What is Casino RTP? Important Things You Must Know! What is Casino RTP? Important Things You Must Know!

What is Casino RTP? Important Things You Must Know!

Have you ever noticed that the rate of casino payout and return to the player are not standard? You must use the RTP to calculate the percentage of winning. Why and how? We are going to let you know in details. Continue to read on. 

What is Casino RTP? Important Things You Must Know!

What Does Casino RTP Mean?

RTP is the acronym of Return to Player. It’s a percentage that indicates the rate of players winning. As the percentage increases, the player will win in the long run. If the RTP percentage reaches 100%, you will get a complete return. When this percentage crosses 100%, it conveys the casino has lost money to you. 

You can calculate your RTP using the below formula-

RTP = Total amount returned to the players / Total amount wagered by the player 

Total Betting Amount

Whenever you play at an online casino, the total betting amount is determined by summing up the initial bet for each round. The auditing occurs for certain games taking one calendar month as the period for which the RTP will be applicable. 

Total Return Amount

What amount you should get is calculated using the net balance you win in each round. There are specific rules to calculate the returns for different online casino games. 

For Slot Machines

The wagering amount gets fortified. The total return is calculated on the basis of winning amount and the number of bets placed. The same rule is followed when it comes to video poker returns. 

For Table Games

You only get the net winning amount. The wagering amount is not returnable in this case. However, online casinos have a wide range of rivals. They compete against a global market of offline casinos. 

Relationship Between RTP & House Advantage

House Advantage is also known as House Edge. RTP is the inverse of the House Edge. RTP reflects the chances of winning to a customer, and House Edge determines the advantages of the casino. It is nothing but just a certain percentage of the total wager placed by the player. If a player has 92% RTP, the corresponding casino will have 8% House Edge calculated over a certain time period. 

How to Measure the Accuracy of RTP?

In September 2016, the UK Gambling Commission announced to analyse the performance of the slot machine regularly. Before that, video slots were tested only before release as per the regulator’s demand. The commission decided because they assumed that, developers have tweaked and reduced the RTP with hidden codes, techniques, or any kind of error in the process of slot execution. 

To keep all these confusions at bay, there comes a new concept named- Actual RTP. It is cent per cent accurate. Below is the formula to calculate actual RTP.

Actual RTP= (Total amount of players winning) / (Total amount of casinos per slot turnover from player wager) X 100

Let’s take an example, say, a double bubble slot holds a theoretical RTP value 96.1%. After scrutinising the slot for a month, it is found that players won £175,000 and the casino made a profit of £200,000 from the player bets in the slot turnover. 

Hence, the actual RTP will be –

(175,000) / (200,000) X 100 = 87.5%

Now you can see, there is a difference of 8.6% between theoretical RTP and the actual RTP. So, the casino will have 8.6% of extra profit. This difference of RTP is not favourable for the players. 

However, there is one more factor to influence the RTP, known as Volatility. Know the relationship between both of them below. 

How Does Volatility Affect RTP?

Just like the house advantage, volatility is a variance solely related to the Return to Player. Words like – high, medium, low, and numbers from 1-10 are used to express this. If two different slots have the same RTP 96.1%, it doesn’t mean both will have the same volatility. One can have low variance, which will give frequent but small winnings. On the other hand, slots with high Volatility will provide a comparatively lower winning frequency with higher payouts. However, medium volatility slots will offer effective winnings with a lucrative amount. 

Final Thoughts

We advise you not to go for the slots with 100% RTP, as nothing is guaranteed. Keep the other factors into account and prefer the amount you can afford. Have fun without losing your bucks. 

What is Casino RTP? Important Things You Must Know!
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Post Name : What is Casino RTP? Important Things You Must Know!

Posted On : 13/09/2019

Author : Cameron Riddell