How RTP Works in Live Casino Games – Guide to House Advantage in Online Casinos

In gambling, RTP is defined as the percentage of a player's stake that is returned to them through winnings. However, there's a lot more to understand about the term, and how it relates to casino gaming strategy.

In this guide, we'll provide a detailed explanation of what RTP is in gambling, how it works, and why it's so important to understand the term. We'll also point out how understanding RTP can be used to improve your results while playing live casino games.

Since most standard games in casinos work differently, we'll provide clear examples of how RTP works in games like roulette, blackjack, and baccarat. This will give you a wide-reaching understanding of what makes some casino games and bets inherently “better” than others.

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Table of Contents

What is RTP in Gambling?

RTP stands for ‘Return to Player’, which already explains the basic concept. It’s expressed as a percentage – specifically, the percentage of your stake that will, on average, be returned to you through betting.

The best way to explain RTP is through an example, so we’ll provide one.

If a game offers 90% RTP, this means that 90% of the total stake will be paid out with every bet, on average. For instance, if you use $10 as a stake, you can expect an average return of $9 for every bet.

Note that we used the term ‘on average’ multiple times. That’s because it’s important to understand that you shouldn’t expect to see $9 payouts all the time – that’s not how this works. In our example, one player could lose the bet and win nothing, while another wins $18 on a $10 bet. On average, the players won $9 each. However, this knowledge probably won’t mean a lot to the guy who lost his full stake.

Now, try to apply this principle on a much wider scale. Thousands of players placing bets, winning and losing different amounts. When you consider all of those individual wagers and outcomes, the returns will always average out to the game’s RTP. Some players will win a lot, some will win small amounts, but many end up losing more than they invested. You can’t fight statistics.

Believe it or not, this is the simplest and most basic explanation of RTP in gambling. If you want to dig deeper, however, you also have to consider aspects such as variance and expected value. Those who want to know more about the statistics and math behind it all should check out our guide to expected value. Expected value and RTP are closely related terms, and we recommend reading up on both of them.

What RTP Shows Us

First and foremost, RTP tells us that the age-old saying “the house always wins” is true. All casino games are designed in such a way that statistically players lose more than they win.

Again, you need to keep in mind that some players end up winning. This is called standard deviation – while we can predict the average outcome of every bet, we can’t predict the actual outcome. It’s entirely possible to play casino games and win if you’re lucky. However, the more you play, the more your results will gravitate towards the statistical average.

If you wanted to be guaranteed to win while gambling in the long run, you would need a game with over 100% RTP – a game that pays out more than it collects in stakes. No such casino games exist. Simply put, casinos are in the business of making money, not giving it away.

In many legal jurisdictions, casinos and game providers are required by law to display RTP figures for every game. Essentially, the player has to know how risky the game is, and how much they can expect to lose in the long run.

If you’re still following along, you probably have one question by now – does this mean that games with higher RTP are better?

Well – yes. While there’s no accounting for taste, a game with higher RTP is statistically better for players than a game with low RTP. However, RTP figures do not exist in a vacuum. You also have to consider things like volatility and different bets having different RTP. After all, most live casino games proudly display their “optimal” RTP, which often only relates to a single wager in a game with several options.

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How to Calculate RTP

To calculate RTP, you have to divide the total winnings by the total amount used as a stake in a particular bet or game. However, because of outcome variation and deviation, you would need a large sample size. This would involve knowing the results and payouts of thousands of bets.

For example, let’s say a table acrews $10,000 in turnover over a single week. In the same period, it pays out $9,500 in winnings. Calculating the RTP would be a simple equation:

9500 / 10000 = 0.95

This means that this table has an RTP rate of 95%.

Of course, things are rarely as clear-cut as this in the real world. For example, a game’s volatility determines how much this calculated RTP can deviate from its intended RTP. More volatile games are more likely to deviate heavily, one way or the other.

Unfortunately, though, this formula doesn’t mean much to the average player. After all, we don’t have figures for how much money casinos turn over or how much they pay out. Since all games are required to display their RTP, we simply have to take the operators and game-makers at their word.

Thankfully, there’s a reason you should trust them. Regulative bodies such as the UKGC regularly test gaming products to see whether their displayed RTP is actually true. Lying about these figures would be a quick way to lose one’s gambling license. Moreover, most casinos and software providers willingly subject their products to third-party verification and certification. This allows them to build trust with players and customers – the house may always win, but at least they’re being honest about how much they win.

Calculating RTP

The only real way to test a game's RTP is to play it over and over again until you get a large enough sample size. If you're curious but don't want to risk so much cash, you can do some testing with free casino games.

Live Casino Game RTP

So far, most of this RTP guide has been rather abstract and theoretical. It’s time to bring it down to earth again by checking out how things work in specific games, or rather types of casino games.

