Gambling RTP meaning: Guide and how-to

Have you ever wondered why some casino games seem to drain your bankroll faster than others? Or why you sometimes win big on a slot machine, only to lose it all in the next few spins? These fluctuations aren’t just down to luck. They have a lot to do with a concept called Return to Player, or RTP.

Understanding RTP can make a significant difference in how you approach gambling. It can help you choose games that offer better chances of winning and manage your expectations accordingly.

Let’s dive into what RTP means in gambling and how you can use this knowledge to help you when you’re playing online.

What is RTP?

RTP stands for Return to Player, and it’s a percentage that indicates how much of the total money wagered on a game is expected to be paid back to players over time.

For example, if a slot machine has an RTP of 96%, it means that, on average, it will return £96 for every £100 wagered. Keep in mind that this is a long-term statistical average and doesn’t guarantee specific outcomes in the short term.

You cannot expect to get £96 back for every £100 spent, that is NOT what this means, but it is an average that you need to be aware of to know which games potentially pay out more than others.

RTP Example

Say you’re playing a slot game with an RTP of 95%. If you wager £1,000 over multiple spins, you can expect to receive around £950 back in winnings over time. This doesn’t mean you’ll get exactly £950 back every time you play, but over thousands of spins, the average return should approximate this percentage.

How to calculate RTP

Calculating the RTP of a game involves understanding its mechanics and doing some maths. Let’s walk through a step-by-step example using the popular slot game Starburst

Step 1: Understand the game mechanics

Starburst is a 5-reel, 10-payline slot game featuring colourful gemstones, wild symbols, and re-spins. Each symbol has a specific payout value, and the game includes features like expanding wilds that can affect your winnings.

Step 2: Access the paytable

The paytable shows the payout for each symbol combination. For example:

Yellow Gemstone: Pays 25 coins for five on a payline.

BAR Symbol: Pays 250 coins for five on a payline.

Seven Symbol: Pays 120 coins for five on a payline.

Step 3: Determine the probability of each winning combination

Calculating the exact probability requires knowing how often each symbol appears on the reels, which is proprietary information. However, for this example, we’ll use hypothetical probabilities:

Probability of five BAR symbols: 0.001%

Probability of five Sevens: 0.005%

Probability of five Yellow Gemstones: 0.01%

Step 4: Calculate expected payouts for each combination

Multiply the payout by the probability for each winning combination:

BAR Symbols: 250 coins * 0.00001 = 0.0025 coins

Seven Symbols: 120 coins * 0.00005 = 0.006 coins

Yellow Gemstones: 25 coins * 0.0001 = 0.0025 coins

Step 5: Sum the expected payouts

Add up all the expected payouts:

Total Expected Payout = 0.0025 + 0.006 + 0.0025 = 0.011 coins

Step 6: Consider all winning combinations

Repeat the calculations for all possible winning combinations, including lower-paying symbols and combinations of three or four symbols. Suppose the total expected payout from all combinations is 0.90 coins.

Step 7: Include bonus features

Starburst features expanding wilds and re-spins, which can increase your winnings. Estimate the expected payout from these features. Let’s say:

Expected payout from bonus features: 0.06 coins

New Total Expected Payout: 0.90 + 0.06 = 0.96 coins

Step 8: Calculate the RTP percentage

Divide the total expected payout by the total amount wagered and multiply by 100 to get the RTP percentage. If each spin costs 1 coin:

RTP = (Total Expected Payout / Total Wagered) * 100

RTP = (0.96 / 1) * 100 = 96%

Step 9: Verify with official RTP

The calculated RTP of 96% aligns closely with the official RTP of Starburst, which is typically 96.1%. This slight difference is due to rounding and the use of hypothetical probabilities.

Step 10: Understand the limitations

Remember, players don’t have access to the exact probabilities of symbol appearances. Game developers calculate the RTP using precise data, and it’s tested by regulatory bodies for fairness to players to ensure that you cannot have a legal game online that is built purely to steal from the player.

RTP and RNG

Random Number Generators (RNGs) and Return to Player (RTP) are closely linked in gambling games, but they are different terms. 

RNG means that each game outcome is random and unpredictable, providing fair play by preventing any patterns or biases in an online casino game. Over a large number of plays, these random outcomes collectively align with the game’s RTP percentage.

Essentially, while the RNG dictates the randomness of individual game results, the RTP reflects the statistical average of these results over time. RNG ensures that while each play is random, the overall payout to players meets the expected RTP, maintaining fairness and consistency in the gaming experience for anyone playing.

RTP vs. volatility

While RTP represents the average return to players over time, volatility refers to the risk and reward dynamics of a game. High-volatility games offer larger payouts but less frequently, which can lead to more significant swings in your bankroll. 

Low-volatility games provide smaller, more frequent wins, resulting in a steadier playing experience, which may well be more what you’re looking for. RTP doesn’t indicate how these wins are distributed; it only shows the expected return over a long period. 

