Slot machines don’t pay as consistently as most casino games. Instead, your results can vary greatly from one session to the next.

Low Volatility in Slots. Another thing to take into account when picking online slots to play for real money is their volatility, also known as variance. The term “volatility” is used to describe the amount of risk, inherent to a given online slot. If you have played online slots before, there is a good chance you have noticed that. The Black Widow slot machine game has a house edge of only 4%, which might seem to be a decent option for gamblers. Don’t forget about the low volatility, which balances your bettings with possible winnings. You should play carefully around your bankroll, which is a universal rule for any machine. We often recommend selecting your coin size.

Casino slots are considered volatile due to these highly diversified results. You may win a couple of big payouts one hour, then lose hundreds of dollars the next hour.

It can feel like all of these games are extremely sporadic. However, online slots differ from each other in terms of volatility too.

You may gravitate towards high-volatility slots without knowing it. These games usually have larger jackpots and more bonuses, which makes them attractive.

But you should know the pros and cons of such games before playing them. Keep reading to see the advantages and disadvantages along with more on volatility itself.

What Is Volatility in Slot Machines?

Volatility is a measurement of how much short-term results differ from a statistical mean. Results are highly volatile when they vary wildly from the average.

Regarding slots, this term often describes how explosive results are when measured against return to player (RTP).

Here’s an example:

• You play two different slot machines for three sessions each.
• Slot #1 offers 95% RTP.
• You have one great session and two terrible sessions on this game.
• Slot #2 offers 90% RTP.
• You have two decent sessions and one below-average sessions with this game.
• Slot #1 appears to have the higher volatility.

Slot machines don’t pay as consistently as many other games. They offer a wide discrepancy between the top and bottom prizes.

Here’s a simple pay table to explain:

All casinos, both brick and mortar and online casinos, would lose a fortune if this game paid as often as online blackjack, for example. After all, it offers prizes that are much larger than the average bet.

Online slots must be volatile by nature to compensate for big payouts at the top. While these varied results can be frustrating, they’re a necessary evil in order for large jackpots to exist.

High vs. Low Volatility Slots

Many gamblers commonly associate all slot machines with extreme results. This line of thinking isn’t wrong to a degree.

However, not all slots are the same with regard to volatility. Some offer more-severe winning and losing streaks than others.

Slot machines with big progressive jackpots are highly volatile. They don’t pay out as often in order to compensate for their large jackpots.

Meanwhile, slots with smaller top prizes normally have less volatility. These games can afford to pay more often, because their prize structures aren’t as extreme.

Two Methods for Figuring Out Slots Volatility

You don’t have many options for determining volatility in online slot machines or even brick and mortar slots. In fact, there are really only two ways to figure this out:

• Look at the help/info screen.
• Look at the pay table.

Some casino slots developers offer a volatility rating for their games. You simply need to visit the help/info stream to see this rating.

The problem, though, is that most slots don’t have such a rating. In this case, you need to go with the second option that involves looking at the pay table.

You should consider multiple factors when estimating a game’s volatility.

Here are the aspects that can indicate high variance:

• Large jackpot
• Multiple big non-jackpot prizes (e.g. 500 coins or more).
• Few small prizes (e.g. 10 coins or less).
• Three or more bonus features

A slot machine doesn’t necessarily need all of these traits to be volatile. However, 2-3 of these aspects can indicate potentially extreme results.

Using these factors to determine volatility isn’t a perfect science. However, you can improve the process by understanding how each element correlates to the industry.

When looking at progressive jackpots, always consider the “seed” amount rather than the current value. Developers only care about what they must seed a progressive jackpot with when setting a game’s volatility – not how much these prizes grow to.

Here’s an example:

• Microgaming seeds Mega Moolah’s progressive jackpot at $1 million.
• This prize grows to $10 million.
• Microgaming only cares about the $1 million with regard to a game’s volatility.
• The extra $9 million comes from players’ bets, rather than Microgaming’s pocket.

The number of large and small payouts is self-explanatory with regard to volatility. A game with more big payouts, versus small, can’t deliver as many low prizes.

