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Play by AI Rules: RTP and Volatility Management in Slots

Updated 25 april 2025
Online casino
Author: James Burton

Changing the Return to Player and variance of slot machines using artificial intelligence is an innovative approach. Thanks to it, parameters of entertainment solutions can be adapted in real-time, taking into account the behaviour of gamblers, as well as the strategic and marketing goals of operators.

Casino Market experts talk about the features and advantages of the technology, usage scenarios, and regulatory features.

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Technical Characteristics of Video Slots

Technical characteristics of video slots

Let us consider the main parameters of such digital products.

About RTP

The term can be described as a theoretical percentage of return to the player. It shows what part of all bids will be compensated to gamblers.

For example, RTP can be set at 96%. This means that out of every 100 deposited coins, 96 are returned to players, and 4 remain in the online casino. However, the metric does not guarantee such a payout during a short session. The indicator works in the long run and is always calculated according to the market average.

There are slots with 2 types of RTP:

  • Fixed. This is a stable value that is set by the manufacturer and does not change.
  • Variable. A dynamic parameter can change depending on the initial conditions.

What Is Volatility

This is an indicator of the risk and frequency of winning combinations in a digital gambling solution.

The main types of the phenomenon:

  1. Low. It is characterised by frequent but small wins, due to which slots hold the audience’s interest longer.
  2. Medium. In games with medium volatility, a balance is maintained between the frequency and size of prizes.
  3. High. The rotation of digital reels can be “dry” for a long time but with a chance of a jackpot. This format is suitable for risk-averse customers. High variance is often set in multiplayer tournaments to create more excitement around the event.

How Technical Parameters Affect the User Experience

Clients who want just to have fun choose slots with low volatility and high RTP. Fans of excitement prefer to have things the other way around.

When choosing a betting strategy, experienced customers always study the characteristics of digital products. These parameters are indicated in the description of the entertainment or on the software vendor’s website.

Why Dynamic Control is Necessary

Dynamic casino slot management

Standard video games have fixed RTP and volatility settings.

Players’ behaviour can change depending on the time of day, duration of the session, size of bets, as well as history of wins and losses. It is important for entrepreneurs to take all these factors into account in order not to lose the target audience and increase business profitability.

About the Concept

Dynamic control is a technology that helps slots adapt their parameters depending on the following factors:

  • real-time user behaviour;
  • game session stage;
  • operators’ goals (retention, reactivation, LTV increase, etc.);
  • marketing context (tournaments, promotions, and welcome bonuses).

RTP can slightly increase or decrease, and volatility can become higher or lower. The changes are controlled automatically, often with the help of AI analytics and behavioural patterns. Thanks to this, slot machines “feel” what casino visitors are doing and automatically adapt to their playing style.

The indicator can be adjusted within the limits permitted by law and product certification. The return percentage is usually provided at 94–97%.

Dispersion is adjusted through:

  • the frequency of bonus function activation;
  • changing the probability of large combinations;
  • managing the distribution of winnings.

Benefits for Operators

Let us consider the main benefits of using the technology:

  1. Customer retention. The system can recognise “leaving” clients (those who have lost too much, are tired, or are no longer interested) and gently increases the RTP or reduces the variance. This raises the chances of winning, improves the emotional background of gamblers, and keeps them on the website.
  2. Lifetime Value (LTV) growth rate. Those gamblers who feel that the video content is “favourable” to them return to the platform more often and enjoy spinning the digital reels at higher limits.
  3. Smart risk management. For example, for VIP clients, project owners can reduce volatility during an unsuccessful round to avoid a sudden loss of large sums. Another option is to increase the chances of winning a “big prize” by making emotional involvement deeper. All these techniques demonstrate excellent effectiveness, protecting online projects from financial failures.
  4. High-quality testing. It is possible to conduct A/B tests for different game parameters and audiences. Operators can also check the reactions of consumers and optimise settings.
  5. Marketing flexibility. Entrepreneurs launch special promotions, tournaments, and bonus modes by customising the parameters of entertainment.
  6. Competitive advantage. Flexible slots generate more interest among the bettors than static games. The technology helps brands stand out among competitors, provide a personalised experience, and increase business profitability.

Benefits for Players

Key benefits of dynamic management for online casino visitors:

  1. Unique impressions. Slot machines adapt to the person’s style because some want bigger wins, while others are mostly looking for action. All this makes interaction with the platform less frustrating and more interesting.
  2. Support during losses. The system can react to the fact that a gambler did not win many rounds in a row and slightly increase their chances of obtaining a prize.
  3. Reduction of sharp “drawdowns”. Players, especially beginners, often stop betting after a series of losses. Flexible volatility smooths such peaks and ensures better audience retention.
  4. Personalisation. Bonuses and successful combinations appearing at the right moment are often perceived as an individual approach. Sessions are no longer monotonous. Slots can change basic settings, give unexpected prizes, and make the gameplay more vivid.

