Understanding how casino payout percentages are calculated can help players make smarter gaming decisions. While it might sound technical, the concept is actually quite simple when broken down. This guide will explain everything you need to know in a fun and easy way.

What Is a Casino Payout Percentage?

A casino payout percentage, also known as Return to Player (RTP), tells you how much money a casino game pays back to players over time.

If a slot machine has a 95% RTP, it means that for every $100 wagered, the machine returns $95 to players, on average. The remaining $5 is the casino’s profit. It’s important to remember that this is a long-term average, not a short-term guarantee.

Why Payout Percentages Matter

Knowing the payout percentage gives you an idea of your chances of winning or how much you might lose over time.

Games with higher payout percentages give players better odds. For example, if two slot games look the same but one has a 98% RTP and the other 92%, the 98% machine is clearly the better choice in the long run.

This knowledge helps players make informed choices and enjoy their time at the casino without unpleasant surprises.

How Payout Percentages Are Calculated

Casino payout percentages are calculated based on the total amount of money wagered and the amount paid out in winnings over a large number of game plays.

Here’s the simple formula:

Payout Percentage = (Total Winnings / Total Amount Wagered) x 100

For example, if players wager $1,000,000 on a slot machine and the machine pays out $950,000 in total winnings, the payout percentage is:

($950,000 ÷ $1,000,000) × 100 = 95%

It’s important to note this percentage is calculated over millions of spins or rounds. Individual results will always vary in the short term.

Who Calculates the Payout Percentage?

Casino game developers calculate the payout percentage when they design the game. These figures are then tested and verified by third-party testing agencies.

Regulatory bodies, such as eCOGRA or Gaming Laboratories International (GLI), review these calculations to ensure fairness. In regulated markets, casinos must provide accurate payout information and meet strict standards.

This system protects players and ensures that the advertised payout percentages reflect reality.

Slot Machines and RTP

Slot machines are the most popular games in casinos, and each one has a built-in RTP.

The RTP of a slot game is determined by its internal programming. Developers set the RTP when they create the game and it cannot be changed by the casino.

Some machines have high RTPs of 96% or more, while others may be lower, around 88%–94%. Choosing high RTP slots can give you more play for your money over time.

Remember, even a small difference in RTP can have a big impact over hundreds of spins.

Table Games and House Edge

For table games like blackjack, roulette, and baccarat, payout percentages are connected to the house edge.

The house edge is the casino’s mathematical advantage in a game. If a game has a house edge of 2%, it means the casino keeps $2 for every $100 bet.

The payout percentage, then, would be 98%.

Some games like blackjack offer very high payout percentages—up to 99.5%—when played with perfect strategy. Others, like American roulette, offer lower returns because of the higher house edge.

Return to Player vs. Volatility

While RTP tells you how much a game pays back on average, volatility (or variance) tells you how often and how big those wins might be.

A high-RTP game might still feel “cold” if it’s highly volatile—meaning wins are rare but large when they come. A low-volatility game offers more frequent but smaller payouts.

Understanding both RTP and volatility can help you find a game that fits your playing style and bankroll.

Can Casinos Change Payout Percentages?

For physical slot machines, the payout percentage is set in the machine’s software and cannot be changed without physically altering the game.

For online slots, the RTP is built into the software and must be approved by gaming regulators. Legitimate online casinos cannot change RTPs on their own.

Some developers create multiple versions of a game with different RTPs, which the casino can choose from during setup. That’s why you may see two versions of the same game with slightly different payout percentages depending on where you play.

How to Find a Game’s Payout Percentage

Most online casinos display the RTP for each game, either in the game info or help section.

For land-based casinos, it’s trickier. Slot machines often don’t display RTPs, but you can look up information online or choose games known for high payouts, like video poker or certain blackjack variants.

Some regulatory authorities publish average RTPs for casinos in their region. For example, in Nevada, the Gaming Control Board reports the average payout for all slot machines in the state.

Myths About Casino Payouts

There are many myths around casino payouts. Some people believe that machines are “due to hit” or that casinos loosen payouts on weekends. These ideas are false.

All modern casino games, especially slots, use Random Number Generators (RNGs) to ensure each outcome is independent and random.

The only way to increase your odds is by choosing games with high RTPs and understanding the rules.

How Casinos Profit While Still Paying Players

Casinos don’t need to “cheat” or rig games to make money. The house edge is built into the game design, ensuring the casino profits over time.

Players still win—often in big ways—but the math ensures that over millions of plays, the casino always comes out ahead.

This business model allows casinos to offer entertainment, rewards, and excitement while remaining profitable.

Summary of Key Points

• Payout percentages tell you how much a game returns to players.
• High RTPs mean better long-term chances of winning.
• Payouts are calculated as total winnings divided by total wagers.
• Table games use house edge to determine payout percentages.
• Game volatility affects how often you win.
• Online games must be tested for fairness and accuracy.
• Choose games wisely to improve your odds of having fun and potentially winning.

Final Thoughts

Understanding how casino payout percentages are calculated can take some of the mystery out of gambling. While luck always plays a role, knowing about RTP, house edge, and volatility gives you a better shot at making informed decisions.

Casinos are designed to make a profit, but that doesn’t mean you can’t enjoy your time and maybe even walk away a winner. Choose games with high payout percentages, understand the rules, and always play responsibly.