Volatility and Variance in Online Slots

  • 05 February 2023
Volatility and Variance in Online Slots

Slot volatility, which is correlated with a slot's return to player (RTP), is a metric of how frequently you are expected to win in the game. The volatility of a game indicates how probable it is that you will receive winning combinations that will result in a payout and, subsequently, what the magnitude of that payout would be. The thumb rule is that increased risk equals bigger jackpots, while lesser risk means smaller amounts that you can win.

The risk factor that is connected to the game can be understood as volatility in a casino slot machine. The level of volatility impacts how frequently and how much you can likely win. The size of the jackpot payout and your likelihood of winning are thus simply determined by this aspect. The Sweet Bonanza demo seen here at BETO is an excellent illustration of a game with the highest volume.

The return-to-player rate (RTP), which is a percentage of the money that players gain over the long run in a game, and volatility in casino games are frequently correlated.

The games with the highest volatility are the ones where you don't win very frequently, but when you do, the payout is typically very large and helps to make up for the rarity of wins. Conversely, gamblers consistently win when playing slot machines with low volatility ratings, but these machines typically offer modest prizes. It is irrelevant how the casinos are structured. Volatility and variation are concepts that apply both online and offline.

In most cases, the volatility rating of the games you play at your favorite casinos is disclosed well in advance. Some casino games, however, don't make a predetermined payout rating or % public. A volatility scale, which ranks games from 1 to 5, is typically used by online casinos to rate their games. Therefore, if a game has a volatility rating of 0 or 1, it suggests that you will frequently experience tiny victories. On the other side, a game with a high volatility rating of 4 or 5 stars can provide you with an extremely explosive gaming experience and some very huge winnings, but they would be extremely unlikely to occur.

You can find that you become accustomed to playing games with a certain amount of volatility. For instance, you might enjoy games with high volatility and favor them over ones with low volatility. Therefore, it is usually preferable to play a game for free before doing so for real money. Here at BETO.com, you may play the majority of games from well-known providers for free in order to practice.

To understand the concept of RTP better, take this practical example:

Think about a slot machine. With an RTP of 94%, the house will hold a 6% advantage in that particular slot machine game. As a result, once you start playing on this slot machine, you'll probably receive a payout of roughly 94%. Or, if you play the slot machine with a starting balance of €100, you'll probably finish the game with €94 in your account. In this case, the casino's profit margin will be the remaining €6.

RTP and volatility are somewhat dissimilar ideas. However, they are both connected. Volatility is a metric for risk in a particular game. You will receive extremely high rewards from a game with a high volatility rating, such as 100x or 500x payouts. These might potentially rise by a factor of 1,000, 5,000, or even higher. The catch is that winning isn't always easy to come by in high volatility games because the hit rate is so low. On the other side, there is little risk and regular winnings in low volatility games. Due to the high win percentage in low volatility games, the typical payout sizes are not very big.