What is Volatility in Online Casino Games? Risk and Reward

slots volatility explained by fachai games

Ever wondered why some online casino games seem to pay out little and often, while others hold onto their treasures for a lucky few? It’s not the slot machine throwing a tantrum or a fit, that difference often boils down to something called volatility

Understanding this concept is important to a more enjoyable and informed experience. So, what exactly is volatility in casino games? Let’s take a closer look.

What is Volatility?

Volatility describes how the payouts of a casino game behave. It’s about the balance between how frequently you can expect to win and how big those wins might be. Games with high volatility and games with low volatility offer very different playing experiences, and knowing which is which can really shape how you approach your gaming sessions. 

When considering volatility in Tagalog, the nearest way to express it involves discussing the “pagbabago-bago ng panalo” (the changing nature of winnings) or the “antas ng panganib at gantimpala” (the level of risk and reward) within a game.

Essentially, it’s about how much and how often things change in terms of winnings. The volatility meaning in gambling is all about this ebb and flow of payouts.  

What Is The Difference Between High Volatility And Low Volatility

Games aren’t all created equal, and their volatility sits on a scale. Let’s explore the main types you’ll encounter:

High Volatility: Imagine a game that doesn’t pay out very often. You might spin the reels or play hands for a while without seeing much return. However, when a win finally does land, it is BIG, sometimes even life-changing. These games offer the potential for big rewards, but they come with a higher degree of risk to your playing funds in the short run. Perfect for those who like the chase and high risk, high reward structure.

Low Volatility: Completely opposite of high volatility. Slot games with low volatility provide more frequent wins, although the amounts are usually smaller. Playing low volatility games can feel like a more steady experience, with your balance not swinging up and down too dramatically. It’s more about consistent, smaller gains rather than shooting for the stars.

Medium Volatility: As you might guess, these games sit somewhere in the middle. They offer a mix of both worlds – you can expect to see wins happen with reasonable frequency, and the payout sizes can vary from small to quite decent. It’s a balanced approach that appeals to many players.

Why Should You Care About Volatility?

Understanding a game’s volatility isn’t just a technical detail. It has a real impact on your playing experience especially when it comes to slot machines. Here’s why it’s important:

  • Managing Your Funds: If you have a smaller amount to play with, low volatility games can help your funds last longer because wins happen more often and keep you going. High volatility games might require a larger starting balance to weather periods of drought while you wait for a potentially big payout. 

  • Matching Your Playing Style: Do you enjoy the thrill of chasing a large win, even if it means some dry spells? High volatility might suit you. Or do you prefer the satisfaction of more frequent wins and a less risky experience? Low volatility could be your go-to.

  • Setting Realistic Expectations: Knowing the volatility helps you understand what to expect from a game. You won’t be caught off-guard by long periods without wins in a high volatility game, and you’ll appreciate the steady flow of smaller wins in a low volatility one.  

Spotting Volatility in Online Casino Games

Online casinos don’t always shout about a game’s volatility, but there are clues you can look for:

  • The Paytable: Examine what the game pays out for different combinations. Very large top prizes compared to smaller wins often suggest higher volatility. 

  • Bonus Features: Games with complex or potentially very rewarding bonus rounds can sometimes be more volatile, as big wins might be concentrated in these features
  • Jackpots: Games with progressive jackpots are almost always high volatility due to the infrequent nature of hitting the big one. 

  • Game Information and Reviews: Sometimes, online reviews or the game provider’s information might mention the volatility level (high, medium, or low).  

To help visualise this, here’s a simple table:

Feature

High Volatility

Low Volatility

Medium Volatility

Win Frequency

Less Frequent

More Frequent

Moderate Frequency

Payout Size

Larger Potential Wins

Smaller Potential Wins

Mix of Sizes

Risk to Funds

Higher in Short Term

Lower in Short Term

Moderate

Playing Style

Thrill-Seeking, Patient

Steady, Consistent

Balanced

Jackpots

Often Present

Less Common

Can be Present

Strategies and Volatility

Understanding volatility can also inform your playing strategy, here are some tips to consider and be wary of your bankroll.

  • High Volatility Strategies: Players might employ smaller bet sizes and be prepared for longer playing sessions to increase their chances of hitting a significant win. Bankroll management is particularly vital here.

