What Does Volatility Mean in Slots?

Slot volatility describes how often and how much a slot pays out on average. In other words, it represents how frequently a slot triggers wins and the average size of prizes and rewards corresponding to it. Slot volatility can be high, which means that the payout is high by further spread apart, or it can be low, which means that payouts are small but frequent - often won in quick succession. 

Low volatility slots require a little more patience with the reels. The slot volatility is also called slot variance. Whether the slot machine is online or land-based, volatility or variance will determine the odds of pulling up the winning combination and consequently winning the jackpot, the bonuses, or the prize money. They will also determine all the risks involved in the game. 

When determining slot volatility to choose a slot, it's important to understand the other terms accompanying the decision.

Volatility vs Variance

Keep in mind that volatility and variance are synonymous in the casino world. They both refer to the risk/reward ratio in slot games and give the players an idea of what to expect in payout and winning combinations when playing. 

However, there is a slight difference here - variance represents the distribution of winning combinations over a long period, while volatility refers to the risks involved in the game over a short term. Nonetheless, both terms refer to the same thing and shouldn't be confused too much.

Volatility vs Risk 

Volatility shapes the risk of slot games. Volatility is why you win the money you do and how often you win it in a casino game. To figure out a game's volatility, you have no choice but to play a few rounds - you don't have to play for money; you can also do so for points or coins. 

In contrast, if you don't want to play, you can check other features to assess the risk factors, like bonuses. Some casinos also have a paytable that indicates the symbols and their payout. However, not all casinos have this information available for everyone to see. 

For example, a slot game with a bonus feature that springs up every 500,000 spins most likely rewards a heavier amount compared to the winning line that comes up more often, like after every 100 spins. 

Volatility vs House Edge 

A casino's house edge is very different from the volatility of a game. Both matter a great deal, and both shape the outcome of the game in the end. But, house edge refers to the casino's mathematical advantage over the player. Also known as the casino advantage, it's the percentage of the player's bet that the casino will pocket as profit.

Slot machines have a high house edge, but volatility can be used to your advantage when you decide which game to play. High-volatility games can beat out the house edge in one swift move, or you can do it over time with low-volatility slots. 

Volatility vs RTP 

All casino games have an RTP or return-to-player percentage. RTP refers to the game's theoretical payout percentage. The higher the RTP, the lower the house edge. For instance, if you wager €100 on a slot machine with an RTP of 94%, you will get €94 as winnings while the casino keeps €6. 

However, remember that RTP is theoretical, and players might get different results over the hundreds and thousands of games played. Volatility is separate from RTP, but both impact the game's payout structure. The question is, which of these is important for the player's experience?

Volatility is arguably the most important factor for the player's experience in any game, as the player will see how the maths model shapes gameplay upfront. However, for some, it's RTP. After all, people who choose slots with a high RTP are more likely to win than those who choose slots with a low RTP. 

But players who like the fun of a high volatility slot won't mind sacrificing a little RTP for even a chance to win the jackpot or big prizes. It eventually comes down to the player's priorities and bankroll or budget.