How Do Casinos Pay Out Large Sums Money

Not all casino games include progressive jackpots, but plenty do. Some games have fixed jackpots that give out a decent amount, although perhaps nothing life changing. That said, many players like to play the progressive slots, as those have one or more progressive jackpots that draw a lot of attention. The more who play, the bigger those pots get.

So… what does a casino do if a player wins a large sum of money? Let’s dig into the topic to find out more.

How do casinos pay out large sums of money?

There are usually two paths available. They could pay out a lump sum to the winner, meaning the player will receive the entirety of their winnings in one go. The alternative is to select an annuity, which means the casino would pay out smaller amounts on a regular basis. The latter option is often more tax efficient, as you would likely pay a lot more tax on a lump sum than you would on regular payments.

Of course, if you find yourself in the fortunate position of having to think about this, it’s best to seek professional financial advice before deciding what to do.

Why should you stick with established and trusted casinos?

Some casinos are bigger than others – that’s a fact. It’s a simple matter of math to work out that you might have issues getting a major win from a small casino compared to a large one.

Let’s say a small casino has a profit of around $1 million per year. Sounds good, right? It does… until a player at that casino manages to scoop a progressive jackpot worth $2 million.

Now, there have been progressive slot game jackpots that have turned out to be far bigger than this, so it’s a conservative figure to choose for our example. However, you can see that if a player won this amount, a small casino would likely have difficulty paying out, whereas a large one wouldn’t.

You should only ever play at licensed casinos

This refers to casinos with licenses to operate in specific countries, and to those who are based offshore and have licenses in those countries instead. A casino can only get a license if it abides by strict rules and regulations, meaning that the player is safe to use the site. Casinos must pay out winnings to their players, so if a casino has a player that wins a major jackpot, they must pay out the amount won.

You can see how important it is to choose your casino wisely. It’s also wise to get financial advice if you do win a major jackpot. All sources state that it is usually better to choose the regular payments route rather than getting a lump sum. It’s typically better tax-wise and it’s easier to manage your finances too, since you can rely on a sum of money coming in every year (or month, depending on the circumstances of the agreement).