Volatility (Variance)

terminology

Volatility (or Variance) refers to the behavior of a game's payout mechanism, directly influencing the associated risk level and guiding optimal slot strategy. It describes how often a game pays out and how large those payouts tend to be. Understanding a game's volatility is crucial for players to manage their bankroll and align their expectations with the game's payout rhythm.

The Three Levels of Volatility

  • Low Volatility: Offers frequent wins, but typically in smaller amounts. These games are suitable for casual play, fulfilling wagering requirements, or for players who prefer a lower risk level.
  • Medium Volatility: Provides a balanced experience, featuring a mix of smaller, more frequent wins and occasional larger payouts. This level can appeal to a broader range of players seeking a moderate risk level.
  • High Volatility: Characterized by rare wins, but with the potential for substantial payouts (often reaching 5,000x or more, impacting the potential max win). These games demand a larger bankroll to endure "dry spells" and are best suited for players employing a higher-risk level slot strategy, aiming for significant gains.

Related Terms

  • European Roulette

    The player-friendly version of Roulette featuring a single zero wheel and a lower house edge.

  • Hit Frequency

    A percentage indicating how often a game generates a winning outcome on a spin, regardless of the prize size.

  • UIGEA (2006)

    The Unlawful Internet Gambling Enforcement Act, a controversial US law that crippled the early online poker market.

  • InterCasino (1996)

    Widely credited as the first online casino to accept a real money wager over the internet.

  • Black Friday (2011)

    April 15, 2011: The day the US Department of Justice seized the domains of the three largest online poker sites.

  • Aggregator

    A B2B software provider that acts as a hub, delivering thousands of games from various studios via a single API.