The theoretical RTP doesn’t guarantee a win, but understanding how it works improves your chances of turning a profit. Yet many myths still surround RTP gambling.
Keep reading to learn how it works and maximise your return potential.
WHAT DOES RETURN-TO-PLAYER (RTP) MEAN IN GAMBLING?
‘Return to Player’ (RTP) is a term used by online casinos that reflects how much punters can expect to earn in the long run when they play a VLT or slot machine. From online casinos’ perspectives, RTP measures a game’s theoretical return over its lifetime. In fact, a slot’s RTP is often referred to as a theoretical RTP.
In other words, casino sites use it to estimate how much profit they will make and whether or not a slot is viable. Unlike most consumer products, where companies can expect to double or triple their investments, the Return-to-player percentage works with very slim profit margins. In fact, Las Vegas casinos must have a figure that is 75% or above.
We’ll get into the details of how the numbers work below, but in the simplest terms, the Return-to-Player (RTP) is the average amount of money paid out to punters when they play a VLT or slot machine over time. It’s calculated based on huge datasets that compare the total number of spins with the house edge.
WHY IS RTP IMPORTANT?
Gambling without understanding RTP (Return-to-Player) is a recipe for failure, especially with punters who invest a lot of money into a game.
The RTP percentage gives plunters an estimate of their expected earnings over a long period of time, allowing them to make informed decisions when choosing online slots. It is also important when figuring out the potential return of an individual bet.
HOW TO CALCULATE RTP IN GAMBLING?
Slot players need to understand RTP percentages to know whether a slot is worth spinning.
Slots usually have a higher Return-to-Player (RTP) percentage than other games like American roulette or blackjack. Slots generally pay between 95% and 99%. Here’s how it works:
For example, a machine with an RTP of 97% means that for every €100 wagered, €97 is returned as earnings over time, taking into account turnover figures. Short-term wins do not indicate how much a slot will pay because of its inherent randomness.
Remember, though, that this figure does not indicate how much you will win on a given spin. Instead, it’s an indication of the expected value of bets paid out over time.
HOW ARE DIFFERENT CASINO GAMES AFFECTED BY RTP?
RTP IN CARD GAMES
Card games differ from slots because, slots are purely based on chance, whereas blackjack, for example, has an element of skill involved.
And this has one important implication for RTP. In many cases, casinos can’t give reliable RTP estimates for card games because they can’t account for the skill level of each player.
While they could offer average RTP across their entire player bases, these numbers vary wildly. So, calculating RTP for card games is something players often have to do themselves. This is how:
RTP = Total number of wins x 100/Total number of bets placed
So, for example, if you had to place €500 in wagers over 100 rounds, and the total amount that you’ve won is €450, your percentage would be:
RTP = (450/500) x 100
RTP = 90%
RTP IN OTHER GAMES
The Return-to-Player (RTP) can be calculated for dice, bingo, and roulette and determines the payouts each player receives for their bets.
In dice games, it is determined by the number of rolls required to produce a winning outcome. The actual value varies based on each bet, but you can calculate it by observing the outcomes of each round and applying the formula above. Bingo games use a similar approach, where this figure is determined by how many numbers need to be called and the probability of winning each.
Roulette and similar derivatives use slightly more complex calculations. The probability of winning each spin is based on the patterns of the wheel. Casinos achieve a house advantage with the addition of one or more ‘green’ zero pockets — a single zero in European roulette and a double zero in American roulette.
FACTORS AFFECTING RTP IN GAMBLING
The Return-to-Player (RTP) percentage is essentially the sum of all bets paid to online gambling sites minus the amount each casino keeps for itself. But RTP isn’t only determined in advance on a game-by-game basis.
Instead, the factors that affect RTP include:
The House Edge
You can’t calculate the house advantage from a single roll of the dice or hand of cards. Instead, it’s an aggregate value that averages out over time. Simply put, the house edge is the percentage the house (casino) is guaranteed to gain from each bet.
The lower the house advantage, the higher the RTP. A 96% Return-to-Player means the house has a 4% edge. Like RTP, the house edge varies between games. For instance, slots usually have a higher house edge than blackjack, meaning the casino makes more profit from slots than blackjack.
Hit Frequency
Hit frequency is a term often used to describe how often a machine will form a winning combination. For example, suppose a machine has a hit frequency of 7% — this implies that it will land a winning combination and pay out 7% of the time.
The hit frequency is also what determines the number of winning combinations that can form — though this is dependent on whether punters can bet on multiple lines at once.
Hit frequency and Return-to-Player figures go hand-in-hand. If punters can expect a machine to award a certain amount of cash back over time, the hit frequency will give them an idea of how often they can expect to win.
Of course, slots with a low hit frequency (tight) are less favourable than those with a high hit frequency (loose). And, the way to determine whether a machine is a high or low hit frequency is by taking a look at the variance.
