RTP of slots and variance.
Well, we continue the conversation on the topic of online casinos. Today we will analyze several well-known topics that, nevertheless, all visitors to gambling establishments need to know. In principle, this article will be more useful for new players, but perhaps professionals will also find it interesting to remember the basics.
Why do casinos rarely lose their money?
Many people are interested in the question "why are there so many gambling strategies, but the overall statistics of the winners leaves much to be desired?". The answer is quite simple.
Games such as slot machines, roulette or blackjack, where the player, roughly speaking, plays against the casino, are the key to the stability of the enterprise and form its overall statistics. These games are arranged in such a way that the amount of money spent by players on them in total always exceeds the amount of winnings paid out. In this case, the statistics work in favor of the casino in the long- run.
Of course, in most cases, the result of your visit to a casino is determined by chance, but this does not mean that nothing affects the possibility of your winning. Sometimes, even despite these disappointing statistics, you can come to a casino and, almost in the first minutes, hit the jackpot. Luck, you would say, and you would be partly right. The fact is that when you come to the casino, you play only a few tens or hundreds of game rounds. For the overall statistics of the gambling establishment, these figures are quite small, so the statistics do not have time to form on you (you get to the moment of "possible winnings").
So, how to guess this lucky moment and increase your chances of winning statistics? To do this, it is enough to understand two basic things: payout ratio / RTP and variance.
Payout ratio / RTP
Let's start with the fact that RTP is an abbreviation, which means (back to player). RTP demonstrates a clear proportion indicating the percentage ratio between player's winnings and casino revenues.
The percentage of winnings in the casino can be calculated using a simple formula. To do this, the amount of winnings must be divided by the amount of bets multiplied by hundred. Knowing RTP, you can calculate the percentage and advantage of a gambling establishment. For example, if you know that an RTP indicator is 95, it means that in the long-run the casino will receive only 5 percent of the amount of bets that the player has made over the entire period. If the technical specifications indicate RTP of 95 percent, then that means how much gamblers will receive from the total bet. The casino is guaranteed to get five percent. This does not mean that you will get 95 cents for a particular dollar. You can hit the jackpot from the second spin, or you can wait a long time for the coveted prize. The reason for this is variance - one of the properties of the random number generator. An RTP indicator takes it into account and works in the long term. You need to make thousands of spins to determine the veracity of the promised percentages.
How does the percentage of RTP form and how much will your favorite slot return to you?
The RTP indicator is embedded in the program and software of the slot, and the percentage of return is considered part of the provider's program code. After the development of the RTP is completed, it is checked by a specially created independent laboratory. Then, based on a successful verification, a license is issued to the provider, and the slot enters the market and is installed by one of the license platforms. However, this indicator does not always indicate the frequency of the issuance of prize money. Therefore, virtual slots with the same RTP coefficient of 97 can produce successful combinations, but with different frequency. But there is still some connection between the percentage of return, frequency and volume of payments. Slot machines with reduced RTP pay out winnings more often, but with smaller amounts, and those with higher RTP pay out less often, but in large volumes. Slot machines with a high return rate usually have a higher variance, and those with a lower return rate have a lower variance. Thus, experienced players who prefer to play on one slot machine for a long time choose a device with a high level of return. Those players, who are just starting out or not ready to risk their money, usually choose machines that have a lower RTP level. Knowing the percentage of return helps to determine the time of the game, the number and size of bets on one particular device. Machines with a low level of variance attract a high frequency of bets and create a sense of luck. Machines with high dispersion are suitable for those who want to hit the jackpot.
The betting system is very easy for explaining with one rule: the higher your bets, the higher the RTP of the betting system. Based on this, the total coefficient of winnings in the betting system depends on the size of the bets themselves.
As an example, let's consider several popular gambling games.
In standard roulette, the percentage of possible winnings when betting on black is 18 divided by 37. That is, the number of black numbers multiplied by two (because the payout is 2 times the bet) and divided by the number of all numbers. Based on this, we can find the formula: 2 * 18 / 37 = 0,973 = 97,3% .It is not difficult to calculate that the advantage of the casino will be: 100% - 97,3% = 2,7%. In a roulette game, the RTP will be the same for all types of bets (color, number, etc.).
