When you’re playing a casino game online or elsewhere, you always know that the house, or in this case the website, has the advantage. This is known as the house edge and means that, on average,you will spend more money on wagers than you will win back. Although this doesn’t completely negate the possibility of a big win, or the chance of ending a particular session in profit, it does mean that you should see casino gaming as entertainment, which comes at a price.
Exactly what that price is, however, will vary each time you play. It will also vary according to which game you play and which casino site you use. It, therefore, makes sense to choose a site that offers competitive payouts. But how is that done? It’s actually quite easy. However, it requires a bit of understanding about how payouts work and are measured.
The house edge
All casino games have a built-in house edge in the sense that the rules of the game determine how easy or difficult it is to win. This house edge can be manipulated to a degree by the casino operator, but you will always have a better chance of winning money at, say, blackjack or baccarat than at roulette, just because of how the games work.
Return to Player
The house edge ensures that casinos make a profit on games that are free to play, and so stay in business. It is perfectly legitimate: it would be bad business sense if more money was paid out in winnings than came in in wagers. The inverse of the house edge is the payout percentage, usually called Return to Player (RTP). This represents what percentage of the money you spend on a game you can expect to win back if you play indefinitely.
A casino website such as an NJ online casino will typically offer a more competitive payout rate than a brick-and-mortar casino as it has lower overheads. However, the RTP often varies from one site to another. Every game is required by law to post its RTP on the site, where it can be seen before you start playing. This RTP is independently verified and can be used to compare the payouts offered by similar games on different sites.
The RTP won’t necessarily be reflected in any one session. If the RTP is 97%, it doesn’t mean that you’ll walk away with 97% of the money you started out with every time. It could be more, or it could be less.
The RTP also doesn’t reflect the frequency of wins, only the amount of money you win over time. So, a slot machine that pays out small amounts often could have the same RTP as a slot that pays out infrequently but in larger amounts. The number of actual wins is known as hit frequency and is dependent on variance. This isn’tmade public but becomes apparent through playing.
The payout percentage or RTP should be used for comparison purposes only. Choose a game you enjoy and look for the casino site with the best RTP on that game. You won’t win every time, but it will be the most economical way to enjoy gaming.