Casino Variance

Casino Variance is a term that defines how often and how much a player wins across all casino games. The variance of a game determines the rate at which a player gets paid out, and how much that payout is for. Different casino games tend to have different levels of variance.

What is Casino Variance?

Casino variance is how often different games pay out across an entire casino. Table games in a casino, such as blackjack, roulette, ultimate hold'em, baccarat, craps and pai gow, all have payouts determined by variance, as do their side bets and progressive jackpots.

Not only table games, but slots, cash poker, tournament poker, video poker, keno, and everything in between also have both the frequency and size of payouts based on variance. This term can also be known as 'Casino Volatility', as the two are essentially interchangeable. These terms apply across both physical and online casinos.

High, Medium and Low Casino Games

There are three levels of casino variance: high, medium, and low. High variance games are the most volatile, meaning that their payouts are less frequent than the other two levels, but on average their payout will be bigger.

Low variance games are the opposite, meaning that they will tend to pay out a lot more often than games of a higher variance, but on average the amount will be lower. Games with a medium variance are in between the two, with semi-frequent payouts that are medium in size.

Casino Variance Example

Pai gow is a table game with one of the lowest variances of any casino game. This is mainly due to how often hands result in a push.

Pai gow is played by both the player and the dealer receiving seven cards each, and making two poker hands: a five card hand at the back, and a two card hand at the front. The five-card hand must be superior to the two-card hand. If both of the player's hands beat the dealer, they receive double their original stake. If both lose, the stake is lost, and one win for both the player and the dealer result in a push.

This is a low-variance game, as losses are rare, and payouts, when won, are simply double the stake during every hand. Playing pai gow progressives, however, offer the chance to make it a high-variance table game.

Casino Variance and Risk - Why it's Important?

Variance is important as it lets the player know what they can expect from a game, and the level of risk involved. Games with a low variance involve a lower level of risk, as the swings will be a lot smaller.

Different levels of variance are better for certain players. New players with a smaller bankroll would be best playing low variance games, whereas more experienced players and players with a bigger bankroll may prefer medium or high-variance games.

Casino Variance vs Volatility - What's the Difference?

Casino variance and casino volatility are essentially the same thing - the two terms can be used interchangeably. They both refer to the frequency of wins within a casino, as well of the size of the payouts. Each term can be used to cover these factors for games on offer across a casino.

Casino Variance vs Slot Volatility - What's the Difference?

Slot volatility still takes into consideration all the factors that casino variance does, such as the rate and size of payouts, however it refers exclusively to slots, whereas casino variance takes into account the overall variance of an entire casino. Slots can have a high, medium, or low level of volatility, similarly to the levels of variance in a casino. Casino variance can vary heavily from game to game, as can slot volatility from slot to slot, meaning both platforms offer a wide range of options and experiences.

Casino Variance FAQs