Everything You Need To Know About Online Slot RTPs

Helen Walton, Co-founder and Chief Commercial Officer at G Gaming, takes a deep dive into online slot RTPs.

The Return to Player (RTP) is an important concept for players to understand as ultimately it determines how much money an online slot or casino game returns over time

But online slot RTPs are often shrouded in mystery, with many players not fully understanding what the RTP is, how it is set and by who, and how it impacts their experience. 

Below, Helen Walton, Co-founder and Chief Commercial Officer at G Gaming, takes a deep dive into the topic of online slot RTPs, starting with a clear explanation as to what it is and how it works. 

Take it away, Helen… 

What Is RTP, Really?

Return to Player (RTP) is the percentage of total wagered money that a game is expected to pay back to players over the long term. A 96% RTP means that across millions of spins, a slot will return about 96p for every £1 staked.

Of course, no one wants a game that pays out exactly 96p every single time – that would be boring. Volatility and hit rate bring the entertainment: sometimes you’ll get 50p back, sometimes £5, and (not if you’re me), you might win the jackpot.

Why Higher RTP Isn’t Always “Better”

It’s tempting to assume that a higher RTP always leads to a better player experience, but things aren’t that simple.

Some hugely popular products have low RTPs. Lottery games hover at around 50%. Raffles often have effective RTPs lower than that. Land-based casino machines typically offer less RTP than online slots, but operators compensate in other ways: free drinks, perks, atmosphere and hospitality. 

Even within online slots, volatility and mechanics probably matter more than topline RTP. If the base game only delivers 50% and the rest is reserved for bonuses, it’s possible that the average player will never achieve that full RTP since it might require thousands of spins.

How RTP Affects Your Bankroll

RTP does have a big impact on how long your money lasts though. Lower RTP generally means your bankroll depletes faster. Studios and operators can tweak the experience with bonuses, sub-wins (or “Respins”as my friend Robert Lenzofer pioneered in Germany) and other mechanics, but as a general rule: lower RTP means a faster burn rate.

How is RTP set?

At the moment, a game designer normally designs a game with differing RTP profiles:  ‘high’ 95+, ‘medium’ 92-94 and  ‘low’ 84-88. These are designed for particular types of operators in particular jurisdictions. The games are certified by independent test houses who check both the maths (the theoretical RTP) and the actual results when millions of simulations are played. 

Some regulators have specific rules about minimum RTP levels; others demand operators and suppliers monitor RTP and a few put heavy taxes on gambling and then appear surprised that operators respond by cutting the RTP!

What Players Notice (and Don’t)

Players rarely think “My RTP has been cut,” but they do notice the effects:

• – Wins feel less frequent, the game feels ‘cold’
• – Balances declines more quickly so a player might stop or might spend more
• – Sessions might get shorter because the same spend delivers fewer spins
• – Some move to different games or operators searching for a better play experience
  

In extreme cases, lower RTP contributes to player migration toward unregulated markets; Germany being a notable example with up to 50% of play shifting to offshore sites. (Before everyone leaps in to yell at me – yes of course RTP was not the only factor, but it did matter!)

Regulators vs Player Reality

Regulators often frame this migration as a player-protection issue caused by predatory illegal operators. But from the player perspective, they may simply be seeking a better, more rewarding product.

According to the UK Gambling Commission, some of these players fall into categories such as “Skilled Advocates” and “Social Explorers”; groups that deliberately compare value or options across markets.

What Our Data Shows: RTP Impacts Retention

As a studio delivering all types of games, we have some really good data to share. Received wisdom about scratchcards says that because the win rate is relatively low, and players are accustomed to a 50-60% RTP, they don’t much notice the difference. 

That’s true for the first couple of weeks. But over time, the scratch with the higher RTP (say 60%) will have more repeat play than the lower cards (50%), even after considering price, prize multiplier, mechanic – the shift happens surprisingly fast and is surprisingly constant.

Slots are trickier due to RTP being allocated in bonuses, collection mechanics and volatility. Still, the effect is real. We recently ran an A/B test for a client:

A/B Test: 94% vs 92% RTP

• – Same game
• – Two RTP profiles
• – Players randomly assigned
• – 12-week live test

Results:

The 92% version had higher margin and more bet per player but fewer spins per player and fewer returning players leading to a lower total bet overall.

The 94% version had lower margin but higher spins per player and more returning players leading to more bet overall.

Blitz of Olympus from G Gaming.

The point at which margin stabilises as an absolute (rather than a %) for the studio is an interesting one since it depends on a complex mixture of the operator’s willingness to maintain position for a lower margin game versus the loyalty/retention of players who had better game experiences.

Competing Interests Around RTP

RTP sits at a crossroads where different stakeholders want different outcomes:

• – Studios prefer higher RTP to boost loyalty (they may not always be right!).
• – Operators push for lower RTP to optimise portfolio margin (they also may not always be right!).
• – Players want entertaining games and fair value, which small RTP changes can noticeably affect.
• – Governments aim to protect players, ensure fairness and maximise tax revenue – yet tax hikes (with resulting RTP cuts) often reduce tax receipts.

This creates a complex ecosystem where incentives don’t always align, and where RTP becomes an imperfect but influential lever.

Top line/Bottom line

RTP is only one metric among many, but it’s an important one. With rising taxation, stricter licensing requirements and growing cost pressures, we’re likely to see a wave of RTP compression across multiple markets. 

Will offshore operators make more of their ‘generous’ RTP in contrast, or will they rejoice in the chance to hoover up margin? Only time will tell. 

What should you do?

Studios: Track retention curves at different RTP levels; don’t assume operator preference equals optimal game performance, but don’t get so hung up on loyalty you fail to recognise that increasing competition may mean you too benefit from higher margin.

Operators: Monitor player migration within the lobby: RTP cuts shift play within the portfolio, first and that could give you a valuable insight before it shifts play away.

Regulators: The industry has been loudly warning about unwanted consequences of tax rises – are you ready to measure and act if these happen?

Players: Don’t just focus on the topline RTP. Be aware that RTP allocated to collection mechanics or rare bonuses might be very hard to access without thousands of spins.