To calculate the house-edge of the game you’re playing, the first thing you have to do is find out the game’s RTP% (Return To Player).
If a slot game comes with an RTP of 97%, it means that it will return, on average, 97% of the value of the the bets wagered.
This means that the house-edge is equivalent to 3%.
Once you have gathered these three variables, you have to use the following equation to calculate the EV of your Bonus:
The Value of your Bonus – (Wagering Multiplier x Bonus Amount) x The House Edge = Expected Value
What you should be looking for are Bonuses with a positive Expected Value. Let’s use two examples – one with a positive EV and one with a negative EV – to help illustrate the difference:
Negative Expected Value:
Let’s say that you claim a match bonus which promises to match your deposit by 100% up to £100. For the purposes of this example, let’s say that the bonus is eligible on a slot with a 97% RTP and the Wagering Requirement is 50x.
Your have to gather your variables as follows:
- Value of Bonus = £100.
- Wagering Requirement = 50 x 100 = 5000.
- House-Edge = 3%, which as a whole number is equal to 0.03.
Using our equation, this works out as follows:
100 – (50 x 100) x 0.03 = -50.
As you can see, the EV for this bonus would be negative (-50). This is a bonus which, over the long term, would prove to be unprofitable.
Positive Expected Value:
Let’s say that you claim a match bonus which promises to match your deposit by 200% up to £200. The bonus is eligible, again, on a slot with a 97% RTP, but the Wagering Requirement is only 10x.
Firstly, we will gather the variables:
- Value of Bonus = £200.
- Wagering Requirement = 10 x 200 = 2000.
- House-Edge = 3%, which as a whole number is equal to 0.03.
Using our equation, this work out as follows:
200 – (10 x 200) x 0.03 = 140.
As you can see, the EV for this bonus would be positive (140). This is a bonus which, over time, should prove to be profitable.