Variance
Variance, also known as volatility, is a term used to describe a slot’s hit frequency as well as the value of those winning combinations and is aligned with the Return-to-Player (RTP) percentage.
Machines can either have low, medium or high volatility. Low variance implies that a machine pays out small wins more frequently, and high variance implies larger prizes that are paid out less frequently.
While the variance does not directly influence the Return-to-Player figure, it does affect a slot’s gameplay experience.
IS A HIGH OR LOW SLOT RTP BETTER?
Earning money by gambling online isn’t easy, but when spinning slots, forming as many winning combinations as possible means understanding how this figure works.
Across all online casino games, you’re likely to win money in slots with the highest RTP. However, even if a machine has a lower RTP, it isn’t the only deciding factor in how much cash is paid out. This is actually a combination of the relative difficulty of a casino game, volatility, house advantage, and hit frequency are also important.
That being said, though, whether you play a machine with a higher or lower RTP, it is a lot easier to focus on having fun than how much a game is paying out.
WHAT IS THE AVERAGE RTP IN CASINO GAMES?
The Return-to-Player can vary wildly across slots and, even though it doesn’t sound like it, a difference of only 1% can mean the difference between a substantial payout and walking away empty-handed.
Averages vary based on the location of an online casino, but a good benchmark for RTP in slots is around 95%. That said, if you’re lucky enough to find a figure of 98% or more then you’re on to a winner.
Mega Joker, for instance, offers a whopping 99% Return-to-Player. It’s a classic three-reel slot machine that veterans will instantly feel at home playing.
HOW RTP AFFECTS WINNINGS
The higher the RTP, the more money players can win. An online slot machine with a 92% Return-to-Playrerwill pay out €0.92 per €1 bet, while one with a return of 98% will pay out€0.98 per €1 bet.
While there are huge jackpots up for grabs, they are a rarity, and relying on them isn’t a recipe for success. Instead, it’s better for newcomers to choose slots with high return rates to maximise their odds of turning a profit.
HOW RTP AFFECTS THE HOUSE EDGE
The house edge percentage is how casinos stay afloat and make money. It’s the amount of money the casino will make from a game compared with the amount players win in return. Many punters use the house edge to analyse how much of an advantage the house will have over them. Overall, a house edge amounts to a tiny fraction of a return on all investments. The house might win overall, but that doesn’t mean that players aren’t also winning constantly.
Slots don’t generally specify an edge, but it can easily be calculated. If the Return-to-Player describes how much a player can expect to win over time, the house edge can be calculated by subtracting the RTP. For example, if a machine has a Return-to-Player of 97%, the house edge will be 3%.
FINDING A CASINO GAME’S RETURN-TO-PLAYER INFORMATION
If you’ve never played a slot online before, we understand that you might not know how to navigate your chosen online casino site. Luckily, most online casinos make their RTP (Return-to-Player) information easily accessible.
All you need to do is load up your chosen slot and click the ‘Information’ or ‘Help’ tab on the user interface. You will find everything you need to know about the rules and gameplay, including the Return-to-Player figure. If not, you can always look it up on the provider’s website!
COMMON MYTHS ABOUT THE RETURN-TO-PLAYER
The Return-to-Player figure is one of the most misunderstood topics in the industry. There are many myths that surround this percentage, including:
Myth #1: A High Return-to-Player Guarantees Payouts
A higher RTP means that the house edge is lower and greater amounts are paid out. However, even an RTP of 99% doesn’t guarantee players will win every time. Each player should weigh up the risks of a casino game before playing and be prepared to lose the bets they make.
Myth #2: Casinos Share RTP Rates
Casinos want to attract customers just like any other business. While they take inspiration from one another, online casinos are not the ones setting the percentages. Providers actually test these out, which is why you will find similar RTPs for the same machine.
Myth #3: Casinos Change RTP At Will
One of the most prolific myths many players have about this figure is that casinos change the frequency of payouts while players are sitting at a machine.
Theoretically, a land casino can alter its RTP for a game at any time. But in practise, most casinos avoid doing so. Physical slot machines use specialised “EPROM” chips that determine the rates. Online casino games use algorithms designed by their creators.
Myth #4: RTP Changes Throughout the Day
This figure doesn’t change based on the time of day. Doing so would violate gambling laws in many countries.
Myth #5: RTP Works on a Cycle
Some players think that payouts, particularly for huge jackpots, work on a cycle. For instance, they might think:
- A jackpot pays out every one million spins.
- A 1,000-coin prize pays out every 250,000 spins.
- A one-coin prize pays out every 10 spins.
In reality, this isn’t the case. RTP payouts are averages that converge over the long term, but the odds of winning are the same for every bet.
SUMMARY
Whether you’re playing slot machines or other games, knowing how to improve your chances with RTP gambling sets you ahead of the competition. Remember, online casinos have hundreds of games to choose between. Take your time when deciding on a game to improve your odds.
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