Decreasing RTP in Slots

One thing that has been seen in recent years by players is that the RTP is decreasing in casino slots online. But before we dive deeper into this important topic, let's start with some basic information about what RTP actually is.

RTP stands for "return to player," which means the expected percentage of wagers will be returned to the player. To find out what the RTP of the game is, we need an RNG (Random Number Generator) that performs millions of spins to obtain the average RTP of the game. It is used to keep slots spinning randomly and equitably when we are playing.

Let's provide a short example to clarify what RTP is. If you play a slot with an RTP of 96%, it should theoretically return 0.96 EUR. The remaining 0.04 EUR goes to the casino. But it does not mean you are guaranteed to win 0,96 EUR for every euro you play for. This leads to the fact that the RTP can differ from player to player, where one user can get 500% back and the other 3% back. But on average, the players get 96%, and the casino gets 4% in this case. Read more about RTP on our dedicated page for it if needed.

Now, let's go back to the discussion about decreasing RTP in casino slots. A game provider usually has a default RTP of around 96%. However, you often find that the slot also has two other different RTPs that are not at default. The default RTP is often the highest, and the other RTP values are lower. Let's say the default RTP is 96%; then the other two might be around 94% and 92%.

So why do many game providers have more than the default RTP you might ask? The answer to why the other levels of RTP exist is to offer the casino more options. Remember that the lower the RTP, the more the casino gets and the less we get. When operators can choose between three different values on many games, it's reasonable for them to want the lowest.

Now that we know why the different RTP values exist, we can ask the next question: Who is to blame for the lower RTP? The casinos, the game providers, or the regulators? The question is complex because it involves several factors, and there is not just one part to blame.

Some casinos might suggest that they can not influence RTP. But that is true with modification. The game providers set the RTP, and often, they have a high default RTP, around 96%. However, when there are more options with lower RTP values, this is directly influenced to cater to the casinos so they can pick their profit level. Of course, the casinos can influence which value of RTP they choose, whether it is the lowest or the highest.

An interesting aspect of the decrease in RTP value in casino slots is some regulators' involvement. In 2021, the Malta Gaming Authority (MGA) lowered the legal minimum RTP in online casinos from 92% to 85%. According to them, the decision was made to keep casinos profitable in view of various changes in national taxes and rising compliance costs. 

In "Policy Paper on Amending the Return to Player Minimum Percentage" by Malta Gaming Authority, it was stated:

"A B2C licensee offering games online which use repetitively generated random selection for determining winning combinations to players, in accordance with the way in which the games offered thereby are designed, shall pay out on average a prize amounting to eighty-five percent (85%) or more of the money or money's worth wagered, or any such higher percentage as may be stipulated through a condition of the license."

This decision, of course, signals something, both to game developers and casinos, by decreasing the legal limit on RTP by 7%. However, it is not illegal to set a higher RTP than 85%, just under this value. That can be part of why we have seen a lower RTP in the last couple of years. Many jurisdictions have increased taxes and compliance requirements for online casinos, which has put pressure on their profit margins. To offset these increased costs, casinos have lowered the RTP on some games. They must remain profitable because no one has a business without the pursuit of making money.

Still, as we see a decrease in RTP in online slots, it's still much better than land-based casino games. As the average RTP online lies at around 96%, as previously mentioned, it's often around 75% in land-based casinos, which is way lower. It's not them being more greedy; there are way more costs attached to land-based establishments compared to online casinos that are cheaper to run.

Another notable fact is that crypto casinos often have higher RTP on their games, which is why many players have started to play at these gaming hubs. However, why they have higher RTP can be debatable. One thing worth mentioning, though, is that more crypto casinos develop their own crypto games, which means they are not forced to pay game providers a percentage on these titles, which can mean more games with higher RTP percentages.

In conclusion, several factors come into play when setting the RTP, such as new regulations, casinos, licenses, and game developers, and therefore, we have seen a reduction recently. Casinos have the most to gain from decreasing the RTP, as the lower it is, the more money they get. However, game providers and regulations are also involved in setting RTP values on slots. The most important thing is that companies stay focused on players because as the more we feel valued, the more likely we are to play, which equals more money for the companies. For us players, it is vital to check which RTP is used on our favorite games to know what type of RTP value the casino has set for us.