The payout ratio is the percentage of all stakes that are paid out to the players in the form of total wins. In this context, the term RTP value (= "Return to Player") is often used. If the payout ratio of a Casino game is 94%, for example, then statistically speaking, 94 euros will flow back to the players in the long term for every 100 euros wagered. The difference (in this case 6%, i.e. 6 euros) goes to the casino operators to cover the ongoing costs of running the game. This differential amount is also known as the house edge.
The fact is that the amount of the payout ratio depends largely on which game is played. The payout ratio tends to be higher for classic table and card games, such as Roulette or Blackjack, than for virtual slot machines. Generally speaking, the average payout for roulette, for example, is 97.3% and the house edge is accordingly only 2.7%. In blackjack, the payout ratio is around 94.3%, although this value can vary depending on how you play.
With online Slot machines, there is a particularly wide range. For most online slots, the payout rate is between 92 % and 98%. For slot machines with progressive jackpots, the RTP value tends to be somewhat lower, as a high Jackpot must sometimes be financed by the stakes.
As recently as June 2021, the Malta Gaming Authority (MGA), probably the most significant EU gaming authority, announced that the minimum payout ratio for casino games would be reduced from 92% previously to 85% now. This means that since then, online casinos licensed by the MGA must guarantee a payout ratio of only 85%. In practice, however, many online casinos still offer a significantly higher payout value.
Also in 2021, the controversial online gambling tax for virtual slot machines was passed in Germany. Since then, at least all online gaming venues licensed in Germany have had to pay a tax of 5.3% on every Bet made. This tax has resulted in a noticeably less attractive payout ratio for providers with a German license.
In local gaming arcades and arcades, however, the payout ratios are still significantly lower for a wide variety of reasons, meaning that they are even less attractive for players. The calculation of the payout ratio at online casinos is usually done by the game developers such as NetEnt or Play'n GO as well as by the casino itself. Partially, the online casinos even publish the respective RTP value for each individual game.
Of course, the payout ratio is merely a statistical value that cannot apply to every single player. This means that not every gambler will be left with a loss exactly equal to the house edge at the end of their gaming session. But at least in the long run, your personal statistics should also settle roughly in the range of the payout ratio. As a casino Player, it is of course hardly possible to check the stated payout values accordingly. For this reason, it is especially important to pay attention to a valid gambling license. This is because the responsible licensing authorities such as the Malta Gaming Authority (MGA) usually also check the fairness of the games. In this context, care should be taken to ensure that a certified Random Number Generator (RNG) is used.