There are many myths and misconceptions surrounding RTP and volatility. In reality, these two indicators are very easy to understand with specific examples. So, if you thought you knew everything there was to know about betting, read on!
RTP or player compensation
The RTP indicator comes first. To understand what this value represents, it is interesting to examine how casino betting works.
We will start with the premise that all casino games of chance have a certain statistical advantage over us. The exception to this is poker in tournaments; however, this game is rarely found in virtual gambling establishments; instead, it can be played in gaming rooms and with friends.
The casino has to win more often than we do (i.e., the player must statistically lose money more often than win jackpots), otherwise its owner would have to increase his business. Therefore, all video games are configured so that the casino gains a certain percentage point advantage over us. For example, the traditional European version offers a 2.70% advantage to the player. The inverse of this ratio is the aforementioned return to the player, which is 100% to 2.70% or 97.30%. What does this mean?
Probability analysis indicates that when investing PLN 100 in a game that offers a statistical return of 97.30%, precisely PLN 97.30 should return to our pockets. As can be easily deduced, the higher the RTP in a specific game, the better for the player. Table games tend to have the highest RTP in online casinos. In blackjack, we have the chance to get a return of over 99.70%. In slots, the average RTP is around 96%, although there are numerous slots with a record RTP of 99%. Find out more about Book of 99 and other slots with record RTPs – could you also get lucky with them?
Is it advisable to spend time on RTP?
For many players, a high RTP translates into a guaranteed win. This is clearly not the case. There are several reasons for this. First, you will not find a game in a casino with a return to player of over 100%, and only such a value guarantees a win.
Secondly, it is beneficial to understand how game developers determine the average RTP. A properly configured game performs between 10 and 100 billion virtual spins in the computer’s memory. In this context, the programmer can calculate how much of the player’s invested capital will be returned to them over a sufficiently long period of play. It is not difficult to infer that none of us could place 100 billion bets in a single game at a virtual casino. Even if each spin took only 10 seconds, that would require us to spend 31,709 years in a casino playing constantly, 24 hours a day.
So, what is the benefit of knowing the RTP ratio? Experienced players understand that calculating probabilities is unavoidable and that winning at gambling depends not only on knowledge and experience, but mainly on luck. It is somewhat beneficial to play games with a higher RTP.
Frequency in games of chance
In terms of probability calculation, volatility refers to the variation of results around an average value. As volatility increases, the risk associated with the game increases. In online gambling, volatility can be low, moderate, or high. Not all producers provide details about this parameter in the game manual, but it is usually possible to determine its value through the developer’s website.
So, how does this affect the player?
The relevance of fluctuation in virtual betting
High volatility means that the results of the game will fluctuate considerably during play. Players can make big profits, but they can also suffer considerable losses in a short period of time. What is the result? Our budget will quickly disappear. On the other hand, low volatility means that we can expect fairly consistent profits of similar value over time. In gambling lingo, slot games with low volatility are known as low-risk games.
If you’ve ever played roulette, you know that the more numbers you bet on, the higher your chances of winning. For example, betting on black or red means you’re betting on 18 different numbers at the same time. In this situation, the casino pays out double or nothing. Imagine a player who places their bet on a single number. In this scenario, the payout is usually 35:1. Naturally, if we aspire to consistent winnings, we will opt for red or black (low volatility) rather than a single number (high volatility).
Thus, instability affects a casino’s capital management strategy. This allows the player to manage their risk more efficiently and maximize their long-term opportunities.
To conclude, a few words.
A day at the casino can be full of wins and losses. RTP and volatility are fundamental concepts in gambling. Return to player tells us how much of the money invested in the casino will be returned to us in the form of chips or cash. It is a purely statistical indicator whose role in the casino is often overestimated. In addition, higher volatility may be attractive because of the potential for higher winnings, while other players may prefer games with lower volatility to reduce the risk of losses. Ultimately, the decision is yours.
