What is RTP (Return to Player)?

Published on 04/28/2025 14:11:07

Definition

Return to Player (RTP) is a theoretical percentage indicating how much of all wagered money a casino game is designed to return to players over an infinite number of plays. If a slot machine has an RTP of 96%, it means that over the long run, it will pay back €96 for every €100 wagered.

Formula:

Example: If players collectively bet €1,000,000 on a slot, and €960,000 is paid out, the RTP is $$96\%$$

Mathematical Insight

• RTP is a statistical average over a large number of plays. It does not guarantee outcomes in the short term.

• Variance/Volatility determines how quickly or slowly actual results approach the theoretical RTP. A high-volatility game will have larger swings around the RTP over short periods.

• House Edge is the complement of RTP:

House Edge=100%−RTP

Example: 96% RTP → 4% House Edge.

• Law of Large Numbers: As the number of plays increases, actual returns tend to converge toward the RTP.

• Expected Value per Bet (EV):

EV=Bet Size×(RTP−100%)

If you bet €1 on a 96% RTP game:

EV=1×(−0.04)=−€0.04

Each spin theoretically costs you €0.04.

Practical Insight

• Short-term fluctuations: Players can win more or lose everything quickly, independent of RTP.

• Displayed RTP: Reputable casinos display the RTP of each game. Regulatory bodies like MGA (Malta Gaming Authority) or UKGC (UK Gambling Commission) require transparency.

• Dynamic RTP: Some games use variable RTP settings (e.g., 88%-96%) based on operator configuration.

• Bonus Features: Some RTPs include bonus rounds; others calculate them separately.

• "Hit Frequency" vs RTP: RTP does not indicate how often you win; a slot can have high RTP but very low hit frequency with rare but big wins.

Player Strategies

• Prefer high RTP games: Over time, a 97% RTP game will statistically lose less money than a 92% RTP game.

• Understand volatility: Low volatility → smaller, frequent wins; high volatility → rare, large wins.

• Bankroll Management: Knowing RTP and volatility helps in planning session lengths and betting strategies.

• No influence by past results: Each spin or hand is independent (randomness preserved by RNG - Random Number Generator).

Example: RTP Application in Slots

• Slot A: 96% RTP, medium volatility.

• Slot B: 88% RTP, high volatility.

Betting €1,000:

• Expected loss in Slot A: €1,000 × (100% - 96%) = €40

• Expected loss in Slot B: €1,000 × (100% - 88%) = €120

Even with potential for big wins, statistically Slot A is "cheaper" to play long-term.

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