RTP, BETTING MARGINS & HOUSE EDGE
A truthful guide on how RTP, Betting Margins & House Edge works.Get Started
Gambling has been a favourite around the world for hundreds of years already, and more often than not the entertainment people experience comes from the chances of winning. In recent years, the majority of gambling happens online.
Back in the old days, information and strategies for games were exclusive to people with a big interest and access to books about the subject. Now, in modern times the online gambling games are located just around the corner from useful information about them.
Together with the enormous amount of games available, this has contributed to people being more aware of the fact that the chances of winning, can be significantly different from game to game.
This is because of the RTP, betting margins and house edge connected to the different games, and in this casino guide, we intend to dig deeper into this subject.
Our article about RTP, betting margins and the house edge is part of a larger article serious, all connected to how an online casino works. If you are interested in learning everything there is to know about online casinos, we recommend you read this series of articles.
WHAT IS RTP?
RTP is an abbreviation for Theoretical Return To Player and represents the chances players have of making a profit when playing casino games.
Unfortunately, there is a lot of confusion surrounding this subject, created by inexperienced gamblers claiming to be experts.
One of the most common misconceptions is that RTP is something personal that affect how much you as an individual can expect to be left with after playing a game.
Another misconception is that RTP gives some sort of guarantee that it is more profitable than others for you.
Let us do the world a favour and end this misconception right here, right now.
RTP is an estimate of how much of the total wager on a game, expected to be paid back to all players combined over a minimum of 1.000.000.000 (1 billion) game rounds.
To understand what RTP is, it is crucial to recognize the use of words such as ‘estimate’, ‘calculations’ and the fact that it is not personal, but rather something all participants share.
HOW TO USE RTP IN YOUR FAVOUR
If RTP isn’t personal, and really just an estimated payout over 1 billion spins, you may ask yourself how it’s possible to use RTP in order to gain an advantage? Is it even possible?
The short answer is, yes.
And we are prepared to tell you exactly how you can use RTP to benefit yourself.
When you speculate on RTP it’s important to set the expectations right. As you may know already, there are no guarantees in online gambling. Because of terms & conditions, there is nothing you can do to get a guarantee of profitable gameplay over time.
However, the higher RTP a game has, the higher your chances of a short term profit becomes.
The best way you can use RTP is by picking games with high RTP and the possibility to play with betting strategies and systems.
It is up to game providers to set up and get approval for the RTP of a game. You can learn more about this in our guide about game providers role in an online casino.
GAMES WITH HIGH RTP THAT YOU CAN PLAY WITH A STRATEGY
All of these games have an RTP of above 96%, which is the average RTP in most online casinos. In addition to the above-average RTP, all of them can become more profitable when you apply a betting strategy when playing.
|Single Deck Blackjack|
|Golden Baccarat Live|
|Free Bet Blackjack|
|MONOPOLY Live||MONOPOLY Live|
|Crazy Time Live|
WHAT IS A HOUSE EDGE?
Now that we have learned everything there is to know about Theoretical Return To Player, understanding what a House Edge is, becomes much easier.
Knowing that it’s impossible to achieve a higher probability than 100%, you can easily calculate the house edge by subtracting 100% by the RTP.
In blackjack, the RTP is 99.7%, which leaves a house edge of 0.30%.
The 0.30% represents how much of the total wager, the online casino will make in profits over the long run on blackjack.
House edge is also applicable to sports betting. If you divide 1 by the decimal odds you get from a betting site, you find the probability of something happening, according to the said betting site.
If you continue doing this with all possible outcomes and add them together, you will find that it adds up to over 100%. A typical bet would add up to around 106%.
By subtracting 106 by 100, you will find that the betting site has a 6% house edge.
However, not all players play blackjack or odds perfectly, which makes the betting margin a relevant topic to cover.
WHAT IS BETTING MARGIN?
The betting margin is often confused with the house edge. Although both have something to do with how much a gambling site makes in profit, there is an important difference between the two.
We’ve just learned that house edge represents the expected profit for an online casino on any game. To make sure we understand the difference between the house edge and the betting margin, we will go ahead and rename the house edge to ‘Budget’. It’s a profit budget in many cases.
The betting margin on the other hand is how much an online casino or betting site has earned already. This is not an estimate or a theoretical number. This is the hard-earned cash the gambling site have earned within a period of time.
If the house edge is the budget, the betting margin represents the accounting for a gambling game.