Slots Payback Percentages for Dummies

Today we’re going to take an introspective look at slots payback percentages. The payout ratio, or return to player (RTP), of a slot machine directly impacts a player’s odds of winning – and losing – at live and online casinos.

In order to understand slots payback percentages, you have to know how slot machines are made. They are essentially robots – machines infused with a computer chip that tells them what to do, and when to do it.

Programming Slots Payback Percentages

A key part of every slot machine’s composition is what’s known as a random number generator (RNG). Games programmers use RNGs to make sure that all slot machines are 100% random and unpredictable. In this way, no player or casino operator is able to know when a machine will deliver a big payout, or any payout at all, for that matter.

At the same time, the slots manufacturer will program each game with a very specific RTP. It could be 85%, 90%, 95%, etc.

The RNG and RTP work in tandem. The RNG will ensure that no one knows when a payout is coming, while the RPT guarantees that, over time, the machine will pay the exact amount prescribed.

A 92% RTP game, for example, will eventually pay back $92 for every $100 it takes in. Because of the RNG, though, that ratio will vary from day to day, week to week, month to month, and so on. The RTP is only guaranteed to hit its mark over the lifetime of its installment.

In live casinos, physical slot machines may have a 25 year life span. For this reason, a machine could pay out its jackpot prize multiple times in a short period of time, or it could go years without paying the jackpot. Either way, it will reach it’s intended RTP when the 25 years are up.

The same goes for online slot machines. Being mere software programs, rather than physical cabinets containing computers, the ‘life span’ is predetermined along with the RPT. But the way they are programmed and pay out is exactly the same.

Difference Between Live and Online Slots RTP

Slots payback percentages may all programmed in the same way, but the actual RTP will vary greatly between live and online casinos.

Land-based casinos operate under the strict regulations of their jurisdiction. Those jurisdictions generally collect high taxes off gambling revenue. Therefore they mandate specific payout percentages for all casinos to follow when installing slot machines.

The average minimum payout percentage at casinos worldwide is 87.5%. Casinos may be allowed to set their RTPs higher than the region’s mandate, but generally not more than 90% or 92% at most.

It’s worth noting that casinos in Las Vegas, one of the biggest gambling meccas in the world, is only required to set their slot machines at a minimum of 75%. Ouch!

Most online casinos, however, are not taxed the same way land-based operations are. They also don’t have as many bills to pay – fewer employees, lower property taxes, way smaller utility bills, etc. Add to that the fierce competition between internet gambling sites, and it all translates to much higher slots payback percentages for players.

The typical RTP for online slots is between 95% and 97%. This means that internet players will have a much higher rate of return than players who visit land-based casinos.