Casino House Edge Explained

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The concept of a “house edge” or “house advantage” is one of the most misunderstood casino games terms. Many players have developed a phobia towards playing casino games as a result of this misconception of house advantage or house edge. They are now of the popular opinion that every casino is out to scam them and that their casino games are rigged.

While this is not true in any way, there is a need to clarify this belief to allow for better customer relationships. As it is with every other business, we should understand that the casino is just a business as well. This means that as they move forward in making their customers happy, they also have to make profits.

That said, you cannot expect to always win playing a casino game because of the presence of house edges. Read on to learn more about this concept and how it affects your gameplay. For the best clarification on house edges you’ll ever need, ensure you read on to the end.

What Is House Edge?

The phrase “House Edge” refers to the inherent statistical edge that the business wagering establishment has over you over the long run. Due to this benefit, the gambling establishment is guaranteed a certain proportion of your initial investment over the long run. At the same time, you are guaranteed to lose the same amount.

It’s crucial that people don’t go into gaming with the mentality that they have a chance of winning. There will be a short-term success, but ultimately failure.

The House Edge is a means by which the house recoups some of the money it spends on the customer experience as a company. It’s a plus for the bottom line, too. The stakes players put into a game of video poker, craps, and other games are the source of the establishment’s winnings.

In Tasmania, for instance, video poker machines have a built-in House Edge of about 10%. This means that on average, around 10% of every bet you make goes back to the house. The amount a house can retain (its House Edge) in Tasmania is capped at 15% by legislation. However, places there have chosen a lower rate of around 10% by working with video poker slot machines distributors Network Gaming.

How Does House Edge Work in Casino Games?

So just how does it function, exactly? A device known as a Random Number Generator is used in gambling and slot machines. It’s a machine that’s been designed to pick the combos of characters at random whenever the dealer hits the trigger.

There are 52,521,875 distinct stop combos on a poker machine with five reels and thirty-five stops on each wheel. More losses (dropping combos of symbols) than victories are guaranteed by the RNG’s default settings.

The analogy of a spinning wheel is also useful here. There are 37 possible numbers on a roulette wheel with one green zero. There are 37 potential landing spots for the ball as the wheel spins, including the zero.

As a result, the probability of stopping at any one of those 37 locations is one in 37. In contrast, the payouts for the house are fixed at 35 to 1. Therefore, the house will always win in the long run. The bank advantage is 2.7%.

Every type of business gaming has the same inherent disadvantage known as the house edge. The longer you gamble, the more money you will lose in the long run. Short-term wins are possible, but long-term losses are guaranteed if you keep gambling.

Why Casinos Don’t Cheat

Contrary to the opinions of many, casinos actually don’t cheat their customers. There are, in fact, a handful of opinions to back this up. Here are five key points to prove this:

The Odds are Already on their Side

Taking unfair advantage of customers is unnecessary for casinos to turn a profit. After all, they have the advantage in almost every other casino and game as it is.

The house edge is different for every game and bet. Nonetheless, casinos can anticipate a cushion of between 5% and 10% on each bet.

The gaming industry has evolved significantly in recent years. It’s safe to play at any casino, both offline and online, because they’re all governed by strict laws and regulations.

They aren’t hoping to get lucky with a few unlucky bettors. Instead, most casinos have a large enough customer base that they can make a decent profit off of their house advantage. This brings us to our next point.

Casinos Undergo Heavy Regulations

Some of the most infamous cases of gambling deception occurred long before local, state, or federal agencies started actively policing the casino industry. It was already against the law for a game house to be open, so the owners had little to lose by deceiving their customers.

Once again, the business world has evolved significantly in recent years. Both live and legitimate online crypto casinos such as need to be authorized by relevant authorities before they can open for business.

From now on, they must adhere to a detailed list of laws. To ensure that their chances and return to player (RTP) are as advertised, for example, online casinos submit to third-party testing. A casino cannot advertise a game’s 98% RTP if the game only pays out 95% of the time.

If they break the law, gambling establishments can expect serious consequences. For example, the UK Gambling Commission fined 888 a then-record £7.8 million for misleading promotion. Please keep in mind that 888’s advertisements were deceptive. What would have occurred if they were busted for tweaking a game?

These Casinos are Tested

Again, the previous leads to the next. As was previously stated, many gaming states require casinos to have their activities independently audited. The game’s random number algorithms, odds and player probabilities are all verified to be correct. Afterwards, the certified online and land-based casinos can get their seal of approval from a testing facility.

