How Is Payout Ratio Calculated in Gambling?

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The thing about casino games is that we revel in the variety of titles nowadays that sometimes it is hard to determine which game is the best when it comes to providing payouts. Not all games are alike, they vary not just in themes and mechanics but also in the percentage of the amount that they can pay or how frequent it can occur.

 

While some gamblers ignore these figures because they only play for the thrill of the game, some punters do study about these things to help them have a better understanding of how the game works and to get an advantage on making more profits.

 

In this humble guide, we will enlighten you about the concepts and systems that work when it comes to calculating the payouts on casino games in 188 bet.

The Maths Behind Casino Payouts

While it is natural to think that playing on a high-paying game is much more intelligent compared to playing in games with lower payouts, honestly it doesn’t work that way. Certainly, it appears that it is much more favourable to stake some money on games with a 99% payout percentage compared to 50%, but when it comes to choosing between games there are other forces at play.

 

To understand this, it is important that you understand completely what this percentage figure means and how it can affect your casino gaming. This small number means the advantage of the casino over you in every game title that you choose in the casino. The higher the number means it is less favourable and the lower the number means it is much more profitable.

Calculating the RTP

The RTP or return-to-player percentage ratio is the number that represents the total winnings that you will get based on the amount of cash that you deposited on a specific casino game. The number ranges from 70% to 90%, the higher the number, the better payouts you will get at the end of the session.

 

When you subtract the RTP percentage from 100, the remaining number is the house advantage of the game. Conversely, the bigger the advantage number, the fewer opportunities you will get on getting paid. Also, every type of casino game has its own RTP rate, so be mindful of these things before you place your bet.

The Variance or Volatility

 

While the RTP calculates the number of probability of getting payouts and the house advantage is the number of probability of not getting paid, the variance tells the frequency of the payouts in a specific game.

 

The variance in a game represents how often you will win a game based on the amount of bets you placed and it is usually represented as high, low or medium.

 

High variance means the game lets you win huge amounts but the possibility is rare. Low variance means you will win more often, usually in low amounts. Medium variance means the amount of your payout and the frequency of its occurrence is on the same level.

 

Among the games that heavily depends on these three factors that affect the payout is the game of slots. Not all slots are the same, each one has its own RTP, house edge and variance levels.

Final Words

Now that you know these three concepts, you will now find playing online casino games much more manageable. There are many factors that affect the profitability of a casino game such as gambler skill level, amount of bets and the type of game but we can elaborate about these things in the next article. As for now, you can learn from the lesson above and try to apply your knowledge of these concepts on your next betting game.

 

 

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