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What is the Meaning of Return to Player (RTP) and How Does it Work?

You are likely to be aware of the term RTP if you’ve visited online casinos or read articles about slots. In simple terms, RTP indicates the slot’s payout percentage. If you still don’t understand it, this article will talk about RTP and explain how to calculate it.

Defining RTP

RTP indicates the amount (in percentage) a casino game or pokie will pay back to gamers who have placed bets over a certain duration. A high RTP means frequent wins. Generally, different slots have different RTP percentages. RTP is only a theoretical number based on statistical calculations, so you should not take it literally. You can still win big prizes in a row or make consecutive losses because the outcomes are random.

We can also understand RTP by thinking of it as the opposite side of the casino advantage or house edge. Look at the following example.

  • American roulette house advantage = 5.26%
  • RTP = 100% minus 5.26%
  • RTP = 94.74%.

The Relationship between RTP and Win Frequency

RTPs are sometimes misleading because they don’t tell players how often they can win. Two slots with the same RTP may have different win frequencies. If both slots have an RTP percentage of 97%, one slot might have one winning combo after ten spins, while the other pokie might have a winning combo after 3 spins. What you need to know is that high win frequencies mean small frequent wins and vice versa.

Random Number Generators (RNGs)

Casino games generate random numbers to ensure fair play. So, you should not believe people who say certain pokies pay out on a regular basis. Such a belief is just a fallacy because RNGs ensure your winning chances are the same all the time. You should just look for casinos that display their pokie RTPs because you don’t know how slot machines are programmed.

Do you always look for RTP percentages before playing pokies? Kindly let us know your thoughts on this topic.

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