Base jackpot definition
/What is a Base Jackpot?
A base jackpot is the minimum fixed amount of a payout by a slot machine for a certain combination.
Accounting for a Base Jackpot
A casino must accrue a liability for a jackpot won by a customer as soon as there is an obligation to pay. A liability is recorded for slot machines that contain a base jackpot. However, it is not necessary to recognize this liability when a slot machine is taken out of service. Thus, the existence of a base jackpot only triggers a liability when there is an obligation to pay the jackpot.
Related AccountingTools Course
Accounting for Casinos and Gaming
Example of a Base Jackpot
A classic three-reel slot machine has a base jackpot of $1,000 for landing three "7" symbols in a row on the payline.
If a player spins the reels and gets "7 - 7 - 7", they automatically win $1,000, even if no bonus features or multipliers are active.
This payout remains fixed and does not increase over time, unlike progressive jackpots, which grow as more players contribute.
Even if a casino resets the machine, the base jackpot remains the same, ensuring a standard payout for that winning combination.
This base jackpot provides a consistent reward structure, ensuring players know the minimum prize they can win for specific high-value combinations.