What Is House Edge?

Understanding Casino House Edge

The only certainty in gambling is that the house will always win. As a result, the system works in a way that ends in profit for the casino. This setting throws millions of players into a pool of few major winning chances, leaving each one of them in the hands of luck.

The term house edge refers to the average loss ratio to your initial bet. It shows you how much the house keeps from your bets on specific games.

For example, a double zero-wheel Roulette’s casino house edge is 5.26%. The casino keeps 5.26% of all the money you bet on this game. If your bets total £100, by the end of a gaming session the casino keeps £5.26. To reach this amount, you’ll need to divide your total bet by 100 and multiply your result by the house edge of the game you’re playing.

If you make a total bet of £50 on Caribbean Stud, which has a house edge of 5.22%, your calculation should be as follows:

Total bet ÷ 100 = Result

Result × house edge

That is: £50 ÷ 100 = 0.5

0.5 X 5.22 = 2.61

The above calculations show that for every £50 you bet on Caribbean Stud, the house keeps £2.61. Of course, it only represents an average, so slight differences may exist.

House Edge on Casino Games

Betting brands do not solely determine the house edge of casino games online. The game developers work in partnership with the casino brands, which makes them uniform across all sites. In this section, we’ll list some casino games and their house edge, so you can understand the house’s advantage on the different categories of games you play.

In cases where there are variations in the casino house edge, it’s solely attributed to specific factors in the game, not influenced by external factors such as the casino in use. These variations remain the same regardless of your preferred casino.

How Slot RTPs Relate to Casino Games House Edge

Unlike some casino games, the result of slots does not depend on a player’s skill level. As a result, your experience level cannot improve your winning chances. The only factors you can control are the number of paylines you want to bet on and your preferred betting amount. What decides the possible outcomes for you is the slot RTP.

The RTP or Return to Player rate of a slot indicates your average winning expectations out of 100%. In contrast, the house edge represents the remaining percentage needed to bring your RTP (Return to Player) to a total of 100%.

If a slot has an RTP rating of 95%, its house edge will be 5%. In general, slots often have a higher house edge than most casino games, so gambling sites often feature a variety of slot titles to maximise their overall profit.

Why Casino House Edge Is Important

At times, some lucky players record massive back-to-back casino wins, leaving punters asking if gambling platforms ever run at a loss during these moments. This is the juncture where a casino house edge comes into play. A casino house edge is an essential factor that helps guide casinos in several ways.

Gambling sites are commercial businesses, so they utilise the house edge to maintain operation and avoid running at a loss at all times.

Software providers set these house edges in collaboration with casino brands to create a business model that can stand the test of time without running down. For this reason, no matter how much a player wins, the system ensures the house’s profitability over the long term.

Casino House Edge Explained With American Roulette

The setup of American Roulette is one of the simplest frameworks, effectively illustrating the concept of the house edge in casino games. It is a double-zero roulette game with 36 numbers and two zeroes, which makes it 38-wheel stripes. Compared to single zero European Roulette, which has a lower house edge, American Roulette does give the house more advantage. The game has 38 stripes of 18 black, 18 red stripes and two zero points on the wheel. Due to this setting, if you make a roulette bet on a black stripe, you will have 18 points as your chance of winning out of the 38 points.

At the same time, your chances of losing also become 20, a combination of all red stripes and the two zeroes.

Regardless of the result, the two zeroes remain neutral points with no rewards. This means that for each bet you place, the casino already has two chances of gaining from the game and 18 other chances from the opposite colour of your bet.

This way, a player’s fate remains in the hands of luck, as the system always favours the house.

How the House Keeps Players

The overall goal of casinos is to have an advantage over players using the house edge.

However, the system of the casino house edge advantage only actualises it in a long-term setting. As a result, casinos try as much as possible to keep players betting on a long-term basis, as that is the only way to achieve these house edge percentages.

It is also part of the reason why gambling sites offer numerous juicy promotions and free welcome bonuses to keep players glued.

Of course, you can win with these free incentives if you are lucky enough. But, as long as you keep playing, you will rebalance the equation to achieve the end goal of profit for the house. Since it occurs slowly, it is difficult for players to understand when or how a house edge comes into play.

Casino House Edge in Skill-Based Games

In general, a casino house edge is more effective in luck-based games, as the outcome of each prediction remains dependent on a player’s luck. In contrast, the casino house edge works differently when in skill-based games. Such games rely primarily on the gaming skills of a player and partially on luck. The house edge of these games is a general indication which can change depending on a player’s skill level.

