What Is the Importance of Variance in iGaming?

It’s a fair assumption to say that a lot of online casino players dive into games without fully considering all the strategic elements involved. Sure, some discerning players may look to specific games like live dealer blackjack because they know it has a low house edge, but when it comes to games like slots, the approach is usually less calculated. It is understandable, too, given these games run on RNGs with unpredictable outcomes.

Yet, there are several factors that can be deemed important. RTP, for instance, is the measured rate of return for a game, working something like a house edge measurement for software-based games. There is also a measurement called hit rate, which essentially measures the average number of spins it usually takes to land a win. These details are often highlighted on casino advice pages. Some players take them very seriously indeed.

Variance is a key metric in iGaming

There is also a metric called variance, which is also known as volatility. It’s a broader concept than the specific measurements like RTP and hit rate, but it might just be a more useful indicator for players. Indeed, it has recently become fashionable for providers of top online slot games at online casino Canada sites to list a volatility or variance rating on their games so players can see at a glance before playing. Slotmill, Hacksaw Gaming and Pragmatic Play are three game providers who commonly provide a volatility rating.

But what is it? And why is it important? Variance is basically a measurement of how a game ‘behaves’. You can break it down like this:

Low variance – the game pays smaller wins more frequently

High variance – the game pays less frequently but is capable of explosive big wins

Medium variance – a middle-ground between the two

Examples of low-variance slot games include: Reel King, Da Vinci Diamonds, Wolf Run and Pixies of the Forest. Technically, a game like blackjack could also be considered low variance, though that tag isn’t usually given to card and table games.

Examples of high-variance slot games include Dead or Alive II, Money Train 4, Buffalo Blitz and Big Bass Splash. Live casino game shows are also considered volatile.

Variance won’t tell you everything

The concept is fairly easy to understand, though there are caveats. For a start, low-variance games are capable of paying big wins, such as jackpots. But the best way to look at it is as a general guide to behavior, or as an insight into the style of play. Typically, high variance games depend on certain bonus features in order to pay, whereas wins can be highly infrequent in standard play (known as the base game). There are parallels to financial trading and volatility, too.

But if it is easy to understand, what about its importance? Arguably, it comes down to giving the player information so that they can match up with their budget and goals. Not every player is trying to win a massive life-changing casino prize, though they wouldn’t turn it down. Yet, the point is that players’ goals are different. Some may be looking to make a small profit from the session, whereas others might be shooting for the moon.

This knowledge can take on even more significance when, for example, you are aiming to meet wagering requirements for a casino bonus.  In this scenario, it is probably better to play low-variance games, which are a little more dependable for keeping your balance healthy.

Of course, none of this information can really tell you whether you will win or not. That’s the nature of casino games, both offline and online. But knowledge is never useless, and understanding the behavioral traits of casino games can always help match your choices and decision-making with your goals and style of play.