What is volatility in slots?

Explaining what is volatility?

Volatility, in the context of slot games and gambling, refers to the level of risk associated with playing a particular game. It describes the variability or fluctuations in outcomes that players can expect while playing. In simpler terms, volatility determines how often and how much you can expect to win in a slot game.

Different Types of Slot Volatility

There are typically three types of volatility:

1. Low Volatility - These games are characterized by their tendency to provide players with frequent but smaller payouts. These types of games offer players a more stable and consistent stream of winnings, although these winnings are typically on the smaller side. They are favored by players who appreciate regular wins and extended gameplay sessions without experiencing drastic fluctuations in their bankroll. Game example: Da Vinci Diamonds 
2. Medium Volatility - These slot games achieve a middle ground between low and high volatility. They present players with a combination of frequent but modest wins, mixed with occasional larger payouts. These games offer a balanced mix of entertainment and the opportunity to win significant prizes, making them attractive to a wide spectrum of players. Game example: Psycho
3. High Volatility - These slot games are defined by their rarity of payouts, which, when they do occur, can be substantial. Players might encounter extended periods without any winning combinations, but the allure lies in the potential for significant payouts. These games attract risk-takers and individuals who seek the thrill of pursuing sizable jackpots, even at the cost of enduring occasional losses. Game example: Gates of Olympus

Knowing the volatility of a slot game is crucial for players, as it assists them in selecting games that match their preferences, risk tolerance, and gaming approach. While some players may favor the consistent wins offered by low volatility games, others may be attracted to the excitement of high volatility games. Ultimately, the decision hinges on individual inclinations and the level of risk a player is comfortable with.

Understanding Slot Volatility: Illustrated with Examples

Let’s consider an example to illustrate volatility in slot games:

Imagine two slot machines:

Machine A: This slot game has low volatility. It pays out frequently, but the wins are relatively small.

Machine B: This slot game has high volatility. It pays out less often, but the wins can be substantial when they do occur.

Now, let's look at how these two machines might play out over a series of spins:

Machine A (Low Volatility):

• You start playing Machine A with $100.
• Over the course of 100 spins, you win small amounts quite frequently. For example, you might win $0.50 or $1 every few spins.
• Despite some losses along the way, you manage to keep playing for a long time because of the steady stream of small wins.
• At the end of your session, you might still have some money left, perhaps around $80 or $90, due to the frequent but modest wins offsetting some of your losses.

Machine B (High Volatility):

• You also start playing Machine B with $100.
• In contrast to Machine A, you experience longer periods without any significant wins. You might go many spins without winning anything substantial.
• However, during one lucky spin, you hit a big jackpot or bonus round, resulting in a substantial payout. This win might be several times your initial bet.
• Despite the long dry spells, this one big win more than makes up for your losses and leaves you with a significant profit by the end of your session, say $150 or more.

In summary, while Machine A provides a more consistent and predictable experience with frequent but smaller wins, Machine B offers a more volatile ride with fewer wins overall but the potential for larger payouts. The choice between low and high volatility games depends on factors such as risk tolerance, playing style, and desired level of excitement.

What Sets Apart RTP from Volatility in Slot Games?

The RTP reflects the typical return players can anticipate from a slot game across multiple sessions, while volatility delineates the risk and reward dynamics of the game, encompassing the frequency and magnitude of potential wins. Both RTP and volatility carry significance for players when deciding which slot games to engage with.