Extra bonus features provide more chances to collect big payouts. Online slots with all of these features won’t pay as frequently.

Pros of High Volatility Slot Machines

I mentioned earlier that slots with high variance are popular among players. Their big jackpots are a huge selling point.

However, this is just one example of why volatile slot machines are worth playing. Check out all of the main benefits below.

You Can Win Big Jackpots

No other online casino and land-based game provides the chance to get rich as quickly as slot machines. Of course, you have to be playing the right slots in order to win big.

I mentioned earlier that high-volatility slots normally offer the largest jackpots. Some of these games feature prizes worth seven or even eight figures.

Megabucks, which is found in Las Vegas casinos, once paid a jackpot worth $39.7 million. It’s delivered plenty of other eight-figure prizes in its existence too.

Microgaming’s Mega Moolah online slot has paid a jackpot worth almost $22 million. This windfall is just one of the many life-changing prizes that Mega Moolah has awarded.

Low volatility slot machines can also offer decent-sized payouts. However, they’ll never come close to the multimillion-dollar prizes that are available in games with higher volatility.

You’ll Have Access to More Bonus Features

Slot bonuses have become highly advanced over the years. Some slots now feature detailed mini games that serve as bonuses.

Here’s an example:

• You’re playing a racing themed slot.
• You trigger a bonus with three scatter symbols.
• You’re taken to a second screen that features a racetrack and multiple cars.
• You must pick one of the cars.
• The hope is that your chosen car wins the race and offers the biggest prize.

Of course, the casino slots world is filled with plenty of other types of bonuses. Free spins, scatter payouts, click-me features, and cascading reels are just some of what’s available.

High Volatility Slots

Many gamblers are initially attracted to slot machines because they want to spin the reels and win big. However, bonuses are part of what keep them coming back.

Larger Regular Wins

Jackpots get all of the attention in the slots world. However, the chances of winning these prizes are very slim.

Most slots don’t offer many payouts worth 500 coins or more. But you can still find games that feature multiple bigger prizes.

Cons of Low Volatility Slot Machines

Chasing huge jackpots and triggering bonuses is exciting. But more-volatile slot machines are far from perfect.

They feature several downsides that may make you reconsider playing them. Here are the biggest drawbacks to these slot machines.

You Won’t Win as Much

Hot streaks, where you rack up plenty of small payouts in a short time span, can be almost as satisfying as hitting jackpots. Unfortunately, you won’t experience this joy much with high-volatility games.

These slots don’t pay with anywhere near the same frequency as less-volatile machines. You’ll experience more losing streaks as a result.

It’s never fun sitting at a slot machine and losing over and over. You have to accept this scenario more frequently, though, with high-variance games.

These Slots Make Bankroll Management Harder

Bankroll management is a crucial aspect to getting more entertainment out of slot machines. Properly managing your bankroll allows you to prepare for potential losses and avoid betting too much.

But highly volatile games make this process harder. You don’t know what to expect as much, which makes it more difficult to judge the amount of funds you’ll need.

You can still make a bankroll plan for these types of casino slots. Just remember, though, that your plan has greater potential to go off track.

High Volatility Leads to High Emotions

Playing slots with extreme payout percentages can lead to a rollercoaster of emotions. One day you might win thousands of dollars, only to lose it all throughout the next few days.

Online casinos are filled with plenty of other games that will give you thrills without causing near-panic attacks.

RTP Means Less with These Slots

RTP is a great way to judge how much you can expect to win back from slot machines. However, it carries less short-term significance when more volatility is introduced.

Payout percentages merely indicate what a slot machine will pay over time. It’s not a good indication of what you can look forward to winning within the next few sessions.

You’ll have even less of a clue when it comes to volatile slot machines. Even if one of these games has 97% RTP, it could deliver 25% to 300% payback in the short run.

Your Bankroll Will Run Out Quicker

Most slot machines pay back between $0.92 and $0.96 on the dollar. They’re not terrible wagers on a per-bet basis.

You of course still have the potential to win big and pad your bankroll. But you also have to account for the increased chance that you’ll lose everything.

Should You Play Slots with High Volatility?

