A helpful breakdown of important terms like return-to-player percentages, house edge and how it impacts play. Join us as we also take a closer look at the Zero Edge model that is making the rounds.
When choosing the perfect online casino game to play, there are many factors to consider. Aside from the game genre, the total payout potential, and the range of bonus features, players are often recommended to look for games with a higher return-to-player (RTP) percentage.
If you’re new, still learning game lingo, or simply unaware of these things, then join us as we take a closer look at RTP and how it affects gameplay.
Here’s a quick look at the difference between the RTP and house edge of a casino game.
Return-to-player rates are the percentage of wagers that slots, crash, and other casino games can pay back as you play. This is a theoretical percentage of all wagered money that the game returns to players over time. It also refers to total returns across all players; it is not promised to any single player.
Let’s say a slot has a 96% RTP; that means that for every $100 wagered, there is a $96 return. The RTP is calculated over millions of hands or spins, so don’t bank on betting $100 and getting $96 back from a single wager - you may lose the round or take home 1000x your bet.
House edge is the built-in advantage the online casino has in every wager. It’s the opposite of the RTP and indicates the expected profit margin for the casino. With a 97.30% RTP, the casino has a 2.70% house edge.
The big difference is that while RTP focuses on player returns, the house edge focuses on the casino's profit. Both essentially describe the same math, but from a different perspective.
In most cases, games have an average RTP ranging between 94% and 98%, depending on the game type.
RTP is an important factor as it can ultimately affect your overall gameplay experience in the long run. Games with a higher RTP offer better long-term value. And with proper bankroll management on games with a lower house edge, you can stretch your gameplay time.
With skill-based games such as blackjack, you can often manage to find games that push the RTP even higher with the right style of gameplay and strategy.
It’s important to check for the RTP values. Most trusted platforms will publish their RTP values, which makes it easier for you to make informed decisions.
Curious about what the RTP looks like on the different types of games? Below is an overview of the different types of games and the average RTP they carry.
|
GAME CATEGORY |
AVERAGE RTP |
HOUSE EDGE |
|
Online Slots |
95%-97% |
3%-5% |
|
Blackjack |
98%-99% |
0.50%-2% |
|
Roulette (European) |
97.30% |
2.70% |
|
Baccarat |
98.90% |
1.10% |
|
Video Poker |
98%-99.50% |
0.50%-2% |
|
Craps |
98.60% |
1.40% |
|
Live Game Shows |
94%-96% |
4%-6% |
It’s important to note that while this is an average, there are still plenty of slots that have an RTP of 90% or even lower. Other games like American Roulette can have an RTP that drops to 94.70%. With many of these games, optimal play is still required to make the most out of your RTP.
Industry innovation has crypto casinos looking at the viability of introducing 100% RTP models. While traditional casinos continue to rely on the house edge, some operators are exploring whether a model with zero house edge can work in practice.
The idea is simple: rather than playing against the casino, players compete against each other. Without a house edge built into the games, operators must look to alternative revenue sources such as transaction fees and ecosystem growth.
Whether these models prove viable in the long run remains to be seen. However, they show that parts of the crypto casino industry are still willing to challenge established thinking and experiment with new ways of delivering value to players.
Despite the excitement of this modern era, there are a couple of challenges the casino is facing. Starting with the mathematical challenge, as it is quite difficult to design sustainable games with no house edge, which requires balancing player incentives.
On the business end, the operator needs to find new revenue streams that go beyond the game margins to ensure that profit is still being made.
Not to mention the challenge of getting players to trust that the system is fair, even though it seems ‘too good to be true’.
If this project proves to be profitable and able to capture player interest, we could be looking at a new gaming model that drives innovation and fosters community. It offers a one-of-a-kind user-driven initiative where wins and losses are redistributed among players, offering a true 100% return over time, and could become a standalone casino vertical.
It means that players are treated to maximum fairness with no hidden disadvantages. And that casinos need to find new and creative ways to drive monetisation, which can mean even bigger shifts of focus to community and options like subscriptions.
For regulators, this will mean reviewing current gambling regulations to ensure there are no loopholes that can be abused to mislead players.
RTP and house edge are important terms to understand and familiarise yourself with if you have hopes of making the most of your online gameplay. While most games have an RTP that sits between 94% and 98%, a 100% RTP model is going to be an industry game-changer!
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