What is Return to Player and how is it related to crypto casinos? It's a secret weapon that puts a bit of that power back into your hand. In this article we will cover this key concept and how you should always consider it when choosing a game to play.
It is one of the most crucial principles to understand when gambling in crypto casinos. It is an important metric that measures how much money a player can expect to receive back from a particular game over the long run.
Knowing the RTP of games you play is essential as it gives you an idea of their winning potential. Think of it as the DNA of a casino game. It tells you what to expect from the game in the long run. And just like DNA, it’s unique for every game. By considering RTP, you’re not leaving it all up to blind luck. You’re strategically improving your chances of winning.
Table of contents
A Definition of Return to Player
Return to Player is how much money users will get back based on the amount of money they wager. This is an average of all bets placed on that certain game, so experiences may vary greatly based on luck and strategy.
For example, if a game has an RTP of 96%, it means that, on average, players will win back 96 cents for every 1 dollar wagered.
There is an important difference between wagered money and your bankroll. The latter is how much money you have available at any particular casino, and wagers are all the cumulative bets you have placed.
If you deposit $100 into a casino, that will be your bankroll and it will change over time as you win or lose. If you proceed to place 100 bets of $10 with an RTP of 99%, your wagered money will be $1000 and it is statistically likely that you have lost $10 of the initial $100.
Knowing the RTP of a game can help you determine the expected value of your bets. Expected value is a statistical measure that represents the average amount you can expect to win or lose on each bet you place.
This does not mean that you will always leave a game with precisely 96% of what you started with. Instead it indicates that the game, over its lifetime, will return 96% to the players that played it. RTP is calculated over the long term and does not guarantee individual wins or losses.
Additionally, it is worth noting that RTP is not the only thing to keep in mind when choosing a game. Other factors can impact your overall experience include volatility, variance, the maximum payout, and hit frequency. We will touch upon those topics in a bit, but for now let's concentrate on the matter at hand.
In conclusion, understanding the RTP of a game is crucial for making informed decisions about your bets. And while it is not a guarantee of winning, it provides valuable information about the game's payout potential and expected value over the long run.
House Edge, the Other Side of the Coin
Ever wondered what the connection between Return to Player (RTP) and house edge is? They’re like two sides of the same coin, each revealing a different perspective on your winning odds. Understanding this relationship can considerably elevate your gambling game.
RTP, simply put, is the percentage of wagered money that is paid back to players over time. Higher RTP means better the odds of recouping your bets over a period of time. This percentage is a key factor that can critically influence your decision-making process while gambling.
On the other hand, the house edge is a term used to describe the mathematical advantage that the gambling game has over you. In essence, it’s the complete opposite of RTP. The house edge is the percentage of wagered money that the house keeps. The lower the house edge, the better it is for the player.
So, how do the RTP and the house edge relate? They’re inversely proportional to each other. If you subtract the RTP from 100%, you’ll get the house edge. For instance, if a slot machine has an RTP of 95%, the house edge for that machine would be 5%. This means that for every $100 wagered, $95 is returned to players and $5 is kept by the house.
Beyond RTP: Other Factors to Consider When Choosing a Crypto Casino
There are other essential related concepts to Return to Player which will come in handy when choosing a game:
- Variance: a measure of how much a game result deviates from the expected mean over the short term.
- Volatility: the time it takes for a game result to stabilize to the expected mean over a more extended period.
- Hit frequency: how often a game will have a winning combination. A game with a high hit frequency will have more frequent wins.
- Maximum payout: the highest amount a player can win in a game. Some games have a fixed maximum payout, while others have a progressive jackpot that increases with every wager.
It is important to understand all of these as they can significantly impact a player's potential winnings.
A game with high variance will have a wider range of potential outcomes, meaning that players could potentially win big or lose big. On the other hand, a game with low variance will have a more predictable outcome, with smaller, more frequent wins.
Volatility is also a crucial factor to consider when choosing a game to play. A game with high volatility will take longer to stabilize to the expected mean, players may experience longer losing streaks before eventually winning big.
If your strategy is to win big and leave quickly then high volatility is what you're looking for. If you like to play the long game, look for low volatility for a more consistent payout rate.
When choosing a game to play, it's important to take all of these factors into account. That being said, RTP is usually the most visible of all the others mentioned above and as such it is the easiest variable to consider.
Return to Player Benchmarks
A game with a Return to Player over 97% has excellent potential returns, and anything lower than 92% RTP is considered relatively poor. We tend to look for games with an RTP above 95%, which can be considered reasonable.
