The payout percentage and variance are the two the most important mathematical characteristics of a gaming machine. They are basically affect how much and how often you win. However, in practice this is a bit more complicated. But I will try to explain to you.
Payout percentage (RTP)
RTP (Return to Player, as well as “payout ratio,” or “payout percentage”) is a long-term statistical percentage of the total amount of money won divided by the total amount of money delivered. The phrase “long-term statistical percentage” may seem complicated, so here’s a more understandable explanation:
If you play only a few hundred rounds, your current income can vary from 30% to 1000%, but the more rounds you play, the more likely that you’ll be closer to the statistical RTP gaming machine. The most common percentage of payments in online slots is about 96%.
RTP (payout percentage) is a very popular feature in online slots, because it can be expressed in one number. It is easy to compare and most popular game providers allow RTP data for each slot. RTP can be used for various simplified calculations (for example, the percentage of losses during the bonus wins).
Simplified calculations are good when you need to impress friends over a glass of beer, but for more serious calculations, you will need to take into account volatility, or dispersion. The dispersion of slots is a rather complicated concept, so I’ll start by explaining the variance in roulette:
When you bet on a color, you can win an amount 2 times your bet, and you win quite often (18 of 37 rounds).
When you bet on a number, you can win an amount 36 times your bet, but you can win only in 1 of 37 rounds.
The roulette variance can be expressed by numbers from 2 to 36, depending on what type of bet you choose. A higher variance means that your individual victories will be higher. Nevertheless, you will win less often, and you will most likely lose your entire budget faster.
Dispersion in slots
Dispersion in slots cannot be expressed by one number, since you can win thousands of different sums as a result of a variety of different winning combinations.
How variance is calculated
Since variance cannot be expressed as a single number, game providers usually refer slots to a category with a “low”, “medium” or “high” variance. These categories cannot be effectively compared or used in calculations, but they can give you a basic idea of the volatility of the game that you have chosen. Determining the real dispersion of the slot (in the form of the diagram presented above) is a very difficult task. In fact, you have to reconstruct a set of game drums and correctly evaluate the probabilities of other game functions.
If you do not take into account the lottery, slots are the most volatile type of game that you can play in a casino. The advantage of high dispersion can beat a high percentage of payments such games as blackjack or roulette. To learn more about the variance and the percentage of payments, as well as how they affect your chances of winning, read this articl