Every time you spin the reels on a slot machine game, you can expect random outcomes. Over the long term – that means thousands or millions of spins – the payback percentage will tend towards the preprogrammed RTP. When you take all the winnings and all the losses into consideration over a long time, then the payouts become evident. This is neatly represented by a RTP (Return to Player) percentage. Casinos make money by paying less than true odds on winning bets.
Let’s assume you’re playing slot online microgaming and you place a bet on number 7. On an American Roulette wheel, there are 38 numbers. There are odds of 1/38 that you will win your bet, indicating that there are 37/38 odds of your losing the bet. However, the casino only pays 35:1 if you win, and the true odds are actually 37:1. To put things into perspective, if you bet 38 times, you would lose 37 of those bets, and win just 1 time in 38 bets.
Your payout would be $35 from the casino and your losses would be $37, indicating a net loss of $2. Now let’s calculate how these odds differ from what they’re ‘supposed’ to be under different circumstances. Your losses of $2 out of $38 bet amount to 5.26%. You’re supposed to be paid 37:1 on winning bets in this game which means that your losses should only be 2.63%. This is what it means when the casino pays less than the true odds on winning bets!
The Randomness of Slots in Preprogrammed RTPs Online
Craps is another fantastic casino game with a high RTP. With Craps, players must roll a pair of dice and bet on the outcomes. An interesting case emerges with a bet on 12 in Craps. A pair of dice has 36 potential combinations of numbers that can come up, but only one of those combinations yields 12 – 2 x 6s. Given the odds of a dice roll resulting in 12, the actual odds are 1/36 that a player will roll 12. And the odds of not rolling 12 are 35/36.
But here’s the clincher: The casino only pays 30:1 when you roll 12. Similar to the roulette example above, you can see that if you bet $10 on each of the 36 dice rolls, you would win on one of them ($10 x 30:1 = $300), and you would lose on 35 of them ($10 x 35 = $350) indicating a net loss of $50. That is the pure profit for the house and it indicates why casinos make money by paying less than true odds on winning bets. Viewed in perspective, that $50 of $360 bet amounts to 13.89%. That’s the house edge. The return to player in this case is 86.11%.
The mechanics of slots work in much the same way. Your odds of winning are always better than the payout odds you received from the casino. It’s the same principle as Roulette and Craps. Remember, complicated computer programs known as algorithms perform these complex calculations to determine payback percentages. The house edge is precisely that – it gives the casino an advantage over the player. The house edge is the price you pay for the entertainment experience, and the prospect of winning substantially more than you bet.
Over the short term, you can expect any result. The RTPs really don’t factor into the equation during individual playing session