Mines Games Tips RTP and House Edge – Two Sides of the Same Coin
The return to player (RTP) reflects the proportion of money wagered that players receive back by way of monetary prizes. One way to calculate the RTP is by dividing the overall amount won by players in the long term by the total amount they have wagered on a given casino game.
Return to Player = Overall amount won by players / Overall amount players have wagered
In games without strategy where no element of skill is involved, players can arrive at the RTP percentage by subtracting the house edge from 100%. Common examples of such games include roulette, craps, and slots, where it is impossible for players to affect the odds in any way and tilt them in their favor.
Theoretical RTP in Chance-Based Casino Games = 100% – House Edge %
One important thing to note is the greater the number of trials, i.e. rounds you go through, the more accurate information you gain about a casino’s game actual return percentage and the more precise the above equation becomes. By precise we mean the two components of the equation come nearer and nearer to number 1 as the number of trials grows bigger and bigger.
Thus, the theoretical return of casino games is equal to 100% – House Edge % whereas the actual return is (100% – House Edge %) / Return to Player > 1. People tend to use the terms RTP and theoretical return interchangeably but there is some difference between the two. The number of rounds required to reach the advertised return percentage depends on whether a game is compensated or completely random. Now, let’s examine the difference between the two.