RTP vs House Edge: Maximise Your Online Casino Wins

When you’re playing at a real money online casino, understanding the difference between RTP (Return to Player) and house edge can significantly influence your decisions. Both terms are critical to evaluating the potential risks and rewards of each game.

Whether you’re a novice or an experienced player, knowing how RTP and house edge work together can help you strategise better and, ultimately, manage your bankroll more effectively.

Let me break down these concepts and explain how they apply to your favourite online casino games.

Understanding RTP and House Edge

 What is RTP?

 RTP stands for Return to Player, and it represents the percentage of all wagered money a casino game is expected to pay back to players over a long period.

For example, if a pokie has an RTP of 96%, it means that, theoretically, for every $100 wagered, players could expect to win back $96.

The remaining $4 represents the casino’s expected profit. It’s important to remember that RTP is calculated over millions of spins or hands, so your short-term results can vary greatly from this percentage.

What is House Edge?

 House edge is the opposite of RTP. It’s the percentage of each bet that the casino expects to keep over the long run. If a game has an RTP of 96%, the house edge would be 4%.

The house edge ensures that the casino maintains profitability over time. Even in games with high RTPs, the casino will always have a slight advantage, guaranteeing its ability to make a profit.

Example:

• A game with an RTP of 97% has a house edge of 3%.
• A game with an RTP of 94% has a house edge of 6%.

As you can see, the higher the RTP, the lower the house edge, and vice versa.

How RTP and House Edge Work Together

RTP and house edge are two sides of the same coin. They reflect the same concept but from different perspectives: RTP from the player’s perspective and house edge from the casino’s.

In essence, they both highlight how much of your wagered money is theoretically returned to you, versus how much the casino retains.

It’s crucial to note that neither RTP nor house edge guarantees short-term results. While the RTP may be 96%, you could win or lose significantly more than that in a single session, especially in highly volatile games.

Understanding how these percentages interact can help you make more informed decisions and enjoy your gaming experience with a clearer perspective.

RTP vs. House Edge in Table Games

Table games like blackjack, roulette, and baccarat often have different RTPs and house edge compared to pokies.

These games can offer lower house edge, especially if you’re using optimal strategy, giving you a better chance of walking away with a profit.

Highlights for Table Games: 

• Blackjack: Blackjack is known for having one of the lowest house edge, often as low as 0.5% when using the correct strategy. This means the RTP can be as high as 99.5%, making it one of the most player-friendly games.
• Roulette: European Roulette has an RTP of around 97.3% (house edge of 2.7%), while American Roulette is lower, with an RTP of 94.74% (house edge of 5.26%) due to the addition of a second zero.
• Baccarat: With an RTP of around 98.94% (house edge of 1.06%) for the banker bet, Baccarat also offers players favourable odds.

How Table Games Differ

Table games often allow you to influence the house edge through strategy. For instance, in blackjack, using a solid strategy reduces the house edge significantly.

By understanding the rules and the best practices for each game, you can maximise your chances of winning.

RTP vs. House Edge in Pokies

Pokies, or slot games, tend to have higher house edge compared to table games. However, pokies also offer the potential for big wins with lower stakes, making them appealing to many players.

Highlights for Pokies:

• RTP Range: Pokies typically have an RTP between 90% and 96%, though some may go as high as 98%.
• House Edge: This means the house edge for pokies usually falls between 2% and 10%.
• Volatility: Pokies vary in volatility, meaning some games may pay out smaller amounts frequently, while others may pay out large amounts less often.

Popular Online Pokies in Australia

Several popular online pokies in Australia have decent RTPs and varying levels of volatility:

• Rise of Olympus: This pokie has an RTP of 96.5% and high volatility, making it a favourite among Aussie players seeking a top-tier volatility experience.
• Wolf Gold: With an RTP of 96.01%, Wolf Gold offers players a balanced experience between regular payouts and the chance for bigger jackpots.
• Ozwin’s Jackpots: With an RTP of around 96.7%, medium volatility and multiple jackpot opportunities, it offers players a balanced mix of frequent smaller wins and the chance to hit one of the game’s progressive jackpots.

Long-Term Impact of RTP and House Edge on Players

In the long run, RTP and house edge are reliable indicators of how much you can expect to win or lose. For example, if you’re playing a pokie with a 95% RTP, the casino is likely to retain around 5% of all money wagered on that game.

This doesn’t mean you’ll lose 5% of your money on every spin, but over thousands of spins and across many players, the results tend to even out according to these percentages.

How RTP Impacts Your Bankroll

A higher RTP means that, over time, you are likely to lose less money, which allows you to play for longer.

This is why I always recommend to look for games with a high RTP if you want to get the most out of your bankroll.

Comparing RTP and House Edge in Popular Games

In Australia, popular online casino games include both pokies and table games. Comparing the RTP and house edge of these games can help you choose which one best fits your playing style.

Popular Games to Compare:

• Blackjack: RTP of 99.5% with optimal strategy. The house edge can be as low as 0.5%.
• Roulette: European Roulette has an RTP of 97.3%, with a house edge of 2.7%. American Roulette has a higher house edge of 5.26%.
• Pokies: Vary between 90% and 96% RTP, with the house edge being between 4% and 10%.

Volatility and Its Relationship with RTP and House Edge

Volatility (or variance) is another factor that works alongside RTP and house edge. Volatility refers to the risk level of a game.

High-volatility games tend to have larger but less frequent payouts, while low-volatility games provide smaller, more regular wins.

The RTP of a game doesn’t change based on volatility, but the way the payouts are distributed does.

Example of Volatility:

• High-Volatility Game: A pokie with an RTP of 96% and high volatility may result in long losing streaks, but with the potential for significant wins when payouts do occur.
• Low-Volatility Game: A game with the same RTP but low volatility may offer more consistent payouts, but the wins will be smaller.

Understanding volatility in conjunction with RTP and house edge can help you decide whether a game suits your risk tolerance.

Conclusion

RTP and house edge are two essential concepts that every online casino player should understand. While RTP reflects the player’s expected returns over time, house edge ensures that the casino makes a profit.

Both metrics provide valuable insight into the games you’re playing and help you make more informed decisions.

Whether you prefer high-stakes table games like blackjack or the thrill of pokies, knowing the balance between RTP, house edge, and volatility can significantly impact your overall gaming experience and long-term success.