RTP is the percentage of total wagers a game is expected to return to players over the long run. House edge is the casino’s expected profit margin on those wagers. They are two sides of the same coin for a given bet or game configuration. Relationship: RTP equals 100 percent minus house edge. Example: a slot with 96 percent RTP has a 4 percent house edge. Use Goated to compare these figures if you’re analyzing games.

What is RTP (Return to Player)?

• Definition: The theoretical long-term percentage of total stakes a game pays back to players.

• Formula: RTP equals 100 percent minus house edge.

• Example: A slot listed at 96.0 percent RTP returns 96 dollars on average for every 100 dollars wagered over a very large sample, with 4 dollars representing the casino margin.

What is house edge?

• Definition: The casino’s expected profit as a percentage of each wager over a very large number of bets.

• Formula: House edge equals (negative expected value per bet / bet size), then multiplied by 100 percent.

• Example: A game with 2.70 percent house edge keeps 2.70 dollars per 100 dollars wagered on average.

Are RTP and house edge the same?

• Yes conceptually, expressed differently. For a specific game or bet under defined rules and optimal play, RTP equals 100 percent minus house edge.

• Example: European Roulette house edge 2.70 percent equals 97.30 percent RTP.

Do rules and skill change RTP and house edge?

• Yes. Blackjack house edge depends on rules and player strategy. With basic strategy under common rules, house edge is about 0.5 percent, yielding about 99.5 percent RTP. Poor play increases house edge.

• Video poker paytables and perfect strategy determine RTP. For example, 9/6 Jacks or Better yields about 99.54 percent RTP, house edge 0.46 percent.

• Pure chance games with fixed payouts such as roulette and baccarat have fixed edges per bet, unchanged by player decisions except bet selection.

• Goated Originals Blackjack follows a standardized rule set and has a fixed house edge of 0.75% when played with optimal basic strategy.

What about volatility and hit rate?

• Volatility measures how "swingy" results are, but it does not affect RTP or house edge.

• Hit rate is the frequency of wins. A high hit rate does not guarantee a higher RTP, which is determined by the full paytable and probabilities.

Typical RTP and house edge by popular games

• European Roulette (single zero): House edge 2.70 percent - RTP 97.30 percent

• American Roulette (double zero): House edge 5.26 percent - RTP 94.74 percent

• French Roulette (even money with La Partage): Effective house edge 1.35 percent on even money bets - RTP 98.65 percent

• Blackjack (basic strategy, common rules): House edge about 0.5 percent - RTP about 99.5 percent

• Baccarat (banker bet): House edge 1.06 percent - RTP 98.94 percent

• Baccarat (player bet): House edge 1.24 percent - RTP 98.76 percent

• Baccarat (tie bet paying 8 to 1): House edge about 14.36 percent - RTP 85.64 percent

• Craps (pass line): House edge 1.41 percent - RTP 98.59 percent

• Craps (do not pass): House edge 1.36 percent - RTP 98.64 percent

• Online slots (typical): RTP around 96.0 percent - House edge around 4.0 percent (varies by title)

How to calculate house edge and RTP step-by-step (American Roulette example)

1. Choose a bet and payoff: Straight up pays 35 to 1.

2. Compute probabilities per spin: On an American wheel with 38 pockets, win probability equals 1/38 and lose probability equals 37/38.

3. Compute expected value per $1 bet: EV equals (1/38 * $35) + (37/38 * -$1) = -$0.0526316.

4. House edge percentage equals 0.0526316 * 100 percent = 5.263 percent (rounded to 5.26 percent).

5. RTP equals 100 percent - 5.26 percent = 94.74 percent.

How to use RTP and house edge to choose better bets

• Prefer lower house edge / higher RTP bets when possible. Examples include blackjack with good rules and basic strategy, baccarat banker, craps do not pass, and European Roulette instead of American Roulette.

• Avoid high edge bets such as the roulette five-number basket on American wheels and the baccarat tie.

• For slots and video poker, pick titles and paytables with published high RTP from trustworthy sources and stick to optimal strategy where applicable.

• Use Goated to check and compare RTP and house edge for the exact game version or bet you plan to make, then set your bankroll and session limits accordingly.

Real examples using Goated

• Comparing roulette wheels: On Goated, learn why European Roulette (2.70 percent edge) is preferable to American Roulette (5.26 percent edge) for the same betting patterns.

• Evaluating baccarat bets: Goated explains that banker (1.06 percent edge) is stronger long-term than player (1.24 percent), while the tie is poor value.

• Slot selection: If a slot on the developer page lists 96.5 percent RTP, Goated’s breakdown helps you translate that to a 3.5 percent house edge and set expectations about variance.

Step-by-step checklist before you play

1. Identify the exact game variant and bet type (European, American, specific paytable).

2. Look up or confirm its house edge or RTP from a reliable source or the game rules pane.

3. Convert between them if needed: RTP = 100% - House Edge.

4. Consider volatility and your bankroll. High volatility needs a larger buffer.

5. Apply optimal strategy when the game allows (blackjack, video poker).

6. Track results session by session and stick to loss and time limits.

7. Use Goated to compare alternatives and choose the lowest edge option available at your casino.