If you’ve ever played in a casino—land-based or online—you’ve surely heard the term casino house edge thrown around. It doesn’t have anything with any house or the edge of a cliff. Instead, it’s a term which describes the mathematically guaranteed advantage the casino has over players in the long run.
Ever heard the expression The house always wins? That’s because it has the house edge in its arsenal. It’s an unfair advantage, for sure, but with a bit of luck and the right strategy, you can still win against the casino. The problem is that some players push their luck, and that’s where the house edge kicks in.
The casino house edge refers to the mathematical advantage that a casino has over players in a particular game. It is represented as a percentage and represents the average amount of each bet that the casino expects to retain as profit in the long run.
The house edge is determined by the rules and probabilities of the game. It is designed to ensure that the casino has an advantage and makes a profit over time. The higher the house edge, the greater the advantage for the casino.
How to Calculate Casino House Edge?
Calculating the exact casino house edge can be complex, as it varies depending on the specific game and its rules. However, the general formula for calculating the house edge is as follows:
To calculate the total amount lost by players, you would multiply the probability of losing each bet by the amount wagered on that bet. Sum up the losses for all possible bets to get the total amount lost.
For example, if a game has a 2% house edge, it means that, on average, players will lose $2 for every $100 wagered. Keep in mind that the house edge is a long-term statistical average, and it doesn’t guarantee individual results.
Short-term outcomes can still vary widely. It’s important to note that different casino games have different house edges, and some games may have strategies that can slightly reduce the house edge. It’s always a good idea to familiarize yourself with the specific rules and odds of the game you are playing to make informed decisions.
Casino Games with Highest House Edge
While every game presents its own allure and excitement, it’s essential to recognize that not all games are created equal in terms of their inherent odds. Having said that, let us shed light on the casino games with the highest house edge.
1. Slot machines
With their high house edge ranging from 2% to 15% or more, slot machines are designed to favor the house. Despite the allure of life-changing jackpots, you should approach these spinning reels with caution, recognizing that your chances of walking away victorious are slim.
2. Keno
Keno, a game of luck that has enthralled gamblers for centuries, presents an irresistible blend of simplicity and anticipation. Yet, its charm conceals a sky-high house edge, often hovering around 20% or more. With long odds and limited player control, Keno exemplifies the adage that fortune favors the house. While the prospect of striking it rich remains enticing, you should approach this game with a realistic understanding of the odds stacked against them.
3. American roulette
American Roulette stands out as a game with a notoriously high house edge. The addition of the double zero on the wheel elevates the house advantage to approximately 5.26%. While the allure of the spinning wheel and the thrill of the bouncing ball might captivate you, it’s important to remember that the odds are firmly in the house’s favor.
Casino Games with Lowest House Edge
What are the games with the lowest house edge? Let’s take a look at them below.
1. Blackjack
Blackjack is a skill-based game and one with the lowest house edge. While it can vary, it’s always around 1%, which is pretty favorable when compared to roulette. The best part is that by applying a basic blackjack strategy you can drop it as low as 0.28%.
2. Roulette
European roulette (and French) has a house edge of 2.7%. This one can’t be lowered or adjusted due to the zero pocket on the wheel. American roulette has two of these pockets and a high house edge of 5.26%.
3. Baccarat
Baccarat has only three outcomes, and two of them have a relatively low house edge. The banker bet is a player’s favorite thanks to the 1.06% edge. If you bet on the player, the house edge is 1.24%, while the bet you should avoid—draw—has a high house edge of 14.36%.
Casino House Edge FAQs
Yes, it is and it should be. For example, the general average for European and American roulette is 2.70% and 5.26% respectively. Unless you’re playing an exotic variant of the game, you shouldn’t settle for any other number. If the house edge is wrong, you’re likely to be a victim of a scam.
No, they aren’t. RTP stands for return to player percentage and is most often used in slots descriptions. For example, an RTP of 96% which is the average means you may get $96 back for every $100 you bet. It’s not an automatic assumption, though; that’s the expected return to rate in the long run, so you could lose a $100 bet on a single slot game.
Yes and no. If you play blackjack and similar skill-based games with a strategy, you can drop the house edge lower. But, luck-based games’ house edge is usually set in stone. No matter how much you win, you will probably lose on the next sitting, and that’s how the casino always wins.
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