Only you are able to choose your own strategy for yourself. We wish you to choose what you like, listen to your inner self and meet luck more often.
Blackjack in this respect differs in its structure from roulette, because in different casinos its rules may differ, in fact, as well as RTP. However, on average, a standard player gives an RTP of about 99.5%.This happens as a result of the fact that in blackjack, the expected RTP varies depending on how the cards from the deck are shuffled and dealt. Depending on which cards are left in the "shoe", the average RTP in such cases varies from 95% to 102%. So, especially attentive players can take advantage of this. Just start counting the cards and you will have the opportunity to evaluate the RTP of the blackjack deck and, if the RTP exceeds 100%, then place high bets to get a long-term profit. On the other hand, this strategy does not always work, because many casinos have their own ways to resist such cunning.
The payout percentage of regular slot machines varies depending on the game and its features. The RTP of slots on such machines usually ranges from 92% to 99%
What does the variance effect? To begin with, the speed of changing the bankroll during the game directly depends on it. Thus, it turns out that playing games with low variance, we accelerate the bankroll change, which means we can win regularly, but not much. This means that games with a large variance force players to lose more and more, but if you win, you will receive a huge payout amount.
If you think about it, you can conclude: the higher the variance, the better. Why is it so:
1. Firstly, because in games with high variance players have the opportunity to win the desired amount at a time, unlike the same games with low variance.
2. A high variance indicator does not give you the opportunity to bet your winnings on the next games, because you lose more often.
3. You can also lower your bet to have the same amount as a result of winning.
However, something is wrong here. For example, imagine a game with a colossally huge RTP of 99% and a complete lack of variance. Thus, any bet of $1 in this game would bring 0.99 cents. This example illustrates that you do not need to pay attention only to RTP.
It's time to talk about the expected return of the betting system.
You need to understand that the payout percentage is calculated as a result of one game.
Let's say if you bet $100 on roulette and won $1200 and continued playing, then RTP will be applied to each of the thirteen rounds separately, which will eventually lead us to this formula (100$ + 1200$) * (100% - 97,3%) = 1300$ * 2,7% = 35,1$. In this case, the casino's profit in the overall statistics will be the amount we've found.
Fortunately, we already know that if you play using your previous winnings, you will lose more than you earn. That is why most people lose their money by gambling.
Now you are wondering: "What strategy should I follow to increase my chances of winning?"
To do this, you must be able to distinguish between RTP (applied to one game) and the expected revenue of your betting system.
The average income from the betting system is defined as the ratio of the total number of winners to the total number of losers. So, In the presence of a bad betting system, the possibility of winning players who beat their previous winnings tends to 0%.
Based on all of the above, ideally the betting system should have the same RTP as the game. This means that in order to win, you should stop betting your winnings in subsequent rounds. Based on this assumption, you can lock up your entire budget in one round and continue to bet all-in for the next rounds until you lose or win an acceptable amount of money.
1) The dependence of the RTP of the betting system is directly related to the RTP of the game, the variance of this game, the size of the bets.
2) The potential size of the win, a multiple of the bet, determines the variance. This means that a large amount of winnings in one game increases the overall variance of the game (taking into account the fixed RTP).
3) Playing games with high variance can surpass the advantage of a slightly higher RTP.
4) Depending on the height of the variance, the percentage of the chance to hit the jackpot is determined. For example, a high variance attracts a greater chance of winning.
5) The more bets there are in one round, the higher the RTP of the overall betting system.
6) If you want to play for fun, it makes sense to place small bets and choose games with high variance. Playing for small amounts, you will probably be able to win more often, but you shouldn’t hope for a huge amount of winnings.
7) The ideal winning tactic is to spend on gambling the amount that you are willing to lose, but not to risk more by betting your winnings on the following games.
We hope this article helped you to understand the basics and continue to follow the path of a successful player.