Lesson 1: Why RTP is the most important thing
What is RTP.
RTP stands for Return To Player. It means how much of the money you are betting you get back as a win. If you make one bet of $100 and you win $90, that $90 is what the slot “returned to you”. The RTP is calculated as (money returned)/(money in) x 100 % so for our example it will be $90/$100 x 100 % = 90%.
When I want to calculate the RTP from a season, I simply add all bets and all wins before I use the formula: (money returned) = (sum of all wins) and (money in) = (sum of all bets).
For example, if I make 50 bets of $1 and 25 bets of $2, then (money in) = (sum of all bets) = (50x$1 + 25x$2) = $100. If from those 50+25=75 spins I had 50 spins pay $0, 20 spins pay $2 each and 5 spins pay $10 each, then (money returned) = (sum of all wins) = (20x$2 + 5x$10) = $90. And the RTP from that season of 75 spins would be (money returned)/(money in) x 100 % = $90/$100 x 100 % = 90%.
What is TRTP
It means Theoretical RTP. It is the RTP you will find in the info pages of slots and casinos. It is called “theoretical” because it is calculated over billions of spins, it is part of the slots design and it is the RTP you are guaranteed to get if you play long enough (billions of spins).
What RTP means for the player.
It has nothing to do with what you deposit and what you cashout. RTP 96% doesn’t mean I deposit $100 and I cashout $96. Because when we play we constantly bet what we win, again and again and again. It is more about wagering. RTP 96% simply means that if we wager $100 our balance will decrease $4.
If you play long enough your balance will drop down to $0, no matter if you have RTP 96%, 90% or 85%. What changes is the wagering, or how long you will play. In other words, your playing experience, how much fun you will have.
And the effect higher RTP has in your play time or wagering is huge. Some numbers of RTP and wagering if you deposit $100 and play until bust:
Now you see what your chance to clear a bonus wagering is.
Just a 2% drop from 98% to 96% RTP cuts your playing experience in half.
Down to 90% and you lose 80% of your playtime.
Getting enough playtime is very important. It keeps the game fun and gives you time to better manage your spending. That is why RTP is so important.
What RTP means for casinos and governments
For casinos it means how long you need to play for them to earn (X) x (your average bet size). It’s how they make revenue predictions and decide viability of a project on a market.
For governments RTP is something that needs to drop down a lot to have more room for taxes.
End of first lesson. I hope it is easy to understand and helpful.
Until the next one have fun and gamble responsibly.