 2022 when a lucky player won the Mega Moolah jackpot and received $4.15 million in a single installment.
Software industry greats like Playtech and Microgaming transfer the full jackpot amount to the management of the online casino where the windfall has occurred. What happens from there sometimes depends on the withdrawal policies of individual operators.
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