Everyone knows that the house always wins. However, this is just a phrase, and “always” is more of a hyperbole. The players sometimes win over the house; otherwise, no one would ever play in casinos (either online or offline).
So, it’s in the casino’s best interest to “let” players occasionally win to maintain a steady player base. The amount they get is called RTP (return to player), and it’s the bread and butter of anyone who ventures into the casino industry. Here’s what you should know about RTP and why this topic is so important.
What is RTP?
The textbook defines this as a percentage of wagering money the casino will pay back over time. Usually, this is expressed in percentages, and it helps casinos project their gains and losses in the foreseeable period.
- The higher the RTP, the lower the house edge.
- The average RTP depends on the game and the casino.
Let’s move on to some practical examples and concrete numbers.
How does this work in practice?
Let’s say you play a fictional gambling game for many games over the year. Imagine that all you spent on this specific game for that year amounts to exactly $100. If the RTP is 95%, you should have won back an average of $95 by the end of the year.
Remember that the RTP can also change if you adopt and stick to a strategy or not. In other words, this doesn’t mean that you will get this amount of money back, only that, compared to other games, this is a statistical average over many games. The problem is that statistics can sometimes be misleading and these averages are based on hundreds of thousands, or even millions, of games—not just someone spending $100.
Also, RTP is affected by so many factors. Different games have varying RTPs, but even the region that the casino comes from (since so many people engage with online offshore casinos) makes a difference. For instance, in the same game, an online casino from Singapore may give a different RTP than one from the Netherlands due to the technology and equipment used.
How does it vary across different games?
Different games have different RTP rates. For instance:
- Blackjack has an RTP of 99%-99.5%. Of course, this only holds if you apply the right strategy. For example, many multi-deck blackjack tables offer side bets on the games, which significantly increases the house edge (and therefore reduces the RTP). Instead, look for high RTP variants of the game and stick to main bets if you want to keep the house edge at 1% or less. And, unlike roulette (as we’ll see next), blackjack has a better RTP in the US, due to a rule on when the dealer has an ace as their face-up card. With that said, most Vegas casinos offer 6:5 on blackjack, as opposed to the traditional 3:2 payout, which again affects how much you stand to win.
- Roulette is an interesting game because there are two (almost equally popular) variants of the game. These two are vastly different because American Roulette has one field more (00) since it has 38 equal compartments (instead of the 37 that European roulette has). This extra field makes all the difference regarding the odds game. This also reflects in the RTP rates. For instance, in European Roulette, the RTP is 97.3%, while in American Roulette, this goes down to 94.3%. French roulette is harder to come by but offers an even better RTP because of a rule that allows you to play again for free after a losing even-money bet when the winning number is 0.
- Slots are probably the worst game in terms of odds and RTP—they’re far less consistent than table games. Here, their RTP ranges from 92% to 98%, which is a huge discrepancy. The key thing to understand is that lower RTP machines usually range between 92% and 95%, while higher RTP machines go over 96%. If you’re a Singaporean player (to stay consistent with our previous example), basketballinsiders’ guide to SG casinos can help you choose where you play based on the RTP—some slots here have an RTP of over 99%. Doing this kind of research can ensure you give the house the smallest edge possible when playing.
Most importantly, you must understand that the RTP is not some secret metric casino operators hide from the rest of the world. Most online casinos and playrooms use their high RTP as a USP (unique selling point).
What does this mean for the player?
The RTP ratio shows the player how much they can expect to walk away with after wagering a certain amount of money. However, it only matters if they’re committed to a single game in a single casino. For anything less than that, predicting any kind of outcome is near-impossible.
By understanding the RTP, an individual player can enhance their decision-making process by:
- Picking the right game: A higher RTP means higher player chances and a lower house edge. For example, if you’re playing in the States, you might be better to look for an online platform based elsewhere that offers European or French roulette. These variants offer a much better RTP than the American version of the game.
- Improving their money management: A player who’s on the fence about what to play and doesn’t have strong preferences can pick the game based on the RTP.
- Choosing their type of fun: Games with high RTP tend to have steadier, more frequent wins, but this is not what all players are looking for. The key thing is that you understand how these things work. This is the only way to make a data-based decision.
Just think about it: in an age where you won’t even go to dinner without researching your date on social media, isn’t it reckless to randomly pick a game without fully understanding what the data means? Some research is always better than no research.
Final words: How important is RTP?
For an average player or someone who occasionally plays, RTP is too inconsistent to focus on. Sure, you can pick a game with a higher RTP since it may mean that wins are steadier and more frequent (even if smaller), but there’s nothing wrong with picking a lower RTP game now and then for a change. Whatever you choose, it’s always better to know what you choose and understands that RTP is only a theoretical average based on thousands of games or spins.
