Penny slot machines = 88% to 90% RTP; Nickel slot machines = 91% to 94% RTP; Quarter slot machines = 93% to 95% RTP; Dollar slot machines = 94% to 96% RTP; $5 slot machines = 95% to 97% RTP; Penny slot machines are almost always the worst games with regard to payout percentages. Larger denominations ranging from a nickel to $5 are all closer in. While low variance games may pay between 250x to 500x your bet, high variance casino slots will pay from 3 000x to 10 000x your initial wager. Medium variance slots, on the other hand, fall somewhere-in-between the two variants. They have the potential of offering players a mix of both low and high jackpot prizes. While you often get high variance slots which also have high RTP, there's no hard and fast rule about this relationship. What Kind Of Variance Is Right For You? Low Variance Slots. Low variance games are short term low risk games, perfect for players with a small or limited bankroll, or simply those who don't like the feel of a risk on. If all payouts (RTP) from a slot are distributed evenly in terms of small and medium size wins, the slot will be a low variance slot. If a slot pays the majority of the RTP in bigger wins, the slot is a high variance slot. Hit frequency also plays a part. Thus, an operator can create expected parameters to factor this in. Provided the actual RTP falls often enough within a high threshold and a low threshold of the slot's theoretical RTP, then it can be deemed kosher. For a high variance slot, the lower and higher threshold will be looser. For a low variance slot, they will be tighter.
As an online slots player, you would no doubt have seen the terms 'volatility' or 'variance' and 'Return to Player', or 'RTP' mentioned when selecting your favourite game. But do you actually know how these terms relate in the way a slot game performs, or how it determines how much and how frequently you stand a chance to win at that game? No? Well, we're not only going to explain it to you, but also show you how to use your newfound knowledge to choose slots that best suit your style of play.
What is volatility in slot games?
In essence, volatility or variance (both refer to the same thing) determines how risky a slot game is to play. The classifications are low, medium or high. A low variance slot poses less risk of you losing your bet than with a high variance slot, but with the risk being higher, so too is your reward!
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A slot's RTP (always expressed in percentage value) is the amount of wagered cash that will be returned to you as wins. For online slots the average RTP ranges between 94% and 98%. A practical illustration of that would be a return of $94 to $98 on a $100 worth of wagers. Generally, the higher the RTP, the better your chances of keeping your bankroll about the same level.
Variance however, also helps you to determine how long you can expect your bankroll to last during your time online. Statistically, a low-variance slot with a 95% RTP will pay out in small, regular wins. So, on a bankroll of $10, you could easily total $15 at the end of your session, which translates into a Return to Player of 150%. On the other hand, high variance games will offer more significant highs and lows. At the same RTP you might not see any wins for the first 15 spins, but you could win 1000x your bet at the 100th spin – that averages out to an RTP of 333% which is a considerable leap from the initial 95%.
Typically, you will find that high volatility slots have lower RTPs than low variance slots and the reason for this is that it is more profitable for casino operators in the long run. But if you have the persistence and the bankroll to see it through, you can win significant amounts.
Choose the right slot type
Slot players can be grouped according to their desired objective. One the one side you have those on a conservative budget who want play for as long as possible with little loss. Their time spent online is more for casual entertainment than chasing down a big win. If this is you, then low-variance slots are the way to go. You will sustain a healthy bankroll over the longer term, with small but frequent wins (typically within five or so spins). A good example of this type of slot is Netent's Starburst.
If you're in it to win big, and you're prepared to bet large amounts to get there, then you're what is referred to as a high-roller and slots with a high volatility will give you the thrills you seek. As mentioned, high variance slots will quickly eat your bankroll but they can award massive wins, balancing out the losses. Push Gaming's Fat Rabbit is a popular example here.
And then there's the middle ground – medium variance slots that offer the best of both worlds. Here you can achieve bigger wins than you would with lower-variance slots, and more frequently than with high volatility slots. So, if you are a player with a mid-size budget, there are plenty of these types of slots available that strike the perfect balance between win size and frequency. Crowd favourites include Netent's Gonzo's Quest and Yggdrasil's Wolf Hunters and Microgaming's Avalon.
How to make the most of variance and RTP
Consider the following when deciding which kind of slot is best suited to your style of play:
Summary
Theoretically, the higher the RTP, the better payouts a slot can give. While this is not necessarily always true due to the variance / volatility factor, it is a good rule of thumb, so we recommend you try to avoid slots with an RTP of less than 96%. Play low-variance games if you want to wager, and high-variance games if you're willing to risk more to win more.
Remember that in the long run, the house will have the edge in any casino game. This does not mean it's impossible to win, but you must understand that both wins and loss streaks make up part of an enormous statistical pool. Our aim here is to help you balance the value of your entertainment vs. the impact on your bankroll.
