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Payout and Internet Casino Auditing
 

What is the payout ratio? Is there authority over it and is it supervised?

An online casino payout is a number that is calculated from monthly statistics usually by a third party auditing firm. The payout value describes how much of the casino's monthly turnaround returns to players and how much is kept by casino. It is calculated from actual casino software logs for all games played in the casino during the past month. As all casino games are precisely balanced from statistical viewpoint the payout dynamics comes from elsewhere and casinos with highest payout ratios are more attractive to the players because players have better chance to win.

The online casino payout has nothing to do with bet payoffs; those are two entirely different concepts

Example: an online casino with reported 98.5% payout impliess that out of (hypothetical) $1,000,000 that players wagered last month $985,000 was won back or otherwise taken by the players, leaving the casino with only $15,000. Notice that payout ratios are derived from actual data and must be verified by independent auditors. It is a statistical value that can only be applied on large number of games and players and it is useless to try and predict any accurate victories for yourself based on this number - it's only statistically meaningful when related to other variables of it's kin.