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Understanding the House Edge

Understanding the House Edge

House Edge: How do casinos make so much money from gambling? Some believe casinos earn most from losing bets. Nope. Casinos start with an advantage since gambling is big business.

The house edge gives this advantage. Thus, the odds favour them. See how the roulette house edge works. The casino averages 5% profit and 95% winnings each dollar bet. The casino keeps $5 of a $100 stake.

Information to know about House Edge

  • The Casino has a built-in advantage in all its games
  • The longer you get to bet, the closer your losses will head towards the house edge.
  • Casinos need not beat every player all the time as they still get their profit on the long run.
  • Casinos earn their profit by simply getting you to play

Table of Content: What You Will Learn

  1. How the House Edge Works
  2. Casino games and their accompanied House Edge
  3. Slots
  4. Blackjack
  5. Roulette
  6. Video Poker
  7. Why do People Still Play in Spite of the House Edge?
  8. Where can I Access the most Appropriate House Edge?
  9. Conclusion

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How the House Edge Works

Casino games are mostly games of chance, but poker requires skill. Casinos benefit immediately when players gamble.

The House Edge ensures the Casino always makes a profit, even while it loses some bets. Example: online roulette. We’ll examine the house edge when many players wager on red or black. 37 numbers—including 0. A 37-spin player should hit every number once. In 37 spins, the player should hit black 18, red 18, and green once. Each number is bet $1, totalling $37. The typical casino player wins 18 black bets, earning $36. The other 19 bets lose. The house edge is 2.7% because the gambler is predicted to win $36 from $37. American roulette has a 5.26% house edge because the gambler is expected to gain $36 back out of $38. The casino takes a modest percentage of every bet.

Slots Return to Player (RTP)

RTP should interest slots players. It’s the ratio of a slot machine’s payouts to Casino players’ deposits. If a slot machine pays 90% RTP, the house advantage is 10%. Online slots are a game of chance where all participants are equal.

The player chooses the paylines, hits, and hopes for the best. Casinos profit from slots’ low RTP. This is why casinos call it their biggest house edge. Modern slots like video slots have 20–100 paylines, which gives players more opportunities to win and lowers the house edge.

If a machine has 40 paylines and the player plays all 40, the odds of winning grow greatly, but if the player plays 20 or less, the odds are cut in half and the possibilities of losing increase, which boosts the casino’s chances of winning. Play slots featuring bonus games, maximum paylines, and highest RTP.


Online and physical US casinos offer traditional blackjack strategies. Luck, talent, and knowledge determine this game’s winners. The 0.5% house edge comes from Standard rules and Basic Strategy. Blackjack strategies Some gamers beat the house edge and protect their money.

  1. Blackjack Charts:It is a popular strategy amongst casino players, and it is quite successful. It requires the player to memorize the blackjack charts. These charts show the player every possible result for the cards held by the player and dealer. This would dictate the way the player chooses, depending on the cards on the table.
  2. Composition Strategies:These are more complex than Blackjacks, but you must be familiar with the charts to try it. The player uses the card values that have come out from the deck as a guide to know what cards are left. When performed well, this strategy could bring down the house edge to as little as 0.18%.


Roulette strategies vary. American, European, and French roulette exist. This game’s house edge depends on playstyle. American roulette has the worst odds over time, unlike European and French roulette. Roulette Unlike the French and European wheels, this one has 38 pockets. It has two zeroes (0 & 00). House Edge Calculation First, the player must examine the probabilities of an outcome vs the house’s payout. Detailed explanation below.

  1. As said earlier, an American roulette has 38 pockets, that is, pockets 1- 36 + 0 + 00 which equals 38 pockets in total.
  2. The true odds of guessing a number right are 38:1, but the house only pays 35:1
  3. This means that on $1 bet, the player gains $36, which is $2 less than the true odds should pay back.
  4. This $2 stands for the house edge, and it’s calculated as 2 x 1/38 which equals 0526 or 5.26%.

This calculation is only different when you play the first 5 numbers (0, 00, 1, 2, 3), and it only occurs in the American roulette. It’s referred by gamblers as the sucker because odds leap to 7.89%.

European Roulette

European roulette is more reliable than American roulette, with a 2.7% house edge. European roulette loses 0.027 cents each dollar, whereas American roulette loses 0.0526 cents. The European wheel lacks two zeroes (00). By removing this pocket, the true odds for single number bets drop to 37:1, which is still 35:1 in European roulette, and the gap between true odds and Casino odds drops to one unit (1). 1 x 37 = 0.027, or 2.7%.

Video Poker

The video poker is played online or at physical Casinos. It is played on Consoles. Just like other computer games around, the player plays against the machine. There are so many kind of poker games to choose from, all offering their own distinct paytables and different house edges. It offers one of the highest returns and a possible advantage over the house. Gambling in Poker generally, requires some skill. Poker Variants

  1. Jacks or Better – It requires some skill to play, and using basic strategy players should get up to 99.46% in RTP.
  2. Deuces Wild – Players get their winnings by forming a royal flush using one of two wild cards. If played perfectly, expect a 100.71% RTP
  3. Bonus Parker – It offers an RTP of 99.17%
  4. Joker Poker – Here, with the Joker being a wild card, it pays out on a pair king or even higher. It offers an RTP of 100.64%.
  5. Double Bonus Parker – Performed well, you should expect an RTP of 100.17%

How to win in Poker – Understanding the House Edge

  1. You need to compare paytables- Try and search for the paytable that pays the highest
  2. Bet the Maximum Bet- This will pay out higher odds
  3. Practice on the free version- It is advisable to practice on the free mode, especially online because it improves your gambling skills in Poker. However, there is no return.

Why do People Still Play in Spite of the House Edge?

Non-gamblers often wonder why people play knowing the house edge. The question is valid. Despite the odds, gamblers keep playing.

Although the odds are against you, getting heads twice in a row is possible. Playing, especially well, is cheap entertainment. Proper Strategy at a $5 table loses $2.50 every hour. If $5 is tipped every hour, the loss should be $7.50, which is cheaper than movies, concerts, and other entertainment shows.

Where can I Access the most Appropriate House Edge?

Now that you understand the house edge, you want to start gambling and beat it. Need a reliable betting site? You’ve been simplified. On our online casino comparison website, we offer free tips and recommend trustworthy and reliable betting sites.

Enjoy blackjack and slots. Choose a site and register. These sites offer live betting and gambling tips. To proceed, websites must ask you to activate cookies. We can connect you to a casino with low house edges, bonuses, promotions, and great returns. If you need support, our customer service is available. Check website Terms & Conditions before gambling.

Conclusion – Understanding the House Edge

Casinos generate huge profits on every bet, but they don’t steal it. Casino bonuses and promotions could benefit you. Look for the greatest paytables and RTPs if you play slots. Do like a successful player and bet max to win. Gamble and win.

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