Game Design

The Role of Casino Game Mathematics in Game Design

How designers set a casino game's math model: probabilities, payouts, hit frequency and the target house edge, with a simple hypothetical example.

On this page
  1. The math comes first
  2. The ingredients of a math model
  3. How the target edge is built
  4. Same edge, different feel
  5. Features and the budget of the return
  6. Weighting and random selection
  7. Testing the model
  8. What the math tells a player

The math comes first

Casino games are games of chance with a built-in house edge. No strategy, system or timing changes the odds in the player’s favor over time, and most players lose money over time. Nobody should gamble money they cannot afford to lose. This article explains how designers choose a game’s numbers. It is not a way to find an advantage, because the entire purpose of the math model is to make sure there is none. Anyone struggling with gambling can contact a local support service.

In game development, the math model is usually settled before the artwork and sound are made, because it fixes what the game costs to play over time. Everything else is presentation built around it.

The ingredients of a math model

A math model is a complete description of what can happen in a round and how likely each outcome is. It has a few core parts.

Outcomes and probabilities. Every possible result has a probability, and all probabilities add up to 1 (or 100 percent). In a roulette wheel the outcomes are the pockets; in a slot they are combinations of symbols; in a card game they are the possible hands.

Payouts. Each outcome is assigned a payout, which is the amount returned for a given bet. Payouts for table bets are often written as payout ratios such as 35 to 1 or 1 to 1.

Hit frequency. This is the share of rounds that return something. It is easy to confuse with return, but it is only about how often something comes back, not how much.

Target house edge. The designer chooses the long-run share of wagers the game keeps, and sets probabilities and payouts to land there.

How the target edge is built

The key calculation is expected value: multiply each outcome’s probability by its payout (including the returned stake where relevant) and add the results. The total, as a fraction of the bet, is the return to player. The house edge is what is left over. This relationship is discussed in the article on house edge versus RTP.

Here is a hypothetical game, with invented numbers for illustration only. A player bets 1 unit and the round has three results:

Result Probability Total returned
Big win 10% (0.10) 5 units
Small win 20% (0.20) 2 units
Nothing 70% (0.70) 0 units

The probabilities add up to 0.10 + 0.20 + 0.70 = 1.00. The expected return is 0.10 x 5 + 0.20 x 2 + 0.70 x 0 = 0.50 + 0.40 + 0 = 0.90 units for each 1 unit bet. So the return to player is 90 percent and the house edge is 10 percent. On average, over a very large number of rounds, the game keeps 0.10 units per unit wagered.

The hit frequency here is 0.10 + 0.20 = 30 percent. Because 30 percent of rounds return something and the average return across all rounds is 0.90, the average return on a winning round is 0.90 / 0.30 = 3 units.

A designer can change the edge simply by changing a number. If the big win paid 5.5 units instead of 5, the expected return would rise by 0.10 x 0.5 = 0.05, to 0.95, and the edge would fall to 5 percent. This shows why small payout changes can matter a great deal in the long run.

Same edge, different feel

Two games can have the same return and still feel very different. Consider a second hypothetical game: a 1-unit bet returns 90 units with probability 1 in 100 and nothing otherwise. Its expected return is 0.01 x 90 = 0.90 units, the same 90 percent and 10 percent edge as before. But the hit frequency is 1 percent instead of 30 percent.

Playing the first game, wins arrive frequently and results are fairly steady. Playing the second, long stretches pass with nothing, and the occasional win is large. Designers use this lever to give a game its character. The measures that describe the difference are covered in the articles on standard deviation and on game variance, and the impression of a game with rare big results is explored under high volatility.

The long-run cost is the same in both examples. Only the pattern of getting there differs. That is why a game that pays small amounts often is not necessarily cheaper than one that pays rarely.

Features and the budget of the return

Modern games rarely have a single payout table. Many include several parts: a base game, bonus rounds, and sometimes a shared prize that grows over time. A designer divides the total return among them. For instance, part of the overall return might come from the base game and part from a feature. The sum is what counts for the target.

This is why a feature that triggers rarely can be very generous when it does: its contribution to the overall return is small on average but concentrated in a few rounds. The mathematical view of such features is in the article on bonus rounds, and the case of growing prize pools is in progressive jackpots.

Weighting and random selection

Designers control probabilities through weighting. In a digital slot, for example, symbols can be given different chances of appearing, independent of how many symbols are visible on screen. The mechanism of this is explained in the article on virtual reels. Table games take their probabilities from the physical structure: a deck of cards or a wheel with a fixed number of pockets, with the house edge arising from the payouts.

Testing the model

After the numbers are set, they are checked. Some figures can be calculated exactly. Others, particularly those involving complex features, are estimated by running millions of simulated rounds, as in monte carlo simulation. Independent laboratories may then verify the math before release in regulated markets.

What the math tells a player

The model tells a player the average cost of playing, not what will happen in a given session. Short-term results can be very different from the average, in either direction, but over time the average is what the game is built to deliver. A single lucky or unlucky session says little about the underlying numbers, and no pattern in past results changes the next outcome.

The complete guide to game design

Casino Game Design: How Games Are Created to Keep Players Engaged
Read the guide

Keep exploring

Guides from other topics

All topics →