Understanding RTP and Volatility in Slots
Understanding RTP, RTP is an acronym that stands for “Return to Player.” It is a percentage that represents the amount of money a player can expect to win from their bets when playing casino slots or other games. For example, if you play a game with an RTP of 95%, you can expect to receive £0.95 back for every £1 you bet.
In simpler terms, RTP is the advantage that the casino has over the player. In this case, the house edge is 5%. It means that the RTP will always be less than 100%, as the casino would lose money if it were higher.
The RTP is calculated by simulating a large number of betting rounds. However, this does not mean that you will lose exactly 5% of your bankroll when playing a game with a 95% RTP. Even after several hours of playing, the actual RTP of a slot is unlikely to be reflected. As an individual player, you may win more or lose less than what the RTP indicates. However, if a game has a higher RTP, such as 98% compared to 90%, you have a better chance of winning in any given session.
What is Volatility in Slots?
Volatility in casino slots refers to how the RTP is distributed. Therefore, there’s no guarantee that you will win more on a slot with a 98% RTP than one with a 90% RTP over a small sample size. To illustrate this point, let’s consider two extreme examples of slots with the same 95% RTP.
The first game has a high volatility slot because it doesn’t pay out frequently, but when it does, it’s a large pay out. You played 1,000 spins, betting £1 per spin, and lost 999 times. However, you won £950 on one spin. On the other hand, the second game has a low volatility slot that doesn’t pay out large wins often, but gives frequent smaller wins. You bet the same £1 per spin for 1,000 spins and lost £1 on 300 spins, won £0.50 on 300 spins, won £3 on 300 spins, and won £5 on 100 spins. In both games, your RTP is 95%, as you bet £1,000 and received £950 back.
What is a typical RTP for online slots?
Most online slots have an RTP between 92% and 97%, with some being slightly lower or higher. Game developers, not casinos, determine the RTP. If the RTP is too high, the game won’t be profitable for casinos, and if it’s too low, players won’t enjoy playing. Developers must also balance the RTP with the game’s volatility, pay lines, and frequency of bonuses to ensure an enjoyable experience. A slot with lower RTP but lower volatility and frequent bonuses is likely to be more popular than a high RTP slot with extreme volatility, as players prefer to win regularly.