What is the RTP (Return To Player) in casino games?
The term “Return to Player” (RTP) can be translated as player return on investment, but is more often referred to as payout ratio. In online casinos, this value describes the percentage of all real money wagers on a particular slot or game that is paid back to players in the form of winnings over time. But how should the RTP affect your decision on which game to play?
Table of Contents
What does RTP mean?
The term “Return to Player” (RTP) in the casino refers to the amount of money that a casino game or slot machine ideally pays back to its customers. It is displayed as a percentage and calculated as an average over a long period of time from the results of many rounds played. In essence, the RTP in the casino is the opposite calculation to the “house edge” – the mathematical advantage for the casino in each of its games.
We deliberately say ideally, as a player could, for example, win €100 with a single €2 spin on an online slot and cash out straight away. For the lucky customer, his RTP is almost a 50-fold win. However, casinos work on long-term strategies to generate revenue. Most standard games therefore have a long-term RTP of 95 % to 97 %. This means that a casino game returns 95% to 97% of every euro taken in by the game to the players.
How do you calculate the RTP?
Theoretically, calculating the RTP of a game is quite simple. The formula is simple:
RTP = The total amount returned to players / the total amount wagered by players.
However, the RTP of online slots can be misleading as it does not indicate how often you can expect to win.
In games like blackjack, where you know you will win about half of the bets you place, things are pretty obvious, but slot machines with huge jackpots, on the other hand, seem to pay out less often, but considerably more. Nevertheless, over a period of time, the outcome will ultimately always be the same: For players, the payout ratio is slightly lower than their bet.
Roughly, the RTP of casino games can be broken down as follows:
- Online Slots: 93 % to 99
- European Roulette: 97.3
- American Roulette: 94.7
The payout ratio of other games, on the other hand, is more difficult to calculate because it depends on the strategy of the player. For example, there are various bets that can be placed on craps (with the RTP ranging from very high to very low), and there are a lot of skills that can help one with blackjack. With a refined strategy, the RTP can be exceptional (more than 99 per cent), but a bad player who draws at 17 in blackjack when the dealer holds a 6 can exponentially lower his own RTP in this way.
How do online casinos apply the RTP to games?
The RTP is the lifeblood of all successful online casinos because it is their source of revenue. The payout ratio is a profit margin that is very different from the margin on a bookmaker’s odds. However, the bookmakers’ model illustrates well how a profit margin is implied.
Let’s say there are two teams competing in a football match. Of course, each team is advertised with a certain odds, and odds are also set for a draw. The bookmaker will choose the odds so that he always retains a certain profit margin from all the bets that players make in order to finance his business. This margin is usually between 10 and 20 %.
In our example, the bookmaker decides on the following odds:
| RESULT | QUOTE | IMPLIED PROBABILITY (1 / QUOTE * 100) |
| Victory A | 1.5 | 66,7 % |
| Victory B | 3.0 | 33,3 % |
| Draw | 5.0 | 20 % |
It is noticeable that the individual probabilities add up to more than 100 %. This is due to the profit margin.
The percentage of the stakes that theoretically flows back to the bettors is called the odds ratio by the bookmakers and can even be calculated by the bettors themselves. The formula for this is:
1 / (1 / odds A + 1 / odds B + 1 / odds draw) x 100
In our example, the odds ratio is 1 / (1/1.5 + 1/3.0 + 1/5.0) x 100 = 83.3%. The bookmaker therefore pays out an average of 83.3% of the stakes to the customers as profit and retains 16.7% as a profit margin.
In contrast to casino games, the odds on betting offers are adjusted according to the probability of winning or losing and can vary. In the long run, however, good bookmakers offer an overall profit margin of 90 % to 95 %. For individual casino games, on the other hand, the payout odds are always clearly marked.
Since many online casino games such as scratch cards, live game shows or slots are complex, multiple algorithms and tests are also required to ensure that the stated payout ratio is correct. In the world of online casinos, these need to be tested, certified, attested and regularly re-verified and tested in order to obtain a licence from the Malta Gaming Authority (MGA), which protects online casino customers.