Slots with greater volatility aren’t for everybody. They don’t pay often and can lead to more downswings during gambling sessions.

But these slots can still be worth the headaches. Many players find them far more entertaining than slots with evener payout structures.

Weighing the pros and cons gives you a good idea on if volatile slots fit your tastes. You can’t beat the bonuses and large jackpots in terms of thrills.

Low Volatility Stock

But you must also be willing to put up with longer losing streaks, tougher bankroll management, and more unpredictability. As long as you’re okay with these aspects, then volatile games are a fine choice.

Conclusion

Many gamblers don’t even think about volatility before choosing a slot machine. They instead sit down to play whatever game has the most-interesting theme, best graphics, and/or biggest jackpot.

Ignoring volatility, though, can be a mistake. You want to take into account how a game’s features and payouts will affect your short-term chances of winning.

Of course, this isn’t to say that you should discount the graphics and theme. Casino slots are, after all, about the entertainment aspect before anything else.

Be aware, though, of how volatility affects your payout frequency. You’ll normally win less often with volatile games.

This scenario causes problems in terms of bankroll management and extending your slots sessions. You’ll also experience more frustration when more dry spells occur.

But again, you may be fine with these problems as long as you can win big and trigger more bonuses. It’s up to you to decide if the advantages outweigh the downsides.

You’ve probably noticed that slots results aren’t very consistent. You might win hundreds of dollars in one session, then lose the same amount in less than an hour the next.

Slot machines offer wild results in comparison to, say, blackjack or baccarat. These games see you win almost half the time on a fairly consistent basis.

Slots have both high volatility and high variance when compared to other casino games. But what exactly do these terms mean, and how do they apply to slot machines?

Keep reading as I cover more on volatility and variance, along with how they impact your chances of winning.

What Is Variance?

Variance is a measure of the distribution of long-term results. Simply put, it measures how far results can vary from the statistical average.

Variance shouldn’t be confused with standard deviation, a square root of variance that more closely measures the average distance of results. It instead measures how likely results are to change, rather than offering a hardline number like standard variation.

The weather is more likely to change in Michigan versus Hawaii. Therefore, Michigan’s weather has higher variance.

One more characteristic of this term is that it doesn’t get bound by any particular time, such as a week or a month. It considers the long-term likelihood of change.

What Is Volatility?

Volatility is very similar to variance in that it measures the distribution of results. However, the key difference is that it’s bound by a specific time.

Measuring the difference in weekly car sales within a single month refers to volatility. Variance, on the other hand, doesn’t require that results be limited to one month.

Volatility is a good way to measure short-term changes in a set of statistics. It helps you figure out what kind of risk you’re taking in the short run.

How Do Variance and Volatility Factor Into Slots Results?

Slot machines have both high variance and volatility when compared to other casino games. They have a wide variation between prizes, which means that they don’t pay out as consistently as most games.

Here’s a simple pay table to explain:

• 3 Lamborghinis = 10,000 coins
• 3 Ferraris = 2,500 coins
• 3 Audis = 500 coins
• 3 Mercedes = 250 coins
• 3 Hyundais = 50 coins
• 3 minivans = 25 coins
• 3 rusty pick-up trucks = 5 coins

You can see that this pay table has big and small payouts. Given the fact that the game offers prizes worth 10,000 coins, it must make up for these wins by paying less frequently.

Compare this to an even-money roulette bet, such as red/black. You get paid 1:1 on red/black and have a 48.65% chance of winning (on European wheel).

Volatility comes into play when considering that you never know how an individual slots session will go. You could win a massive six-figure prize, depending upon the game. You could also lose $1,000 in a couple of hours.

This unpredictability excites some gamblers. It’s a big reason why they continue spinning the reels and hoping to win big.

Variance factors in when considering that slot machines are also risky from a long-term perspective. While they’re programmed to offer a certain return to player (RTP), they still deliver widely varying results from player to player.

Some slot machines may not reach their given RTP until millions of spins. They can be quite unpredictable, even over a long period of time.