  • Low Volatility Strategies: Some players might use strategies focused on accumulating smaller, more frequent wins, potentially with consistent bet sizes.

  • Medium Volatility Strategies: These games offer flexibility, and players might adapt their betting based on their current balance and recent wins, seeking a balance between risk and reward.

Volatility Across Different Game Types

While the concept of volatility is often discussed in relation to online slots, it applies to other casino games as well. Here’s a general guide to the volatility you might encounter in different game categories:

High Volatility Games:

  • Progressive Jackpot Slots: These games, like Mega Moolah or Jackpot Giant, are known for their massive, infrequent payouts. A small portion of each wager contributes to a growing jackpot, which can reach life-changing sums. Wins in the base game and smaller jackpots might be less frequent to compensate for the huge potential prize.

  • Video Slots with Bonus Buy Features: Some modern video slots allow players to “buy” directly into bonus rounds. These bonus features often hold the potential for very large multipliers and significant wins, making the overall game experience highly volatile. Examples include games from developers like Nolimit City or certain Pragmatic Play titles known for extreme win potential.

  • Poker (Certain Formats): While the volatility in poker depends heavily on the stakes and the players involved, formats like Hold’em at high stakes can be very volatile due to the potential for large swings in chip stacks in a single hand.

  • High Stakes Blackjack with Side Bets: While basic blackjack has relatively low volatility, adding high-paying but low-probability side bets can significantly increase the game’s overall volatility.

Low Volatility Games:

  • Classic Slots (Three-Reel Slots): These simpler slot games often have more frequent but smaller payouts. They typically lack complex bonus features and focus on consistent wins in the base game, like Starburst or Da Vinci Diamonds.

  • Certain Table Games (Lower Variance Bets):

    • Blackjack (Basic Strategy): Playing blackjack using basic strategy generally results in lower volatility compared to slots, with more predictable outcomes in the short term.

    • Roulette (Even Money Bets): Betting on red/black, odd/even, or high/low in roulette offers lower volatility as these bets have nearly a 50% chance of winning, albeit with a 1:1 payout.

    • Baccarat (Banker and Player Bets): The main Banker and Player bets in Baccarat have relatively low volatility due to the game’s mechanics and odds.

Medium Volatility Games:

  • Most Modern Video Slots: A large majority of online slots fall into this category. They offer a balance between the frequency of wins and the potential for larger payouts in bonus rounds or through symbol combinations. Games like Book of Dead or Fishin’ Frenzy often exhibit medium volatility.

It’s important to remember that these are general categorisations, and the specific volatility of a game can vary depending on the individual title and its features. Always check game information or reviews when available to get a better understanding of a particular game’s volatility.

High, Low, Medium Volatility – We have it all at Fachai!

As we’ve explored, the volatility of online casino games is a really important aspect to grasp. It dictates the rhythm of your gameplay, the size of potential wins, and the level of risk involved. 

Here at Fachai, we understand that every player has their own preferences and appetite for risk. That’s why we’ve curated a diverse selection of games spanning the entire volatility spectrum. 

So, come and explore the variety – discover the high-octane thrills, the steady enjoyment, and the balanced excitement that awaits you at Fachai table games, where your perfect game is just a spin or a hand away!

Frequently Asked Questions What is Volatility in Casino Games

Is Higher Volatility Always Better for Big Wins? 

While high volatility games can offer larger potential payouts, it’s not guaranteed, and they also come with a higher risk of longer losing streaks.

Are Table Games Always Less Volatile Than Slots? 

Not necessarily. While many base table game bets have lower volatility, certain side bets or specific game variations can introduce higher volatility.

How Does Bet Size Interact With Volatility? 

In high volatility games, smaller bet sizes can help extend your playtime to weather potential losing streaks while waiting for a larger win.  

Can Bonus Features Change a Slot’s Volatility? 

Bonus features are often integral to a slot’s volatility. Games where big wins are concentrated in rare bonus rounds are typically more volatile.  

How Does Volatility Differ Between Fixed and Progressive Jackpots? 

Fixed jackpot games can have varying volatility levels, while progressive jackpot slots are almost always high volatility due to the infrequent nature of hitting the top prize.  

Should Beginners Avoid High Volatility Games? 

Beginners with smaller bankrolls might find low volatility games more suitable as they offer more frequent wins and a less dramatic fluctuation in funds, allowing for longer playtime.