The Question of RTP
Working in the betting industry offers the unique “advantage” of having to clarify to friends the harsh realities of how betting systems operate. RTP stands for “Return to Player” which is the percentage of all the wagered money a game will pay back to players over time. Essentially, it gives an indication of the house edge or how much the betting company expects to keep from the stake.
Many individuals I’ve spoken to, who aren’t familiar with the betting industry, often believe the RTP to be around 20%, implying that the betting company keeps 80% of the stake. This is probably triggered by gambler’s fallacy or negative recency bias. Players often find it difficult to accept that some individuals do indeed win money.
In “free markets” with minimal government regulation and no imposed payment taxes, the average RTP for online sports or casino games typically hovers around 95%. Certain casino games, such as Blackjack, can offer even higher RTPs, reaching up to 99%, depending on the player’s strategy. In such instances, the house retains approximately 1% of the stake. And to be clear, a 1% margin for a widely-played game still represents a significant sum of money.
RTP is significantly influenced by state regulations. In certain countries, high payment taxes are levied (with the government deducting a percentage from a bet before the outcome is even determined), compelling betting companies to adjust RTP downward to maintain their margins. On the other hand, some countries enforce low RTP limits with the belief that games with lower RTPs will be less addictive compared to high RTP ones. The logic is that if players win less frequently or win smaller amounts, they might be less incentivised to continue betting or to bet in large amounts. Another motivation is for the government to boost its revenues or to shield state-owned entities, which often operate in a monopolistic environment. Consequently, there are countries where the RTP can be as low as 75% or even 50%, a situation that’s decidedly disadvantageous for players, with ambiguous outcomes concerning addiction.
Based on my experience, a high RTP doesn’t automatically ensure a game’s success. Various elements play into a game’s popularity, such as its mechanics, added features, engaging animations, promotions, tournaments, and more. I’ve witnessed games with an RTP of 98% flop, so there isn’t a one-size-fits-all formula. It’s often about experimenting with different combinations until you find the winning recipe — and marketing and promotion really helps (duh!).
As a player you should easily find out about a RTP info inside the game rules, or on game promotion page. In certain countries, it’s a legal requirement for this information to be provided within the game itself.
As a player reading this, use this information as you see fit. But remember one essential thing: engaging in online sports and casino games should be a source of enjoyment. Don’t take it too seriously and always play responsibly.