Online casino players are accustomed to seeing minimum and maximum betting limits when playing their favourite online casino games. For example, when playing roulette you may see that there are minimum bets of £1 and maximum bets of £250.
Minimum bets are pretty self-explanatory because as the name implies, these are the minimum amounts that are required for you to place a wager on a certain game. These are imposed by casinos to ensure that on average, they make a profit to cover operating costs like software licensing fees and employee salaries.
That being said, it may cause you to wonder why a casino would place a limit on the amount of money that their players can place on a certain wager by imposing maximum betting limits. Let's take a look at the reasons why online casinos do this.
Online casinos have to protect themselves against colossal winners to ensure that they remain financially viable over the long term. Of course, the house generally has an advantage in every casino game, but there are always exceptions and players often win big or enjoy winning streaks where they end up earning astounding amounts of money.
Obviously, casinos expect winners to happen but they do limit their risk by not allowing players to bet $100k or more on a single bet when these kinds of things do happen. So by imposing maximum bets casinos are able to continue to generate profits at a steady pace with limited financial risk.
The Martingale System is a popular betting system which is used by many gamblers when playing online casino games. It works on the principle of doubling bets every time you lose in an effort to recoup your losses. If there is no betting limit in place a high roller with a generous bankroll would almost always be able to earn back their losses.
For example, if you bet £10 initially but suffer six consecutive losses your next bet would amount to £640. This is quite a substantial amount of money, one that would probably make most players nervous after their losing streak, but if you're wealthy enough to be able to cover the £640 easily you could play and win the next bet and make all your losses back in addition to any previous winnings.
For obvious reasons, casinos prefer to prevent this type of thing from happening by imposing maximum bets as they limit the effectiveness of the Martingale system and keep the cash rolling in for them.
Some players possess the skill to eliminate or at least minimise the house edge considerably; these special individuals are known as advantage players. While the majority of these players frequent land-based casinos to ply their card counting skills in blackjack, control shooting in craps or roulette wheel bias strategies, some very skilled players also play online; they just gain their advantages through different methods.
Some take advantage of overly favourable bonus offers while others seek out the rare games where house advantages can be negated. But no matter what the practice, online casinos minimise the effectiveness of advantage players and limit the amounts that they can win with the implementation of maximum betting limits.
While most players never bet the maximum, these limits exist to protect casinos against major losses and ensure their continued existence and profitability.