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House edge in gambling is the mathematical advantage that casinos have over players, representing the average profit a casino can expect to make on a game, over a long period of time.
It's crucial to note that house edge is a long-term dynamic. Players can (and do) win in the short term, but the house always holds the edge over large sample sizes.
How House Edge Works
The 'house' in this context always refers to the casino or gambling site that is offering a game. If the player had the mathematical edge, casinos wouldn't be profitable and would not be able to operate. For this reason, every game has a slight edge that favors the casino. Some games have a greater house edge than others, as we'll explain later.
In poker, the house edge comes in the form of rake. If you're playing a $100 tournament, $95 might go into the final prize pool, while the remaining $5 is retained by the casino or site in order to make money. With casino games, the edge doesn't come from an upfront payment, but rather from the returns that a player can expect to receive.
This is where return to player (RTP) becomes significant. Each casino game, be it a slot, blackjack or roulette, will have a theoretical RTP that determines how much a player can expect to receive back based on the total amount staked.
RTP is shown as a percentage, so a game with a 96% RTP means players can expect to win $96 back for every $100 wagered. But RTP is factored in over a huge volume of wagers. This means you could make 10,000 spins of a slot, each worth $1 ($10,000 total wagered) and win just $500 back. Alternatively, you might win $20,000 back.
The point is, if you take the winnings from thousands of players across thousands of spins, bets or hands, the returns will accurately reflect the game's RTP.
House Edge Example
Let's take a game of roulette as an example. If you bet on red or black, you might think it's a 50/50 chance of winning. That's what the odds imply. You'll get even money (1/1 or +100) if you bet on one color, which implies you have a 50% chance. However, an American roulette wheel has 18 red numbers, 18 black numbers and two green zeros. That totals 38 possible outcomes. But if you've bet on red or black, only 18 outcomes result in a winning bet.
That means the odds of winning are not 50%, but approximately 47.4%. This 2.6% difference between the odds given and the actual probability of your outcome winning is the house edge. As mentioned before, this doesn't mean you cannot have one or multiple winning sessions. It just means over a long period of time, across a large sample size, the house edge will come into play and the casino will earn a profit.
House Edge for Each Casino Game
House edge is not the same across every casino game. Some have bigger house edges than others, making them less attractive for players. It's important to know the house edge, or essentially the RTP, of each game before you play, so you can understand how much (on average) you're expected to lose.
House Edge by Casino Game
| Game | House Edge | Assuming Optimal Strategy? |
|---|---|---|
| Video Poker | 0.46% | Yes |
| Blackjack | 0.5% | Yes |
| Baccarat (Banker Bet) | 1.06% | No |
| Baccarat (Player Bet) | 1.24% | No |
| Craps (Pass Bet) | 1.36% | No |
| Craps (Don't Pass Bet) | 1.41% | No |
| European Roulette | 2.7% | No |
| Three-Card Poker | 3.4% | Yes |
| American Roulette | 5.26% | No |
| Slots | 1% - 15% | No |
These figures can vary, though, based on several factors. For games like blackjack and video poker, where some form of strategy is involved, the house edge listed in the table above assumes you're playing optimally and making no strategic mistakes. With other games like roulette and slot machines that don't involve strategy, the house edge is not impacted by what a player does.
But there are also different variations of the same game that impact how large the house edge is. Blackjack is the best example of this, with literally hundreds of different variants available. The number of decks in play, the exact odds given for a blackjack, whether the surrender rule is in play and whether multiple splitting is allowed are just a handful of niche blackjack rules that change based on the variation played. Each of these has a significant impact on the odds and the house edge.
Finally, slots are a great example of how the same game can have differing house edges. You could be playing the exact same slot across two different online casinos, but experience a different house edge. This is because casinos can sometimes set the house edge on games like slots by adjusting the RTP. Setting the RTP high will attract players to play the game but cuts into the edge they have. Setting the RTP too low will give casinos a greater edge, but might deter players from the site.
How to Find the House Edge
How easy it is to find the house edge depends largely on whether you're playing at a live casino or an online casino.
- Live Casinos: RTP percentages and house edges are not commonly displayed. Odds can usually be found on the tables, but you'll still have to work out the house edge for each game yourself.
- Online Casinos: Any regulated online casino must legally display a game's RTP, which clearly shows the edge the casino has. RTPs can usually be found in the information section of each game.
Can you do anything to improve your chances of winning at slots?
Learn if there is any strategy involved and what you can do to mitigate the house edge.
Read MoreHouse Edge - FAQs
Does the house always have an edge in casino games?
Yes, the house always has an edge when it comes to standard casino games. The only exception to this is special promos or bonuses, for instance no-deposit free spins. Here, you haven't actually deposited or wagered any money, but can still win real money on casino games. This is a unique time where the player actually has a financial edge.
What casino game has the lowest house edge?
It largely depends on the casino and variation of the game you're playing, but blackjack and video poker tend to have the lowest house edge. Certain slots could also be considered to have the lowest house edge, with the likes of Mega Joker boasting an RTP of 99%. However, this is rare and most slots have an RTP ranging between 92% and 97%.
Is it legal for the house to have an edge?
Yes, house edges are completely legal and standard across the casino industry. Most regulated, legit casinos have to be transparent about the edge they have, though.
Can strategy impact house edge with casino games?
Yes, strategy can impact house edge when playing casino games. For example, if you're dealt 20 in blackjack and decide to 'hit' another card, this goes against the optimal strategy and is a losing move in the long run. By taking this action, you increase the house edge and deviate further from optimal play.
