Some casinos enforce win limits that only allow players to win a limited amount of money in one game round or within a predefined period of time. Win limits can be calculated and applied in various ways:
- Win in a game round: A limited win in a game round allows players to only win a certain amount in one slot machine spin, one roulette spin or in one game round on any other type of game.
- Total sum of wins within a time period: This type of win limit is applied to the total sum of individual wins over a certain period of time (most commonly one day). Losses are not taken into account.
- Net win within a time period: These limit the total amount players can win in a certain period of time (most commonly one day). Loses are also considered.
Apart from the various types of win limits, each casino approaches the entire issue differently. Some casinos might apply a win limit right after a win, while others might start dealing with the issue only after a player asks for a withdrawal.
For example, if a casino has a win limit of 100000€ in a single game round, and a player manages to win 150000€ in a very successful slot machine bonus round, they are only entitled to keep 100000€, whereas the rest (50000€) will be kept by the casino.
In some jurisdictions, win limits are required by local laws and regulations. In these cases, casinos cannot do anything about it if they wish to keep their license and operate legally.
If casinos apply win limits because of laws and regulations that require them, there is nothing they can do about this. However, many casinos limit player wins at their own discretion without being told to do so by a regulator.
Casinos use win limits to protect themselves against big wins that could pose a danger to their cashflow and profitability. An unexpectedly big win could be an existential threat for smaller casinos with limited cashflow, so win limits make sense in this context if they are big enough.
This being said, they disadvantage players. Very small win limits (let’s say smaller than €10,000) are clearly designed to cheat players and increase the casino’s profits.
Most players don’t know about win limits. They expect to be able to keep their winnings in full, regardless of their size. It is devastating when a casino wants to take a big part of a player’s winnings because of a win limit that they might not be aware of.
It is true that most players won’t be affected by win limits if they aren’t too low. This is why some players who know about win limits might not even care about them, provided that they are much higher than the amounts they are used to winning. This being said, their stance will obviously change very quickly if they manage to win a higher amount than the limit.
However, the indifference of some players doesn’t change the fact that win limits are restrictive for players and effectively decrease the RTP of some games (at least for some bet sizes), as the highest of wins cannot be achieved because of them.
Instead of implementing arbitrary win limits, casinos could decrease the maximum allowed bets. This effectively decreases the amounts won by players (and therefore acts as a win limit), while also keeping the game mathematics intact; therefore, not being unfair towards players. The casino shouldn’t let players place bets that can theoretically yield winnings that the casino can’t afford to pay out.