The variance in slot machine payouts indicates how much the returns can fluctuate, affecting player experience. High variance slots provide less frequent but larger wins, appealing to those who seek significant payouts despite longer gaps between wins. In contrast, low variance slots offer more regular but smaller payouts, attracting players who prefer consistency. This variance influences players' game choices based on their risk tolerance and budget, making it essential for players to understand it in order to align their strategies with their gaming preferences.