So, a game can have a high RTP but also high volatility. Understanding both RTP and volatility helps you choose games that match your risk tolerance and desired gaming experience, so it is always worth researching the volatility rate of a slot you’re thinking of playing on.

RTP vs. hit frequency

RTP and hit frequency are both key metrics but serve different purposes in evaluating a game. As noted, RTP represents the average percentage of total wagers a game returns to players over time, indicating its overall payout potential. Hit frequency, however, measures how often a game produces a winning outcome, regardless of the win size. 

A game with a high hit frequency offers frequent wins, but they might be small and not significantly impact the RTP. 

On the other side of that, a game can have a high RTP with a low hit frequency, meaning wins are less frequent but potentially larger. Understanding both helps you choose games that match the sort of experience that you’re looking for!

RTP vs. house edge

RTP and house edge are really two sides of the same coin, both indicating a game’s long-term financial performance. House edge reflects the casino’s advantage.

For example, if a game has an RTP of 96%, the house edge is 4%. The higher the RTP, the lower the house edge, meaning players overall get better long-term returns. Conversely, a lower RTP results in a higher house edge, increasing the casino’s advantage.

RTP in machines

RTP in machines, such as slots and electronic games, determines how much of the total money wagered is returned to players over time. Each type of machine operates under specific rules, which affect how RTP plays out over the long run.

How RTP works in Random machines

In random machines, every spin or game outcome is entirely independent, dictated by a Random Number Generator (RNG). Over many spins, the game’s RTP will balance out to match the predetermined percentage, which means there should be fairness and unpredictability in each result.

How RTP works in Compensated machines

Compensated machines will track previous results and adjust outcomes to meet the target RTP over time. These machines ensure that, after many plays, the results approach the set RTP, often providing more predictable payouts than compared to random machines.

RTP in slots

In slots, RTP reflects the percentage of total wagers that will be returned to players over time. For example, a slot with a 96% RTP will return £96 for every £100 wagered, on average, over a long period. A good RTP for slots is generally considered to be 95% or higher. However, remember that the RTP is a long-term average, so individual sessions can still vary widely.

RTP in roulette

RTP in roulette is determined by the version you’re playing. In European roulette, the RTP is approximately 97.3%, thanks to having a single zero. In American roulette, the RTP drops to around 94.7% due to the addition of the double zero. A higher RTP in European roulette overall means better long-term odds for players.

RTP in blackjack

Blackjack has one of the highest RTPs of any casino game, often exceeding 99% when played with an optimal strategy. The combination of player skill and favourable rules leads to a high return. A good RTP for blackjack is typically around 99% or higher, making it an extremely popular choice for players seeking better odds.

How to use RTP to your advantage

To maximise your potential and chances of winning, try to focus on playing games with higher RTP percentages. Games with RTPs above 95% typically offer better long-term returns. For example, blackjack and European roulette often have favourable RTPs. 

Along with choosing high-RTP games, pay attention to volatility, as low-volatility games provide steadier payouts, while high-volatility games may offer bigger wins but less frequently. Additionally, manage your bankroll wisely, setting limits to avoid overspending.

By combining smart game selection and disciplined money management, you can make the most of RTP to enhance your overall gambling experience and improve your chances of success.

Gambling RTP FAQ

1. What’s a good return to player rate?

A good RTP rate is typically 95% or higher. The higher the RTP, the better the game is for players in the long run. Games with an RTP above 96% are considered favourable as they return a larger percentage of wagers over time.

2. Are there any strategies that can be implemented based on RTP?

While RTP doesn’t impact short-term outcomes, you can use it to choose games with better long-term returns. Opt for games with high RTP and lower volatility for more consistent results, and combine this with smart bankroll management to extend your playing time.

3. Are there any regulations regarding RTP in gambling?

Yes, many gambling jurisdictions require casinos to disclose RTP rates and meet minimum RTP standards for fairness. Regulatory bodies ensure that games are tested regularly to maintain transparency and protect players from unfair practices.

4. Who regulates the RTP standards in the gambling industry?

RTP standards are regulated by gambling authorities, such as the UK Gambling Commission and similar bodies worldwide. These regulators oversee and audit casinos and game providers to ensure RTP compliance and fair gaming practices.

5. What is a good RTP for slots?

A good RTP for slots is generally considered to be 96% or higher. Slots with higher RTP percentages give players better odds of recovering their wagers over time, making them more favourable for long-term play compared to slots with lower RTPs.

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Remember to gamble responsibly

A responsible gambler is someone who:

Establishes time and monetary limits before playing

Only gambles with money they can afford to lose

Never chase their losses

Doesn’t gamble if they’re upset, angry or depressed

Responsible Gambling Council – https://www.responsiblegambling.org/

For help with a gambling problem, call the Centre for Addiction and Mental Health on 1 800 463-2338.