A progressive jackpot is a jackpot (a gambling grand prize or payout) which increases each time the game is played but the jackpot is not won. When the progressive jackpot is won, the jackpot for the next play is reset to a predetermined value, and resumes increasing under the same rule.
Many slot machines and video poker machines feature a progressive jackpot. The jackpot increases by a small predetermined amount each time the game is played. Often multiple machines are pooled or linked together to form a larger progressive jackpot which grows more quickly because more non-winning plays can be counted toward it.
Many lotteries feature progressive jackpots. After each drawing in which the jackpot is not won, a large amount of money is "carried forward" to the jackpot for next drawing. Various television game shows have also featured progressive jackpots.
History
Progressive jackpots were first introduced in large casinos in 1986. The first progressive slot machine was Megabucks, developed by International Game Technology (IGT). Every time a player participated in the jackpot but did not hit it, a part of the winnings was accumulated to the main jackpot, growing without limit. On February 1, 1987, a player won the first progressive jackpot, which amounted to the sum of $4,988,842.17.
Progressive jackpots were first introduced to online casinos in 1998. The first slot game featuring a progressive jackpot was Cash Splash, developed by Microgaming. The largest ever online progressive jackpot win was €19,430,723.60 in 2021 on the Mega Moolah jackpot, another game by Microgaming.
Progressive jackpot meter
The amount of the jackpot increases by a small amount for every play on any connected machine. The amount by which the jackpot advances is set by the casino ("the house"). A machine offering a progressive jackpot usually displays the amount of the jackpot, rather boldly, to attract players. After a player wins the jackpot, the jackpot resets to a preset minimum level.
For example, on a machine whose house edge is 5%, a generous jackpot contribution might be 1% (one fifth of the expected profit). The house is prepared to contribute some of the profit of a jackpot linked machine because players are attracted by the: relative novelty of progressive jackpots (generally, only a small fraction of the house's gaming machines will be connected to a progressive jackpot) constantly changing meter, often displayed on large LCD or LED displays large amount of the jackpot, which eventually motivates more players to play the game.
Qualifying
Usually the progressive jackpot is only offered to players who wager the maximum number of credits per play. All wagers, whether or not they are maximum-credit bets, contribute to the jackpot. As a result, a game which requires a 10-credit wager to qualify for the progressive jackpot tends to have its progressive jackpot rise to higher levels (relative to its break-even level) than a game that requires only a 5-credit wager to qualify.
Usually the jackpot can only be won by winning the combination with the highest payoff, e.g. a royal flush at a video poker game, or five of the most valuable symbols (lemons, cherries, alligators, etc.) on a slot machine.
Often, the displayed amount of such jackpots includes a base payout which is often simply the regular payout for the winning combination multiplied by the minimum qualifying bet. If the jackpot is "reset" to this amount each time it is won then in essence the house is not providing any "seed money" for the jackpot since the minimum that can be won in such a case would simply be the amount the player would normally be awarded for the jackpot-winning combination.
"Mystery" or "must-hit-by" jackpots
A variation of the standard progressive jackpot is the "must-hit-by" jackpot, which has substantial differences compared to traditional jackpots.
The value of every "must-hit-by" jackpot is determined immediately after the preceding jackpot is won by a random number generator and stored within an encrypted computer connected to a gaming machine (or, more commonly, a network of machines) and is publicly disclosed to be within a certain range (for example, a small jackpot might be programmed to pay out at between $1,000 and $3,000). The jackpot pays on the wager that causes the jackpot to reach or exceed the threshold, with the maximum value within this range being the "must-hit-by" amount.