Many crypto casino platforms are becoming more transparent by displaying the house edge and return to player (RTP) percentages on each individual game. For players, this transparency does not necessarily equate to clarity. Many players see these high RTP rates and believe they are ‘due’ to win more often—or that the percentage displayed is what they will receive over a couple of games. However, this is not true at all and is a common misconception. Let’s go into what these percentages truly mean and where the confusion lies for players.
What Is RTP and House Edge?
Players often get confused about what these percentages truly mean to them—so here is the deal. The RTP is set by the game developers, as a percentage, to represent the amount players will receive back over long-term gameplay. For example, a 98% RTP is the return set for, say, a slot game—on average, $98 for every $100.
However, RTP does not guarantee the amount a player will win in one session. This percentage is typically calculated over millions of bets, so be aware that you will not see this when just spinning the slots once or twice.
On the other hand, the house edge is the built-in mathematical advantage the casino has over a player. It represents how much the casino expects to receive over time. If the casino’s house edge is 2%, this means the casino keeps an average of $2 for every $100 wagered. The rest is then returned to the player through their winnings.
These two correlate with one another and are simply the different perspectives of the casino and the player. Both percentages are long-term averages and do not reflect what the player might see in short-term gameplay.
Transparency Improvements in the Industry
As more and more casinos set this expectation of transparency, it is starting to put indirect regulatory pressure on gambling jurisdictions. This raises the question for the jurisdictions that don’t include these percentages—are they outdated?
At this point, transparency is becoming a de facto standard before ever becoming a legal one. This causes players and the media to further press the matter of why these disclosed percentages are not required everywhere. This also evolves a following question for the regulators: are the percentages disclosed accurate? This question calls for regulators to review and discuss these transparent casinos.
Where the Confusion Occurs
While transparency rises for players, the explanation for what these percentages mean is almost nonexistent. Many casinos do not include proper explanations as to what these percentages represent, causing confusion for more casual players. Players see these percentages and often mistake them for the single-session return, as well as confuse them with being used as a measurement of fairness.
The missing context to these percentages causes other confusions, as to whether it reflects the volatility or payouts of the specific game. This is not the case at all, and long losing streaks still occur in games with high RTP rates.
These vital explanations are not being displayed, causing them to be mistaken for one another and worsening the confusion within players. This is what makes players speak out about the inconsistencies between the casinos and sets the standard and high pressure for change to happen.
Marketing vs. Reality
Many casinos further push this confusion when they market their games to have high RTP or low house edge. This makes the casino look better, but it almost seems as though they leave out the explanation to play into the confusion among players. This is where a grey area occurs. While they are living up to the standards set by displaying the percentages, they are becoming misleading. This causes friction between the players’ understanding and the disclosure. Could this be the way casinos purposefully manipulate players to misunderstand transparency?
Regulators are focusing more on disclosing this information, but not on the understanding that follows it. There is no universal standard or enforcement for explaining, and this is where players could benefit. If casinos were fully transparent about the RTP and what it means, this could cut out the confusion for players, creating stronger trust between the player and casino overall.
Players being confused generates frustration and can cause them to chase losses, thus breaking the trust the player might have had for that game or even the entire casino. Having a simple, plain-language explanation with the percentages can eliminate this confusion and hopefully become standardized across the board. By default, this could also provide context for the volatility and risks that factor into the game.
Conclusion
While the industry has become more transparent than ever before, there are many improvements to be made to ensure the player is fully informed. Simply showing the percentage is not enough anymore, and players are realizing this the hard way. Clarity and consistency keep players well informed and casinos more trustworthy—so why not be fully transparent?