Discover everything you need to know about RTP (Return to Player) and Volatility in this in-depth FAQ guide. Learn how RTP and volatility affect casino games and how to use these factors to enhance your gaming experience.
What Is RTP in Casino Games?
RTP (Return to Player) is a term used to describe the percentage of all wagered money that a casino game is expected to return to players over time. Essentially, RTP is a measure of how much of the total money wagered on a game will eventually be paid back to the players. It is expressed as a percentage, and the higher the RTP, the more a player can expect to win back over time.
Example of RTP:
- A game with an RTP of 96% means that, on average, for every £100 wagered, £96 will be paid back to players over time, while the remaining £4 represents the casino’s profit, or “house edge.”
How Is RTP Calculated?
RTP is calculated over millions of spins, rounds, or hands played in a game. It’s important to note that RTP doesn’t guarantee what a player will win in the short term; instead, it reflects long-term trends based on statistical probabilities.
How Game Developers Determine RTP:
- Game Simulations: Developers run simulations of millions or even billions of rounds to determine the expected payout percentage. This process ensures that the game behaves according to its designed payout structure.
- RTP Formula: The calculation of RTP follows this formula:RTP=Total amount returned to playersTotal amount wagered by players×100RTP=Total amount wagered by playersTotal amount returned to players×100
Variations in RTP:
- Different casino games have varying RTP percentages. Slots often have different RTPs compared to table games like blackjack or roulette. Some games may also feature adjustable RTP ranges, where casinos can select a slightly different RTP based on their business model.
What Is Considered a Good RTP in Casino Games?
The definition of a “good” RTP varies depending on the game and a player’s expectations, but in general:
- Above 98%: This is considered an excellent RTP, meaning the game returns most of the money wagered to the players. This is often seen in certain table games like blackjack or video poker.
- Between 95% and 97%: This is considered a high RTP and is common in many online slots.
- Below 94%: This is considered a low RTP. Some progressive jackpot slots may fall into this range, where a portion of the wagers is contributed to the jackpot pool, resulting in a lower payout in the base game.
How Does RTP Affect My Chances of Winning?
While RTP reflects how much a game pays back to players over time, it doesn’t predict how much any single player will win in a single session. Casino games, especially slots, are based on random outcomes, and short-term results can vary widely from the long-term RTP average.
Key Points:
- Long-Term Indicator: RTP is a theoretical measure based on millions of rounds. In the short term, players may experience more or less than the RTP would suggest.
- Small Wins vs. Big Wins: A game with a high RTP may provide more frequent small wins, while games with lower RTPs (like progressive slots) may offer less frequent but larger payouts.
What Is Volatility in Casino Games?
Volatility (also known as variance) refers to the risk level associated with a casino game, particularly in terms of how often and how much it pays out. Volatility determines the balance between the frequency of payouts and the size of the winnings.
Types of Volatility:
- Low Volatility: Games with low volatility provide frequent, smaller payouts. These games are ideal for players who prefer steady, consistent wins and lower risk.
- Medium Volatility: Games with medium volatility offer a balance between frequency and payout size. These games are perfect for players who want a mix of small and moderate wins with occasional larger payouts.
- High Volatility: High volatility games pay out less frequently but offer larger wins when they do. These games are best suited for risk-tolerant players who are willing to wait for the big payout.
How Does Volatility Affect Gameplay?
Volatility plays a significant role in determining your overall experience with a game. Understanding a game’s volatility can help you choose the right game based on your preferences, bankroll, and tolerance for risk.
How Volatility Affects Your Play:
- Low Volatility: You will experience more frequent but smaller wins. This allows for longer gaming sessions, as your bankroll is less likely to deplete quickly. However, don’t expect huge payouts in these games.
- High Volatility: You may go through long stretches without a win, but when you do win, the payouts can be substantial. These games are riskier and can lead to big swings in your balance, making them more suited to players with larger bankrolls or those looking for a thrill.
- Medium Volatility: These games strike a balance between the two, offering moderate risks with the potential for both small and larger wins.
How Are RTP and Volatility Related?
While RTP and volatility are distinct concepts, they are both important when evaluating a game’s payout potential.
- RTP: Determines the overall percentage of wagers that will be returned to players over the long term.
- Volatility: Determines the distribution of those returns in terms of how often payouts occur and their size.
Example:
Two games might have the same RTP (e.g., 96%), but different volatility levels:
- A low volatility game with 96% RTP will pay out frequently but in smaller amounts.
- A high volatility game with 96% RTP will pay out less often, but the payouts will likely be much larger.
Why Are RTP and Volatility Important for Players?
Understanding RTP and volatility can help players make informed decisions about which games to play based on their personal preferences, bankroll size, and risk tolerance.
Benefits of Knowing RTP:
- Maximising Long-Term Returns: Players looking for games with a better chance of winning over time should prioritise games with higher RTPs.
- Game Selection: Knowing the RTP helps players select games that align with their style, whether they prefer frequent wins (even if small) or are chasing big jackpots.
Benefits of Understanding Volatility:
- Managing Bankroll: Players with smaller bankrolls may want to opt for low volatility games to ensure they get more playtime and reduce the risk of losing money too quickly.
- Adapting Strategy: High volatility games require a different strategy, such as betting more conservatively or being prepared for longer losing streaks.
What Is House Edge?
The house edge is the mathematical advantage that the casino has over players in a given game. It’s the inverse of RTP. If a game has an RTP of 96%, the house edge is 4%, meaning the casino expects to keep 4% of all money wagered in the game over time.
