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RTP Explained – What is Casino RTP and How Does It Work?
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An Overview of RTP and House Edge in Online Casino Games
In the online gambling world, the term RTP stands for return to player. The RTP for an online slot game is expressed as a percentage and represents the theoretical amount of money a casino game pays back to players over time. While the theoretical payout percentage is calculated based on probability, the actual RTP is what the players get back during a playing session.
A game’s house edge is the opposite of RTP. If a slot machine has a 97% RTP, then you can expect the house edge to be 3%. This refers to the casino advantage the gambling site or operator has over you. The best-case scenario is to have a game with a high RTP and a low house edge to have better odds of winning. However, it’s important to understand that even with favourable metrics, short-term results are subject to variance, especially in games like slots.
For a more predictable experience, some players may prefer games with lower variance and more frequent, smaller payouts. Therefore, these two features have a significant influence on how gamblers choose online casino games to play. Many EU Online Casinos and similar international online casinos prioritise offering games with competitive RTP values, ensuring players have access to fair and rewarding gameplay.
Understanding the RTP Percentage
Casino software developers carry out thorough tests to determine the theoretical payout percentage for each game. While the RTP can vary greatly from one game to another, you may not notice a significant difference in the short term if you play two different games with almost the same payout percentages such as 96.00% and 96.40%.
If you bet on two outcomes such as black and red twice, it’s possible for one of the colours to appear twice in both rounds. That would mean a 100% RTP, which is not an accurate representation of your actual chances of winning. Therefore, the most effective way to calculate your odds of winning is to bet on the two colours as many times as possible. Using this example, the RTP for online slots is calculated based on thousands or millions of simulated spins to assign an accurate payout percentage. Below is a simplified formula to calculate RTP.
Return to Player RTP = Total Amount of Payouts to Players / Total Amount Wagered x 100%
Lets say the total amount paid to players is €98,000 out of wagers worth €100,000;
- RTP = 98,000/100,000 × 100
- RTP = 98%
Types of RTP in Online Casino Games
Online gambling operators offer a wide range of casino games from the top-tier game providers in the industry. Each game comes with a specific return to player percentage mentioned on the information page. The RTP rate can be fixed, variable, high, or low depending on the selected game. Let’s explore the different types of RTPs below.
Fixed RTP
In fixed RTP casino games, the return to player percentage remains the same regardless of the selected casino or when you choose to play. Most slot machines at quality online casinos and land-based gambling establishments have a fixed payout percentage.
Variable RTP
As the name implies, casino games with a variable RTP offer several payout percentages. A good example is the Big Bad Wolf Megaways slot by Quickspin. The default slot RTP for this game is 96.05%, but it changes to 96.44% if you use the Buy Feature.
High RTP
Most experienced players prefer playing games with a high return to player rate for a reason. That’s because High-RTP slots and other casino games return a decent amount of the money wagered to players over time. The higher the RTP, the lower the house edge.
Low RTP
Low RTP casino games usually have a return to player rate that’s lower than the industry average of 96%. Some progressive jackpot games have low RTPs, so the casino advantage is generally high. But they can be rewarding if you get lucky and hit the jackpot.
Debunking the Most Common Myths and Misconceptions About RTP and Payout Frequencies
Every playing session is unique for each player regardless of the casino RTP. Players can expect fair gameplay if they choose reputable online casinos licensed and regulated by trustworthy regulators. While most real-money gamblers understand return to player rates, some misinformed players may have misconceptions about a game’s RTP percentage. We will now demystify some of the most common myths about RTP and payouts for casino games.
One of the most common misconceptions players have about RTP is that casino operators can freely alter payouts. In reality, a game’s RTP is determined by the software provider when the game is developed. However, some software providers offer multiple RTP versions of their games (e.g., 96%, 94%, or 92%). A good example would be Wazdan, licensed Wazdan casinos can choose RTP from the options offered by Wazdan for use in their casinos. Casino operators choose one of these versions when hosting the game. Once selected, the RTP is fixed for that game on their platform and cannot be modified further by the operator.
Maxing your bet on a given game does not have an impact on the house edge. Risk-takers only place the highest bet hoping to land a big win if they get lucky. However, the size of your wager does not change your odds of winning.
Gambling is generally about luck, so winning is not guaranteed even if you use the best strategy. How old or new the game is does not matter when it comes to RTP and payouts. You should rely on the information provided by the game developer to know if a new casino game aligns with your gambling needs.
One of the key features of progressive jackpot games is that they tend to have a higher house edge than other games. Therefore, progressive jackpot slots are not in any way better than other games. They only offer a chance to win big if you get the right combination of symbols. As with other games, you can win or lose regardless of the RTP percentage.
The Role of Random Number Generators (RNGs) in RTP
Although most online gambling sites are in the business of making money, every game outcome must be fair. Operators should not be allowed to take advantage of gamblers for profits. Fortunately, there’s no need to worry about being rigged if you play at trusted online casinos. Such platforms partner with industry-leading software providers to offer RNG-powered casino games with reasonable return to player percentages.
A random number generator uses sophisticated computer software to ensure that all online slots and other casino games produce fair results all the time. Whether you win or lose, the outcomes must always be fair. The casino operator and players don’t have the power to manipulate any game to their advantage. So, when you place real-money bets on certified slots tested by renowned testing agencies, you can expect a fair gaming experience.
RTP and Volatility: How Do They Relate?
Just like RTP percentage, a game’s volatility level has a notable impact on your overall gaming experience. Volatility refers to the frequency of wins and the average payout a player can expect from a certain game. Slot machines have different volatility levels ranging from high to low. Let’s see how different RTP and volatility levels may influence your choices and gameplay.
High RTP & Low Volatility
Slot machine games with high return to player rates (96% or higher) and low volatility offer frequent but relatively small payouts. They are suitable for players who don’t want to take huge risks.The Blood Suckers slot is a popular choice found in most NetEnt casinos today.
High RTP & High Volatility
High-RTP online slots with high volatility levels have bigger payouts but do not pay out frequently. This means that it can take a long time to form a winning combination when playing such games. NetEnt’s Dead or Alive series is a great example of great games in this category.