AI-Powered Management of Slot Mechanics

Artificial intelligence tracks user behaviour and makes decisions to:

  • make the betting process more interesting and personalised;
  • boost engagement;
  • increase the average time spent on the website and revenue per client.

Key Components of the Technology

Let us consider which AI elements are used for dynamic management:

  1. Data Pipeline. The algorithm is responsible for collecting data on players’ actions. These are bets, winnings, the duration of sessions, reactions to bonuses, and the attitude after losses. Information can be collected and structured using Apache Kafka, AWS Kinesis, Google Pub/Sub, and other applications.
  2. AI/ML models. They are used to classify customers, predict their behaviour, and then learn based on the results. For example, thanks to such solutions, operators can determine the type of client (VIP, newbie, or professional), predict the probability of leaving (losing, replenishing an account, etc.), and evaluate the outcome after intervention.
  3. Slot Engine API. The tool is responsible for quickly changing the parameters of casino games. Very often, it contains several configurations of a digital device with different settings and automatically switches between them.

Examples of AI Usage Scenarios

An important point is to determine the slot machine behaviour patterns in which AI can:

  • increase RTP by 0.5%;
  • activate low volatility for 5 minutes;
  • add a chance to get a bonus after 20 unsuccessful spins.

All these functions must first be allowed by the certification of digital entertainment.

Options for changing settings using AI:

  1. A gambler has lost 80% of the deposit. In this situation, it is advisable to increase the RTP to 96.5–97%, and also reduce the variance.
  2. A user is in a winning session. In this case, the return percentage decreases slightly, and volatility grows.
  3. A customer has just started the game. A good strategy for retaining newcomers will be to increase the RTP indicator and set a high frequency of incentives.
  4. A client is about to leave. After 2 or more attempts to exit the website or withdraw funds, operators can turn on the soft bonus or activate 5–10 free spins.
  5. Tournament activity. In this scenario, it is important to establish a stable return rate and high variance.

Features of the Regulation

Features of gambling regulation

Let us consider the legal framework in different jurisdictions.

United Kingdom

According to the UKGC, the RTP parameter must be fixed and pre-certified.

Any changes require:

  • revalidation by independent laboratories (such as GLI, iTech Lab, and eCOGRA);
  • notification of clients;
  • transparency in the description on the website.

It is prohibited to change RTP and volatility during sessions. The Commission allows the use of AI and behavioural analysis to uphold responsible gambling principles and prevent the development of ludomania.

European Union

Dynamic control of slot mechanics is regulated by:

  • AI Act (law on artificial intelligence);
  • GDPR (General Data Protection Regulation);
  • legal acts of EU member states.

European legislation allows changing the parameters of slot machines but with full transparency and taking into account pre-established boundaries. Technical characteristics must be transparent and recorded in the certificate. Any changes should be made only within the framework of pre-approved configurations.

Programs based on artificial intelligence that influence the financial behaviour of users fall under a high level of risk. Therefore, providers must undergo an audit of AI systems.

USA

The activities of gambling operators are regulated at the state level.

Thus, in Nevada, New Jersey, and Pennsylvania:

  • changes in the return rate require new certification from independent laboratories (GLI, BMM Testlabs, and others);
  • dynamic parameters are possible if the slot has pre-approved RTP profiles and open-switching algorithms;
  • any hidden modification during sessions is illegal.

Offshore Jurisdictions

The Malta licence (MGA) allows the use of several RTP profiles (for example, 94%, 96%, and 97%).

Dynamic control of indicators is possible if:

  • the profiles of the digital device are pre-certified;
  • switching is fixed and does not depend on a specific player.

The provision of personalised solutions is under strict supervision.

A new licensing procedure has been in effect in Curacao since 2024. The local Gaming Control Board requires mandatory certification of entertainment parameters. The decision to adjust RTP without notifying the regulator may lead to the cancellation of a permit.

The Main Things about Dynamic Slot Management

Changes in return rate and volatility of digital casino solutions are useful instruments for operators.

Key aspects that should be taken into account:

  • The tool allows entrepreneurs to adapt video slots to each player in real time. The technology takes into account the status of users, their previous experience, the nature of the game, as well as the strategic and marketing goals of business owners.
  • Dynamic management of casino content requires advanced analytics, AI infrastructure, and a flexible engine. It is possible to prepare different models of behaviour patterns in slot machines.
  • In many countries, changing the technical parameters of iGaming products is allowed only within the framework of pre-certified configurations. The use of AI and personalised scenarios requires legal support.

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