RTP Explained: Understanding Return to Player in iGaming

If you’ve ever taken the time to read about a particular slot casino game, you’ve probably noticed the acronym RTP at some point. Do a quick Google search, and you may be faced with the phrase, ‘Real-time Transport Protocol’. However, RTP in the iGaming world is something entirely different; it stands for ‘Return to Player’. 

RTP defines the percentage of all money wagered on a game that gets returned to players over time via winning payouts. Players use the term to help understand the game mechanics and gauge the amount of money that may get paid out in the long run to players. 

What is RTP?

Simply put, RTP is the theoretical amount of the total money paid into a game collectively by players that will be paid out – at some point – to a player or players. For instance, if players have bet €100 on a particular slot and the slot has an RTP of 97%, €97 of that money will be paid back to the player(s) as winnings. 

However, this is the stumbling block that some players often overlook: the percentage of winnings paid back to players occurs over thousands or even millions of games. You may wager €100, but the €97 that will be paid back will almost always pay out to players much later down the line. Of course, you could be lucky and win, but as with any game of chance, the result is totally unpredictable, thanks to the game’s Random Number Generator (RNG). 

How Does RTP Work?

A game’s RTP reflects its long-term performance, not its short-term impact. As video slots rely on RNGs, each individual spin of the reels or game action – such as a turn of the cards or bonus round – is entirely independent of the rest of the game. Therefore, the RTP does not reflect single-game outcomes but rather the overall payout statistics measured over time.

Who Determines RTP?

A game’s RTP is not plucked out of thin air. During the game development process, a developer undertakes a series of tests using algorithms to establish the RTP and ensure it reflects the true outcome. After the RTP is established, it cannot be changed. However, there are rare occasions when a game developer can change a specific game’s RTP before providing it to a brand. However, this is usually only done in special circumstances in full agreement with the brand in question. 

RTP vs House Edge

Of course, we can’t talk about RTP without discussing the house edge. Perhaps more widely understood than RTP, the house edge and RTP are closely linked. In fact, they are polar opposites. Remember the example of a game with an RTP of 97% that paid out 97% of all money wagered to players? Well, the house edge, in that case, would be the remaining 3% – it’s the percentage of all money wagered on a game that the casino keeps. The house edge is how an operator makes money. As with the RTP, the house edge varies from game to game. In general, slots tend to have the highest RTP and the lowest house edge, while table games have a lower RTP and higher house edge but that’s not always the case. The same generalisation also applies to land-based casinos.

RTP in Games of Skill – An Exception

Unlike fixed games such as slots, which rely purely on chance, table games introduce an additional layer of strategy and decision-making, combining elements of both luck and skill. As a result, the outcomes of these games can vary significantly based on the player’s level of expertise, making them more dynamic and unpredictable than fixed-odds games. 

RTP & Volatility

Alongside RTP and the house edge, players may also look for information on a game’s volatility. While a game’s RTP measures how much a game pays out, volatility shows how often a game pays out. 

• A high-volatility game will pay out bigger winnings but less frequently.
• Low-volatility games pay out more frequently but with smaller wins.
• Medium-volatility games strike a happy balance between the two. 

Some players prefer high-volatility games for the chance to take home a big jackpot win rather than a higher chance of winning smaller prizes more often. It all depends on player preference. 

For most players, the volatility will have no bearing on their view of the RTP, while some will compare the likelihood of winning on a low RTP game that’s also highly volatile, as these games will pay out at a much lower rate than many others. The types of players that usually look into the finer points, such as combined RTP and volatility, will usually be the more experienced players who know their way around an online casino.

RTP & RNG

Be careful not to confuse RTP and RNG. Operators need a clear understanding of both and their roles within the casino. RTP (Return to Player) and RNG (Random Number Generator) have different functions, but almost all games will have both (some will use provably fair rather than RNGs). RNG is a system that ensures each game or game action operates entirely independently from the previous and the next and is totally unpredictable. RNG is a system of mathematical algorithms and sequences that make each following action unpredictable. Certified RNG guarantees fairness to the player and randomness of the game or action. Not only do certified RNG games build transparency and trust with the players, but they also establish the brand as a compliant operator with high standards of integrity operating within the law.

The Role of RTP for Operators

Operators can strike a balance between ROI and players’ satisfaction by understanding the workings of RTP and offering a range of games to appeal to different types of players. Experienced VIPs may have other areas of interest to newbies. That’s why it's important for operators to know how best to use RTP knowledge to their advantage.

Rules Around Displaying RTP in Online Casinos

In many regulated markets, online casinos are required to clearly display the RTP of each game they offer. However, this differs from market to market and licence to licence. 

In the UK, the Gambling Commission states that each licensed online casino must display independently tested and verified RTPs for all games. This information must be easy to find and understand within each game’s description and the help section. 

Some jurisdictions enforce minimum RTP thresholds for casino games. In Malta, for instance, the Malta Gaming Authority mandates that the minimum RTP for any game must be 85%, though games can operate with a higher RTP. In contrast, the UK Gambling Commission introduced a new regulation in April 2023, requiring all licensed online casinos to implement a minimum RTP of 99.9% for slot games, effective 1 June 2023, a significant increase from the previous 95% industry standard.

Each operator must check that their brand follows all necessary regulations, responsible gaming practices, and laws applicable to their brand, while also clearly communicating RTP information to promote transparency and protect players..

RTP In Summary

RTP is a key factor in iGaming, influencing both operator strategy and player decisions. By understanding RTP and offering a balanced range of games, operators can ensure player engagement, satisfaction, and trust while maintaining profitability over the long term.

WA.Technology’s Commitment to Compliance & Social Responsibility

WA.Technology is a dedicated B2B service provider that upholds a strong compliance culture and encourages social responsibility and responsible gaming. Its marketing efforts support its partners in upholding ethical standards, reflecting a commitment to integrity, transparency, and the well-being of the gaming community. WA.Technology encourages safe and responsible gaming environments by offering products and services that adhere to regulatory compliance and responsible marketing.