How is the Return to Player Rate of Slots Calculated?
If you have played online slots like Eye of Horus Slots or tried your hand at an online casino game, you have probably come across the term RTP. The Return to Player (RTP) percentage is essential for casino gaming. You can continue reading to find out what return to player percentage is, why it is essential and how to calculate it.
What is Return to Player (RTP)?
The RTP rate represents the average money that online slots or casino games pay back or return to the player over a long period. The RTP is displayed as a percentage and is the opposite of the house edge, representing a casino game’s mathematical advantage.
Most casino players consider RTP as an indication of how often a game pays out. This is not right, as the RTP only shows how big your win can be.
How RTP Works
It is important to note that RTP is a theoretical statistical calculation that must be adequately understood. For instance, it does not apply to massive random wins or longer streaks of losses.
The RTP indicates the average estimate of a particular game. It is opposite of house edge. If, for example, a particular game has a house edge of 5%, then the RTP is 95%, in theory.
If the RTP is 100%, you have the same odds of winning as the casino. If a game has such an RTP or even more, the casino is running at a loss for that slot over that time.
Therefore, the higher the RTP, the better the return a slot can give. While this is not necessarily true due to the variance of a slot, it is a good rule of thumb to apply. You should choose games with an RTP that goes above 95%.
High variance slots pay big wins but less often, making them a good game for people who like the risk. Low-variance games often pay out but at a smaller value, making them suitable for people who like playing safe.
How to Calculate RTP
The RTP is calculated as follows:
The total amount returned to the player is divided by the total amount wagered.
In this case, the total amount wagered is the sum of each initial bet per spin per player for the audited period of a particular game. The amount returned to the player is the net amount won by the player in a round.
Let’s take a game with an RTP of 97%. Here is how the RTP was arrived at:
If you bet £100, you will get £97; however, this is an estimate of how much you can receive. In slots, the winning amount depends on the total number of spins. The money you win from your bets can be higher or lower. If you keep playing with that machine, the estimated return can get closer to the RTP value.
Alternatively, you can calculate it this way:
If the RTP is 97%, the house edge is 3%. This means that the casino takes £3 from your £100 wager.
While it may seem confusing what return to player means, it is pretty easy to explain when you discover more. As you have seen, RTP informs you about your chances of winning whenever you start playing a slot game.