Understanding and applying RTPs to other games such as online roulette is much easier. Calculating the house advantage on a wheel with 18 winning numbers and 19 or 20 losing numbers (depending on whether the wheel has a single or double zero) can easily be done with pen and paper for simple totals.
You should note, however, that a high RTP is no guarantee of long-term winnings. It still depends on how lucky you are in casino games. Some players win a lot, others lose a lot – and the RTP only gives the average of all these experiences.
What percentage do slot machines pay out?
The payout percentage is most relevant for online slots because you can gamble away your money much faster with slot games than with many other traditional casino games. The better the RTP of a slot, the longer you can play for your money. As a result, the RTP has become three little letters that many slot players look for when searching for a slot machine. However, if the RTP is too small, customers will switch providers – which is why the RTP has become more and more generous in recent years.
The fact is that some slots with unfavourable payout rates of around 93 percent had to be removed from their range in the early years of online casinos. Nowadays, the comparatively high RTP of slots in stationary casinos is interesting. Compared to slots found in online casinos, the payout rates here are still regularly poor.
Online operators actually exclude some of the few remaining “voracious slots” that usually have an RTP of 95% to 96% from the turnover requirements in the welcome offers for new players as well as the so-called “reload bonuses”, which is a fair gesture.
Why would you want to play a slot game with a poor RTP? Well, theoretically there are hundreds and thousands of slots, but many of them work similarly and just look different. In general, all slot machines fall into one of two categories: Low variance or high variance slots.
Low variance slots have this name because there is little chance that you will lose your money quickly. Therefore, your starting balance hardly varies. Although this type of slot machine is often not clearly labelled, they usually pay out many small prizes as well as moderate jackpots on a regular basis.
Their counterpart, high variance slots, work quite differently. They pay out winnings less frequently, but when they do, the amounts involved are significantly higher. In the hunt for a potentially life-changing win from a progressive jackpot slot, slot machines swallow up more bets due to the higher RTP, but it’s a risk most casino fans are happy to take.
RTP in American Roulette
Both European and American roulette offer two main types of bets: single chance options such as Even / Odd or Red / Black and outside bets on multiple numbers such as Straight, Split, Street, Corner and Line. The fact is that very little roulette turnover is generated by bets with a payout of 2:1 such as tens and lines (see roulette payout table below).
Nevertheless, all of these betting options have the same weighting when calculating their overall payout odds on an American roulette wheel. However, the facts are relatively clear and at 38 figures, the RTP on all bets on a double zero roulette wheel is considerably lower than on its European single zero counterpart.
| WETTART | OPPORTUNITIES | PROBABILITY | HOUSE ADVANTAGE | RTP |
| Straight-up | 35:1 | 2,63 % | 5,26 % | 94,74 % |
| Split | 17:1 | 5,26 % | 5,26 % | 94,74 % |
| Street | 11:1 | 7,89 % | 5,26 % | 94,74 % |
| Corner | 8:1 | 10,53 % | 5,26 % | 94,74 % |
| Six Line | 5:1 | 15,79 % | 5,26 % | 94,74 % |
| Dozens/rows | 2:1 | 31,58 % | 5,26 % | 94,74 % |
| Red/Black/(Non) Straight | 1:1 | 46,37 % | 5,26 % | 94,74 % |
RTP in European Roulette
Chairs in European roulette have a considerably better payout rate than the American ones that are so heavily advertised in Las Vegas casinos. The difference is 2.6%, which may not seem like much at first, but in the case of easy odds and to quantify the different RTP, the ball lands on zero twice as often. When this happens, these simple bets perform badly, because thus a complete loss of one’s stake also occurs about twice as often!
| WETTART | OPPORTUNITIES | PROBABILITY | HOUSE ADVANTAGE | RTP |
| Straight-up | 35:1 | 2,70 % | 2,70 % | 97,30 % |
| Split | 17:1 | 5,41 % | 2,70 % | 97,30 % |
| Street | 11:1 | 8,11 % | 2,70 % | 97,30 % |
| Corner | 8:1 | 10,81 % | 2,70 % | 97,30 % |
| Six Line | 5:1 | 16,20 % | 2,70 % | 97,30 % |
| Dozens/rows | 2:1 | 32,40 % | 2,70 % | 97,30 % |
| Red/Black/(Non) Straight | 1:1 | 48,64 % | 2,70 % | 97,30 % |
What RTP can you expect when playing blackjack online?
