Return to Player vs House Edge on Slots

Return to player

Slots are a technically complex product. It involves many details, including mechanics, volatility, RNG, RTP, etc. Meanwhile, we completely agree with that the RTP is one of the most important items on that list. Under this abbreviation, there is information about the ratio of the number of bets made to the number of payouts for a certain number of spins. The provider itself calculates this figure on the basis of a million or more spins. It is probably even fair to say that RTP is not as informative as it says because no user will bet that much. However, there are some nuances here. In any case, once you hit the “wave” of success, you will know how much you will still get back in the form of payouts.

As for table games, such as roulette, the situation with RTP is a little different. Although this parameter exists, it does not play such a big role as in slots. Each player can independently influence your payout, using different betting strategies and playing styles. So, for example, if you play classic blackjack, most likely the return, in the long run, will be 99.40%. However, this percentage can be lowered due to the wrong strategy.

In order to have a better chance of winning, the user needs to keep an eye on the RTP set by the developer. The idea is to choose games with returns as close to 100% as possible. In this case, it is fair to say that the model algorithm is set up for a more generous return.

House edge

We have worked out what RTP is. But some may wonder: where does the remaining RTP interest go? And that’s where an indicator called House Edge comes in. This parameter tells us how much money from bets goes as income to the operator. It is also, like RTP, calculated as a percentage. It is not set by an operator but by a provider when creating a product. There is no slot with a 100% payout and no game where the casino would not have a financial return. House edge is present in most gambling games: slots, table and card games, lotteries, bingo, and keno.

This indicator is very informative if you want to minimise your losses. It is expected that if the casino has a large advantage in the long run, the payout will be reduced and vice versa, if the House Edge is low, you can expect a more profitable session for the player. This parameter allows us to understand how much will be paid to the operator. Let me explain. Let’s take a game with a House Edge of 2.36% and a situation where players made bets of 500,000 USD during some period of time. If this parameter works perfectly, the casino will receive 11,800 USD from them. The rest of the money will be paid out to the players.

The profitability of operators varies greatly. Its percentage depends on the type of game chosen. The casino gets the lowest revenue from video poker and blackjack – only 0.46% and 0.5%, respectively. The biggest advantage is in Keno (20-40%) and Sic Bo (varying from 2.78% to 33.33% depending on the game). If you know the second-party advantage, you will be able to choose a game with an adequate ratio of player return to home advantage.

In conclusion

In video slots, it is customary to keep track of the RTP. This percentage always remains the same. That is, if the game is set by the provider RTP 96.5%, we can calculate that the casino receives 3.5% of the bets player. In other types of gambling, it is impossible to specify the correct yield for the player because of the specific rules and algorithms of the game. Each player can actually influence the outcome for better or for worse. That is why RTP in table, card and other games is given as an approximate value. In this regard, House Edge plays the biggest role in such models.


  • As per the Public Gambling Act of 1867, all Indian states, except Goa, Daman and Sikkim, prohibit gambling
  • Land-based casinos are legalized, with certain guidelines, in Goa and Daman, as per the Goa, Daman and Diu Public Gambling Act 1976  
  • Land-based casinos, Online gambling and E-gaming (games of chance) are legalized in Sikkim under the Sikkim Online Gaming (Regulation) Rules 2009
  • Only some Indian states have legalized online/regular lotteries as per and subject to the conditions laid down by state laws. Kindly refer to the same here
  • Horse racing and betting on horse racing, including online betting, is permitted only in a licensed premise in select states. Kindly refer to the 1996 Judgement by the Supreme Court Of India here and for more information
  • This article does not endorse or express the views of Qrius and/or any of its staff.
ExplainedHouse EdgeReturn to Player