Online casinos that accept real money will usually list their certifications near the site’s footer. A good place to look for an iTech Labs logo is toward the footer of any online casino. If you click on the logo, you will be taken directly to the GLI-sanctioned verification.

However, not every gambling regulator calls for tests like these. Costa Rica and Belize are two of the weakest online countries that do not require programmers to undergo rigorous game testing.

However, on average, gaming authorities do mandate that operators get outside verification of their legitimacy. In such situations, you know that the games are being played fairly.

People Won’t Return on Continuous Losses

A casino may enjoy temporary short-term profits from scamming gamblers. However, in the long run, it doesn’t pay them as these gamblers are not bound to return.

After all, no one likes to go back to a casino where they lost a lot of money the first time around. If they don’t assume deception right away, they might just chalk it up to poor luck and leave the place.

For the casino to make a profit, it must strike a balance between providing players with a fair shot and maintaining a small house advantage. A bad image for gambling is guaranteed if no one ever wins. If players consistently fail to cash in, they may start wondering if the casino games are rigged.

There are numerous discussions on online video poker message boards where players express dissatisfaction with their losses at specific online video poker casinos. It also opens the floor for them to wonder if the video poker casino games themselves are manipulated.

Some of the posters on this site are just bitter gamblers who sunk a lot of time and money into a losing venture. However, these participants may be onto something in other contexts. The presence of a few big victors is essential to any casino’s credibility. If they routinely cheat customers, they won’t have many satisfied clients.

The Casino Stands to Lose Everything

Let’s pretend for a minute that a casino actually does go against current trends by cheating its customers. It’s possible they’ll be able to pull this off for a while. What, though, occurs when they are apprehended?

Though such a casino that’s been involved in a controversy can make it, they usually need a new proprietor. The Virtual gambling Group, for example, was widely panned for cheating customers out of gambling incentives and providing subpar service overall. They decided to sell their online gambling properties to Ace Revenue because of the negative publicity they had been receiving.

To cut a long tale short, if an online gaming site is discovered scamming, it likely won’t be around for long. Their best bet is either to fool some consumers into buying into their falsehoods or to sell their assets at a fair price.

Using Your House Edge Knowledge

Why Does the House Have an Edge in the game?

From the player’s perspective, the house edge is very useful. It can be used as a reference to the house edge to determine which games offer the best chances of winning.

Of course, the long-term payouts of casino games with a higher house edge will be smaller than those of casino games with a lower house edge. You can protect yourself from the casinos that have an unfair house edge all over you by using this freely accessible data.

Game Comparison & Recommendations

A house edge is inherent to the casino gambling games rather than predetermined by the casinos themselves. It doesn’t matter how judiciously you choose to spend your money; the casino house always has an advantage in casino gambling games.

You can bet you’ll find that the house edge varies depending on the game. It’s not the fault of the casino, but rather of the rules of the game itself.


When it comes to online slots, all players are on similar ground. There is no way to increase your likelihood of winning roulette, based on your level of ability or experience. You just choose your desired amount of roulette number, press the “Spin” roulette button, and cross your fingers.

Paylines & House Edge

Have you ever pondered the motivation for the prevalence of slot machines in both virtual and physical casinos? Slots have a high house advantage because they have a low RTP. This means the casino has a greater potential for profit from slot machines in play.

Progressive Jackpot Slots

Gameplay-wise, progressive payout slots are largely indistinguishable from standard slot machines games. The game the main change is that you won’t be just trying to match images across the wheels of odds for even odds at a modest prize. You’re vying with a network of other players for a chance at even odds at a massive windfall.

This can be in the millions of dollars at the best online progressive games, so we’re talking about substantial amounts here. Be wary, though, because some jackpots demand the maximum bet on all active slots to win a share of the jackpot.


Online and land-based casinos in the United States now feature multiple iterations of the classic card game Blackjack. The house edge in this game is affected by a number of factors. This includes the number of cards used and the rules in action.

Standard House Edge

Blackjack is a game where skill and strategy are just as important as the odds and getting lucky with your bets and card draws. That’s why the standard deviation of bets from the dealer hits the house edge is 0.5%, assuming flawless play according to the regulations and fundamental game tactics.

