Average return to player
The ‘average return to player’ is the percentage a gaming machine pays back in a single game, on average.
The average return to player is displayed on gaming machines. On some machines (called compensated machines), the ‘average return to player’ is a minimum. A sign on the machine will tell you whether it is ‘random’ or ‘compensated.’
This average return per game is calculated over a millions of games, and does not tell what the next game will return. It may be a lot more or a lot less (for example if you lose).
Also, if you play more than one game, the average return is lower. For example, if the average return for a single game is 80%, for two games it will be 64%. For 10 games it is just under 11% (0.8 to the power 10).
A different way to look at ‘average return to player’ is to take its reverse, the ‘average loss per player’ per game. For example, if a gaming machine has an average return to player of 80%, the average loss per game is 20%. On average, each time you play a game, you lose 20% of your stake.
Either way, a gaming machine takes in more money than it gives out so that it makes money for the operator.