High Volatility Slot Machines

This high variance and volatility makes it difficult to manage your bankroll with slot machines. While you should still come up with a strategy, your bankroll management plan can still go off-track rather quickly.

You have to be prepared to deal with this unpredictability in order to embrace slot machines. As long as you’re fine with this, though, then you should have lots of fun playing these games.

High vs Low Slots Variance and Volatility

I just discussed how slot machines feature much more variance and volatility than the average casino game. But there’s also a division among each slot machine in these categories.

Some slots are designed with less variance, while others are extremely unpredictable. It pays to know how to spot high and low variance so that you can choose the type of slot that’s right for you.

Some games feature of a volatility rating within their pay table. Pragmatic Play slots, for example, show a rating ranging from 1 to 5 lightning bolts, with 5 volts indicating the highest volatility.

I’ve never actually seen a slot machine with a variance rating. However, the volatility rating can give you an indication of the variance.

Unfortunately, not all slot machines offer these helpful tools. You instead must look at various factors to predict what the variance and volatility will be.

Here are the key aspects that you want to focus on:

• Jackpot size – A larger jackpot indicates high volatility/variance
• Number of bonus features – More bonuses allude to higher volatility/variance
• Number of small payouts – More small prizes indicate lower volatility/variance

You’re not guaranteed to figure out volatility and variance simply by judging these factors. However, they at least give you some method of determining which slots are more unpredictable than others.

Again, variance and volatility aren’t necessarily interchangeable terms. The former indicates a distribution of long-term results, while the latter measures results within a specific time span.

But considering that slot machines aren’t precise in their ratings, you’re not going to get a clean measure of these factors within each game. Assuming a slot even offers a volatility rating, then you basically have to use this for an indication of the variance too.

Will Understanding These Terms Help You Win in Slots?

Understanding slots volatility and variance helps you choose games that best fit your bankroll management plan. If you have a small bankroll and want it to last, then you should pick games with low volatility and variance.

The chances are that you don’t want to play a game with high variance and volatility. Extreme unpredictability increases the chances that you could quickly lose your bankroll.

However, certain aspects of high-volatility slots are attractive. You may love games that offer big jackpots and lots of bonus features. In this case, you also have to weigh how a game’s unpredictability will affect your bankroll.

You can get lucky with erratic games and win a big jackpot. However, it’s important to realize the increased risk you’re taking as well.

Knowing variance and volatility doesn’t, by any means, increase the chances that you’ll be a long-term slots winner. RTP, which I’m going to discuss shortly, is a better measure of this aspect.

That said, knowledge of these terms doesn’t necessarily improve your odds of winning. However, they’re good concepts to understand with regard to weighing bankroll management versus your desire to play for jackpots and bonuses.

Other Slots Tips

It’s wise to mix your knowledge of variance and volatility with basic slots tips. Common strategy improves your chances of being profitable with slot machines.

At the very least, you can minimize the amount of money you lose with proper strategy. Keep the following tips in mind to give yourself a fighting chance with slots.

Find Slot Machines With High RTP

Return to player determines how much money a slot machine will pay over the long run.

A slot with 96% RTP will theoretically pay back $0.96 for every dollar wagered.

I emphasize the word “theoretically” here because slots don’t offer such clean payout distributions. Much of this has to do with volatility and variance, which are both quite high in slots.

Nevertheless, you should always consider RTP when this information is available. Most online slots have publicly-listed payout percentages, allowing you actually to see your chances of winning.

Unfortunately, land-based slot machines don’t offer the same luxury. You instead have to go off of vague RTP based on coin denominations.

Here’s a loose guide on how much each coin denomination pays:

• Penny slots = 88% to 91% RTP
• Nickel slots = 92% to 94%
• Quarter slots = 94% to 95%
• Dollar slots = 95% to 96%
• $5 slots = 96% to 98%

Long story short, higher RTP means that you have a better chance of winning money. And while volatility might affect how much you truly earn, it’s always worth using payout percentages as a strategy tool.

Understand the Game Rules

I’ve talked to many new slots players over the years who are confused by how the betting process works. They’ll insert $20 into a penny slot machine and be amazed when the money is gone in five minutes.

