Understanding RTP and House Edge
Master the mathematics behind casino games to make smarter decisions and optimize your chances of winning.
Key Points to Remember
RTP (Return to Player) is the percentage of wagered money a game returns to players over time
House Edge is the casino's mathematical advantage (100% - RTP)
Higher RTP games provide better long-term value
Table games typically offer better odds than slots
RTP works over millions of rounds, not individual sessions
What is Return to Player (RTP)?
Return to Player (RTP) is a percentage that indicates how much of all wagered money a casino game will pay back to players over its lifetime. Expressed as a percentage, it represents the theoretical long-term expected return.
For example, a game with a 96% RTP will, on average, return $96 for every $100 wagered across millions of plays. This doesn't mean you'll get back exactly $96 if you wager $100 - individual results can vary drastically in the short term.
Formula:
RTP (%) = (Total amount returned to players ÷ Total amount wagered) × 100
How RTP is Calculated
RTP calculations are performed by game developers using complex mathematical models and simulations that account for all possible game outcomes. The calculations typically involve:
Mapping all possible outcomes
Complete analysis of all win/loss scenarios
Assigning probabilities
Calculating exact odds for each outcome
Calculating expected returns
For each possible bet and combination
Running simulations
Millions of rounds to confirm accuracy
Important
RTP is a statistical average calculated over millions of game rounds. Your individual session results can deviate significantly from the theoretical RTP in the short term due to variance.
Understanding House Edge
House Edge is the mathematical advantage that the casino has over players in any given game. It represents the percentage of each bet that the casino expects to keep over the long run.
House Edge and RTP are directly related concepts:
Formula:
House Edge (%) = 100% - RTP (%)
Why House Edge Exists
- Ensures casino profitability and business sustainability
- Covers operational costs (software, staff, licensing)
- Funds bonuses, promotions, and loyalty programs
- Creates a buffer against lucky players who win large amounts
3% House Edge
What this means for a $1,000 bankroll:
Games with the Best RTP Values
If you're looking to maximize your chances of winning, choosing games with high RTP values is a strategic approach. Here's a breakdown of the best RTP values by game category:
Table Games with Highest RTP
| Game | Typical RTP | House Edge | Notes |
|---|---|---|---|
| Blackjack (with optimal strategy) | 99.5% | 0.5% | Requires perfect basic strategy |
| Baccarat (Banker bet) | 98.94% | 1.06% | Includes 5% commission on wins |
| French Roulette (La Partage) | 98.65% | 1.35% | Even-money bets only |
| Craps (Pass/Don't Pass) | 98.6% | 1.4% | Basic bets |
| Video Poker (Jacks or Better) | 99.54% | 0.46% | With optimal strategy |
Slot Games with Highest RTP
Mega Joker
99.0%Ugga Bugga
99.07%Blood Suckers
98.0%Important
The actual RTP of a game can vary between different online casinos. Some operators may use different RTP settings provided by the game developer. Always check the game information at your specific casino.
Understanding RTP vs. Volatility
While RTP tells you how much a game pays back over time, volatility (or variance) describes the risk level and payout pattern. Understanding both concepts gives you a more complete picture of what to expect.
Low Volatility
- Frequent, smaller wins
- More stable gameplay
- Lower risk of big losses
- Smaller maximum wins
Medium Volatility
- Balance of win frequency
- Moderate ups and downs
- Decent-sized feature wins
- Good all-around option
High Volatility
- Less frequent wins
- More dramatic swings
- Risk of depleting bankroll
- Potential for massive payouts
Expert Tip
Higher volatility games typically require a larger bankroll to withstand the longer losing streaks. As a rule of thumb, have at least 100-200 times your average bet size for high volatility games.
Strategies to Improve Your Odds
While you can't change a game's built-in house edge, you can make choices that optimize your chances of winning:
Choose High-RTP Games
Always check the RTP before playing. Even a difference of 2-3% can significantly impact your results. Look for slots with 96%+ RTP and table games with the lowest house edge.
Learn Optimal Strategy
For skill-based games like blackjack and video poker, using perfect strategy can reduce the house edge to under 1%. Strategy charts are readily available online.
Avoid Sucker Bets
Some bets have much higher house edges. For example, in roulette, the five-number bet has a 7.89% house edge compared to 2.7% for standard bets.
Take Advantage of Bonuses
Casino bonuses effectively improve your overall RTP by giving you more playtime for your money. Look for bonuses with fair wagering requirements.
Best Practice
Set a win goal as well as a loss limit before you start playing. Once you hit either target, have the discipline to stop playing. This approach helps lock in winning sessions and limits losses.
Key Takeaways
RTP is Long-Term
Remember that RTP percentages are calculated over millions of spins or hands. Your short-term results will vary significantly.
Volatility Matters
Match your volatility preference to your bankroll size and risk tolerance for a better gaming experience.
Knowledge is Power
Understanding RTP and house edge helps you make informed decisions about which games to play.
Fun vs. Profit
View gambling as entertainment rather than a way to make money. Set a budget and stick to it.
Frequently Asked Questions
What is a good RTP percentage?
For online slots, anything above 96% is considered good. For table games, look for RTPs above 97%. The higher the RTP, the better your chances of winning in the long run.
Can casinos change the RTP of games?
Licensed game providers set RTP values, and reputable casinos can't modify them. However, some games have multiple RTP versions, and casinos might choose which one to offer. Always check the game information at your specific casino.
Is it better to play a high-RTP slot or a low-house-edge table game?
Table games with optimal strategy typically offer better odds than slots. For example, blackjack can have a house edge as low as 0.5% (99.5% RTP), while most slots range from 94-97% RTP. However, your game choice should also consider entertainment value and your personal preferences.
How do progressive jackpots affect RTP?
Progressive jackpot games typically have a lower base RTP because a portion of each bet contributes to the jackpot. As the jackpot grows, the theoretical RTP increases. However, since the chances of hitting the jackpot are extremely low, most players experience the lower base RTP.
Conclusion
Understanding RTP and house edge is essential for any serious casino player. While these concepts won't guarantee wins, they provide valuable insight into which games offer the best long-term value. Remember that gambling should be entertaining first and foremost, with any wins considered a bonus.
Armed with this knowledge, you can make smarter choices about which games to play and develop strategies that maximize your chances of success. Always gamble responsibly, set limits, and choose games that match both your risk tolerance and entertainment preferences.