When it comes to online slots, you might come across two terms: Volatility and RTP. These terms are not just jargon or fancy words meant to sound impressive. They actually play a significant role in shaping your gaming experience. However, the average player might find these concepts a bit difficult to grasp. So, let’s take a closer look at volatility and RTP to better understand how they affect your time spent playing slots.
The ABCs of RTP: The What and the How
Return to Player (RTP) is a widely used term in casinos, applicable to all sorts of games, including slots. Essentially, RTP represents the percentage of money a slot machine is designed to return to players over an extensive number of spins, usually calculated in billions. A higher RTP means that the house has a smaller advantage over players, which is why it’s always worth finding the top paying casinos in every state with the best RTP games.
To put it simply, when you place a $100 bet on a slot machine with a 94% RTP, you can expect to get around $94 back. This means the casino keeps a profit of about $6. However, it’s important to keep in mind that RTP is calculated over many rounds and may not accurately reflect the outcome for an individual player in the short term. Your session could either exceed or fall short of expectations due to the law of averages, which becomes more apparent over a longer period of time.
How to Calculate Return to Player (RTP)
Interested in calculating the actual RTP for a casino game? It’s simpler than you might imagine. You can determine if a game is performing as anticipated by utilizing basic math and statistics.
Suppose you are examining a game that has, over the course of a month, accumulated £1,200,000 in total bets and paid out £1,085,000 in winnings. To calculate the true RTP, you would do the following calculation:
This gives our game an RTP of 90.42%. However, it’s important to note that the actual return-to-player (RTP) is usually lower than the theoretical RTP that a game is designed with. But there’s more to consider than just the difference between these two numbers. The volatility of a game also plays a significant role in determining the acceptable range for the RTP. In essence, volatility refers to how much the actual RTP can deviate from the theoretical one.
As you accumulate more gameplay data, this tolerance range becomes narrower. For example, let’s say a game has a volatility rating of 5.6 and has been played 400,000 times. In this scenario, your tolerance for deviation might be +/- 1.75 percentage points. This means that as long as the game falls within an RTP range of 89.93% to 93.43%, it will perform as expected and remain predictable.
Keep in mind that the theoretical RTP and volatility rates are determined by game designers and verified through external testing. It’s important to compare your calculated actual RTP with these predetermined benchmarks.
And that’s all there is to it. With this straightforward formula, you can calculate the RTP and make informed judgments about a game
Decoding Volatility: Risk and Rewards
In the context of slots, volatility is an important concept that is separate from RTP. Volatility refers to both how often wins occur (hit rate) and how big those wins can be (maximum exposure).
If you’re a thrill-seeker looking for big jackpots, high volatility slots might be your choice. These slots have the potential to pay out massive prizes that can be thousands of times your initial bet. But be prepared for some dry spells with no wins before hitting that coveted big win. On the other hand, low volatility slots offer smaller but more frequent wins, giving players a consistent and enjoyable experience, even if they are not as dazzling.
What Resonates More: Volatility or RTP?
Many newcomers to slot gaming believe that a higher RTP percentage is the ultimate goal. However, experienced players understand that the truth is more nuanced. While a higher RTP may seem mathematically advantageous, many seasoned players are willing to sacrifice a small percentage for the chance to win those life-changing jackpots.
Player preferences for slot machines are closely linked to their individual playing styles and budgets. For high-rollers who enjoy taking risks, high volatility slots with the potential for large winnings may provide the adrenaline rush they seek. On the other hand, casual players who want a longer gaming experience without risking too much money may prefer low volatility slots.
In practical terms, the minor fluctuations in return to player percentages won’t have a significant impact on your immediate gaming experience. This is because RTP becomes more apparent over billions of spins, which is a scale that most players won’t reach within their lifetime. The primary purpose of RTP is to help operators assess the long-term profitability of a game.
On the other hand, volatility has a direct impact on a player’s experience in each gaming session. A high volatility slot can transform an average spin into a massive win, momentarily overshadowing any considerations of return to player rate. Because of this, volatility often becomes the more palpable and immediate factor in shaping a player’s overall experience.
Balancing the Equation
The decision between prioritizing RTP or volatility is not straightforward and depends on what you want to gain from your slots experience. If you’re seeking the excitement of big payouts and don’t mind periods without wins, then high volatility slots are a suitable choice. On the other hand, if you prefer a more consistent and predictable experience, low volatility slots with higher RTPs would be a better fit.
Regardless of your reasons for playing, having an understanding of both RTP and volatility can significantly enhance your gaming experience. It allows you to make more informed choices and play strategically, maximizing your chances of success and enjoyment.
