Gambling return rate explained: How to calculate your return

How much must you wager on a slot game to get paid back? The answer lies in the game's gambling return rate, or Return to Player (RTP) is the answer. This represents the payout percentage of casino games like slots. It is the statistical probability of winning back your wagers over time, which means the higher the RTP, the higher your chances of winning.

Learn all about gambling dividend rates, their calculations, rankings and how you can use them to make money with profitable gambling in the coming sections.  

What is the gambling return rate? 

Gaming providers set the RTP for online casino games, meaning online casinos like Bitcasino have no control over it. This allows you to play the same game on any platform with the same RTP.

A land-based slot game has a set Return to Player from 70% to 90%. When it comes to online slots, you will find games with higher RTPs, often at least 94%. 

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How to calculate the gambling return rate

Get the RTP of your chosen casino game by dividing the total value of money you received by the amount of funds you wagered on a certain game during a specific time or number of rounds.

To better understand, here’s how you can calculate the return rate using this formula:

For example, according to the calculation, if the RTP is 97%, the casino is anticipated to return US$97 for every US$100 wagered in the long-term, which can mean millions of rounds or spins.

What is the gambling deduction rate?

Besides the return rate, the gambling deduction rate is also crucial in casino gaming. Also known as house edge, this rate dictates the percentage of the casino’s profit.

To better understand the gambling deduction rate, here’s an example:

A blackjack game has a 9% house edge. This means, on average, for every US$100 you wagered, the casino operator keeps US$9 as profit and returns the remaining US$91 to you as winnings over time. 

If the house edge is not indicated, you can calculate it using the formula below:

Laws in public gambling return rates in Japan

Return rates of public gambling in Japan are known for being the lowest compared to other countries. This is because they impose a law for each public gambling activity. 

See the gambling return rate list in Japan below:

Based on the table above, public gambling in Japan has low return rates, with Soccer lottery (Toto) being the lowest, with less than 50%. They impose taxes on gambling games for different reasons, which explains the low return rates. Take horse racing, for example, wherein the 25% will be used for livestock promotion. 

Gambling return rate ranking of public gambling activities

As mentioned above, Japan has a lower RTP than other places due to the laws it enforces. Here’s an overview of the return rates of gambling games and sports in Japan, ranked from highest RTP to lowest RTP:

Online casino games return rate ranking

A lot of players prefer to play in online casinos due to the wide variety of casino games with a higher return rate, such as blackjack, baccarat, roulette and more.

The amount you get back varies per game. Refer to the table below to see how they rank:

Looking at the table, blackjack casino games have the highest return rate with approximately 99%. On the other hand, video slots have the lowest, with approximately 93%. However, you can still find slot games with high RTPs, like progressive jackpot slots.

Gambling dividend rate of public gambling and online casinos

In the previous section, we can see that online casino games offer the highest return rate compared to other public gambling variations. To further elaborate, here’s an explanation of the gambling dividend rates for each type:

Horse racing return rate

The return rate for horse racing is approximately 76%, which means for every 10,000 yen bet, you can expect a 7,600 yen return in the long run. Compared to other public gambling, horse racing is among the highest. 

However, there are various betting methods in horse racing. This includes single wins, multiple wins and double horse betting, wherein the return rate can vary. 

Bicycle racing return rate

The return rate for bicycle racing is approximately 75%. When betting on this sport, you are gambling on the cyclist, so predicting the game can be challenging, and many factors can affect your return rate. When betting on bicycle racing, consider factors such as wind resistance and the athlete’s characteristics or performance history.

Boat racing return rate

The return rate of boat racing is approximately 75%, like bicycle racing. Its 25% gambling deduction rate breakdowns to:

• Grant to Nippon Foundation: 2.6%
• Race association grant: 1.3%
• Holding expenses etc.

Just like bicycle and horse racing, several factors can impact the return rate. This includes boat conditions, weather, players and more.

