How a casino makes money on slots - margin and RTP

Introduction

Any real money slot is designed to be profitable for casinos in the long run. At the same time, players can also win individual sessions, but on average, the mathematical model always works in favor of the operator. The basic concepts that explain this process are RTP (Return to Player) and casino margin. Understanding these parameters helps Australian players take a more informed approach to game selection and betting strategy.

1. What is RTP

RTP is the theoretical percentage of all bets that the slot returns to players as winnings over a very long distance.
Example: RTP = 96% means that out of every 100 AUD bets, the slot will return 96 AUD in winnings, and 4 AUD will remain with the casino as a profit.

Important:

• RTP is an average of millions of spins, not a guarantee for a particular session.
• At short distances, the result can deviate greatly from this percentage.

2. What are casino margins

Casino margins are the difference between 100% and RTP slots.
Formula:

• Margin = 100% - RTP.

Exempli gratia:

• RTP 96% → margin 4%
• RTP 94% → margin 6%

The higher the margin, the faster the player loses funds at a distance.

3. How a casino makes a profit in practice

1. The scale of bets - thousands of players make millions of spins, and the margin turns into a stable income.
2. Long distance - with a large volume of bets, the actual return approaches the declared RTP.
3. Volatility - even with the same RTP, highly volatile slots can "eat up" the bank faster due to rare but large payments.

4. Impact of RTP on slot selection

For long sessions and a vager, it is better to choose slots with RTP from 96% and higher.
The difference between 94% and 96% may seem small, but at a distance it significantly affects the safety of the bankroll.
Some casinos offer the same game in several versions with different RTP - it is important to check this parameter in the rules.

5. Why it is impossible to beat the margin at a distance

The margin is built into the mathematical model of the game and does not change depending on the player's actions.
Even with a series of large winnings, the casino makes money on many other players.
All winning sessions of individual users are compensated by the losses of others.

6. How margin and RTP combine with volatility

Low-voltage slots - frequent small winnings, slow bankroll wear, margins are evenly distributed.
Highly volatile slots - rare but large payments, high risk of quick losses, margins can be realized faster.
With the same RTP, the perception of the game strongly depends on its volatility.

7. Australian context

In casinos available to Australian players, RTP is listed in the game description or paytable. Licensed operators are required to provide slots with certified RTP values and cannot change them without recertification. However, there are offshore casinos on the market with reduced versions of RTP (92-94%), so checking the parameters before playing is critical.

8. How a player can use this knowledge

Select slots with RTP ≥ 96%.
Avoid games with notoriously low RTP, even if they are popular.
Remember that RTP is not a guarantee of winning, but a statistical indicator.
Consider margin as the "cost of entertainment" and plan your bank with this amount in mind.

Conclusion

The casino earns on slots due to the mathematical advantage inherent in the form of margin - the difference between 100% and RTP. For Australian players, understanding these indicators helps reduce the rate of losses, choose more profitable slots and approach the game with a sober calculation. You can win, but over a long distance it is the casino that always remains in the black.