What Does RTP (Return to Player) Mean?
What Does RTP (Return to Player) Mean?
RTP refers to Return To Player percentage.
It is the term casinos used to present the percentage of stakes that can be returned to players from a game (usually more than at least one million plays) and is generally accepted as a guide to show how the games performed. For example: For a game with a stated 92% RTP, players can expect a return of £0.92 in the £1.00 (or currency equivalent) throughout a long run of plays.
RTP shows a player’s potential in winning a game, the higher the percentage, the higher the possibility a player will win in a series of plays. At 100% RTP, the possibilities of a player winning the game are the same to that of the casino. If there shows an RTP exceeds 100%, it actually applied that the casino actually lost money to its customers on that particular game over the time period involved. Normally the games will function to the RTP listed in the applicable Game Rules. However, this does not apply that every play or series of plays will guarantee this percentage. Individual players should accept that wins are rewarded randomly, hence the return to them individually may not correspond to the advertised RTP. Players can predict a return in a scale between zero and the maximum prize level for every individual play.
RTP is important in calculating the Expected Value before taking any promotion, to obtain +EV (Positive Expected Value).
Expected Value = Bonus – (Wagering x House Edge)
To calculate the Expected Value the following is needed:
- The amount of bonus awarded
- The wagering amount needed to complete before we are able to withdraw
- The RTP of the games
For example, Coral offered new casino players deposit £10 and get £50 (with a wagering amount 24 times the bonus amount). Hence, we know that:
- Bonus = £50
- Wagering = £50 x 24 = £1200
We then need to check the Return to Player percentages for the games to learn if the promotion has +EV and is it worth trying
Example: King of Card
This slot has an RTP of 93.88%. In order to complete the wagering (£1200) using this slot, 6.12% (100% – 93.88%) is expected (on average) to lose from the total amount wagered.
- Expected Value = £50 – (£1200 x (100%-93.88%)
- Expected Value = £50 – (£1200 x 6.12%)
- EV = £50 – £73.44
- EV = -£23.44
After the calculation, the promotion would not be recommended as the players are expected (on average) to lose £23.44.
Then, in order to figure out what the RTP% would be needed to make the offer +EV? Or the minimum RTP to make this promotion at least EV = 0 then the calculation is as follows:
Min EV = 1 – (Bonus/Wagering)
Using the King of Card offer as explained above the calculation would be:
- Minimum Expected Value = 1 – (£50/£1200)
- Minimum EV = 1 – 0.04167
- Min EV = 0.9583
- Min EV = 95.83%
In order to make this offer +EV, we need to search for eligible games that have RTP above 95.83%.
Example: CaptainsTreasure by scr888
This slot has an RTP of 99.07%. This is above the minimum requirement. Now we need to calculate the EV to complete the wagering?
According to the calculation is:
Expected Value = Bonus – (Wagering x House Edge)
Therefore:
- Expected Value = £50 – (£1200 x (100%-99.07%)
- EV = £50 – (£1200 * 0.93%)
- EV = £50 – £11.16
- Expected Value = £38.84
By this, hopefully, players should be able to realize the importance of RTP, how to use RTP to calculate if a promotion has +EV that is worth completing.
In short, random games are not ‘compensated’, so a sequence of losing plays does not mean it will be made up with a sequence of winning plays. The result of one bet will not affect any other. Players should keep in mind that the game is random hence they should only stake whatever they can manage.
All games are a bit different with regard to their characteristics and feature sets and they all behave kinda different correspondingly.
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