Here’s where understanding the rules behind a slot come into play. You want to know the betting options and other rules thoroughly.

Many land-based and online slots these days require you to play all of the available lines. If you’re on a 30-line slot, for example, then the minimum bet will likely be $0.30.

You should also look through the help/info screen to figure out how bonus features work. Doing so is particularly helpful when you need to know specific instructions for playing a bonus round.

Looking at info screens isn’t anybody’s idea of a good time, but a few minutes spent here will help you make the right bet sizes and have a better overall time with slot machines.

Develop a Bankroll Management Plan

Most slots players go into a session with no plan for managing their money. The same gamblers risk losing their bankroll quicker and possibly dipping into funds that they need for bills.

Taking just a little time to develop a bankroll management plan helps prevent these problems. This process isn’t as intimidating as it sounds, either.

You can get started by considering how much money you can comfortably lose with slots. Obviously, the goal is to win, but you also have to be realistic about the possibility of losing your funds.

The next step is to figure out your hourly losses. Most slot machines cost between 200 and 300 bets per hour — at least until you get a big win, anyway.

Here’s a sample bankroll management plan:

• You have a $1,000 bankroll
• You’re making $0.25 bets
• 1,000 / 0.25 = 4,000 betting units
• You’re playing a volatile slot
• You expect to lose 300 units per hour
• 4,000 / 3000 = 13.33 hours
• Your bankroll will theoretically last for 13.33 hours

Have a Stop-Loss Limit

You likely want to get as much play as possible from your bankroll, but this is difficult to do when you don’t have a stop-loss limit in place.

A stop-loss limit refers to a specific amount of losses that will convince you to stop playing. If your limit is $150, for example, then you’d quit your session immediately after dropping this amount.

The point of a stop loss is to preserve your gambling funds for several sessions or more. Here’s an example:

• You have a $400 bankroll
• You want it to last for at least four sessions
• 400 / 4 = $100
• Your stop loss should be $100 or less

Setting a stop-loss limit is a personal matter that depends upon your specific goals. Consider how many sessions you want your bankroll to last for and use this to determine your stop-loss point.

Join the Slots Club

The good thing about playing online slots is that you don’t have to do anything special to join the rewards program. Most casinos automatically enroll you in their VIP program as soon as you begin placing real-money bets.

Land-based casinos are different, however, because they require you to join the slots club physically. If you’re not a member of the club, then the only comps you can look forward to are free drinks.

Therefore, you should seek out the help desk upon visiting a brick-and-mortar casino.

You can also go to their website and see if there’s a way to sign up online. Whatever the case may be, you want to be sure and join the program so that you get a slots club card. Your bets and rewards will get tracked once you insert one of these cards into a slot machine.

You can look forward to plenty of great deals based on your play, including free meals, hotel stays, free play, and/or cash back.

Volatility Slots Definition

Conclusion

Variance and volatility are often used interchangeably in the gambling world and beyond. However, they differ somewhat in terms of how they get used.

Low Volatility Slot Machines

Variance measures the distance in long-term results, without any set time parameters. Basically, it’s a way to measure the change in the long run.

Volatility also measures the distance in results. But its measurement comes with a time limit, such as one week or month.

Both concepts are useful in the slots world.

Low Volatility Slot Machines

• Variance can show how unpredictable long-term wins and losses can be.
• Volatility can reveal the unpredictability of short-term results.

Some slots actually offer a volatility rating, which gives you a simple way to judge how erratic they are. Most don’t, though, which means you need to look at the jackpot size, bonus features, and the number of small payouts to make a judgment.

I’m not aware of any slot machines that feature a variance rating. You’re therefore left using the same volatility factors to predict variance.

Slot Machine Volatility Formula

These concepts are worth knowing because they can help you pick slots that fit your bankroll. For example, a low-volatility slot gives you a better chance of surviving with a small bankroll.

Of course, you also want to remember basic slots tips, too. Looking for games with high RTP, joining the slots club, and coming up with a bankroll management plan can all pay dividends.

Combining a strong knowledge of variance and volatility, along with these tips, will boost your chances of winning money and picking games that are right for you.