Pachinko/slot return rate

Pachinko has the second-highest return rate (85%) next to online casinos. But you have to remember that the RTP is based on millions of rounds or spins in these games. It means you shouldn’t expect a guaranteed return of 85%. Instead, use it as a guide to increase your chances of winning in pachinko. 

Lottery return rate

The return rate of lotteries is around 45%. Its low return rate might be discouraging, but the jackpot prize is extremely high. Its high payout and low odds are why it’s difficult to win the lottery.

Online casino return rate

Online casino gambling has the highest return rate, with approximately 97%. This is because online casinos don’t have to pay the additional overhead costs brick-and-mortar slot machines have, such as personnel and house maintenance. 

Its higher return rate makes it a popular choice among gamblers. 

Are casino winnings taxed?

Once the high of the win washes away, every gambler needs to deal with an unlikeable thing: taxes. However, not every country has the same law when it comes to tax. There are some who view gambling as a source of income while others see it as just a hobby. It is important for you to familiarise yourself with the gambling tax in your country before you make a bet since different rules apply in different countries. 

There are countries where some casino games are exempted from taxes. However, there are also nations that consider the winner’s jackpot prize to be a taxable income. If you’re living in the United States, almost every casino game is taxable by the Internal Revenue Service (IRS), which is the body responsible for collecting taxes and administering the tax law. However, if you live in the United Kingdom, you are free to keep your wins.

Casino taxes in different countries

If you’re wondering what taxes apply for your win, here are a few points that will summarise the law on taxes for different nations: 

24% taxes on winnings in the United States (U.S.) 

Benjamin Franklin once said that only death and taxes are certain, which seems pretty accurate for the U.S. tax law. In America, casinos are obligated to report wins of $1,200 and higher since it is the taxable amount for gambling. However, keep in mind that your winnings shouldn’t be reduced by your wager.

No taxes on casino winnings in the United Kingdom

It’s a good day to spin the reels in the UK and win a jackpot! Turns out that Her Majesty’s Revenue and Customs (HMRC) doesn’t have casino taxes. Regardless of the amount you won, you can walk out of the casino without worrying about the government being on your tail. 

Your slot winnings are generally tax-free in Australia

Taxes on casino winnings varies state to state. However, the general law in the Australian Taxation Office (ATO) states that there is no tax on slot machine wins or any gambling activity since gambling isn’t a profession in the country. Moreover, the government doesn’t see your winnings as an income since it is a result of good luck, so the tax falls on the casinos instead. 

No tax laws on slot winnings in New Zealand 

Good news for gamblers in New Zealand! There is no tax on casino wins in the country even for professional gamblers. Professionals are only subject to tax if the game they play is based on skills. Moreover, gambling is considered recreational in the country instead of a source of income. 

Play casino games with high gambling return rates at Bitcasino!

Countries like Japan have laws and taxes that influence the payout rate of public gambling activities. If you win or lose in horse racing or boat racing, remember where the return rate percentage goes. But if you are looking for games that will give you big revenue, online casinos are the ideal choice. 

Bitcasino offers a wide selection of games where you have a high probability of turning the odds in your favour. You can find the lowest and highest RTP games on our live RTP page. Deposit today and get the chance to win slots, table games or live dealer titles at Bitcasino.

Frequently Asked Questions (FAQs)

Why gambling return rate is important?

The return rate indicates the amount of money you can win over time. With this, you’ll know which games can potentially give you returns.

What is the return rate at Japanese casinos?

The return rate varies per game. Check the table below:

Why gambling at online casinos has a high return rate?

Online casinos have higher return rates than brick-and-mortar casinos since they don’t have to pay the additional overhead costs for slot machines, which need personnel and maintenance.

What are the chances of winning in gambling?

You can check the game’s RTP to know the chances of winning. You can find the indicated odds of winning on the game’s settings. 

What is the difference between the return rate and the refund rate?

There’s no difference between the two. Return rate and refund rate are the alternative names of RTP.

Words by: Barbara Menorias