Here on LiveCasinos.com, we specialize in live dealer gaming products of all shapes and sizes. That’s why we’ll explain how RTP works in casino games like roulette, blackjack, and baccarat. That said, similar principles apply to all forms of gambling, including slots and sports betting. Surprisingly, though, the math behind slot RTP is usually much more complex and arcane, so it would be hard to explain anyway.

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RTP in Roulette

We’ll start with roulette because it’s both extremely popular and easy to understand. The casino’s advantage in live roulette is quite obvious, so it’s a good way to illustrate how the whole thing works.

RTP in roulette comes from the fact that all bets are somewhat less likely to win than they seem.

We’ll use even money bets like Red and Black to illustrate. These wagers pay 1:1, which implies a 50/50 shot at winning. However, you don’t have a 50% chance to win a Red bet because the green zero pocket exists. Instead, your chances are around 48.60%. You are slightly less likely to win than the casino is, but the earnings per bet are the same for you and the casino.

If you were to play 1000 rounds of roulette while betting on Red, you would statistically win 486 times while losing the rest. The ball would land on Black 486 times, and Green 28 times. However, the casino “wins” on both Black results and Green results.

The same principle applies to every bet in Roulette, which is why they all have an RTP of 97.3%. This 2.7% house advantage stems directly from the fact that the green zero pocket exists.

This also means that having two Zero pockets doubles the house advantage. That’s why American Roulette is strictly worse than European Roulette. It’s also why French Roulette is the best variant of the game from a player’s perspective. If you want to know more, check out our guide to French Roulette.

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RTP in Blackjack

Blackjack is a much more complex game than roulette, so understanding RTP in blackjack is not quite as easy.

The house advantage in blackjack comes from the fact that the dealer has a few advantages over the player. For starters, they only reveal one card, which limits the player’s understanding of the cards on the table. Secondly, players can bust and lose even before the dealer starts drawing cards. This means there’s a chance to lose outright no matter how bad the dealer’s hand is.

The RTP in blackjack is influenced by a lot of things, particularly the rules and payouts. Some rules are good for players, while others aren’t. Here are some examples of what to look for to maximize RTP in blackjack:

The rules for when dealers stand, such as soft/hard 17, heavily impact RTP. Standing on soft 17 is generally good for players
Blackjack payouts of 2:3 are much better than 6:5
The option to surrender in blackjack slightly increases RTP
The fewer decks are in the shoe, the better
Double Down rules are also important – Being able to double any two cards is good for players, as is doubling after splitting

All said and done, blackjack has the highest RTP of any casino game. With good rules and smart play, many top blackjack tables have more than 99.5% RTP.

However, it’s important to understand that this figure only applies if you use basic blackjack strategy. In other words, you have to follow blackjack charts to the letter, and you have to make sure the charts fit the exact variant and rule set that you’re playing. You can find our excellent blackjack charts here, along with a complete explanation of blackjack strategy and what it involves.

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RTP in Baccarat

Understanding how RTP works in baccarat is also not easy, but we’ll break it down for you.

The gist of it is that the Banker bet is always more likely to win. That’s because of the so-called Third Card rule in baccarat – the rule that determines when more than two cards are drawn per hand. Essentially, this rule always favors the Banker, and Banker wins 45.8% of all baccarat rounds compared to 44.6% for the Player. If you want a more detailed explanation of the Third Card rule in baccarat, check out this post.

However, in online casino baccarat variants, players can bet on the Banker to win. Wouldn’t that allow them to also benefit from this rule?

No, because all Banker bets in baccarat come with a 5% commission. This essentially swings things in the casino’s favor no matter what you bet on. However, the Banker bet is still the best bet in Baccarat because it has 98.94% RTP, compared to the Player bet’s 98.76%. The difference is not big, but it’s important for understanding the game as a whole.

The only exception is in No Commission Baccarat, which removes the 5% commission but introduces other rules to compensate.

If you want to know more about RTP in baccarat and how it all ties together, check out our strategy guide for baccarat.

Also, Tie results push all Player and Banker bets, so ties are not strictly relevant for these two wagers. However, Tie bets are also universally terrible, often offering below 90% RTP.

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Closing Thoughts – Can You Beat RTP in Casinos?

Return to Player is one of the most important pieces of information about any casino game. It tells you exactly how much you will win or lose, assuming you spend enough time playing.

However, RTP should not be the most important thing for most casino players. The reason is simple – it always favors the casino, to a lesser or greater degree. You cannot beat RTP in casinos because you cannot beat statistics. If you could, it means the person designing the game made a serious mistake.

Always remember that casino games are strictly a form of entertainment. As our RTP guide explained, casino gaming is carefully crafted to always favor the house. It’s mathematically impossible to win in the long run.

With that in mind, you should strive to play games and bets that you find fun and enjoyable. Trying to game the system will not work. Understanding RTP and using casino strategies can help minimize losses, but it cannot turn losses into profits.

However, don’t underestimate the importance of minimizing losses. Using proper strategies and picking the right casinos and bonuses can still have a massive impact on your bottom line. Hopefully, this guide helped you understand this fact and improve your skills.