Understanding RTP and Variance

Have you ever thought about whether it’s feasible to identify which online slot machine is about to pay out? Wouldn’t it be amazing if there was a hidden slot that consistently delivers winnings?

In this straightforward guide, we will explain everything you need to know about assessing whether a slot game is truly worth your investment of time and money. We will simplify the complex terminology and mathematics involved in determining how frequently and how much any online casino game is likely to pay out.

Rtp and variance

What is RTP, anyway? While playing at crypto casinos, you may have encountered terms like variance and RTP. RTP stands for Return to Player and is represented as a percentage. It signifies the portion of bets that will be returned to players from a specific casino game.
Here’s how to understand the RTP calculation:

A slot game has an RTP of 96%.
A player bets 0.01 BCH over 100 spins, totaling 1.00 BCH.
They will receive back 0.96 BCH, or 96% of their bets.
This indicates that the casino has a 4% edge over the player. If casino games operated solely on this principle, players would consistently lose a small percentage of their wagers, which wouldn’t be very enjoyable, would it?

It’s essential to realize that RTP is a theoretical figure derived from millions, if not billions, of plays of a casino game. It serves as a mechanism for crypto casinos to ensure that, over the long term, a game will not payout more than it takes in.

In practice, however, the outcomes are much more random, and various factors come into play. Players may occasionally receive more than they wager, while other times they may not. This unpredictability is what introduces the element of risk and excitement to gambling.

The RTP of online casino games

Every casino game comes with its own RTP value, which should be readily available in the game’s description. Generally, RTP values range from 94% to 98%, with the average RTP for casino games hovering around 96%.
It’s fair to say that any game showing an RTP of 93% or lower isn’t worth your time or money. This is considered too low for typical slot games, although progressive jackpots may be an exception.

Slots with high RTPs are those boasting return rates of 97% or even 98%.

Online casinos typically offer games with higher RTPs due to the reduced operating costs compared to traditional brick-and-mortar establishments.

What is variance and how does it affect casino games?

In addition to RTP, casino games feature a variance rating, often referred to as volatility. This rating is another mathematical measure that indicates the frequency and size of payouts from a casino game. In simpler terms, it assesses how risky a game is to play.
Variance can be categorized into three basic levels:

Low Variance: The game tends to pay out smaller amounts more frequently.
High Variance: The game pays out larger amounts less often.
Medium Variance: A balance between the two.
Evaluating the variance can provide insight into how often a casino game is likely to reward you and its associated risk level. Using variance as a guide is an effective way to find games that align with your playing style and budget.

How is game volatility calculated?

All slot games come equipped with a volatility index rating, indicating how volatile the slot is. Unfortunately, game developers are often reluctant to publicly share this information. You might find it on their official PAR (Program Accounting Report) sheets, but accessing that can be tedious.
In theory, you could calculate the variance of a slot machine if you know the frequency of symbol combinations and their odds or assigned values. However, in reality, determining the exact volatility of any casino game requires complex mathematical calculations.

As a casino player, here are some straightforward factors to help gauge the volatility of an online slot:

Examine the paytable and the payout differences between 4 of a kind symbols and 5 per line. If 4 symbols yield low payouts and 5 of a kind offer significantly higher payouts—like 10 times more—it’s safe to conclude that it’s a high variance slot.

If the difference between the payouts for 3, 4, and 5 of a kind symbols is minimal (e.g., 3-5 times), you are likely looking at a medium or low variance slot.

Consider the maximum bet allowed on any game. High variance slots typically come with lower maximum bets.

Playing in demo mode can also provide insight into slot variance. If you achieve frequent low-value wins, it indicates a lower variance slot; conversely, larger, infrequent wins suggest medium or high variance slots.

For added convenience, refer to our crypto slot reviews, where we always include variance and RTP to assist you in making informed game selections.

How to choose a game based on RTP and variance

By combining the RTP and variance ratings of any casino game, you can better understand if it aligns with your playing preferences. What type of player are you?

Casual gamers

If you want to maintain a small budget for occasional spins, it’s wise to focus on low variance casino games with an average RTP. Slot games like NetEnt’s Starburst are excellent choices, as they ensure smaller payouts occur more frequently, allowing you to stretch your casino bankroll over a longer period.

High Rollers

For those who enjoy the excitement of potentially significant wins and have the budget to support it, high variance slots are ideal. Slot games like Push Gaming’s Fat Rabbit can quickly deplete your bankroll but may yield substantial rewards.

Medium style players

Players seeking decent wins with a medium-sized budget typically find themselves between the two extremes mentioned above. Opting for medium to high RTP slots is advisable. A prime example for these players is NetEnt’s Gonzo’s Quest, which offers opportunities for significant wins without being overly risky.

Jackpot chasers

If you are aiming for life-changing wins, progressive jackpot slots are the best option. These games often feature low RTP, around 90%, and are classified as very high variance slots. The infrequent payouts are massive when they do occur.
Taking the time to determine your online casino playing style will lead to a far more enjoyable gaming experience. This approach is much better than simply choosing the first game that catches your eye!

Using RTP and variance to your advantage

These ratings serve as guidelines for each casino game but can also enhance your gaming experience. Here are some top tips on how to leverage them for a more rewarding casino experience:
Utilize free play or demo modes to experiment with slot games of varying RTP and variance ratings to find what suits you best.
Avoid investing in a low variance slot game with the expectation of landing a big win.
Similarly, don’t expect an immediate large payout from high variance slots.
Aim for a medium to high RTP slot unless you’re specifically chasing jackpots.
Treat these ratings as guides; no game guarantees a big win.
Always set a budget for your play and stick to it.

Are casinos cheating their players?

The short answer is…no. However, it’s a legitimate question when you see that no casino game will return 100% of the funds you wager.
Given this, how can we ensure that every turn in an online casino game is truly random and not influenced by the casino itself?

This is where Random Number Generators (RNGs) come into play. These sophisticated microprocessors can generate up to four billion numbers for each spin of an online slot game. This technology ensures that each spin is random and independent of previous or subsequent spins.

At crypto casinos, we can take this a step further with what is known as provably fair technology. This advanced open-source technology allows players to verify the outcome of every bet. In practice, this means players no longer have to depend solely on the online casino’s integrity regarding RNGs. They can also bypass the reliance on licensing bodies to enforce rules, as the entire system is open for inspection.

It’s important to note that RNGs do not possess any knowledge about the games they are generating numbers for. Their sole function is to produce random results for every spin.

RNGs are indifferent to who is playing, how much they are betting, how long they have been playing, whether they are using bonus money, or even if they are wearing their lucky pants!

Additionally, online casinos must adhere to strict rules and regulations. Depending on their licensing location, online casinos may be regulated in different ways, but the core idea remains the same: protect players and ensure everything is legal. This includes the implementation of RNGs to guarantee that all casino games are entirely fair for every player.

So, the next time someone asks you, “Are casinos cheating?” you’ll know exactly how to respond.

What are your chances of winning at casino games?

Thanks to RNGs, your chances of winning at casino games are just as good (or bad) as anyone else’s. With each spin being entirely independent, there’s no such thing as a hot or cold streak, regardless of what some players may claim.
However, the frequency and size of wins can be influenced by a combination of a game’s RTP and variance metrics. Just remember that these ratings serve as rough guidelines that can assist you in managing your bankroll.

Ultimately, it is up to each player to determine their budget and ensure they stick to it. Casino games are inherently games of chance, and it’s essential to enjoy the experience, irrespective of wins or losses. If you find yourself no longer enjoying the game, it may be time to end your casino session.