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How Do Online Casinos and Sportsbooks Use Data to Create Odds?

Sport Odds. Photo/Pixabay

Online casinos and sports betting sites use data in a variety of ways to come up with the most competitive and best possible odds for their customers while generating decent revenue in the process.

Here is a closer look at how online casino software providers, casino operators, and sports betting operators use data and systems to create odds.

How Do Online Casino and Sports Betting Operators Create Odds?

Real-money gambling sites create the payout rates for casino games and the odds for hundreds of sports betting markets in many different ways.

With computer-generated online casino games, for example, Random Number Generators (RNGs) are used to produce the outcomes/results, but in sports betting, it’s completely different.

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A casino. Photo/OddsChecker

Things like historical data, individual player performances, previous and current betting trends, and even the weather can have a huge effect on what odds are given by operators for specific events. They also compete with other rival sports betting operators to offer the fairest and most realistic odds.

Random number generators and mathematical algorithm programs do not come into play with how odds are priced by online bookmakers for sporting events.

How Are The Odds Created at Online Casinos?

In computer-generated online casino games, which use RNGs to determine the outcomes, the games are programmed to pay out a certain amount.

However, it still boils down to lady luck with regard to who wins and who doesn’t. The results produced by RNGs in online slot machines, table & card games, lotto-style games and video poker games have no discernible pattern.

Online casinos use the same mathematical odds you can find in traditional table & card games and slots at land-based casinos, but to give themselves more of an edge, they can provide slightly better odds because of the RNGs used to determine the computer-generated outcomes/results. It sounds a lot more complicated than it actually is.

For example, today’s finest online casinos that are controlled by some of the iGaming industry’s most trusted names are powered by the world’s most notable online casino software providers and game development studios.

One or more internationally accredited online casino testing agency monitors and tests each game for fairness to prove they are not cheating the players.

You will find that most online casino games today have an average RTP% (Return To Player Percentage) payout rate of around 93.00% up to 98.00%, but what does this mean?

Suppose an online slot machine has a 95.59% RTP% payout rate, and players spent $/€/£100,000 (or equivalent currency value) on that slot over a four-week period.

In that case, it means that $/€/£95,590 of the money that was wagered on that game was returned to the players as winnings, and the remaining $/€/£4,410 would be revenue for the casino operator/software provider.

In other words, if players spend $/€/£200,000 on the iconic Mega Moolah slot over a four-week period, and it paid back $/€/£197,340 in winnings during that time, it means that for this particular period under review, the Mega Moolah online slot machine had a 98.67 RTP% payout rate, and so on.

The higher the average RTP% payout rate in an online casino game, the better it is for players. It’s also not uncommon for RTP% rates to climb above 100.00%. You can generally find the latest RTP% payout information by launching any online casino game’s pay table.

online casino. Photo/Kenya Engineer

In games like roulette and blackjack, you can still find the same betting odds as land-based casino games, but RNGs determine the outcomes/results, don’t forget. For example, in most land-based and online blackjack games, blackjack pays 3:2, but when playing online, the game may have a 94.50% payout rate.

In most European and French roulettes (online and offline), you will be looking at 1:1 odds for Red/Black and Odd/Even bets or 35:1 for a Straight Up bet, but the online roulette game might have an average 97.77% payout rate.

In other words, you still get paid the same 35:1 returns; it’s just instead of lady luck producing the outcomes like in a real land-based game of roulette, a Random Number Generator that uses a mathematical algorithm program will produce fair and realistic results you receive.

Also, don’t forget that just because one online slot might have a 98.88% RTP rate doesn’t mean you will definitely win more than playing on a slot with a 93.25% RTP rate. Statistically speaking, though, the 98.88% RTP slot is still more likely to pay than the 93.25% RTP slot.

If you’re still confused, go to the official Ask Gamblers website for more information. There’s a great blog entitled: What Does RTP Mean in Gambling? – All You Need to Know in One Place, which explains things in much more concise detail.

Which Online Casino Software Providers Have Produced The Best Games With Above-average Payout Rates?

Some of the iGaming industry’s most trusted providers that have produced the best desktop and smartphone/tablet casino games with above-average outcomes are NetEnt, Games Global, Blueprint Gaming, Thunderkick, ELK Studios, Realistic Games, Relax Gaming, Pragmatic Play, and Play’n GO.

Other notable providers and game development studios with above-average payout rates in their games are Playson, Push Gaming, Big Time Gaming, Yggdrasil, Playtech, SG Digital, Inspired Gaming, and Iron Dog Studio.

Teresa is a journalist with years of experience in creating web content. She is a wanderlust at heart, but an outgoing sports writer with focus on tennis, athletics, football, motorsports and NBA.

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