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RTP and house edge are two sides of the same coin — but most players misread both. Full game-by-game breakdown, myths debunked, and a plain-framework for choosing the best casino game at Housebets.
Whether you are a seasoned player or a beginner, you must have heard the phrase “The House always wins” when you play your favourite games at online casinos like Housebets.
While that is true, it is also important to know how an online casino always makes a profit and wins in the long term.
The truth is, no matter the game you play, the odds of an online casino winning are higher than the odds of the player winning because all casinos have an edge that is built into all online games, giving them a mathematical advantage.
This edge is called the ‘House Edge’, and we will try to break it down in this piece.
A House Edge, sometimes called 'casino advantage', is the mathematical advantage that casinos have over players. It is a statistical edge that ensures that casinos will always win in the long term, no matter what happens in the short term.
It is important to note that the concept of ‘House Edge’ is not about cheating players or rigging them out of a potential win, but it is still important for every player to check the House Edge of a game before playing.
In slot games, the House Edge is a percentage built into every rule of the game. It is also related to the RTP of the game. For example, if a casino game has an RTP of 96%, the House Edge will likely be 4%.
This means for every $100 you wager on a game with an RTP of 96%, the casino will at least make $4 on average in the long run.
The House Edge in sports betting is known as a term called Vig. This is a fee charged by the sportsbook maker for a wager, so no matter the outcome of a bet, the sportsbook will still make its profit.
While it is easy to confuse them as the same thing, House Edge and RTP (Return To Player) are two different things in.
While House Edge is the mathematical advantage that casinos have over players, RTP represents the percentage of all the wagered money a slot machine will pay back to players over time. Essentially, it indicates how much of the total stakes a player can expect to receive back in the long run.
RTP is calculated through rigorous testing and simulations. Here’s a breakdown of the process:
Game Simulation
Software developers run extensive simulations of a slot game, often in millions of spins, to ensure accuracy. This process involves playing the game in a controlled environment to gather data on outcomes.
Mathematical Models
Using complex algorithms and statistical models, developers analyse the outcomes of these simulations to determine the average return to players. This involves calculating the ratio of total winnings to total bets.
Regulatory Verification
To ensure fairness, independent testing agencies and regulatory bodies often verify RTP calculations. They conduct their own tests to confirm the accuracy of the RTP declared by the game developers.
For example, if a slot game has an RTP of 96%, it means that over a long period, the game is expected to return $96 for every $100 wagered. It’s essential to note that this is a theoretical value, and individual gaming sessions can deviate significantly from this average.
You can find the RTP of any Casino game in the game information after clicking on the game you want to play at Housebets. Sometimes, it is also displayed in the graphics of the game design.
While RTP is a crucial factor, understanding slot volatility is equally important for players. Volatility, also known as variance, refers to the risk level associated with a particular slot game and describes the frequency and size of payouts.
RTP: As discussed, RTP is the theoretical percentage of all wagered money a slot machine will pay back to players over time. It provides an average expected return but doesn’t account for the distribution of payouts.
Volatility: This measures the risk and frequency of payouts. Slots are typically categorised into three types of volatility:
Low Volatility: These slots offer frequent but smaller payouts. They are ideal for players who prefer steady winnings and are risk-averse.
Medium Volatility: These slots provide a balance between payout frequency and size. They cater to players who enjoy a mix of both small and large wins.
High Volatility: These slots have infrequent but significantly larger payouts. They are suited for players willing to take higher risks for the chance of substantial rewards.
The key difference between the two is that RTP indicates the average expected return, while volatility describes the payout pattern and risk level.
A game with a high RTP but high volatility can still have long dry spells with occasional big wins, whereas a game with low volatility may offer more consistent but smaller payouts.
When selecting a slot game on , players should consider several factors beyond just the RTP. Here are some essential points to keep in mind:
Personal Risk Tolerance
Understanding your own risk tolerance is crucial. If you prefer frequent, smaller wins, low-volatility slots with a moderate RTP might be ideal. If you’re willing to endure long periods without a win for the chance of hitting a big jackpot, high-volatility slots with a high RTP could be more suitable.
Bankroll Management
Your bankroll size should influence your choice. Low volatility games are better for smaller bankrolls, as they allow you to play longer without significant losses. High-volatility games can quickly deplete a small bankroll due to their infrequent payouts.
Game Features and Entertainment
RTP and volatility are important, but so is the entertainment value. Consider the game’s theme, graphics, bonus features, and overall gameplay experience. A slot that is fun and engaging can enhance your overall enjoyment, even if the RTP isn’t the highest available.
Session Goals
Determine your goals for each gaming session. Are you looking for a quick thrill, or do you plan on a long gaming session? Low volatility slots are better for extended play, while high volatility slots might be more exciting for shorter, high-stakes sessions.
By carefully considering these factors, players can make more informed decisions, balancing the potential returns with their personal preferences and financial situation.
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