How is the payout ratio calculated in gambling?

Sam Richards
Authored by Sam Richards
Posted Monday, May 25, 2020 - 11:07am

For those who are not interested in in-depth game mechanics and just want to have some fun playing their favorite games, some concept of the best online casino payouts might not be of much importance. Enjoying yourself while gaming might be one’s prerogative but understanding some math behind all those beautiful graphics and sound effects might work in your favor. We are not talking about just increasing one’s chances of winning but acquiring some knowledge and power to choose only games that give you those best odds and prolonged gameplay. This can be archived by understanding the concept of payouts and how casinos use this tool to give themselves an edge over players in an everlasting game of cat and mouse. It is not magic, it is just some complicated math that they use as insurance so they could run a profitable business, which doesn’t automatically mean that this game cannot be beaten.

The concept

When playing the highest payout casino games one might think that is s smart move compared with playing lower payouts but the truth is a little bit complicated than that. Surely it is more favorable to risk some cash on a 99% payout rate rather than a 50%, but when choosing between two games with one same ratio other factors come into play. First, it is important to fully understand what this ratio represents so one can take full advantage of it. In a nutshell, it represents a probability for you to win a certain game but do not be fooled by thinking that a 99% ratio means that you have 99% of winning. This would be super amazing and would make you a billionaire instantly, but that is obviously not the case here.

This little proportion represents the edge that a casino has over you in every game you choose to engage in. If this ratio was 100 that would be a level playing field, meaning that one has equal chances to challenge any house. This would still be a 50/50 game so understanding how this ratio really represents the advantage that gambling house has over you is of the utmost importance. Even the best payout online casino will not take chances with anyone so the house always wins, in the long run, thanks to this favorable ratio. There are many other elements involved in forging a sound winning strategy and we will get to that, but realizing that every house has this initial statistical advantage is a good starting point.

Calculating the ratio

The payout percentage is a statistical ratio that represents your total winnings compared with all that cash that one bets during his session on his table. It doesn’t matter if one plays in a high or low deposit casino, because this ratio remains the same. Once you compare these two variables one number will be generated and that is that number that you see in all online disclaimers that try to advertise slots or other games. This number varies from 70% to 99% but the value that you are interested in is what remains when you subtract this number from 100 because this is that house advantage. The bigger the advantage, the fewer chances you got to take down any game of chance.

Even a 1 pound deposit casino with a 0.5 % advantage works better in your favor than a high stake parlor with a 5% edge over an average player. Different games have different ratios so players choose them accordingly taking into consideration other factors like your knowledge and skills in that particular game. American Roulette has a 5.26% ratio which makes its European counterpart much more favorable and popular among gamblers worldwide while Blackjack gives the house an edge of only about 0.5 percent. This in combination with card counting techniques might prove successful for a very skilled player who knows how to utilize these advantages.


It is not all about ratios and the best online casinos that payout rates are very high can be a good starting point for your gaming session if you use this concept of variance into your advantage. Variance describes each fluctuation of your stash while beating continuously, and it can vary significantly from game to game. If one is losing his cash gradually but scores big wins occasionally he is facing a high variance game which is statistically better but we will not get into some complicated math here. Low variance means winning more often but winning minimal amounts that accumulate over time, while statistically losing more in the long run. It seems like the right strategy would require using this variance into your favor while knowing when to stop playing which is a skill to be mastered.

When you are browsing through 1 dollar deposit bonus casinos and looking for the best payout online casino NZ has to offer, keep this in mind as it may mean that difference between cashing out and going bust. Take some time to educate yourself about this importance of payout ratios plus this volatility concept in gaming so that making the right game choice would be much easier than before. Other variables like managing your budget, utilizing bonuses, or improving your overall game skills are still important, but this knowledge will add some new weapons into your arsenal and hopefully will help you neutralize that house edge once and for all. The variance will greatly depend on your game style which means gives every player a certain degree of control and in gambling that is always an advantage. Slots are notorious among payers for a great range of variance that is the consequence of a high payout ratio so playing different slots may get one familiar with the importance of various ratios and variances.

Try out all these options until figuring what is good for you, so do not be shy starting with a 1 deposit microgaming casino while steadily advancing your level of gameplay. For those who consider all these concepts, turning the luck in their favor might not be just a distant dream but a very reachable goal. Although payout ratios are basically one easy idea to master, its usage requires some more gaming skill plus strategy study. Next time you start your gaming session do not be mislead by these proportions but use them into your advantage.


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