It is also worth noting that RTP can also be affected by a game's volatility, which is a concept we've already covered.
A game with high volatility might have a lower RTP, but it can offer more significant payouts, while a game with low volatility might have a higher RTP but offer smaller payouts.
Even if RTP can vary greatly between different casino games and between different versions of the same game, there are some standards that serve as good reference points:
- Blackjack: at 99.4% it has one of the highest RTPs. The reason being that the game requires skill and strategy, and players can use their knowledge to lower the house edge.
- European Roulette: 97.3%. If you want to play roulette this option is better in terms of RTP because it only has one zero.
- American Roulette: 94.7%. This is lower than for European roulette because it has both a single and double zero.
- Baccarat: 98.9%. This is pretty high because the game is simple and straightforward.
- Slots: 96%. Slots can vary greatly depending on the game being played. This is because slots are based purely on luck, and players have no control over the outcome of each spin.
- Video Poker: has an RTP of between 97-99%. This is because the game requires skill and strategy, and players can use their knowledge to lower the house edge.
It's important to keep in mind that these RTPs are a baseline and may vary from casino to casino.
A Tool to Manage Your Gambling Budget
Knowing a game’s RTP before you play can be incredibly empowering. It gives you the ability to make informed decisions about where to put your money. It’s like being handed a map in a labyrinth – suddenly, the path to potential winnings becomes clearer.
When you factor in RTP, you’re not just gambling anymore – you’re strategically allocating your budget to maximize potential returns. This can lead to a more fulfilling and controlled gambling experience.
So next time you’re standing in front of that virtual slot machine, remember: RTP is your secret weapon. Use it wisely to manage your gambling budget and make the most out of every bet.
Games of skill have similar RTPs in regular casinos and in crypto casinos, this includes blackjack, baccarat and roulette. The real differences between regular and crypto casinos become evident with slot machines.
Regular casinos may have slots with RTPs as low as 70% and they aren't obliged to facilitate this information, which means you would have to calculate this yourself while possibly losing money in the process. Meanwhile the average RTP for online slot games is around 96%
Crypto casinos that host licensed software from reputable providers have to display their games' RTPs. In fact, many crypto casinos go above and beyond in terms of transparency and fairness.
They understand that players want to know the odds of winning before they place their bets, and they make this information readily available. Some even offer detailed reports on the performance of their games, including the percentage of payouts and the frequency of wins.
Furthermore, crypto casinos often use provably fair technology, which allows players to verify the fairness of a game's outcome. Additionally, many crypto casinos offer unique and innovative games that are not available at traditional online casinos.
How Return To Player Improves Your Safe Gambling Experience
It’s all about understanding your odds and managing expectations. As already discussed, if a game has a high RTP, it means that over time, it will return a larger portion of the bets to the players. In contrast, a game with a low RTP will return less.
It’s important to note that RTP is calculated over a long period of play and countless spins or hands. So, while it offers a general idea of a game’s potential payouts, it doesn’t guarantee you’ll win every time you play. RTP is a guide, not a guarantee.
Remember, gambling should always be about fun first and RTP can hopefully help you make wise decisions and extend your playtime, but it’s not a surefire strategy for winning. The most responsible gamble is one you can afford to lose. So, go ahead, set your budget, choose your game wisely, and let RTP be your guide to a safer, more enjoyable gambling experience.
A Wrap-up
By now you should understand what return to player is and why it is crucial that all players to take it into account when gambling.
This metric can help players manage their expectations, calculate potential winnings, and understand their odds of winning. It's essential to keep in mind it is calculated over the long term, and in the short term, players may experience deviations from the expected outcome due to variance and volatility.
Also, we introduced some concepts like volatility, variations, or house edge. These are just as important, and here at Crypto Casino Geeks we will consider them to review casinos and games.
Always taking this factor into consideration can drastically transform your gambling experience. It’s not a magic bullet that guarantees wins, but it empowers you with knowledge, and in the world of gambling, knowledge is power. Understanding RTP’s gives you the upper hand, enabling you to choose games with the highest returns and to strategize accordingly.
Don’t lose sight of the fact that gambling should always be about fun and entertainment. Armed with knowledge regarding RTP, you can enhance your gaming experience while also asserting some control over your potential returns. The power to make informed decisions lies in your hands!
You made it this far! Give our article on true randomness a read to add another great tool to your gambling toolbox.
