Casino House Edge Explained

What Is A Casino House Edge?

The only certainty in gambling is that the house always wins. Millions of players compete for a small number of chances to win, with only lady luck on their side.

A casino house edge is the average percentage a casino keeps from each bet. In short, a players expected loss over time.

For example, American roulette (with a double-zero wheel) has a house edge of 5.26%. This means the casino keeps £5.26 for every £100 wagered. An easy way to calculate this to divide your total bet by 100, and then multiply it by the game’s house edge.

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

£50 ÷ 100 = 0.5

Result × casino house edge

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.

How to Find The Casino House Edge

A casino house edge in online casino games is set by game developers, not individual brands. This helps to make it consistent across platforms. Below, we’ve outlined common games and their casino house edge to show how the odds vary by game type.

How RTP (Return to Player) Affects The Casino House Edge

Unlike some casino games, slots do not depend on a player’s skill, your experience 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’s RTP.

RTP or Return to Player of a slot indicates your average winning expectations out of 100%. The house edge represents the percentage needed to bring the RTP to 100%.

So, If a slot has an RTP 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 its overall profit.

Why The Casino House Edge is so Important

When a player hits a lucky streak with back-to-back wins, it’s normal to wonder, “Do casinos take a loss?”. That’s where the house edge comes in. This built-in advantage keeps the casinos profitable over time.

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

Software providers set the casino house edge in partnership with brands to ensure a sustainable business model. No matter how much a player wins, the system is designed to keep the house profitable over time.

Casino House Edge Explained With American Roulette

American Roulette is a simple example of the house edge in casino games.

It features 38 slots:

• 18 red
• 18 black
• 2 zeros

This gives the house a greater advantage over European Roulette, which only has one zero.

A bet on black has a 18-in-38 chance of winning, but at the same time, a 20-in-38 chance of losing. 18 red slots plus two zeros. Since the zeroes offer no payout, they tilt the odds in the house’s favour. Essentially, for every bet the casino has two extra ways to win.

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

If The House Always Wins, Why Do Players Stay?

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

The casino house edge works over the long term, which is why casinos encourage consistent play.

This is why casinos aim to keep players betting long-term, as that’s the only way to achieve the casino house edge percentages and expected profits from it.

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

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 casino 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

Understanding the casino house edge doesn’t increase your chances of winning, but it can help you refine your betting strategy to something you’re more comfortable with. Combine this with the following tips to give yourself a solid foundation for your strategy.

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, 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 casino house edge games. Some examples of these games are slots and keno. These games offer huge payouts that easily attract players. 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, try table games like blackjack, baccarat and poker, which give players higher advantages.

Our Verdict

While you cannot change the casino house edge, you have the power to select the titles with the most favourable numbers. Games like blackjack, video poker and baccarat feature the lowest casino house edge, which means players have better chances of bagging wins in the long run. However, we urge you to stay mindful, as these percentages only represent average numbers and do not guarantee a win.