Pokies Volatility Explained – What Does Volatility (Variance) Mean in Online Pokies?
Pokie (slot) volatility, in simple words, is a measure of identifying how risky a game is. Volatility, often used interchangeably with the term ‘variance,’ lets you know if a game is high- or low-risk or if the risk is balanced out.
Slots are chance-based, but understanding volatility lets you choose a game based on your risk tolerance. Let’s see what volatility is in pokies and what it means for payouts.
What is Volatility and Variance in Pokies
Volatility and variance, which are also terms used in finance, indicate a slot’s payout potential over a given time.
Volatility basically indicates the hit (win) frequency, i.e. intervals between wins. On the other hand, variance, which is closely related to volatility, indicates deviations (differences) in payout size when playing pokies over time.
Simply put, volatility is a yardstick for determining risk and uncertainty – approximately how often the pokie pays and the size of the winning combinations.
Volatility vs RTP
Return to player (RTP) is a percentage value assigned to online pokies, usually ranging between 88% to 97% or more. The number indicates how much on average of your wagers a given slot returns over a certain time.
For instance, a slot with 94% RTP should return about AU$94 for every AU$100 wagered. But these numbers are only theoretical, and it can sometimes take hundreds, if not thousands of spins to see the exact RTP amount returned to you.
Conversely, volatility is concerned with the frequency and size of your wins, rather than how much of your staked money the pokie returns. Volatility and RTP are not related, and a slot can have high RTP (96% or over) and low volatility, and vice versa.
Types of Pokies Based on Volatility
There are three main types of pokies based on volatility: low, medium and high. There are also in-between volatility levels – medium-low and medium-high – which we will skip for now.
Low Volatility Slots
Pokies with low volatility are distinguished by their frequent wins over shorter time intervals. The intervals are not fixed, meaning sometimes it may take a couple of spins to win, sometimes considerably more (10 spins or over).
Another distinguishing feature of low-volatility slots is their payout size, which is the smallest of the three categories.
Popular low volatility slots to try:
- Starburst (NetEnt)
- Wolf Run (IGT)
- Starmania (NextGen Gaming)
- Wild Scarabs (Games Global)
- Jack Hammer 2 (NetEnt)
Pro tip: You should play low volatility slots if you want to stretch your bankroll as far as it’ll go and have fun on the back of small stakes.
Medium Volatility Slots
Every slot has a designated paytable that shows the paying combinations and how much each combo is worth.
If you compare the paytable of a medium volatility pokie to that of a low-volatility game, you’ll see that the former pays slightly more. However, the pay intervals are extended, i.e., it pays slightly more infrequently while offering a bit higher-paying combinations.
Popular medium volatility slots
- Da Vinci Diamonds (IGT)
- Gonzo’s Quest (NetEnt)
- Reel King (Inspired Gaming)
- 9 Pots of Gold (Gameburger Studios)
- Rainbow Riches (Barcrest)
Pro tip: You should play medium-volatility slots when you want a decent chance of a solid win while still not risking too much.
High Volatility Slots
High-volatility pokies are high risk in that they pay at much more infrequent intervals compared to low- and medium-volatility pokies.
High-volatility slots require a bigger budget, as you will sustain quite a bit of loss before hitting that much-expected win.
Another characteristic of high-volatility pokies is the higher minimum play limit. For low-volatility games, the minimum play can be as low as $0.10 or $0.20, while high-volatility slots can have limits up to $3 or even more.
However, the redeeming factor of high-volatility pokies is their pay tables and payout sizes, which are considerably higher than low- and medium-volatility pokies.
- Thunderstruck Wild Lightning (Stormcraft Studios)
- The Dog House (Pragmatic Play)
- Wanted Dead or a Wild (Hacksaw Gaming)
- Book of Dead (Play’n Go)
- Money Train 2 (Relax Gaming)
Pro tip: You should play high-volatility pokies if you’re looking for a chance to land a big win. Keep in mind, though – these games can run your bankroll dry very quickly.
How Does Volatility Impact Pokie Payouts
Low risk and frequent pay sound good for the inexperienced. You hit a winning combo often, and what can be bad about that? Well, low-volatility slots will pay in quick succession, but the payout amounts are insignificant and their low-play limits reflect those small payouts.
You can spend AU$20 spinning dozens of rounds and still come out profitless.
High volatility slots remedy this by paying out more when you hit a winning combination. On the small side, payouts are likely to be less than your bet. For instance, a $1.5 stake on a high-volatility slot may pay 50-60p.
But, depending on the specific slot, those numbers will rise dramatically when high-paying combinations hit. Depending on the reels, paytable, and game mechanics, a single $2 spin can net you, for instance, $400, or even more if the right symbols and combo link up.