Understanding Variance and Volatility in Slot Machines

Understanding Variance and Volatility in Slot Machines

From Edwin Peart

Slot volatility determines how often a slot pays out and the size of the wins. Learn about low, medium, and high variance slots and how to manage your bankroll.

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Slot machines are a classic casino game enjoyed by millions of players for their exciting graphics, themes, and the chance to win big payouts. But not all slot machines are created equal when it comes to their payouts and volatility. Understanding the variance and volatility of different slots can help you have a more enjoyable gaming experience on such legal platforms as 0000

What Is Volatility in Slots?

Volatility refers to how often a slot pays out winnings and the size of those payouts. Slots are programmed with different levels of variance that affect gameplay:

  • Low variance slots have frequent, smaller wins.

  • Medium variance slots have moderate-sized wins less often.

  • High variance slots have less frequent but bigger payouts.

So higher volatility slots present more risk, but the potential reward of larger payouts is greater. While lower variance slots pay out more often to keep you playing longer, the wins tend to be smaller.

Measuring Volatility

Volatility is often quantified using two key metrics:

  • Hit Frequency – The percentage of spins that result in a winning combination. Slots with higher hit frequency pay out wins more often.

  • Payback Percentage – The overall percentage of money wagered that is paid back to players over time. A 96% payback means 96% of the total money wagered is eventually paid out to players.

So a low variance slot may have a hit frequency of 25% to 35% and a payback percentage exceeding 90%. While a high variance slot might only hit a winning combo on 10% to 15% of spins, but has big payouts leading to a similar payback percentage over time.

Managing Your Bankroll

It’s important to look at volatility metrics to size your bankroll appropriately. If you play a higher variance slot, you need a bigger bankroll to ride out the inevitable dry spells without losses busting your entire bankroll.

Lower variance slots tend to be less volatile overall, leading to a more consistent gameplay experience. This makes it easier to plan your bankroll, although the payouts won’t be as large.

High Hit Frequency Slots

Games like Cleopatra slots have lower variance, with a hit frequency commonly around 35%. This means over a third of your spins will result in a winner, although most of them will only be small amounts.

The steady drip of small wins provides plenty of encouragement to keep your bankroll ticking along. You’ll also encounter fewer long-losing streaks, reducing volatility compared to slots with bigger but less frequent payouts.

If you have a smaller bankroll, lower variance slots allow you to spin more times increasing your chances of hitting bonus games and bigger payouts. The tradeoff is you won’t win jackpots or mega payouts, capping your maximum possible wins.

High Volatility Slots

High variance slots appeal to players looking for less frequent but much larger payouts. Games like Jurassic Park, Game of Thrones, and Jackpot Cleopatra pay out big wins less often, leading to a heart-pounding gaming experience.

The higher volatility means you can experience longer dry spells without any decent wins. But when high variance slots payout, they can transform your bankroll with payouts ranging from 1,000x your bet up to record-breaking Megaways jackpots.

Volatility in Bonus Games

Besides the main reel game, most modern video slots also incorporate second-screen bonus games. These can add extra volatility, either increasing or decreasing the overall game volatility.

Some slots have low-variance main games paired with highly volatile bonus rounds. This combination provides easy regular payouts, with the bonus game supplying the big win potential.

Other slots offset a volatile reel game with lower variance bonus rounds. This helps increase the hit frequency for players, while still supplying big jackpot potential on the main reels.

So be sure to check out the bonus games’ volatility as well for a complete picture of a slot’s payout variance.

Volatility and Slot Features

Some key slot features also affect volatility:

Wilds show up frequently on modern slots, substituting for other symbols to help create winning paylines. More wilds mean more frequent wins, decreasing volatility. Expanding and sticky wilds also further boost hit frequency.

Scatters pay out if landing anywhere on the reels, while also triggering lucrative bonus games. These contribute to higher overall volatility due to the potential for bigger bonus payouts.

When symbols form wins, more symbols cascade down, with each cascade creating additional winning chances. These increase hit frequency and reduce volatility.

Megaways slots offer thousands to millions of paylines, leading to some incredible payouts. The huge win potential comes with plenty of volatility, however.

Standalone and wide-are progressives contribute extreme volatility due to their ability to deliver life-changing jackpots in a single spin.

Managing Game Volatility 

As part of your slot strategy, get to know the volatility of games you play regularly. Higher variance games require proper bankroll management to handle the dry spells and ride out cold streaks. The big payouts can be enticing, but they also come with higher volatility.

Lower variance slots provide more consistent short-term results, keeping your bankroll active for longer gaming sessions. The payouts won’t be earth-shattering, however, minimizing the jackpot potential.

Understanding slot volatility takes some research upfront, but it allows you to set accurate win expectations. Every player is different in their preferences for volatility versus hit frequency in slots. Matching your style to lower or higher variance slots results in an optimal gaming experience.

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