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When looking at which online slot will be best suited for you it is very important know what you are hoping to get out of the experience. When doing this it is essential to understand the concepts of RTP percentage as well as slot variance.
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RTP – Return-to-Player Percentage
Return to player percentage refers to the odds of winning in online slots in the long run. Should a casino advertise a 96% RTP this means that in the long run the casino returns 96% of bets. This can also mean that the house advantage will be 4%. In other words the casino will always make 4% profit on the total bets placed by gamblers in the long run. For the player the higher the RTP the more likely you will be to win money while playing. Software providers such as NetEnt and Microgaming are known for providing slots with high RTP percentages.
High RTP percentage does not mean that the casino will graciously hand money. This is where understanding slot variance comes into play.
When looking at which online slot will be best suited for you it is very important know what you are hoping to get out of the experience. When doing this it is essential to understand the concepts of RTP percentage as well as slot variance.
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RTP – Return-to-Player Percentage
Return to player percentage refers to the odds of winning in online slots in the long run. Should a casino advertise a 96% RTP this means that in the long run the casino returns 96% of bets. This can also mean that the house advantage will be 4%. In other words the casino will always make 4% profit on the total bets placed by gamblers in the long run. For the player the higher the RTP the more likely you will be to win money while playing. Software providers such as NetEnt and Microgaming are known for providing slots with high RTP percentages.
High RTP percentage does not mean that the casino will graciously hand money. This is where understanding slot variance comes into play.
Slot Variance
Variance and volatility are interchangeable terms used to describe how risky an online slot is. High risk slots could result in a series of empty spins, but when you win…you win big. The tricky part with identifying the volatility of a slot is that most online casinos do not make this information available to players. It is up to you to look for hidden signs showing the potential volatility of the slot which you are laying at. Slot variance can be ordered into low, medium and high slot variance
Low Slot Variance
Low slot variance means low risk. This type of slot will be suitable for the player who wants to have a long playing session. These slots are designed mainly for entertainment value. The player will not have to supply large sums of money (deposits) to enjoy the game. This does not mean that low variance slots will always pay out small winnings, some low variance slots may nevertheless multiply your bet by 80-100 times. I recommend low volatility slots for the beginner, who wants to familiarise themself with the online casino. These slots will pay out regularly, but in smaller amounts.
Medium Slot Variance
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The most common slots are medium variance/risk. These slots offer jackpots where high and how amounts of cash can be won. Therefore the player who wishes to move on from low variance slots should look at playing medium variance slots at a chance of winning more money. You have a higher chance of winning more cash than in low variance slots but still nothing compared to the very risky experience of playing at a high risk slot game.
Medium Slot Variance
High risk slot games require nerves of steel and a decent knowledge of online slot games. These games are high risk but also provide an opportunity to win large sums of money. The player that wishes to play at high volatility slots should expect to deposit a decent amount of money to keep them going through the dry spells where no money is won. Since there are larger sums to be won this means that there will be many spins where no money is won at all. For example I would deposit $200 and after many spins lose $180, then on a single spin win $250! This is the gambling experience reserved for players who enjoy the thrill and sensation of high risk situations.
How to identity Volatility
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As I previously stated there are certain hidden aspects which may point towards the slot variance of the particular slot machine. Firstly, an online casino that advertises a 'multi million' dollar jackpot will most likely be a highly volatile slot. Therefore the higher the maximum winning amount is the higher risk the slot will be. Secondly, you can look at the paytable to determine the risk involved in the slot. Comparing the payout for getting 4 combinations in a winning combination to getting 5 combinations will show you the volatility. For example a high variance slot will usually provide a 10x higher payout for a 5 icon winning combination as it will for a 3 or 4 icon combination. Finally, doing some research and identifying the developer responsible for the slot will also be an indicator of the type of variance you can expect.
What to keep in mind
- The amount of money you have to play will determine the volatility of the slot best suited for you. If you are starting out with a small deposit I would not advise playing at a high risk slot, your online gambling experience will be short lived!
- How long you wish to play will be determined by the volatility of the slot. Low variance slot machines are best suited for someone who wants to enjoy an extended gambling experience. However those wanting to win big should not look at low volatility slots as they will find the experience very slow and tedious.
- Playing the demo mode may show you the variance of the slot. However, many online casinos use the demo version to lure players into thinking they are playing at a high volatility slot by allowing them to win big, but once playing the member version it becomes clear that the volatility of the slot is actually very low. Although online casinos would not usually do this, there is essentially no way to prove it until the slots are actually played.
- Striking the perfect balance between how fun the slot is and how rewarding the slot is will be the deciding factor in how enjoyable your overall gaming experience will be. This may at times require you to simply hit ‘spin' a couple of times to determine whether it is for you or not.
- Finally I would suggest sticking to a casino with an RTP of 96% and up, regardless of the volatility of the slots, this will ensure fairness of the game.
