Online casinos need to provide players with a wide selection of the most up-to-date games in order to have an edge over competitors in the iGaming market. However, for operators, gaming is not the only thing that matters. The slot payout percentage, also known as the RTP parameter, is a parameter that both beginners and experienced players pay attention to in all games. A player rates his chances of winning higher the higher he is.
How does RTP work?
Return-to-Player, also known as RTP, is the percentage of a slot’s total bets that the slot, whether online or offline, returns to the player in the form of winnings.
The percentage of winning bets to total bets is shown by the RTP parameter, which is also sometimes referred to as the payout to the player.
For example, a slot machine has an RTP of 97%. Ideally, a player should win €0.97 per game if they place many bets with the same €1 wager. 0.03 euros will stay in the casino.
However, the theoretical RTP is usually different from the real RTP. Many variables affect the odds of winning in a slots game. These include hit frequency (also known as “hit rate”) and bonus frequencies, maximum win probability, variance and volatility. Thus, the RTP, stated in the characteristics of a slot game, is a theoretical estimate of how much a slot machine or casino will return to the player in the long run. In addition to RTP, there is House Edge. They are often confused, so you need to know what the difference between the two is.
As we already know, Return to Player (RTP) is the percentage of the total bets in a game that the casino returns to the player in the form of winnings. The house advantage or “house edge” is essentially the percentage of the total amount of bets that a player retains or loses at an online casino. It follows that if a slot’s RTP is 96 percent, the house advantage will be 4 percent. The saying “the casino always wins” or “the house always wins” includes the term “House Edge,” meaning that while players may win at an online casino in the short term, in the long term the amount of bets they have placed will exceed anything they have won.
Let’s talk about one example. In each game round, a player consistently receives 96% of his winnings. He places his first bet of €100 on an online slot with a 96 euro cashback percentage and wins 96 euros. Then he bets €96 in the next round and gets his 96 percent back, that is, €92.16. The idea is that the player gradually increases the amount of his initial capital and the casino receives four percent of each player’s bet each year.