The team at Fruity King NZ like to keep their readers informed about everything to do with casino games, and this guide is to help you understand the mathematics behind all casino games.
Many popular casino games rely on lady luck and sometimes skill. Playing is a lot of fun and exciting, as you could also end up with a win. The thrill of risking some money on a favourite game makes gambling incredibly popular, but knowing how to take a well-calculated risk is essential in the long term.
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Mathematics in Casino Games
Mathematics is integral in meeting players’ expectations regarding the possible consequences of any gambling activity.
At its core, the casino gaming industry isn’t complicated – the mathematics behind the games on offer creates the profit that helps casinos stay in business. In some quarters, some experts believe that there is no such thing as luck, only mathematics in casino games.
Mathematics makes games favour the house rather than the player in the long term, even if there are some exceptions. Due to the mathematical advantages of the house, many critics of the casino and gambling industry do not like the well-used term “gaming industry”. There have been complaints that it does not reflect the situation correctly – stating that the “gaming industry” is used because it is more politically correct.
However, casino operators have never attempted to create a false reality; they rely on basic mathematical principles to ensure their business generates positive gross revenues to cover deductions like taxes, interest and other expenses.
The House Edge
The house edge exists on every slot, table game and lotto that you can play online and off. You cannot escape the house edge, but by knowing what they are, you can use them as a guide to tell you which games are the most profitable over the long term.
- American Roulette has a house edge of 5.26%
- Baccarat has a house edge of 1.01% to 15.75%
- Blackjack has a house edge of 0.5%
- Craps have a house edge of 0 to 16.67%
- Keno has a house edge of 20 to 40%
- Pokies have a house edge of 2 to 15%
- Video Poker has a house edge of 0.46%
- Caribbean Stud Poker has a house edge of 5.22%
- Texas Hold’Em has a house edge of 2.36%
- Sic Bo has a house edge of 2.78 to 33.33%
In some games, the house edge is variable, caused by certain conditions within the game itself.
Return to Player Percentages Explained
The return to player percentage or RTP explains the amount of money a casino game or pokies pays back to its customers over the long term. The RTP is the direct opposite of the house edge.
To calculate the RTP, the total amount returned to players is divided by the total amount gambled. Some online pokies games have different percentages, and you can usually find out what they are on the game itself, with some progressive pokies paying out mega jackpots less often.
In online blackjack games, where you know you win around 50% of all the bets you place, have an easier RTP to work out, but the final result will always be the same; the RTP will always be slightly less than the casino’s turnover.
Strategies that players use can affect the RTP. For instance, in Craps, the range of RTP percentages is wide. Skilled players can also increase the RTP percentage, and a less experienced player, especially playing games like Blackjack, can lower the RTP percentage.
- Blackjack has an average RTP of 99.43%
- Craps has an average RTP of 98.59% (although there are variations)
- Baccarat (sometimes called Punto Banco) has an average RTP of 99.07%
- Roulette has an average RTP of 97.30%
- Online Slots have an average RTP of 96%, but individual games can vary.
The Random Number Generator
The Random Number Generator that online casino operators use is software that relies on algorithms to mimic the selection of a value. The RNG rolls the virtual dice, spins the virtual reels and wheels and deals the virtual cards.
The mathematical software is not new, as land-based casinos and public houses installed this mechanism in each one-armed bandit. All online casino RNGs are independently audited to prove that they are trustworthy and fair, which means that each player has an equal chance of a win.
What is The Hit Frequency?
The hit frequency is not inked to payback percentages (RTP). Games are designed with hit frequency in mind, and then payback percentages and the corresponding reel strips will be tailored to the hit frequency. For instance, you will never see any game with a high hit frequency at a higher payout or a game with a lower hit frequency at a lower payout.
The hit frequency informs you of how often the game could land on a winning combination and is linked to the game’s volatility is explained below.
What is Volatility?
Those games that lower the hit frequency to allow for bigger wins could be a way to detect a higher volatility game.
The volatility of online gambling games is a term used to assess the risk of losing a bet and suggests how often or infrequently players can expect to win and how big or small their winnings will be.
For instance, pokies are categorised into three levels of volatility; low, medium and high, and all online casino platforms offer games with various levels of risk.
- Low volatility pokies offer the chance of more wins but smaller jackpots.
- High-volatility pokies are high-risk games that rarely pay, but the jackpots can be massive when they do.
- Medium volatility pokies are a compromise between low and high-volatile games and usually include many bonus features.
The volatility of pokies can also be called their variance. Although online casinos do not divulge the volatility of a game, look at the RTP percentage, as those pokies with a high RTP provide a higher chance of winning, making them less volatile.
In Summary
Game mathematics is used so that any player can efficiently work out their chances of winning and the risk and rewards of the games in question. There are never any guarantees that mathematics will lead to a great chance of a win, although some players believe that mathematics can give them an edge in games of skill.
Games mathematics helps players manage risk more effectively and informs them what the probability of winning is, so there are no false expectations making games more exciting and enjoyable.
