The MGA announced a seemingly controversial decision, that of reducing the minimum return to player percentages at online casinos from 92% to 85%. The question is, will this make a real difference to the average gambler? The answer might surprise you.
In response to the fiscal realities surrounding online gambling and to bring their land-based metric and online metrics into alignment the Malta Gaming Authority (MGA) undertook an in-depth review of their return to player (RTP) policy.
The outcome of the review was that both markets would be allowed to the same baseline RTP percentage for the slot machines and other casino games. This would see online casinos being allowed to reduce their current minimum RTP percentage by 7% taking it from 92% down to the newly agreed-upon 85%.
Global RTP Requirements
An interesting set of data that report, Policy Paper on Amending the Return to Player Minimum Percentage (28 May 2021), brought to light was just how few jurisdictions currently oversee the minimum return to player percentages.
The detailed report notes that while Malta (85%) and Italy (90%) prescribe RTP percentages for their licenses the following jurisdictions have zero RTP controls in place:
The reasoning behind this lack of control is less likely a lack of concern and may actually be rooted in the maturity of the gambling market in these regions.
Money Makes the Reels Go Round
While the initial knee jerk reaction to the announcement of reduced RTP percentages would be to see it as the MGA taking advantage of players, the truth appears to be far more nuanced.
A comment the report clarifies this saying:
“One respondent clarified that removing the RTP requirement does not mean that operators will no longer strive to maintain adequate RTP levels to avoid risks relating to the well-being of customers, as the market conditions will force the industry to maintain an appropriate RTP standard.”
This is something that I overlooked in the online casino space, with the proliferation of online casinos and the ease of accessing them thanks to high-speed internet the power is truly in the hands of the consumer.
Any online casino where players feel that the games do not offer good value, or they feel that the RTP favours the casino too heavily will simply begin to lose customers until they rectify the situation of being forced out of the industry.
It is this customer-controlled buying power that has ensured that well-regarded jurisdictions such as Sweden, Denmark, the Netherlands, and Belgium do not have to micromanage player returns while continuing to blossom under the current market conditions.
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