Formula for House Edge:
House Edge=100%−RTPHouse Edge=100%−RTP
For example, if a game has an RTP of 98%, the house edge is 2%. The house edge ensures that the casino will always make a profit in the long run, but it doesn’t mean players can’t win in the short term.
RTP and Volatility in Different Casino Games
RTP and volatility vary across different types of casino games. Here’s a breakdown of how they apply to popular game categories:
1. Slots
- RTP: Slot RTPs typically range from 92% to 98%, with some slots offering RTPs as high as 99%. Progressive jackpot slots usually have lower RTPs to account for the large prizes.
- Volatility: Slots can have low, medium, or high volatility. High volatility slots like Book of Dead are known for big wins but longer losing streaks, while low volatility slots like Starburst offer frequent but smaller wins.
2. Blackjack
- RTP: Blackjack has one of the highest RTPs of any casino game, often ranging from 99% to 99.5%, provided the player uses optimal strategy.
- Volatility: Blackjack is considered a low volatility game, especially when played with basic strategy. Wins are frequent but relatively small compared to high-volatility games.
3. Roulette
- RTP: European roulette offers an RTP of 97.3%, while American roulette, with its extra “00” pocket, offers an RTP of 94.7%.
- Volatility: Roulette is a medium volatility game. Betting on single numbers is high risk (with big rewards), while betting on red/black or odd/even offers more frequent, smaller payouts.
4. Baccarat
- RTP: Baccarat’s RTP is typically around 98.94% for the banker bet, 98.76% for the player bet, and around 85% for a tie bet.
- Volatility: Baccarat is a low volatility game when betting on the banker or player, as these bets win more frequently. The tie bet is high volatility due to its infrequency but offers a larger payout.
5. Video Poker
- RTP: Video poker has a high RTP, often above 99%, when optimal strategy is used.
- Volatility: Video poker is generally low to medium volatility, depending on the variant. Jacks or Better is known for its low volatility, while other games, like Deuces Wild, can be more volatile due to larger payouts for specific hands.
How Do Progressive Jackpots Impact RTP and Volatility?
Progressive jackpot slots often have a lower RTP and higher volatility compared to regular slots, but they offer the potential for massive payouts.
Progressive Jackpots and RTP:
In progressive jackpot games, a portion of every player’s bet is added to the jackpot pool. This reduces the RTP for the base game, as part of the wager is contributing to the jackpot prize. For example, Mega Moolah has an RTP of 88.12%, which is lower than average because a portion of each bet funds the jackpot.
Progressive Jackpots and Volatility:
Progressive jackpots are highly volatile. The base game often pays out less frequently, as much of the prize pool is directed towards the jackpot. However, the possibility of winning a life-changing amount attracts players who are willing to take on higher risk for a shot at a massive reward.
How Do Bonus Features Affect RTP and Volatility?
Many online slots come with bonus features such as free spins, multipliers, and wild symbols, which can affect the game’s volatility and overall experience. Bonus features can create big wins, but they often come with higher volatility.
Free Spins:
Free spins allow players to spin the reels without risking their own money, often with additional features like multipliers or stacked wilds. These rounds can significantly increase the payout potential, but they usually occur less frequently, especially in high volatility games.
Multipliers:
Multipliers increase the payout of winning combinations. Games with multipliers often have higher volatility, as the potential for large wins exists, but it comes with the risk of more extended periods without winning.
Wild Symbols:
Wild symbols act as substitutes for other symbols and can increase the likelihood of forming winning combinations. Games with frequent wild symbols tend to have lower volatility, while games where wilds appear rarely but with significant effects (such as expanding wilds or stacked wilds) tend to be higher volatility.
How Can I Use RTP and Volatility to Choose the Right Game?
Selecting a game with the right RTP and volatility can significantly enhance your gaming experience, especially if you align these factors with your playing style and goals.
Tips for Choosing the Right Game:
- Understand Your Budget: If you have a smaller bankroll, opt for low volatility games that provide frequent payouts to prolong your playtime. If you’re chasing a big win and can handle more risk, go for high volatility games.
- Consider Your Playstyle: Casual players may prefer low volatility games with high RTPs for a more relaxed experience, while thrill-seekers might enjoy the excitement of high volatility games with the potential for large payouts.
- Look for High RTP Games: If you want to maximise your chances of winning in the long run, choose games with an RTP of 96% or higher. However, remember that RTP does not guarantee short-term outcomes.
Common Myths About RTP and Volatility
Myth 1: High RTP Means Frequent Wins
A common misconception is that high RTP games always provide frequent wins. In reality, RTP is a long-term measure, and high volatility games can have a high RTP while paying out less frequently.
Myth 2: All Slots with the Same RTP Play the Same
Even if two games have the same RTP, they can play very differently depending on their volatility. A high volatility game with 96% RTP will offer larger but less frequent payouts compared to a low volatility game with the same RTP.
Myth 3: RTP Is the Same Across All Casinos
Some online slots offer adjustable RTPs, meaning that different casinos can choose slightly different RTP levels for the same game. It’s important to check the game details at each casino to confirm the exact RTP you’ll be playing with.
Conclusion
Understanding RTP and volatility is essential for making informed decisions when playing casino games. RTP tells you how much a game pays out over time, while volatility helps you gauge the level of risk involved. By considering these factors, you can tailor your gaming experience to match your preferences and goals, whether you’re looking for frequent wins or chasing big payouts.
