How Do Online Casinos Work In Australia
Oliver Moore / 24 November 2021

How do Online Casinos Work – All the Answers

Online gambling is a booming industry in Australia, primarily as a result of the pandemic. While it has been around for over 20 years, it has never been more popular than it is now. As stepping outside someone’s home was made impossible, people shifted their focus online to find some form of respite from their daily monotony.

This is when the gambling industry saw exponential returns through their online casino software that provided punters an opportunity to practice responsible gambling in the safety of their own homes, taking away the need to go to physical casinos to play and win cash prizes.

In Australia and worldwide, online casinos are integrated with your bank account or other payment methods to ensure you can deposit or withdraw money. The truth about online casinos is in 2020, the online gambling industry generated 40% of the overall industry earnings bringing in profits to the tune of 7.8 billion US dollars.

While many punters in Australia have learnt to trust online casino software, there is still a significant number out there who have many unanswered questions, such as do online casinos really pay out or how does gambling work?

To answer how does gambling work, you need to understand how do online casinos work.

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What’s the algorithm behind online casinos?

To answer the question of how does gambling work in online casinos, there is a specific science behind the design and function of the online casino games that everyone loves to play. Online slots have a mathematical function called a Random Number Generator (RNG) encoded into its algorithm to ensure fair play.

As the name suggests, a Random Number Generator randomises the results of a spin on the slots machine, roulette machine, bingo, and many other online casino games. This has been done to give punters a fair chance at winning. However, there are two main types of RNGs:

  1. Hardware Random Number Generator (HRNG): This is also referred to as a True RNG since the numbers generated are genuinely random and do not repeat themselves in a cycle of repeated numbers.
  2. Pseudo-Random Number Generator (PRNG): This RNG does have a repeated sequence of numbers that are only meant to look random. Therefore, PRNG numbers can be reproduced or duplicated.

Another important value to be aware of is the ‘Return to Player (RTP)’ value. This value helps determine how much you can expect to win over a period of time when using a particular machine. The value is represented as a percentage for each machine. For example, if a machine has an RTP value of 96%, for every $100 you spend on the machine, you have the chance to win $96 back.

An important thing to keep in mind is that the RTP value is a theoretical number only. An RTP value of 96% does not guarantee that you will win $96 every time you put in $100. But, once again, your ability to get winning number combinations are determined by the RNG value mentioned above.

Do online casinos really payout?

While some gamble for the thrill of it, others gamble in the hopes of winning money. The truth about how do online casinos work is that you can definitely win large, life-changing jackpots. However, there have been occasions when online casinos have refused to pay out punters based on a few reasons that you should be aware of.

There may be a rare occasion when the online casino software has a glitch. However, most circumstances that lead to a casino withholding someone’s winnings are for the security and protection of other players. To promote the practice of responsible gambling, if a punter is believed to have cheated or used identification, online casinos reserve the right to refuse to pay out a person’s winnings. In most cases, casinos return a player’s deposit and ban them from the site.

Can you earn a lot of real money from online casinos?

So, the question remains, how much money can you really win? Here are a few punters who won big through online casinos.

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At the start of 2020, the $20 million jackpot was won on the 30th of January. The jackpot was won on the Mega Moolah Slot Machine. On August 17, 2020, Sweden saw a lucky punter win the $17 million jackpot on Lucky Casino. The third-largest jackpot win also occurred on Mega Moolah for $13 million.

As you can see, the prize money is there for the taking. If you have been wondering do online casinos really payout, they definitely do. You just have to be smart about it and practice responsible gambling.

How do Professionals gamble online?

Professional online gamblers have figured out the answer to the question “how do online casinos work?” and they have found ways to consistently make enough money to sometimes earn a living from it.

Besides winning huge jackpots in poker games, professional gamblers learn strategies for each game they are playing. They also take advantage of every welcome bonus, signup bonus, birthday bonus, and weekly bonus available to increase their winnings. They aim to use online machines with favourable RTGs, usually at 96% and above. Finally, they never chase their losses as they know that it will only lead to losing more money.


Whether you are looking for a new entertaining hobby or are really interested in how do online casinos work, this article gives you an idea of how online gambling works, the algorithm behind the machines and how to ensure you pick a machine with a higher chance of winning.

The online gambling industry is massive, and companies are trying harder than ever to provide safe and trustworthy websites to promote responsible gambling practices while also allowing punters to win big. Feel free to give it a go because your next jackpot winnings could be one click away.

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Written by

Oliver Moore

Oliver Moore is the leading online casino expert and editor of all posts at Spin Paradise. Oliver believes in luck but considers tactics to be equally important.

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