Some good examples of these games are poker, baccarat and blackjack.

If you are at a poker table with zero knowledge of how to play, the house edge would be significantly higher for you. At the same time, skilled players would have higher advantages, which will also translate to a lower house edge.

As a result, the house edge doesn’t always indicate a stable outcome you can expect, as you also impact the results.

Casino House Edge Gambling Advice for UK Players

Extensive knowledge without prior orientation can be detrimental, often confusing players when trying to understand the concept of the casino house edge. Overall, gambling is an entertaining practice and not a business for most players. Understanding how a casino house edge works should not push you into trying to develop new theories and strategies. In reality, you can only change a little regarding your winning potential when gambling. However, the following tips will provide you with the necessary guidance to succeed as you delve into the concept of house edge:

Bet Wisely

The top advice for every gambler is to bet wisely, as it distinguishes a successful gambler from the rest. Understanding how to structure your betting sessions is a win on its own, as it can allow you to save more money along the line. The house always wins, so regardless of the casino house edge of the game you play, always make sure to only bet what you can afford to lose. If you find it hard to stick to a strict budget, ensure you use responsible gambling tools in your chosen casino.

Avoid High House Edge Games

Another useful tip for succeeding in the long run as a gambler is to avoid high house-edge games. Some examples of these games are slots and keno. These games offer huge payouts that can easily attract players. Nevertheless, the casino has a greater advantage, so your betting session could go dry within seconds. Of course, you can always enjoy a few hands here and there in these games, but always remember to utilise our first tip of betting wisely, or better still, go for table games like blackjack, baccarat and poker, which give players higher advantages.

Our Verdict

Given the information provided, we trust that you now understand the significance of the casino house edge and what it represents in casinos. Though betting platforms operate on a structure that ensures profit for them in the long run, the casino house edge varies depending on the game you play.

While you cannot change the house edge, you have the power to select the most suitable games. Games like blackjack, video poker and baccarat feature the lowest house edges, indicating that players have better chances of making long-term profits. At the same time, it all still depends on your luck as a player, as these percentages only represent average numbers.

Opinion by:

Tolulope Kehinde - Expert Casino Author

Tolulope Kehinde

Author

FAQs

Below are some of the frequently asked questions about the casino house edge.

Is the house edge the same in all casinos?

Yes. You can expect fixed ranges for the house edge of casino games. This means that the house edge is uniform regardless of the casino you use. But, there are still some factors that can affect the house edge of a game. Some of these are the game variant, software, and the kind of bet you place.

Can I make any profit from casinos?

Yes. You can make a profit from casinos as a player. But it all depends on the type of games you play and your expertise as a player. If you play more luck-based games like slots, jackpots and roulette, your fate will rely on the outcome of random results, so you have to go for games with lower house edges. Skill-based games like poker can make more profit if you are skilled enough.

What are the games with the lowest casino house edge?

The house edge of a casino game depends on many elements, so there are bound to be slight changes during your gameplay sessions. Games with the lowest house edge are baccarat, blackjack, roulette, craps, keno, video poker, etc.

How can I improve my chances of winning against the house edge?

To improve your chances of winning while playing at a casino, you have to go for games that rely on your skills as a player. This way, you can impact the gameplay and turn things in your favour. Consider games with lower house edges if you intend to play luck-based games.

Can I avoid the casino house edge while playing casino games?

No. Every casino game has a house edge, so bypassing it is impossible. It is a feature that helps regulate gambling. To play on the safer side, you could consider going for a game with a lower house edge, as a casino house edge is an inevitable element in gambling.

Why do casinos place a house edge on games?

A casino house edge serves as a guide which regulates players’ winning odds. It sets up a structure that makes it impossible for players to beat the house, so every game favours the casino. This advantage allows the betting brands to operate without loss, and it also allows them to make an overall long-term profit even when some lucky players bag massive wins.

Tolulope Kehinde - Expert Casino Author

Tolulope Kehinde

Verified Author

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Tolulope Kehinde is an expert author at CasinoSherlock. With ten years as a writer and researcher in the online gambling, she is a true pioneer in the industry. Tolulope's insights and expertise are invaluable in providing avid casino players with in-depth and up-to-date information on all things related to payment methods, online slots and bingo games.

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