What is RTP and Variance In Online Slots?

Terms like volatility, RTP, and variance in online slots probably ring a bell to everyone who’s clicked on the spin button on an online slot machine at least once. Still, a lot of players, especially beginners, tend to neglect the meaning and importance of these terms. This is why we decided to create a guide that explains their meaning and the ways they affect online gaming. Knowing what RTP and variance in online slots stand for can determine the outcome of your whole experience, including your winnings.

In short, the terms mentioned reflect the slot payout frequency and volume and the risk involved. This is why knowing all about them will help you avoid low-paying games and focus on the ones where you have the highest odds of winning.

Here’s what you’ll find in the article:

• Definition and types of variance
• Advice on choosing slot variance
• Explanation of how RTP works
• Differences between variance and volatility

Return to Player (RTP) Explained

RTP is one of the significant factors when it comes to online slots and choosing the ones that pay the most. Often referred to as payout percentage, RTP stands for the typical percentage that players get in return on average from a particular slot game.

For example, if a slot returns 97% of all deposited bets to players, this is the game’s RTP. The rest is profit for the developers or casino operators (often both). As a player, you can always check the RTP of a slot game before you press the spin button.

As mentioned above, RTP is not a fixed percentage. It’s the average percentage calculated over a long period. The payout of a slot game is not fixed, because almost all slot titles feature a random number generator (RNG), which also ensures fair play.

Given all the above, it’s clear that you need to look for slots with high RTP.

What Does Variance Mean in Online Slots?

Variance in slots refers to the probable frequency of having a winning combination. It also suggests the amount you could win. Having this in mind, you can use slot variance as a way to determine the risk involved. There are low-risk, low-medium, medium-risk, medium-high, and high-risk games.

Being able to predict wins or losses to a certain extent thanks to variance is important, but simple logic will tell you that it’s a matter of budget. If you don’t have huge money to spend, then you should stick to low-risk games, and vice versa.

High variance slots have higher odds of winning, compared to low-variance ones, it’s as simple as that. If you want to go all-in and double your bet in the long run, pick the first kind. If you’re in for fun and you don’t want to risk losing your wager, pick the latter kind.

Types of Variance

Since the variance is an indication of the risk that an online slot has, there are a couple of different types of variance that slot games have. To help you better understand the variance in slots, we’ve listed 5 types of variance below:

Low variance

Games with low variance will allow you to win more frequently, but the payouts will be nowhere near the high variance games, hence the popularity of low variance slots. They usually boast great gameplays and provide a lot of excitement. Despite the lower payouts, some low-variance slots can reward you with up to 100x your bet.

Low-medium variance

Low-medium-variance slots offer lower winnings, but with higher frequency when compared to low-variance alternatives. They’re a great option for thrill-seeking players on a budget. You get to enjoy great games, longer sessions, and potentially higher profits.

Medium variance

Most of the slots you’ll find online are medium-variance ones. They are popular because they fall right between low and high-variance slot games. The ratio between frequent wins and the amount of possible winnings is likely the best one. Plus, most of the slots in this category offer additional perks, such as bonus features. Medium-variance games with a higher-than-average RTP are usually one of the best-case scenarios to pick.

Medium-high variance

This is another category that players usually prefer because they get the best of both worlds. These slots combine the perks of high and medium-variance games, but the higher winning frequency is what attracts players the most. Payouts are higher, but the frequency is lower when compared to the medium-variance slots.

High variance

High-variance slots are perfect for those seeking high risk and big wins. The payouts are not frequent, but if you win, you’ll enjoy a hefty amount. It takes patience and a bigger budget to opt for high-variance slots, but the real possibility of winning up to 10,000x your initial bet is tempting, to say the least.

How to Determine Slot Variance?

The variance of a slot is almost always easy to determine. Most game developers suggest the variance of every new slot title they release. If the variance is not known in advance, it takes analysis based on personal experience. When you play for a certain period, you can assess the frequency and the amount of the reward. If the slot has a free version, it’s a good way to test it and determine its variance.

When you look at the pay table, you can compare the payout amount for a different number of symbols. If the payout is a lot higher for five symbols of a kind compared to four, then the slot has a high variance.

How To Pick An Appropriate Slot Variance?

Choosing a slot with the type of variance that corresponds to your needs and preferences is important, to say the least. It all depends on the budget you have and the goal you’re after. If you’re in for the excitement of spinning reels, then low and low-medium variance slots should be your top choice. If you’re after the big money and you have a strong budget, you should opt for medium-high and high variance slots, although setting up a budget for the latter kind is hard. The bottom line is, you need to always start with small bets, even if you start with high variance titles. Also, be prepared to wait until the big win comes, as high variance slots will not reward you frequently.

How to Make the Most of RTP and Variance?

The RTP percentage is not directly related to a slot’s variance. Still, the latter can interfere with your odds of getting the projected payout. Slots with a relatively high RTP percentage will not offer frequent wins, but their amount can be substantial, say up to 1,000h your bet.

Low-variance slots with high RTP will likely present you with more frequent wins, and this is the case with most slots with low variance. Getting the most out of any online slots means that you need to combine them in an appropriate way. To be able to do it, you can always opt for demo slots at first. This way, you won’t lose money while experimenting with various types of slots. In the process, you’ll learn how RTP and variance affect the outcome, and you will compare the results with your personal preferences.

Once you’re able to combine the two, you’ll have a working strategy. You should combine it with a tight budget that you should never go over.

Of course, doing proper research before betting a dime can also suggest which slots will offer the best combination of RTP and variance. In most cases, the game developer or the casino operator suggests their value. This is a strategy that will help you assess multiple slot games without wasting time playing free versions or losing money while trying to figure out the slots.

Final Thoughts

When it comes to online slots, RTP and variance are the most important aspects to consider. They can be the difference between total disappointment and the combination of fun, excitement, and rewards.

It all starts with a personal assessment of your preferences and goals. When you identify yourself as a certain type of player, you can put RTP and variance into good use and determine the slots that would be the perfect choice for you.

If you want to win big, you will likely stick to high-variance slots that will reward you generously in the long run. If you want to have fun and still hope for a payout, you’ll enjoy the frequent, but lower-amount wins granted by low-variance slots.

You should never underestimate the significance of the RNG (random number generator) that’s part of almost every slot’s structure. Luck has a lot to do with the final outcome of the slot you chose to play, no matter how careful the selection you made is.

Last, but not least: don’t forget to study the casino you join. Researching its background through user reviews is one way to do it. If the casino is a multiple award winner and has been certified by trusted authorities, then you’re probably going to make the most of your gaming experience.