The house edge in blackjack rises slightly if you don’t know the first thing about the game. Since your lack of expertise increases the odds that you’ll make mistakes that will cause the house edge and you to lose money or fail.

Using Strategy

Blackjack, like poker, is a game where skilful decision-making and game strategy are rewarded. For this reason, a number of systems in blackjack have emerged. Such blackjack strategies assure blackjack participants that they can keep more of their money and reduce the blackjack house edge.

Card Counting

In blackjack, card counting is when a player keeps a continuous tally of the cards in the deck. It is done by giving each card a number worth. The hi-lo system is the most widely used method of card numbering.

It has the values of +1 for cards 2-6, 0 for cards 7-9, and -1 for Aces and 10s. Whenever the rolling tally increases, participants know they have the upper hand. Conversely, when it decreases, the casino has the upper hand.


What is the house edge in roulette and why is it important?

There are several variations of european roulette, each with its own house edge. The house edge in American european roulette is the highest. The house edge in French european roulette and European european roulette, on the other hand, is much smaller. Players have used a variety of tactics over the years in an effort to outsmart the bookmakers at roulette.

American Roulette

The American roulette wheel has 38 numbered slots, plus an additional 00 slots. Each type of bet has its advantage and payout.

Calculating the House Edge

When comparing the real chances of an event happening to what the house will pay out for it, the house edge becomes clear. In American roulette, this fundamental concept can be used to calculate the house edge for any bet.

The initial bet on the first five numbers is the key distinction the edge (only possible on the American wheel). Since the house edge increases to 7.89% when making this bet, it is commonly referred to as the “sucker” bet. Hence, you should never make this bet.

European Roulette

The rules of European roulette are identical to those of American roulette, with one major difference. The ball in European roulette does not feature a 00 slot. Although the loss of a single compartment may not seem like much, it significantly increases the house edge.

French Roulette

In contrast, French Roulette is quite comparable to its European relative. The wheel duplicates this layout with numbered red and black compartments (1-36) and a single zero (0) slot. However, there are two additional regulations that significantly cut down on the house edge.

Video Poker

Video poker is a type game of poker that can be in games played both at traditional casinos and online casino games. Instead of competing against human opponents at a table, you can bet you’ll be pitted against a computer.

Playing Perfect Strategy

Like in standard poker, the more you know about video poker play, the better decisions and judgements you’ll be able to make. This will increase your advantage over the video poker casino. If you play every hand of video poker flawlessly, you can anticipate winnings.


Some low-limit players may be turned off by baccarat’s larger wagers and the fact that it the house edge that is not as common as other casino games. The house edge can be as low as 1.01% if performed well, despite the game’s apparent complexity. This less than house edge means that there is a decent possibility that participants will receive an RTP of close to 100%. Here, you can examine the percentage of your wager that goes to the house edge in various card games.

Side Bets

Casinos have introduced side bets bet on cards as a means to increase the game’s excitement. It side bets can be placed in addition to, or in place of, bets on the next game or normal baccarat wager.

Reducing House Edge

In baccarat, players make secret bets on whose card they believe will come nearest to nine. Thus, success gambling or failure gambling is entirely contingent on bets on chance. It’s true that the odds aren’t in your favour gambling, but there are some things you can do to protect your money.


In most casinos, the craps table is where all the action is. Everyone, both participants and onlookers, is waiting for when the house or dealer hits the dice. Despite its popularity, odds against the house edge in casino craps games and roulette games is the highest of any.

Bets & Their House Edge

How much you lose to the house over time in craps games is entirely determined by the bets you make. The house edge ranges from 0% to a staggering 13.9%.

The odds that bets at 0% house edge are the most alluring. However, they are available only after a Pass bet/Don’t Pass bet or Come/Don’t Come bet has been placed. As a result, the real advantage is affected by the odds provided on these accumulative bets.

Multi-Roll Bets

Craps are games where players make bets throughout a progression that starts with the “come out” craps throw. While some craps games may last several rolls, others can be wrapped up in a flash with just one craps move. Multi-roll craps bets are bets placed in craps games that require more than one craps throw to determine the outcome.


The “house edge” term doesn’t appear to be as complex as many believe it is. It’s only a matter of balancing the odds to give the business a house edge while still making the players happy. Hence, the next time you go to play some casino games, eliminate the mindset of being cheated. The dealer stands in your favour and hopefully everything else.

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