House Edge, RTP And Volatility

House edge, RTP and volatility

Three statistics usually travel together on a game's information screen, and they are routinely confused. Each one measures something different. A glossary entry on house edge, RTP and volatility treats them as three answers to three questions: what the wager costs on average, how much of the money comes back, and how widely the results scatter.


MeasureWhat it describesExample
House edgeAverage loss as a share of a stated stake4%
Return to player (RTP)Average amount paid back relative to wagers96%
VolatilitySpread of results around that averageLow, medium, high


With matching rules and the same stake base, 96% RTP and a 4% edge are one fact stated twice. Nobody receives exactly 96 units back after wagering 100; the figure is a long-run mean, and a single evening can land far from it.


Volatility is where two games with identical returns part company. One pays rarely and in large amounts, with long losing stretches in between. The other pays often and in small amounts. Same average cost, very different experience over 200 spins.


One qualification matters for games with later raises, such as Three Card Poker or Ultimate Texas Hold'em. If a published edge is measured against the opening Ante, subtracting it from 100% does not give the return on all money wagered. Match the measurement base first, then compare the headline numbers.