Volatility is an integral part of casino games, and this article will help you understand this concept fully. In short, it refers to the degree of fluctuation in the outcome of the game. It refers to the distribution of wins and losses of a specific gaming session.
In other words, it is a determination of the size and frequency of your winnings. Factors such as bankroll management, levels of risk aversion, and expectations affect the volatility of any game.
Let’s look at how volatility levels can affect your decision-making, increase the possibility of high payouts, and improve your gaming experience.
I will help you recognize the role of volatility in both land-based and online casinos. I also give examples of games with different volatility levels to help guide which game to choose.
What Does Volatility Mean in Slots
Volatility in online slots refers to the risk level associated with a specific game. It indicates how often you can expect a slot machine to pay out. The level of volatility also impacts the thrill and excitement you experience when playing a game.
To understand what volatility means in slots, let’s take a brief look at the three types of volatility: low, medium, and high. These levels of volatility will impact your potential winnings and the level of risk involved.
Remember, volatility is not an exact indication of how much payout you will receive or the fairness of the game. It is an indication of how much risk is associated with the game.
High Volatility in Slots
This type of slot offers infrequent opportunities to win big but also has the greatest risk. Players can expect to face dry spells before having a massive payout. These slots are suited to players who are looking for the euphoria of receiving a jackpot.
The downside of high volatility slots, you will need a fairly large budget and a low level of risk aversion to sustain them through losses.
Low Volatility in Slots
Low volatility slots are ideal for risk-averse players who can accept slow, steady wins. They can also enjoy longer playing sessions, and they have a higher chance of winning during each spin.
Although these slots may have fewer winnings during each spin, the low payouts reduce the chances of you hitting a big jackpot.
Low-Medium Volatility Slots
These are also low-risk games that often result in hits of higher frequency games. If you are looking for lots of excitement over the long run and have a decent budget you might just hit some big wins.
Medium Volatility in Slots
These slots reach a middle ground between low and high volatility, offering both small and large payouts. If you want the exhilaration of these big wins but still want consistent payouts, medium volatility is the way to go.
Remember, volatility in gambling does not indicate how much payout you will receive or the fairness of the game.
| Type | Risks | Rewards |
|---|---|---|
| High volatility slots |
|
|
| Low volatility slots |
|
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The above diagram is a representation of the differences between high and low volatility slots to help you make more informed gaming decisions.
Examples of High & Low Volatility Games
Online casinos often offer a huge variety of slot games. However, the volatility of a game is not often mentioned on gaming sites. Depending on the trade-off you are willing to make, you will need to decide between:
- Higher risk and large infrequent outcomes
- Lower risk and frequent payouts,
The table below will give you an idea of some high and low-volatility slot games.
| High Volatility Games | Low Volatility Games |
|---|---|
| Book of Dead | Da Vinci Diamonds |
| Reactoonz | Starmania |
| Big Bamboo | Fortune Chain |
| Razor Shark | Starburst |
| Money Train 3 | Wolf Run |
Frequently Asked Questions about Volatility in Online Slots
Variance measures how often the slot machine pays its players overtime. Volatility measures how often and how much the average wins are.
You need to note that slots that payout often will have a higher return to play, even though your overall winnings will be small.
In the long term, these frequent winnings may add up to more than the amount you initially bet.
On the other hand, high volatility slots have more risk yet offer the chance of enormous returns. There is also the risk of losing a considerable amount of money.
My advice: look for casinos with a lower house edge; that will give you higher chances of winning.
The profit or house edge of the casino can vary from 0.5% up to 40% depending on the game you play.
Wrapping Up
As this article aims to explain, you cannot discount the importance of volatility in terms of a game. It can make the difference between a huge win and a massive loss. It is an indication of:
- how rarely
- how often you can expect to win
- how much you might win.
Once you understand the meaning of high, low, and medium slot machines, then you can choose which game is best for your gaming outlook.
It is also useful to know your odds and remember to gamble only what you are ready to lose.
Disclaimer: This article is meant for educational and informational purposes only. It is not meant as financial advice in any form or manner.
