The RTP is the number on every slot that reveals the house edge. It also shows how often a particular slot pays out, which means players usually prefer high RTP slots because, on the surface level, this means they will get back more for their bets.

Recently, there has been a trend of decreasing RTPs in slots. In this article, we will discuss what factors have influenced this and what it means for online casinos. 

What factors have influenced decreasing slot RTP?

The trend of decreased RTPs is largely due to three major influences: developers and operators, regulators, and governments. 

Developers and operators 

Developers and operators are collaborators. Developers choose the RTP for each slot.

However, this is to an extent determined by operators who understand that RTP influences their profitability. 

To strike a balance between players and operators, developers create slots with varying RTPs, starting with a high default RTP to cater to players. The other RTPs are usually lower to cater to operators, allowing them to choose which RTP they prefer to offer to players. 

Regulators

Regulators are a secondary factor that influences declining RTPs. For example, in 2021, the Malta Gaming Authority lowered the minimum legal RTp from 92% to 85%, which is a 7% reduction. 

The amendment's purpose is to assist online casinos in increasing profitability despite rising taxes and compliance costs.

The Malta Gaming Authority stated the following in its publication, "Policy Paper on Amending the Return to Player Minimum Percentage":

"A B2C licensee offering games online that use repetitively generated random selection for determining winning combinations for players, in accordance with the way in which the games offered thereby are designed, shall pay out on average a prize amounting to eighty-five percent (85%) or more of the money or money's worth wagered, or any such higher percentage as may be stipulated through a condition of the license."

Governments 

As already mentioned, government taxes and compliance costs have impacted online casino profitability. This means they need to find alternative ways to increase profitability, including decreasing RTPs. 

Impact on the casino industry

While decreasing RTPs may seem like a negative change, the RTPs at online casinos are still better than at land-based casinos.
 

You may also come across crypto casinos with relatively higher RTPs than conventional online casinos. In those cases, it may be because they develop their own games, which means they do not have to pay developers, allowing them to offer higher RTPs. 

Conclusion 

Despite these changes, RTP alone does not determine slot payouts. To fully understand how regularly a particular slot pays out, one must combine it with volatility.

Therefore, consider both before deciding on a slot’s payout.