Most online casinos have different variations of online blackjack, which in turn have different payout ratios. A whole range of other games have a significantly lower RTP than the traditional and original blackjack game, including for example:
- Ultimate Blackjack
- Surrender Blackjack
- Switch
- Super Fun 21
- Spanish 21 Blackjack
- Perfect Pairs Blackjack
- Pontoon Blackjack
- Hi Lo
Playing with a flawless strategy, Premium Blackjack has a theoretical RTP of 99.67% and Classic Blackjack is not far behind at 99.4%. However, only a few players have the ability to play with an optimal strategy, and other players in turn have difficulty maintaining their discipline. Nevertheless, even with the worst blackjack variants and with a less effective strategy, the RTP value rarely drops below 95 percent.
What payout percentages can you expect and what is the house edge?
Before we get to online casinos, we must first mention the payout ratios of physical slot machines. You have to maintain a physical machine, plus rental and electricity costs. For this reason, you can expect land-based slot machines to have payouts of around 70% to 80%. On the Internet, individual slots are accessible to a much wider audience and many costs are eliminated. For this reason, online slot machines have payout rates of 90% to 98%. The remaining 2% to 10% is considered house advantage and is split between the provider and the casino.
At good online casinos, you can expect a payout of around 97% to 98%. Of course, there are exceptions. In addition to slot games, many casinos offer other games of chance, which also affect the RTP of the casino. In addition, almost all casinos have a VIP programme or offer bonuses on a regular basis. The bonus programme results in additional payouts, which must be accounted for in the statistics.
Are there RTPs that are above 100%?
An RTP above 100% would not be profitable for a for-profit company. After all, employees have to be paid and a gaming room is not a charity. Since casinos have no control over the games, it is quite possible that for a short period of time a casino will have to pay out more than it takes in. However, this does not affect the RTP because the RTP is calculated on a very long-term basis. In the long run, according to all the laws of mathematics, the gaming house will earn its revenue and compensate for payouts that are in excess of revenue.
Conclusion
RTP percentages are an extremely useful tool in the repertoire of any serious online casino player and a guide to the best bet-to-win ratio on all games. The leading online casinos clearly mark the payout percentages in all games.
Finding the best casino games with the highest RTP is a sure way to guarantee a longer gaming experience in the long run, while increasing your chances of winning.
The potential of high jackpot games can also be measured with the RTP, with lower payout slots usually of the “higher variance” variety. If you are looking for bigger wins, you are more likely to find them on a low RTP slot.
FAQ about What is the RTP (Return To Player) in casino games?
What is RTP in casino games?
RTP stands for Return to Player and is a percentage value indicating the amount of money a casino game is expected to pay back to the player over the long term. This value is calculated based on the total amount of bets placed on the game and represents the average return a player can expect.
How is RTP calculated in casino games?
RTP is calculated by dividing the total amount paid out by a casino game by the total amount of money wagered on the game. This calculation is usually performed over many plays, typically tens of thousands or more, to ensure that the result is statistically significant and representative of the game's long-term performance.
Why is RTP important for casino players?
RTP is an essential metric for casino players because it provides valuable information about the expected return on their wagers. Games with higher RTP values are generally more favorable for players, as they offer a greater chance of winning over the long term. By understanding the RTP of different games, players can make more informed decisions about where to place their bets.
What is a good RTP value for a casino game?
There is no definitive answer to this question, as RTP values can vary widely between different types of casino games and even between different versions of the same game. They are, generally speaking. However, most players consider an RTP value of 95% or higher relatively good, while values below 90% are typically considered less favorable.
Can RTP guarantee that a player will win in a casino game?
No, RTP cannot guarantee that a player will win in a casino game. While games with higher RTP values offer a greater chance of winning over the long term, they are still subject to the inherent randomness of casino games. Even with a high RTP value, players can still experience periods of losses and should always gamble responsibly and within their means.
